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Interest Rates Employee Benefits

McDermott Will & Emery

IRS Roundup February 17 – March 14, 2025

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Check out our summary of recent Internal Revenue Service (IRS) guidance for February 17, 2025 – March 14, 2025. Editors’ note: With the change in presidential administrations, the IRS has undergone significant transition...more

Littler

D.C. Circuit Breaks from Second Circuit, Finds Pension Fund May Retroactively Change Its Interest Rate Assumptions

Littler on

On February 9, 2024, the U.S. Court of Appeals for the D.C. Circuit issued its decision in Trustees of IAM Nat'l Pension Fund v. M & K Emp. Sols., LLC, No. 22-7157 (D.C. Cir. Feb. 9, 2024), affirming the district court’s...more

Seyfarth Shaw LLP

National Education Association Retirement Plan Gets Schooled On Withdrawal Liability Interest Rate Assumptions

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Seyfarth Synopsis: Another court has found that actuaries who set discount rates for withdrawal liability purposes that are not based upon their “best estimate of anticipated experience” for investments under the plan—in...more

Fox Rothschild LLP

Interest Rate Hikes Present Challenge for Fully Funded Pension Plans

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After years of historically low interest rates (which results in larger lump sum pension amounts), there have been significant interest rate increases during 2022. Prospects for 2023 are for more of the same. While many...more

Seyfarth Shaw LLP

PBGC Addresses Withdrawal Liability Assumptions For First Time In New Proposed Rule

Seyfarth Shaw LLP on

Seyfarth Synopsis: On October 14, 2022, the Pension Benefit Guaranty Corporation (“PBGC”) published its proposed rule under ERISA Section 4213 (the “Proposed Rule”), which sets forth for the first time the agency’s guidance...more

Fox Rothschild LLP

PBGC Proposes Rule Change for Withdrawal Liability Discount Rates

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In an apparent effort to resolve uncertainty caused by court rulings, the Pension Benefit Guaranty Corporation has proposed that actuaries of multiemployer pension plans should be allowed to use any interest rate for...more

Fox Rothschild LLP

What Employers That Contribute to Multiemployer Plans Receiving 'Special Financial Assistance' Need to Know

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In a prior alert, we detailed how the Interim Final Rule (IFR) from the Pension Benefit Guaranty Corporation (PBGC) regarding the special financial assistance (SFA) provided under American Rescue Plan Act of 2021 (ARPA) would...more

Carlton Fields

Terminal Funding Annuities Smooth Rough Seas for Defined-Benefit Plans

Carlton Fields on

Current volatile market conditions and increasing interest rates are causing defined-benefit plan administrators and sponsors to consider purchasing annuity contracts (often called “terminal funding annuities”) to fund...more

McDermott Will & Emery

Weekly IRS Roundup March 20 – March 26, 2022

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Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of March 20, 2022 – March 26, 2022... March 21, 2022: The IRS issued Revenue Ruling 2022-07,...more

Morgan Lewis - ML Benefits

It’s (Really) Infrastructure Week

President Joseph Biden signed the Infrastructure Investment and Jobs Act (IIJA) into law on November 15, 2021. The IIJA will provide funding to overhaul the country’s physical infrastructure and will serve to give the...more

Bodman

Sixth Circuit Addresses Actuarial Assumptions Regarding Withdrawal Liability

Bodman on

In Sofco Erectors, Inc. v. Trustees of the Ohio Operating Engineers Pension Fund (“Sofco”) (September, 28, 2021), the Sixth Circuit Court of Appeals issued a long awaited decision regarding the appropriateness of interest...more

Akin Gump Strauss Hauer & Feld LLP

Sixth Circuit Weighs In on Multiemployer Plan Withdrawal Liability Assumptions

On September 28, 2021, in Sofco Erectors v. Trustees of the Ohio Operating Engineers Pension Fund, No. 20-3639/3671, 2021 BL 367718 (6th Cir. Sept. 28, 2021), the 6th Circuit Court of Appeals issued the first major appeals...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Sixth Circuit Rules Interest Rate Methodology Selected by Plan Actuary in Withdrawal Liability Calculation Violates ERISA

In a rare victory for employers that participate in multiemployer pension plans, the Sixth Circuit Court of Appeals held that the interest rate memorialized in the Segal Blend actuarial assumption was inappropriate to use in...more

Foley & Lardner LLP

ARPA Funding Relief for Single Employer Defined Benefit Pension Plans

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On March 11, 2021 President Biden signed the American Rescue Plan Act (Public Law 117-2) ("ARPA"). Among its many provisions, the statute contains "funding relief" for single employer defined benefit pension plans. This...more

Foley & Lardner LLP

Congress Provides Defined Benefit Pension Plan Funding Relief

Foley & Lardner LLP on

The American Rescue Plan Act of 2021 (the “ARPA”), which President Biden is expected to sign, provides additional funding relief to sponsors of single-employer defined benefit pension plans. Valuation of Plan Benefit...more

McDermott Will & Emery

Weekly IRS Roundup December 7 – December 11, 2020

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Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of December 7 – December 11, 2020... December 7, 2020: The IRS released TD 9937 related to...more

Proskauer - Employee Benefits & Executive...

Second Circuit Prohibits Retroactive Changes to Withdrawal Liability Interest Rate Assumptions

The Second Circuit Court of Appeals recently issued a withdrawal liability decision of which both multiemployer pension plans and their contributing employers should be aware. Specifically, in National Retirement Fund v. Metz...more

Robins Kaplan LLP

Financial Daily Dose 12.20.2019 | Goldman nearing $2B deal with DOJ to resolve 1MDB scandal claims

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Goldman Sachs is reportedly in negotiations with federal prosecutors to resolve claims about its role in the Malaysian 1MDB scandal for upwards of $2 billion. A settlement—which “could include a guilty plea from Goldman’s...more

McDermott Will & Emery

Weekly IRS Roundup January 28 – February 1, 2019

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of January 28 – February 1, 2019. January 28, 2019: The IRS issued Revenue Ruling 2019-04,...more

Neal, Gerber & Eisenberg LLP

Employee Benefits Alert

Use of Forfeitures for Safe Harbor Contributions, QNECS and QMACS - The Internal Revenue Service (IRS) recently issued final regulations allowing forfeitures in 401(k) plans to be used to fund safe harbor contributions,...more

Fox Rothschild LLP

The Unintended Consequence Of Rising Interest Rates: Overfunded Defined Benefit Plans

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While many in the employee benefits community have sounded the death knell for defined benefit plans in recent years, there is some mounting evidence that their prediction has been premature. While corporate America has...more

Robins Kaplan LLP

Your daily dose of financial news - The Brief – 6.10.16

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More thoughts on the Department of Labor’s new retirement adviser fiduciary duty standard, including questions about the “grassroots” movement the US Chamber of Commerce is claiming to support its opposition to the standard....more

FordHarrison

Multiemployer Pension Plans - Withdrawal Liability is Mounting

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There are approximately 1,400 multiemployer pension plans and nearly 10 percent are projected to become insolvent within the next 15 years. Plan insolvency will trigger a termination and the assessment of withdrawal...more

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