Cash balance plans
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IRS hybrid plan transition rules criticized
trueSponsors of cash balance plans and other hybrid retirement plans welcomed final rules in September from the IRS but are now criticizing the agency’s proposed transition rules on market rates of return.
Guidance, flexibility offered in cash balance rules
trueCash balance plan sponsors got a compliance road map and added flexibility in picking expected rates of return when final regulations on the hybrid plans were issued by the Treasury Department and Internal Revenue Service.
Washington Post freezes DB plan, switches to cash balance
trueThe Washington Post’s parent company is freezing its defined benefit plan and transferring remaining participants to an existing cash balance plan, effective Jan. 1, 2015. The company is also offering a lump-sum option for all defined benefit participants.
IRS, Treasury release final hybrid plan rules
trueThe Treasury Department and the IRS finalized regulations for hybrid retirement plans such as cash balance plans that have been pending since 2010.
Kodak moves all employees to single cash balance plan benefit formula
trueEastman Kodak Co., Rochester, N.Y., is moving all of its U.S. employees to a cash balance plan with a single pension benefit formula, effective Jan. 1.
Herman Miller folds up cash balance plan
trueHerman Miller Inc., Zeeland, Mich., has completed the termination of its cash balance plan following a group annuity buyout.
Allstate's cash balance changes cause retirement rush, costing up to $125 million in Q4
trueAllstate Corp. is expected to report a fourth-quarter settlement charge of $100 million to $125 million from increasing unrecognized pension benefit costs.
Louisiana Supreme Court: Cash balance plan law unconstitutional
trueThe Louisiana Supreme Court struck down as unconstitutional a recent law establishing a cash balance plan for some employees of three of the state's pension plans.
Cash balance plans challenge 401(k) plans but require intelligent investing
trueCash balance plans are the fastest growing of the defined benefit pension plan universe and could become as numerous as 401(k) plans within the next few years. But while the benefits of plan portability, reduced longevity and investment risks, and improved legal clarification are deservedly ...
Kentucky lawmakers approve pension reform bill
trueThe Kentucky Legislature passed a comprehensive pension reform bill Tuesday night that will create a cash balance plan for members of the $14 billion Kentucky Retirement Systems hired after Jan. 1, 2014.
Louisiana court rules cash balance plan is unconstitutional
trueA Louisiana district court judge on Thursday struck down as unconstitutional a recent law establishing a cash balance plan for some employees in three of the state’s pension funds.
Investing for cash balance plans
trueAs cash balance plans have experienced a rise in popularity, the search for optimal investment allocations has continued.
Libbey to freeze U.S. salaried employees' cash balance plan
trueLibbey Inc. will freeze its cash balance pension plan for U.S. salaried employees, effective Jan. 1, as part of a series of benefits changes to address rising pension costs.
State group challenges constitutionality of new Louisiana cash balance plan
trueThe Louisiana Retired State Employees Association filed a lawsuit against the state of Louisiana, Louisiana Gov. Bobby Jindal and Louisiana State Treasurer John Neely Kennedy, claiming a new cash balance plan for state employees is unconstitutional.
Report shows 21% increase in cash balance plans in 2010
trueCash balance plans continue to grow at a pace higher than other sectors of the retirement plan market, with a 21% increase in the number of plans in 2010, according to a report from Kravitz Inc., a firm that designs and administers cash balance plans.