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."
This whitepaper, written by Phil Blancato, President and CEO of Ladenburg Thalmann Asset Management, provides in-depth analysis on the use of leading economic indicators in...
Why do we make decisions that aren’t always in our own best interest? This group of articles from the Investments & Wealth Monitor takes a...
This collection of articles from IMCA's Investments & Wealth Monitor focus on retirement planning.
Jul 09, 2015
In this session we’ll discuss whether or not factor investing is truly active management, and how to define and test whether a factor exists.
Jun 30, 2015
Join ThinkAdvisor & Wells Fargo in this webcast to learn a dynamic four criteria approach and how to gain portfolio flexibility.
Jun 09, 2015
Join ThinkAdvisor for this live, interactive webcast and hear from the winners of the 2015 SMA Mangers of the Year on impact investing strategies and...