Deals and People November 24, 2014

Mercer Hires Addition to Chicago Office

Gina Gurgiolo has joined Mercer's defined contribution (DC) advisers specialty practice.

 

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Gurgiolo provides operational and investment advisory services to DC plan clients in Chicago and throughout the Midwest. She most recently served as fiduciary services director and senior investment consultant at Plan Sponsor Advisors, and has also held positions at Multnomah Group, Standard Retirement Services, and Great-West Retirement Services.

“We are very pleased to have Gina join our defined contribution advisers practice,” says Charlie Ledbetter, national business leader for Mercer’s DC advisers. “Her considerable experience and track record of success will greatly benefit our clients as we expand our resources in the Chicago and greater Midwest market.”

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Gurgiolo holds a degree in taxation from the University of Denver College of Law, a law degree from the University of Pittsburgh School of Law, and a bachelor of arts degree in English and history from Washington & Jefferson College. In her new role, she reports to Nancy Coletto, partner and Chicago health and benefits practice leader.

Compliance November 24, 2014

PBGC Publishes Final Rule About DC to DB Rollovers

The Pension Benefit Guaranty Corporation (PBGC) is publishing a final rule for transferring defined contribution (DC) plan accounts into a defined benefit (DB) plan.
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The agency says it hopes to encourage people to get lifetime income by removing potential barriers to moving their benefits from DC plans to DB plans. The final rule, slated for publication in the Federal Register November 25, removes the fear that the amounts rolled over would suffer under guarantee limits should PBGC step in and pay benefits.

The Pension Benefit Guaranty Corporation (PBGC) issued a proposed rule in April. At the time, Lonie Hassel, principal at Groom Law Group in Washington, D.C., told PLANSPONSOR, “The rollover rules would only be relevant if the DB plan that DC assets were rolled into was later terminated, did not have enough assets to pay benefits, and was turned over to the PBGC.”

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The proposed rules provide protections for the rollover amounts derived from employee contributions from PBGC maximum benefit limitation rules. First, explained Hassel, when a plan terminates, the PBGC has a maximum benefit above which it will not pay. For plans terminating in 2014, that’s about $59,000 per year for a single-life annuity for a participant at age 65. The rollover benefit derived from employee contributions is not subject to that maximum, she said.

In addition, there is a five-year phase-in rule that says generally, if DB benefits have been increased in the five years before termination, the increase will be phased in over five years after termination. That does not apply to the rollover benefit derived from employee contributions, said Hassel.

Text of the final rule is here.

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