Monthly Archives: November 2011

Steering Clear of Pension Benefit Restrictions

November 25, 2011 – 11:44 am

Negative asset performance and declining valuation interest rates during 2011 will cause some pension plans to face benefit restriction issues for the first time in 2012.   Potential repercussions include limits on accelerated distributions (lump sums), restrictions on plan amendments increasing the value of benefits, mandatory benefit accrual freezes and restrictions on unpredictable contingent event […]

By Peter Cullen | Posted in Cash balance plans, Defined benefit plans, Private pensions | Tagged , , , , , | Comments (0)

Employers Need to Understand Minimum Profit Sharing Benefits for Frozen/Terminated DB plans

November 9, 2011 – 8:44 am

Freezing or terminating a defined benefit (DB) pension plan can have unforeseen implications for a company’s profit sharing plan. This is especially true if the plans are top-heavy or rely on IRS cross-testing methods (e.g., professional firm cash balance plans). This post explores changes to minimum profit sharing benefits that occur when plan sponsors freeze […]

By Mark Schulte | Posted in 401(k) plan, Cash balance plans, Defined benefit plans, Defined contribution plans, Private pensions, profit sharing plan | Tagged , , , , , , , | Comments (0)
Follow

Get every new post delivered to your Inbox.