For over 50 years, defined benefit pension plans served as the cornerstone to an employer’s retirement program. The 80’s and 90’s saw most plans overfunded, with little to no out of pocket contributions. Life changed in the 2000’s and beyond as the market struggled and…
…a quick journey into how cash balance plans work. Cash Balance Plan Basics A cash balance plan is a defined benefit plan. Defined benefit (DB) plans can be complicated. So, let’s start with a different kind of plan—the defined contribution (DC) plan—and then compare the…
…consultants and a key tool to have in your arsenal. With a Defined Contribution plan, it’s the employees who make many of the contributions and take on the investment risk. Their retirement benefit is their accumulated balance. With a Defined Benefit plan, the employer makes…
Our PENTalk provides an overview of the Pentegra Defined Benefit Plan for Financial Institutions Pension Valuation Process and Results. Included in the PENTalk will be a discussion of: The Multiple Employer Plan Structure Principal Fiduciary Roles and Responsibilities Results for the Plan Year 7/1/2022 –…
…it’s important to note that annual contributions to fund their results are mandatory, not discretionary. A Cash Balance plan is something of a hybrid. It has the mandatory provisions of a Defined Benefit plan, but provides an accumulated balance like a Defined Contribution plan –…
…is the federal government’s latest economic stimulus package and the first under President Biden. Key Items Defined Benefit Single Employer Plan Funding Relief Defined Benefit Multiemployer Plan Funding Relief Impacts to Defined Contribution Plans Update on The Securing a Strong Retirement Act of 2020 (SSRA)…
…gift card. Whatever the incentive, they cannot be paid for with plan assets. The term “de minimis” is not defined; a suggested safe amount is $25. Clarification is needed on whether the amount should be treated as compensation. Plans can increase the cash out limit…
…or the other: Defined benefit (a cash balance plan is a hybrid version) versus defined contribution. While each of these plan types (in their own right) is a great benefit option, the highest levels of contributions, tax deductions and flexibility come when the two plans…
…substantial and predictable from year-to-year. These plans are considered a hybrid between a defined benefit plan and a defined contribution plan. Like many plan designs, they have their own jargon and complexities that sometimes get in the way. That alone may present a real competitive…
…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…