Structuring Cash Balance Pension Plans: Maximizing Tax Benefits and Limiting Risks
Designing the Cash Balance Benefit Formula, Managing the Interest Crediting Rate with Plan Investment Returns
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will provide ERISA counsel and advisors with a thorough and practical guide to structuring hybrid cash balance pension plans and converting current defined benefit plans to cash balance plans. The panel will detail optimal scenarios for establishing a cash balance plan, identify interest rate and other risks in structuring a plan, and discuss critical features to include in any cash balance plan document in light of recent IRS guidance.
Outline
- Advantages of cash balance plans
- Structure of cash balance plans
- Setting principal credits
- Setting interest credits
- Ideas on plan asset investments
- Timing of distributions
- Special considerations on cash balance conversions
Benefits
The panel will review these and other key issues:
- Funding requirements for cash balance plans
- Ideal profiles for firms contemplating a cash balance plan
- Structuring plan investments to avoid a mismatch between the plan’s interest credits and actual trust returns
- IRS audit targets and areas of concern
Faculty
Mark L. Lofgren
Principal
Groom Law Group
Mr. Lofgren focuses his practice on employee benefits law, specializing in the design and operational issues for... | Read More
Mr. Lofgren focuses his practice on employee benefits law, specializing in the design and operational issues for tax-qualified and nonqualified retirement plan arrangements. He manages the legal work for the retirement plans of employers of all sizes, handling major plan redesign projects, IRS rulings, plan compliance reviews, plan correction issues, participant communication materials, and benefit claim analysis. He works extensively with cash balance plan conversions and ongoing issues related to the regulation, operation, and litigation involving cash balance plans. He also handles many plan mergers and other issues related to the retirement plan implications of corporate transactions. Previously, he practiced as a C.P.A. in the area of business and individual taxation.
CloseAndrew Ferguson, FSA, EA
Altman & Cronin Benefit Consultants
Mr. Ferguson is a Fellow of the Society of Actuaries, an Enrolled Actuary, a Fellow of the Conference of Consulting... | Read More
Mr. Ferguson is a Fellow of the Society of Actuaries, an Enrolled Actuary, a Fellow of the Conference of Consulting Actuaries, and an ACOPA member. He has extensive expertise in the design, valuation and administration of retirement plans, including a specialty in retirement programs sponsored by law firms and other professional service organizations. He is Past President of the San Francisco chapter of the Western Pension, Treasurer of the Governing Board of Western Pension, and was a member of the Leadership Counsel of ACOPA. He speaks regularly at conferences around the country, and has lectured at Stanford’s School of Law.
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