Products February 12, 2013

OneAmerica Offers Indexed Investing Solution

February 12, 2013 (PLANSPONSOR.com) – The companies of OneAmerica launched Index(k), an approach to retirement plan construction focused on indexed investing.
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Index(k) was developed in response to an increased focus on management fees, total investment expenses and transparency. The solution will offer plan sponsors a menu comprised of 18 collective trust investment options offered through Wilmington Trust Retirement and Institutional Services Company and managed by BlackRock.   

The investment options include nine of BlackRock’s LifePath target-date investment funds, as well as the stable-value investment option of the American United Life Insurance Company (AUL). Index(k) will be combined with AUL’s service model that supports advisers, plan sponsors and plan participants in all aspects of preparing for a secure retirement through customized communications, education and local personal service.  

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“Index(k) will appeal to the growing number of advisers and retirement plan sponsors who place a greater emphasis on plan health and participant education,” said Bill Yoerger, president of retirement business for the OneAmerica companies.  

The companies of OneAmerica will work alongside Wilmington Trust and BlackRock to position Index(k) as an investment fund strategy option for small and midsized plans.
Compliance February 12, 2013

IRS Announces New Rates for DB Funding Calculations

February 12, 2013 (PLANSPONSOR.com) – The Internal Revenue Service (IRS) issued guidance reflecting changes to pension funding calculations in the Moving Ahead for Progress in the 21st Century Act (MAP-21).
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Notice 2013-11 provides guidance on the 25-year average segment rates that are applied to adjust the otherwise applicable 24-month average segment rates that are used to compute the minimum contribution requirements for single-employer defined benefit (DB) plans.   

Interest rates that are used for purposes of calculating the minimum required contribution are a set of three segment rates. Under MAP-21 (see “Congress Passes Bill with Pension Funding Relief”) these segment rates are adjusted to fall within a specified range that is determined based on a percentage of the average of the corresponding segment rates for the 25-year period ending on September 30 preceding the calendar year that includes the first day of that plan year. Under §430 of the Internal Revenue Code, for plan years beginning in 2013, each segment rate is adjusted so that it is no less than 85% and no more than 115% of the corresponding 25-year average segment rate.

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For later plan years, this range is gradually expanded, so that the segment rates for plan years beginning after 2015 are no less than 70% and no more than 130% of the corresponding 25-year average segment rates.   

Notice 2013-11 is at http://www.irs.gov/pub/irs-drop/n-13-11.pdf.

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