A Congressional proposal has been introduced that would “severely reduce the attractiveness of cross-tested plans” according to the American Society of Pension Professionals & Actuaries. Cross-tested plans can be used to provide different defined contribution allocations to different groups of employees. Often cash balance plans are aggregated with a defined contribution plan and cross-tested for [...]
Under GASB 45 accounting rules, there are many technical terms. One of these is the Annual Required Contribution (ARC). I often get questions from clients regarding the “meaning” of the ARC, so I thought that I’d give a quick and simplified explanation. Background: GASB 45 rules create a method for public employers to accrue OPEB [...]
Just ran across this, in Consumer Reports of all places. It’s about the new DB(k) plan, a 401(k)/defined benefit combo that came in as part of the Pension Protection Act of 2006 (PPA), first available in 2010. We’ve never thought the DB(k) would have much appeal, but what do we know? I thought cash balance [...]
GASB 45 covers a variety of OPEB (Other Post Employment Benefits) such as retiree medical, dental, and vision benefits. Although retiree medical insurance gets most of the attention and generally has some of the largest liabilities, dental coverage has the potential to create a significant liability too. Just as with retiree medical benefits, retiree dental [...]
