January 19, 2011 – 2:57 pm
$1 billion of the original $5 billion has now been paid out under the Early Retiree Reinsurance Program (ERRP), according to an article this month in Business Insurance. We’ve been watching the ERRP since its inception (posts 1, 2, 3, 4), and didn’t think the $5 billion allocation would last long. A July 2010 EBRI […]
January 13, 2011 – 8:56 am
Over the past couple of weeks we’ve been previewing some issues that pension plan sponsors may encounter during 2011 (e.g., increases in Annual Funding Notice liabilities and PBGC variable rate premium increases). This post highlights several items that plan sponsors should be aware of as they gear up for their 2011 pension funding valuations. These […]
January 5, 2011 – 1:21 pm
As we mentioned in our blog post yesterday, the segment interest rates used for PBGC purposes are historically low right now. The previous post provided details of how this could affect the liabilities reported in the 2010 Annual Funding Notice to participants. This post highlights the impact on plan sponsors’ PBGC variable rate premiums (VRPs) […]
January 4, 2011 – 3:26 pm
For calendar year pension plans, the Annual Funding Notice (AFN) to participants is due no later than April 30, 2011. One potential issue with this year’s notice is the impact of low interest rates on the liabilities disclosed in the document. There are two interest rates that affect liabilities in the AFN: – PBGC segment […]
