More retirement-related regulatory news for plan sponsors, including links to detailed information.
BLS charts workers’ access to defined contribution retirement plan
In March 2018, 51% of private industry workers had access to only defined contribution (DC) retirement plans through their employers. An additional 13% had access to both defined benefit (DB) and defined contribution retirement plans at their workplaces, while 4% of private industry workers had access to only defined benefit retirement plans.
To learn more, click here.
Final Rule on owner-participant changes to guaranteed benefits and asset allocation
The Pension Benefit Guaranty Corporation (PBGC) is amending its regulations on guaranteed benefits and asset allocation. The PBGC Final Rule contains amendments that incorporate statutory changes to the rules for participants with certain ownership interests in a plan sponsor.
The rule amends PBGC’s benefit payment regulation by replacing the guarantee limitations applicable to substantial owners with a new limitation applicable to majority owners. Additionally, this final rule amends PBGC’s asset allocation regulation by prioritizing funding of all other benefits in priority category 4 ahead of those benefits that would be guaranteed but for the new limitation. The rulemaking also clarifies that plan administrators may continue to use the simplified calculation in the existing rule to estimate benefits funded by plan assets. Finally, it provides new examples to aid in implementation.
To read the entire final rule, click here.