Defined benefit (DB) plan sponsors have been contemplating various pension de-risking solutions more seriously than ever. Some plan sponsors have the preconceived idea that annuities are “too expensive.” But many plan sponsors have not considered, and have not measured, the true economic cost of their defined benefit pension plans. To further investigate the concept of accounting cost vs. economic cost, Alison Cooke Mintzer, editor-in-chief of PLANSPONSOR, spoke with Russ Proctor and Marty Menin, both directors of institutional sales at Pacific Life. They explained the difference between these two types of costs.
With the aging and impending retirement of the Baby Boomers the retirement plan industry’s attention is shifting from accumulation to decumulation. “This all comes out of the fact that the number one question and fear for a lot of people is, ‘Am I going to have enough money in the 401(k) to support myself for a lengthy retirement?’” explains Tim McCabe with Stadion Money Management.
Chalk this up as one for “Ripley’s Believe It or Not!” The employees of some well-known financial firms have sued their employers for placing their own company’s proprietary mutual funds in their 401(k) plans.
The Employee Retirement Income Security Act generally requires that plan participants get copies of plan documents when requested. However, there is even an enforcement provision of ERISA that subjects the administrator to penalties if they fail to provide requested documentation.
by Thomas E. Clark Jr. – April 14, 2014 On Friday April 11, 2014 the parties in Healthcare Strategies v. ING Life Insurance and Annuity Co. filed a motion indicating they have settled their lawsuit and are now seeking approval of the district court. In total, ILIAC agreed to pay $14,950,000 in damages and agreed to significant changes to its business …