What’s the Effect of 2022 Retirement Plan Limits?

After years or relatively low and stable inflation, the 2022 retirement plan benefit limits just announced in IRS Notice 2021-61 stand apart with a notable increase due to the higher inflation seen over the last few months. Broadly speaking, the limit increases will lead to higher qualified plan benefits for highly-paid employees while increasing tax-deferred […]Read More… from What’s the Effect of 2022 Retirement Plan Limits?

ARPA Pension Funding Relief – Don’t Forget the Elections!

By now most single-employer pension plan sponsors know of the significant minimum required contribution relief in the American Rescue Plan Act of 2021 (ARPA). These include (1) extending the length of time for paying down unfunded liabilities and (2) adjusting the interest rates used to calculate liabilities and payment amounts. However, the default timing of […]Read More… from ARPA Pension Funding Relief – Don’t Forget the Elections!

What’s the Effect of 2021 IRS Retirement Plan Limits?

IRS Notice 2020-79 just announced the 2021 retirement plan benefit limits and there are minimal changes since 2020. However, even static IRS limits have implications for employer-sponsored retirement plans. Here is a table of the main limits, followed by our analysis of the practical effects for both defined contribution (DC) and defined benefit (DB) plans. […]Read More… from What’s the Effect of 2021 IRS Retirement Plan Limits?

What’s the Effect of 2020 IRS Retirement Plan Limits?

IRS Notice 2019-59 just announced the 2020 retirement plan benefit limits and there are many changes since 2019. What does it all mean for employer-sponsored retirement plans? Here is a table of the main limits, followed by our analysis of the practical effects for both defined contribution (DC) and defined benefit (DB) plans.      […]Read More… from What’s the Effect of 2020 IRS Retirement Plan Limits?

Pension Lump Sums Less Expensive in 2019

Lump sum windows and other pension risk transfer strategies continue to be popular among many defined benefit (DB) pension plan sponsors. Paying lump sums to terminated vested participants can reduce long-term plan costs and risks by permanently eliminating these liabilities. However, the cost of the lump sum payments is heavily influenced by the underlying interest […]Read More… from Pension Lump Sums Less Expensive in 2019

What’s the Effect of 2019 IRS Retirement Plan Limits?

IRS Notice 2018-83 just announced the 2019 retirement plan benefit limits, and there are many changes since 2018. What does it all mean for employer-sponsored retirement plans? Here is a table of the primary benefit limits, followed by our analysis of the practical effects for both defined contribution (DC) and defined benefit (DB) plans. Qualified […]Read More… from What’s the Effect of 2019 IRS Retirement Plan Limits?