The Washington Report
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May 15, 2019
Retirement
PBGC Releases New Single-Employer Guarantee Study and Updates 2016 Data Tables
On May 10, 2019, the Pension Benefit Guaranty Corporation (PBGC) released a new Single-Employer Guarantee Study. This comprehensive study examines how well the single-employer guarantee protects pensions of participants in PBGC-trusteed plans. According to the PBGC, the analysis shows that 84% of participants receive their full pension benefit while 16% see reductions. The average cutback is 24% for those who receive a reduced pension. Findings of the new study are broadly comparable and support those of the 2008 study, while broadening the original study’s scope and methodology.
Additionally, the PBGC updated the 2016 Data Tables that provide detailed statistics for PBGC-insured single-employer and multiemployer plans. The tables include data that quantifies the number of people and plans that the PBGC protects, the people receiving or eligible to receive benefits from the PBGC and the benefits paid to them, the funded status of PBGC-protected plans, and other vital statistics.
The Single-Employer Guarantee Study is available here.
The 2016 Data Tables are available here.
The PBGC Pension Insurance Data page is available here.
Other HR/Employment
IRS Releases 2019 Maximum Values for Use With Vehicle Cents-Per-Mile and Fleet-Average Valuation Rules
On May 8, 2019, the Internal Revenue Service (IRS) released Notice 2019-34, which provides the inflation-adjusted maximum value of a vehicle (including cars, vans, and trucks) for 2019 for use with the fleet-average and vehicle cents-per-mile valuation rules, provides information about where this maximum value will be published in the future, and provides flexibility for 2018 and 2019 in the consistency requirements in the existing regulations relating to use of the fleet-average and vehicle cents-per-mile rules. Sections 1.61-21(d) and (e) of the Income Tax Regulations provide special valuation rules for employers to use in determining the amount to include in employee income for personal use of employer-provided vehicles. However, employers can only use these rules for vehicles with fair market values that do not exceed a maximum value that is adjusted for inflation each year under Section 280F.
IRS Notice 2019-34 is available
here.
Aon Publications
Now Available: Retirement Legal Consulting & Compliance Quarterly Update
The Retirement Legal Consulting & Compliance practice is pleased to present its Quarterly Update of recent legal developments for the second quarter of 2019. In this issue you will find the following articles:
- Lump Sums for Retirees Back on the Table
- Wealth and Health Savings
- Delegate Aon to Serve as the Administrative Fiduciary
- Actuarial Equivalence Litigation—A Continuing Update
- Managing Fiduciary Risk and Optimizing DC Plan Performance
- Higher Education 403(b) Plan Litigation Update
- Quarterly Roundup of Other New Developments
The second quarter 2019 issue of the Retirement Legal Consulting & Compliance Quarterly Update is available here.