More retirement-related regulatory news for plan sponsors, including links to detailed information.
Social Security announces 1.6% COLA increase for 2020
The Social Security Administration announced a 1.6% cost-of-living adjustment (COLA) for benefits payable starting in 2020. For 2020, the Social Security taxable wage base will increase to $137,700, up from $132,900 in 2019. The Social Security Old-Age, Survivors, and Disability Insurance (OASDI) tax rate will remain at 6.2% on wages up to the $137,700 wage base.
For more information, click here.
PBGC releases 2018 Actuarial Report
The Pension Benefit Guaranty Corporation (PBGC) published the 2018 Actuarial Report containing a summary of the results of the September 30, 2018, actuarial valuation. The agency calculated and validated the present value of future benefits for both the single-employer and multiemployer programs and of non-recoverable future financial assistance under the multiemployer program.
To read the entire report, click here.
PBGC announces the 2020 premium rates
The PBGC has determined the premium rates for single-employer and multiemployer plans applicable for 2020 plan years in accordance with the indexing rules provided in section 4006 of ERISA.
To see the updated premium rates, click here.
PBGC posts 2017 pension insurance data tables
The PBGC published the first installment of the 2017 data tables, which include statistics for PBGC’s single-employer and multiemployer programs and for the private defined benefit pension system. This installment provides detailed information about PBGC’s single-employer program, including claims activity, financial position, premium revenue, benefit payments, and administrative expenses.
To see the pension insurance data, click here.
Proposed rule on contribution limits applicable to ABLE accounts issued
The Internal Revenue Service (IRS) issued a proposed rule related to section 529A of the Internal Revenue Code, which allows a state (or its agency or instrumentality) to establish and maintain a tax-advantaged savings program under which contributions may be made to an ABLE account for the purpose of paying for the qualified disability expenses of the designated beneficiary of the account.
Section 529A was amended by the Tax Cuts and Jobs Act, signed into law on December 22, 2017. The 2017 Act allows certain designated beneficiaries to contribute a limited amount of compensation income to their own ABLE accounts.
To read the entire proposed rule, click here.