The Internal Revenue Service (IRS) recently issued regulatory guidance on defined benefit pension plans that provides some needed relief for DB plan sponsors. Citing the March 2009 edition of the IRS Employee Plan News, the American Benefits Council (ABC) says the guidance "allows companies to uses the spot yield curve (used for measuring pension assets and liabilities) for 2009 without regard to what they used in prior years and clarifies that the yield curve can be used for any 'applicable month' rather than the month preceding the plan year (as had previously been suggested in proposed regulations)." These rules, ABC says, now conform to the funding procedures required under the Pension Protection Act of 2006. At a time when many sponsors are facing huge funding obligations as a result of the economic downturn, this IRS guidance is welcome news, said James Klein, ABC's president, in a prepared statement. Klein said that in the short run, "this guidance will allow many employer plan sponsors to more reasonably measure the value of their pension plan liabilities into the future while continuing to ensure that these plans will be fully funded and provide all promised benefits." In the longer view, Klein continued, "additional guidance and legislation are still critically needed to prevent this pension funding crisis from causing more job loss, slowing growth and hindering economic recovery."
ThinkAdvisor's TechCenter is an educational resource designed to give you a competitive edge by keeping you abreast of new tech innovations and need-to-know information that can be applied to your business.
STP can be described as electronically capturing and processing transactions in one pass, from the point of first 'deal' to final settlement.
This complimentary report discusses those powerful benefits in detail along with a wide range of planning applications.
By creating an informed, well-thought-out business plan, you can navigate today’s challenges and set a course toward growth.
Mar 21, 2017
Americans are living longer and healthier lives, and these added years can create new challenges for retirement income planning.
Feb 07, 2017
The DOL fiduciary rule is quickly approaching the first compliance date, effective April 10th, with full implementation starting January 1, 2018. Is your business on...
Jan 31, 2017
For many, the New Year means new technology being implemented at the practice. One of the biggest challenges facing advisory firms today is getting the...