There were four items that were brought to my attention today that this readership may find of interest:
- AMT16 mortality table being out
- Abbott requirements triggering New Jersey pension crisis
- Status report on the COLA case from NJTV
- The Clintons say they want good pensions and healthcare for all – but when it comes to their own employees…
AMT16 Ignores SOA’s RP-2014
The heading pretty much says it all but for those of you who may need a bit of a reminder the Society of Actuaries came up with an updated mortality table with longer life expectancies that they were expecting the IRS would incorporate into the tables they put out impacting pension funding and payout amounts. IRS may do it but not in 2016.
The Role of Abbott Funding in NJ’s Pension Crisis
Former NJ Supreme Court Justice on where the COLA case is headed
Clinton Foundation Employees Walmarted
A client called wondering how well Hillary Clinton’s employees fare in regard to pension and health insurance benefits so we did a little research. The Clinton Foundation website lists:
Health Plan — The Foundation offers hospitalization and medical coverage for employees and their spouses and dependent minor children. The Foundation pays 100% of employee, spouse and minor dependent health insurance costs. Dental coverage is also available for employees and their eligible dependents.
Flexible Spending Account — A Flexible Spending Account is offered that can provide employees a means of reducing their tax burden for eligible out–of–pocket medical expenses.
Retirement — The Foundation offers a tax deductible retirement plan, and will match up to 6% of employees’ salaries that are contributed to such plan.
Life and Disability Insurance — Term Life Insurance and Supplemental Term Life Insurance are available for employees and their eligible dependents. Short-Term and Long-Term Disability Insurance is provided for employees that become totally or partially disabled.
Note: We review our benefits plans and policies on a regular basis and may modify or eliminate benefit plans and policies at any time for any reason.
That is what they tell their employees and the public but what do they tell the government? From their 5500 filings for 2013:
001 – 401(k): immediate eligibility with company match up to 6% of pay. As of 12/31/13 there were 510 active participants, 110 (22%) of whom did not have account balances (ie. did not make 401(k) deferrals). Average 401(k) deferral – $4,800. Average company match: $3,350. Average account balance of all participants: $29,733.
501 -Group: Covers long-term disability, stop loss (large deductible), and accidental death. 264 participants (52% of employees)
502 – Cafeteria: Covers Vision, Accident – Cancer, and Life Insurance. 128 participants (25% of employees)
The Clinton Foundation may provide health and dental benefits outside of a qualified plan but my takeaway from the benefits we do know about:
- No Defined Benefit plan which Hillary Clinton will be championing in her campaign for public employees arguing that taxpayers can afford it (though the Clintons obviously can’t for their own employees).
- Lot of turnover at the Clinton Foundation since of the 510 people they average on staff only half make it long enough to collect benefits under plan 501 and a mere one-quarter make it to 502 eligibility.
- That line about eliminating “benefit plans and policies at any time for any reason.” Is that prosperity and progress for Clinton employees?