Last week, I was fortunate to get to launch a major educational campaign with Governor Terry Branstad in the state of Iowa. While the specifics on the campaign are not important to most of you, you will most likely find what led up to it interesting. Read more
Posts tagged ‘legislation’
Cause and effect is a fairly simple concept that can be applied to almost every decision, action, or in this case, legislative ruling. The Supreme Court’s recent decision, declaring a portion of the Defense of Marriage Act (DOMA) unconstitutional, has received much public attention. However, something that has been less discussed is the ruling’s effect on retirement plans. Read more
Wouldn’t it be nice to have an idea of how much income your retirement savings could deliver when you retire? Well, legislators are looking to make this information available right at your fingertips through The Lifetime Income Disclosure Act.
Details of proposed legislation:
The intent of the bill is to help participants of defined contribution plans understand how their current account balance translates to monthly lifetime income at retirement. In other words, participants would receive a snapshot into their financial future in just one glance.
Plan sponsors of defined contributions plans (subject to the Employee Retirement Income Security Act (ERISA)) would be required to illustrate how a participant’s account balance would translate into guaranteed monthly payments at retirement. The monthly income estimates take into account the participant’s current accrued value of benefits, with no future earnings or contributions assumed in the income calculation.
I recently wrote a blog post for Employee Benefit Adviser. If you didn’t see it there, we are reposting it here on The Principal® blog. Article originally posted at http://eba.benefitnews.com.
There is a movement afoot to put state governments in the business of offering retirement plans to private citizens, which would ultimately eliminate opportunities and siphon business away from financial professionals. Read more
If you’ve attended a Little League baseball game recently, you’ve probably experienced the frustration of watching a young batter watch a perfectly good strike go by and then take a wild swing at a pitch that hits the dirt before it hits the plate. You may find yourself saying under your breath, “Coulda hit that one, or shoulda let that one go by…..”
Maybe plan participants are watching the same type of opportunities go by with their retirement accounts. Read more
What does Kenny Rogers have to do with pension plans? Well, nothing really. But as I sat down to write my LDI blog post, I thought about how many plan sponsors gamble with their pension plan investments.
As I mentioned in earlier posts, the behavior of the stock market has little to do with the way a defined benefit (DB) plan’s liabilities react. Yet many DB plan sponsors make big bets by allocating a large portion of their plan portfolios to stocks— without considering plan liabilities. (After all, “You’ve got to know when to hold ’em, know when to fold ’em.”) Read more