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 and the College for Financial Planning have partnered to bring you a series of helpful educational tools that you can use to take your career to the next level.
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.
A survey of advisors nationwide reveals how the use of ETFs is expanding and what factors are likely to further support this trend.
Your resource for news, research and analysis to help you deliver more effective outcomes to your clients.
Discover the significant advisor opportunities to build stronger client relationships, referrals, and next generation prospects by helping clients tackle estate planning with ease.
Gain insight into what plan sponsors really want
The tactical and structural opportunity in the market’s sweet spot
Sep 28, 2017
Given the unique retirement challenges many women face, there are key considerations and strategies that may help you optimize your female clients’ Social Security.
Sep 27, 2017
Join this complimentary webcast to learn ways to become more proactive.
Sep 21, 2017
Join an engaging discussion, fueled by new research, that reveals consumer and advisor perceptions about market volatility.