Full-Service Law Firm solving complex challenges through bold thinking, precise execution, and shared purpose.

Full Service Law Firm | Michael Best & Friedrich LLP

Specializing in the Intersection of Business &amp; Government

Meet our team of trusted advisors, strategic thinkers, and community builders dedicated to client success.

Learn about our full-service legal and business solutions, designed to address complex challenges for leading organizations across industries.

Access thought leadership, news, and resources to stay informed about the latest trends, legal developments, and industry innovations.

Discover how partnership, bold thinking, and precise execution drive results for clients nationwide.

Explore how our national reach and local expertise support clients across the United States and beyond.

Grow at a firm designed to bring out your best.

<p>Recent retirement plan legislation mandated that the United States Department of Labor (DOL) review its nearly 30-year-old guidance on the fiduciary standards applicable under the Employee Retirement Income Security Act of 1974 (ERISA) when selecting an annuity provider for a defined benefit plan (think old school pension). This guidance mandate comes at a time when the challenging equity and bond markets of 2022 could have hamstrung pension plans. However, in some circumstances, these plans "saved" by rising interest rates as well as certain liability driven investment strategies. In a nutshell, higher interest rates mean lower lump sum valuations (meaning it may be less expensive to pay out lumps for the same benefit in 2023 as compared to 2021 despite the challenging investment climate leading into 2023).</p><p>The DOL recently issued a 36-page memorandum ("consultation paper") detailing its understanding of current guidance as well as its assessment of current trends and issues impacting stakeholders. Section 6 of the DOL's consultation paper sets forth the 13 primary issues raised by stakeholders.  </p><p>What's clear is that in the current high-interest rate environment, many employers (including those with historically underfunded pension plans), may be vetting a variety of de-risking options (including pension risk transfers) to "take advantage" of the enhanced funding and decrease balance sheet liability and PBGC premiums in advance of new DOL guidance. While the consultation paper is not law—or even sub-regulatory guidance—it might still be helpful to pension plan fiduciaries considering a de-risking option to ensure that those fiduciaries are considering the trends highlighted by the DOL. Final guidance remains months away.... </p><p>The full DOL consultation paper can be viewed <a href="https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/about-us/erisa-advisory-council/eac-consultation-paper07142023-r.pdf" rel="noopener noreferrer" target="_blank">HERE</a>.</p><input type='hidden' id='passle-remote-hosting-tracking-shortcode' value='102ijn9'/><div class="passle-featured-image passle-featured-image-position-bottom"><img src="https://images.passle.net/fit-in/400x400/filters:crop(0,118,2396,1342)/Passle/5f6edd8e8cb62a0bec3e5fd2/SearchServiceImages/2023-07-17-18-38-50-777-64b58abaad0a39c3886c50b0.jpg" alt="Featured Image" /></div>

DOL Requests Input from ERISA Advisory Council on Pension Risk Transfers – Signals Majors Issues Under Consideration

Related People

You may also be interested in these

Michael Best Recognized in BTI Client Service A-Team 2026

Drafting Under Fire: Cases Shaping IP Licensing and Enforcement Rights

Five Real Estate Trends Organizations Need to Know Right Now

Related People

You may also be interested in these

Michael Best Recognized in BTI Client Service A-Team 2026

Drafting Under Fire: Cases Shaping IP Licensing and Enforcement Rights

Five Real Estate Trends Organizations Need to Know Right Now

Slide Menu

Slide Search