More retirement-related regulatory news for plan sponsors, including links to detailed information.
DOL releases conflict of interest FAQ
The U.S. Department of Labor (DOL) has published “Conflict of Interest FAQs” (408b-2 Disclosure Transition Period, Recommendations to Increase Contributions and Plan Participation). This guidance, like the Fiduciary Rule and related exemptions, is generally limited to advice concerning investments in IRAs, ERISA-covered plans, and other plans covered by section 4975 of the Internal Revenue Code.
To download the FAQ, click here.
PBGC releases annual projections report
According to the FY 2016 Projections Report of the Pension Benefit Guaranty Corporation (PBGC), the insurance program for multiemployer pension plans, which covers more than 10 million Americans, is likely to run out of money by the end of 2025.
Projections for the PBGC’s insurance program for single-employer pension plans, which covers about 28 million people, show that its financial condition may continue to improve. The program is highly unlikely to run out of money in the next 10 years, and is likely to eliminate its deficit within the next three to seven years.
The projections report is the PBGC’s annual actuarial evaluation of its future operations and financial status. The report provides a range of estimates of the future status of insured pension plans and their effect on the PBGC’s financial condition, based on hundreds of different economic scenarios.
To read the entire report, click here.