Pensions

IRS curtails lump-sum payouts in DB plans

The Internal Revenue Service and the Treasury Department have thrown a wrench into the pension de-risking plans of many corporations with new regulations aiming to eliminate the lump-sum payout option for retirees who already are receiving retirement benefits from their defined benefit plans.

By Paula Gladych
Freelance writer

Corporate pensions plans bleeding through falling interest rates

The past year was not a good one for the top 100 corporate pensions, according to research by Towers Watson. Falling interest rates and increased liabilities from updated mortality assumptions combined in 2014 to eradicate most of the gains from the previous year, Towers Watson found. The average funded status of the Towers Watson Pension 100 fell from 89% to 81% in 2014, even though plan assets gained in value. One bright note was that plan sponsors…

By Paula Gladych
Freelance writer

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