PLANSPONSOR - September - October 2023 - 20

RESEARCH | 2023 DEFINED BENEFIT ADMINISTRATION SURVEY
LIFE
Retirement
I
Defined
benefit plans
continue
to offer the
guaranteed
income
participants
seek
n recent years, the retirement plan industry has increasingly focused
on ensuring plan participants can create an income stream in retirement.
Despite valiant efforts by providers and regulators, income solutions
have not been widely adopted in defined contribution plans.
Although it has been reported that defined benefit plans have gone, or are
going, the way of the dinosaur, even frozen plans offer income opportunities,
and there has been a renewed interest in cash balance plan designs.
The 2023 PLANSPONSOR Defined Benefit Administration Survey
indicates that most of the 22 million participants represented by service
providers surveyed are in frozen (43%) or closed (22%) DB plans. But, in
the DB plan world, frozen does not mean lifeless. There is still work to do
to keep participant data clean and to monitor the fiscal health of a frozen
plan-key areas in which providers can assist.
" Whether large or small, earned benefits from frozen or closed DB
plans can represent a strategically important guaranteed income source
in retirement, " says Joe McCarty, vice president - retirement and income
solutions, with Principal Financial Group in Des Moines, Iowa. " These
guaranteed DB benefits also[, in most cases,] come with protection from
the Pension Benefit Guaranty Corporation, and most offer participants [an
option] that can assist in providing for their survivors. "
Plan sponsors that have frozen their DB plan and supply a DC plan
might fail to recognize the inherent opportunity to improve some of their
DC plan participants' retirement income streams. John Lowell, a partner
in consulting firm October Three in Atlanta, cites Revenue Ruling 2012-4,
issued by the IRS in February 2012, which allows for transferring assets from
a DC plan to a DB plan and converting those assets into lifetime income.
The idea was introduced around the turn of the century when Bank of
America wanted to let its DC plan participants move assets to the bank's
DB plan for that purpose. " In [Bank of America's view], there should
be no reason an employee couldn't use his personal DC plan account to
20 PLANSPONSOR.COM September - October 2023
Art by Georgie McAusland
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PLANSPONSOR - September - October 2023

Table of Contents for the Digital Edition of PLANSPONSOR - September - October 2023

INSIGHTS
PARTICIPANT ANALYSIS
RULES & REGULATIONS
UPFRONT
Building Strength
2023 Defined Benefit Administration Survey
2023 Best in Class 401(k) Plans
If the Goal Is Engagement
Upgrading NQDC Plans
When to Amend?
PRTs’ New Notoriety
Continuous Improvement
PLANSPONSOR - September - October 2023 - Cover1
PLANSPONSOR - September - October 2023 - FC1
PLANSPONSOR - September - October 2023 - FC2
PLANSPONSOR - September - October 2023 - Cover2
PLANSPONSOR - September - October 2023 - 1
PLANSPONSOR - September - October 2023 - INSIGHTS
PLANSPONSOR - September - October 2023 - 3
PLANSPONSOR - September - October 2023 - PARTICIPANT ANALYSIS
PLANSPONSOR - September - October 2023 - 5
PLANSPONSOR - September - October 2023 - RULES & REGULATIONS
PLANSPONSOR - September - October 2023 - 7
PLANSPONSOR - September - October 2023 - 8
PLANSPONSOR - September - October 2023 - 9
PLANSPONSOR - September - October 2023 - UPFRONT
PLANSPONSOR - September - October 2023 - 11
PLANSPONSOR - September - October 2023 - 12
PLANSPONSOR - September - October 2023 - 13
PLANSPONSOR - September - October 2023 - 14
PLANSPONSOR - September - October 2023 - 15
PLANSPONSOR - September - October 2023 - Building Strength
PLANSPONSOR - September - October 2023 - 17
PLANSPONSOR - September - October 2023 - 18
PLANSPONSOR - September - October 2023 - 19
PLANSPONSOR - September - October 2023 - 2023 Defined Benefit Administration Survey
PLANSPONSOR - September - October 2023 - 21
PLANSPONSOR - September - October 2023 - 22
PLANSPONSOR - September - October 2023 - 23
PLANSPONSOR - September - October 2023 - 2023 Best in Class 401(k) Plans
PLANSPONSOR - September - October 2023 - 25
PLANSPONSOR - September - October 2023 - 26
PLANSPONSOR - September - October 2023 - 27
PLANSPONSOR - September - October 2023 - 28
PLANSPONSOR - September - October 2023 - 29
PLANSPONSOR - September - October 2023 - 30
PLANSPONSOR - September - October 2023 - 31
PLANSPONSOR - September - October 2023 - If the Goal Is Engagement
PLANSPONSOR - September - October 2023 - 33
PLANSPONSOR - September - October 2023 - 34
PLANSPONSOR - September - October 2023 - 35
PLANSPONSOR - September - October 2023 - Upgrading NQDC Plans
PLANSPONSOR - September - October 2023 - 37
PLANSPONSOR - September - October 2023 - When to Amend?
PLANSPONSOR - September - October 2023 - PRTs’ New Notoriety
PLANSPONSOR - September - October 2023 - Continuous Improvement
PLANSPONSOR - September - October 2023 - Cover3
PLANSPONSOR - September - October 2023 - Cover4
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