More retirement-related regulatory news for plan sponsors, including links to detailed information.
DOL releases additional research papers on investment advice rule
The Department of Labor (DOL) has released the following three research papers on the conflict of interest proposed rule.
IRS issues minimum funding guidance for cooperative, small-employer charity pensions
The Internal Revenue Service (IRS) has released Notice 2015-58, providing guidance on minimum funding requirements and related rules applicable to defined benefit pension plans maintained by groups of cooperatives and related entities and groups of charities.
The guidance applies requirements established by the Cooperative and Small Employer Charity Pension Flexibility Act (CSEC Act, P.L.113-97). The CSEC Act provides a number of rules relating to the minimum funding requirements for certain defined benefit plans maintained by groups of cooperatives and related entities and groups of charities.
To read the entire notice, click here.
EBRI Notes: Improving retirement security through a qualifying longevity annuity contract
A new Employee Benefit Research Institute (EBRI) analysis models two scenarios under which qualifying longevity annuity contracts (QLACs) could be utilized as part of a 401(k) plan. The first scenario would attempt to convert 15 percent of the 401(k) balance with the current employer to a QLAC premium while simultaneously attempting to partially mitigate the risk of purchasing the product when interest rates are low. The second proposal assumes some plan sponsors would be willing to convert the accumulated value of their 401(k) contributions to a QLAC purchase at retirement age on either an opt-in or opt-out basis for the employees.
The full report entitled “How much can qualifying longevity annuity contracts improve retirement security?” is published in the August 2015 EBRI Notes and is available for download here.