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DOL’s Cybersecurity Guidance Arrives Just in Time

…to just what an issue cybersecurity has become. Information security research firm Cybersecurity Ventures estimates that by 2025, cyberattacks will cost businesses worldwide $10.5 trillion annually. In the meantime, EBSA estimates that, as of 2018, there were 34 million defined benefit plan participants in private…

Portfolio Rebalancing in the Recent Market Environment-Revisited

…their exposure to sudden market downturns-such as in 2008, late 2018 and the first quarter of 2020? A well-known form of adjustment is known as rebalancing. I first posted a blog on this subject in the 2017 Current Thinking. Rebalancing can be defined as reducing…

Partial Plan Termination and the Applicable Period Case Study

…plan or vesting is adversely affected. In a defined benefit plan partial plan termination can occur when future benefits are reduced or ceased. The IRS adopted the 20 percent guideline in Rev. Rul. 2007-43 from a 2004 court case Matz v. Household International Tax Reduction…

The Combination of DB and DC Plans. Why Not Have the Best of Both Worlds?

…to a market-value based formula for additional efficiency and smoothing of contributions. The point is—there are so many plan design choices today to consider and, they continue to evolve. Historically, defined benefit (DB) plans were the dominant retirement benefit offering until 401(k) plans came on…

That’s Why They Invented (Virtual) Erasers

…Significant changes and revisions which may be beneficial to plan sponsors, participants and the retirement plan community. Highlights include: Overpayment correction options: Expanded correction principles to allow plan sponsors to fix operational failures when plan participants or beneficiaries receive payments from defined benefit plans that…

Aligning Plan Design with Client Goals

…need. Plan designs can vary in important ways. For example, depending on the plan: contributions can be discretionary or mandatory. They can favor older employees over younger ones. They can accumulate a balance like a 401k or a promised benefit as in defined benefit plan….

Plan Audits

…prior year. We can help clients navigate the 80/120 rule based on their annual IRS Form 5500 filing information. For purposes of the 100 participant rule, a participant is defined as any employee of the sponsor who is eligible to participate in the plan, AND…

A Different Kind of GoP

…eligible for consolidated filing, plans must: Consist of defined contribution plans Have the same Trustee Have the same Named Fiduciary/Fiduciaries Have the same Administrator Use the same plan year Provide the same investments or investment options to participants and beneficiaries Even so, GoPs will likely…