“Trust is earned, not given and our team works everyday to earn our client’s trust.”

Quarterly Considerations – 09/30/2014

Plan Sponsors

401K Politics ‐ The Supreme Court is taking on the Edison 401(k) fee case at the urging of the Obama administration. The appeal, filed by Edison International workers, contends that participants should be able to sue plans for retaining imprudent investments.

Higher Premiums ‐ Between 2005 and 2016, the flat dollar portion of PBGC premiums will have increased over 330%. For plans with more liabilities than assets and subject to the Variable Rate Premium, the financial burden will be even greater, according to New York Life.

Frozen ‐ Defined benefit plans have moved from the norm at Fortune 500 companies to all but extinct. In 1998, just more than half offered new hires a DB plan; by 2013, that had fallen to just 7 percent, according to Towers Watson.

Non-Profit Organizations

Inflate ‐ The FY2014 Higher Education Price Index (HEPI) calculation was 3 percent, almost double the 1.6 percent rate for FY2013. This reversed a decelerating trend that began in FY2011 according to Commonfund.

Private Clients

Cyber Threats Increasing ‐ Given the recent headlines regarding stolen financial information from retail stores, banks, and custodians, it is as important as ever to take appropriate steps to protect your data. MPS LORIA takes pride in our efforts to keep client information safe. For additional tips on what you can do to protect sensitive information from being hacked, please contact us for resources.

Year‐End Planning Already? ‐ Whether it’s annual exclusion gifting, required minimum distributions from retirement accounts, or navigating tax loss harvesting and capital gains, we can help you with your financial planning ‘checklist’ to ensure your year‐end items are addressed. Please contact us for this valuable tool.

Property and Casualty – If you haven’t reviewed your P&C insurance recently, now is a good time for an evaluation to ensure adequate and cost-effective coverages.

Read more…

Contact Us