Archive for the ‘Private Sector Pensions’ Category

Saving Community Newspapers – From Funding Pensions

Community newspapers pine for the 1990s when classified advertising revenue made them cash cows and they all had fully funded Defined Benefit plans using an 8% funding interest rate and 30-year amortizations of any unfunded liabilities.

Congress can’t bring back the revenue stream but they are trying to bring back the 80’s funding rules according to a story in The Virginian-Pilot:

A bill known as the Save Community Newspaper Act of 2018 was introduced last month by Rep. Erik Paulsen, R-Minn., who said it would help independent newspapers “find their financial footing.”

What it will really do is put these single employer plans on the path that self-imposed funding rules have taken multiemployer plans.
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Regulation Removing Regulations (Part 1)

To that end we got Executive Orders 13777 (2/24/17) and 13789 (4/21/17) and this morning the IRS released a proposed regulation to remove 298 obsolete and non-applicable regulations.

There are six pages that apply to pensions and, in that way regulators seem to have of masking what they are doing, there is some work to be done to figure out what would change. We will get to that in the second part of this series but if any of you see anything that stands out, please comment.

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PBGC Claiming Westinghouse MTIA Worthless?

The reporter recently contacted me on this story:

WILMINGTON, Del. (Reuters) – Employees of U.S. nuclear power firm Westinghouse Electric Co LLC, which is bankrupt and reeling from a failed reactor project, got a nasty surprise recently: in the eyes of the U.S. government’s pension insurer, its retirement plan has a massive shortfall.

While bankrupt companies often have big pension deficits, the vast majority flag the underfunding years in advance of filing for Chapter 11. By contrast, the Westinghouse Electric Co Pension Plan, which has about 9,700 participants, appeared fully funded in its most recent report to the Department of Labor in 2015.

That was the question and this is what I found out (and did not find out):

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Clinton-GRAP: The Proposal

Not as catchy as Obama-Care but when the Clinton people, specifically Teresa Ghilarducci, remake the retirement system in this county it will be based on the Guaranteed Retirement Account Proposal which has had a number if incarnations over the years:

The most recent version which could become reality next year has these primary features (as excerpted):

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Actuarial/Political Miscellany

There were four items that were brought to my attention today that this readership may find of interest:

  1. AMT16 mortality table being out
  2. Abbott requirements triggering New Jersey pension crisis
  3. Status report on the COLA case from NJTV
  4. The Clintons say they want good pensions and healthcare for all – but when it comes to their own employees… Continue reading