Articles for: Pension
If we freeze our pension and move to a 401(k), how will employees be impacted?
The impact of stopping benefit accruals in a defined benefit (DB) plan and using a defined contribution (DC) plan going forward depends on the employee’s age and years of service [...]
Key words: 401k,Defined Benefit,freeze,Pension
How do you freeze a pension plan?
In order to freeze a pension plan, the plan must be amended to indicate that it is frozen. Such amendment must be completed and signed no later than the effective [...]
Key words: Defined Benefit,freeze,Pension
How much does a change in interest rates affect my plan’s funded status?
That’s a difficult question to answer because there are lots of moving pieces! Interest rates can affect the level of a plan’s benefit liabilities and also affect plan asset values. [...]
Key words: assets,Defined Benefit,funded,interest rate,Pension
What are the minimum contribution requirements of a frozen pension plan?
Some defined benefit plans have been amended to cease benefit accruals. These plans are called “frozen” plans. Although no further benefits accrue under the plan, the plan generally does not [...]
Key words: Defined Benefit,frozen plan,minimum contribution,Pension
What PPA elections are required by employers on an annual basis?
The Pension Protection Act of 2006 (PPA) introduced a myriad of changes to the system regulating defined benefit (DB) pension plans. The changes require DB plan sponsors to make certain [...]
Key words: Defined Benefit,PBGC,Pension,PPA,PPA elections