EA2: Early Muted Warnings from Regulators

There is a strict prohibition against any audio or video recording of what goes on at these Enrolled Actuaries meetings and I am not entirely confident that it can even be repeated but here goes.

The rest of this day was spent going to sessions where regulators from the IRS and PBGC offered a combination of helpful links and dire warnings that should really be widely circulated were it not for the fear of the media distortion filter.

  1. IRS has these issue snapshots which are to help field agents but are made public.
  2. Most common error IRS is seeing on exam are cross-tested plans not providing gateway minimums.
  3. PBGC is stepping up with a voluntary missing participant program for plans it does not cover.
  4. PBGC looks for possible problems with single-employer plans based on public information (news media reports) and finds 300 annually of which 100 they review and about 5 get settlement agreements – listed here.
  5. PBGC lawyers are working on the church plan thing but my question about what their official position would be was not answered.
  6. PBGC has a multiemployer data book
  7. PBGC multiemployer program is headed for insolvency by 2025 and carving out the Teamsters plans (Central States, 560, 641) will not stave it off as they are only 60% of the problem with the other 40% big enough to sink the program. The charts (coming when I get to a scanner) predict that the PBGC multiemployer program will go under before Central States does so it is those other plans (Local 707 went under this year and more are predicted starting in 2020) that will do PBGC in.

 

 

8 responses to this post.

  1. Posted by NY on April 3, 2017 at 11:44 pm

    Thx John for keeping it real: This and the earlier post today are *very* interesting

    Reply

  2. Posted by Sandy Rich on April 4, 2017 at 5:33 am

    Thank you for posting your observations and the information.

    Reply

  3. Posted by Seesaw Junior on April 4, 2017 at 12:08 pm

    This was seen coming down the pipeline 30 years ago, but even KNOWING it was coming does not prepare anyone for the reality of it. It is downright terrifying and SCARY!
    PBGC multiemployer program is headed for insolvency by 2025 and carving out the Teamsters plans (Central States, 560, 641) will not stave it off as they are only 60% of the problem with the other 40% big enough to sink the program. The charts (coming when I get to a scanner) predict that the PBGC multiemployer program will go under before Central States does so it is those other plans (Local 707 went under this year and more are predicted starting in 2020) that will do PBGC in.

    Reply

  4. Posted by Anonymous on April 4, 2017 at 3:33 pm

    Quoting from the Legislative summary of the S3040/A99 Bills to turn over Local Police & Fire pensions to their Unions …………

    “The bill provides the board of trustees with authority to modify the system’s member contribution rate; cap on creditable compensation; formula for calculation of final compensation; and standards for special retirement and disability retirement. The bill allows the board to reinstate cost of living adjustments for retirees.”

    Given the ludicrously generous and hence costly level of CURRENT Police/Fire pensions as well as the historical level of insatiable greed and this Unions To-Hell-With-The-Taxpayer attitude, if proposing (let alone passing) this bill is not the definition of insanity, I don’t know what else it.

    God help NJ is this bill become Law.
    ************************************************

    John, If you don’t see this, you’re have a massive brain-freeze.

    Reply

    • Posted by Anonymous on April 4, 2017 at 3:46 pm

      TL it’s JB’s blog to report and conclude as he wants. Go start your own blog if you want but don’t force your opinions down his/our throats! You, DD, and yours keep enjoying those posh military pension and benefits available after 20 years of service at any age!

      Reply

      • Posted by Anonymous on April 4, 2017 at 5:36 pm

        No one is “forcing” anything , simply my “opinion”, and given Mr. Bury understanding of pensions (INCLUDING the current unfair generosity relationship between Public and Private Sector pensions), and the greed and indifference of Public Sector Unions to taxpayers, I find it incredulous that he find little problem with S3040/A99.

        Reply

  5. […] If there was an underlying theme to the 2017 Enrolled Actuaries meeting it was uncertainty – as to what the tax laws will be and how the current laws would be interpreted and regulated. From session 701: Dialogue with the IRS/Treasury here are my notes on issues not previously covered: […]

    Reply

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