…pension plans can finance new benefits at a lower cost. Defined Benefit vs. Defined Contribution Plans Providing the same level of benefits under both Defined Contribution (DC) plans and DB plans is less costly under DB plans, as excess investment returns offset employer costs. DC…
For over 50 years, defined benefit pension plans served as the cornerstone to an employer’s retirement program. The 80’s and 90’s saw most plans overfunded, with little to no out of pocket contributions. Life changed in the 2000’s and beyond as the market struggled and…
…consultants and a key tool to have in your arsenal. With a Defined Contribution plan, it’s the employees who make many of the contributions and take on the investment risk. Their retirement benefit is their accumulated balance. With a Defined Benefit plan, the employer makes…
Our PENTalk provides an overview of the Pentegra Defined Benefit Plan for Financial Institutions Pension Valuation Process and Results. Included in the PENTalk will be a discussion of: The Multiple Employer Plan Structure Principal Fiduciary Roles and Responsibilities Results for the Plan Year 7/1/2022 –…
…that fiduciaries managing defined contribution plans are permitted to invest across all asset classes, and do not have to limit themselves to stocks and bonds. The sponsors of the bill are concerned that defined contribution plan fiduciaries are often too cautious to invest in alternative…
…the two year period ended March 2013. Significant growth is again expected in the next 12 months. OCIO services are offered to all manner of institutional clients: corporate defined benefit and defined contribution plans, public plans, endowments and foundations, banks, thrifts, and insurance companies. The…
…it’s important to note that annual contributions to fund their results are mandatory, not discretionary. A Cash Balance plan is something of a hybrid. It has the mandatory provisions of a Defined Benefit plan, but provides an accumulated balance like a Defined Contribution plan –…
…is the federal government’s latest economic stimulus package and the first under President Biden. Key Items Defined Benefit Single Employer Plan Funding Relief Defined Benefit Multiemployer Plan Funding Relief Impacts to Defined Contribution Plans Update on The Securing a Strong Retirement Act of 2020 (SSRA)…
…gift card. Whatever the incentive, they cannot be paid for with plan assets. The term “de minimis” is not defined; a suggested safe amount is $25. Clarification is needed on whether the amount should be treated as compensation. Plans can increase the cash out limit…
…substantial and predictable from year-to-year. These plans are considered a hybrid between a defined benefit plan and a defined contribution plan. Like many plan designs, they have their own jargon and complexities that sometimes get in the way. That alone may present a real competitive…