News

News

Pennsylvania law requires multiple record keepers for 403(b), 457 plans

A new law in Pennsylvania will require school districts sponsoring certain retirement plans to use at least four service providers, which advisers say runs counter to best practices and will perpetuate an environment of higher record-keeping and investment-management fees.

Beginning July 1, school districts will need to have a minimum of four “financial institutions or pension management organizations” (i.e., record keepers) for 403(b) and 457 plans, which are defined-contribution plans for nonprofit and public-sector entities.

Full Article

Read more

Social Security’s Financial Outlook: The 2019 Update in Perspective

The brief’s key findings are:

  • Contrary to media reports, the 2019 Trustees Report shows little change overall:
    • Social Security’s 75-year deficit ticked down from 2.84 percent to 2.78 percent of payroll.
    • Trust fund exhaustion moved out by one year, to 2035, after which payroll taxes still cover about three quarters of promised benefits.
  • This shortfall is manageable, but action should be taken soon to equitably share the burden among cohorts, restore public confidence, and give people time to adjust.
  • The Report did include one noteworthy change: a big improvement in the financial outlook for the Disability Insurance program.

Full Article

Read more

Mayors Score Win in Lawsuit Over Troubled Retirement Plan Endorsement Deal

The U.S. Conference of Mayors for about three years now has been battling in court with a company that previously administered a retirement savings program for city employees that the mayors’ group agreed to endorse in exchange for royalties and fees.

Earlier this month, the mayors took a significant step toward prevailing in that lawsuit. A federal appeals court upheld a jury verdict the conference won at trial last year that called for the company, Great-West Life & Annuity Insurance Company, to pay the organization $8 million.

Full Article

Read more
Top