Which profitable companies have been the latest to freeze plans?
The freeze on the EPA grants is apparently only temporary. The EPA staff is in the process of reviewing grant programs with Trump’s transition team, according to an internal email obtained by E ...
What happens when a pension plan is frozen?
Jan 24, 2017 · EPA freezes grant programs: reports. ’s Environmental Protection Agency (EPA) has frozen its grant programs, according to multiple reports. EPA grants, which fund among other things cleanup of ...
How many defined benefit plans are hard frozen?
The Department of Finance recognizes that SCRIE and DRIE recipients may have difficulties renewing their enrollment in the Rent Freeze Program due to the COVID-19 pandemic. While SCRIE/DRIE recipients should renew as soon as possible, please note that recipients have an automatic six-month grace period to renew.
How do you amend a retirement plan to avoid a freeze?
2. The plan stops benefit accruals for all active participants, but allows benefits to increase with the growth in participants' wages (“soft-freeze”). 3. The plan stops benefit accruals for some, but not all participants (“partial freeze”). 4. The plan stops service accruals for all active participants and participants stop earning benefits.
What happens after a pension is frozen?
After a pension plan is frozen, it remains subject to the Code's tax qualification requirements.25 These requirements have ongoing implications that will need to be considered at both the plan sponsor and fiduciary levels.
Does a pension freeze affect ERISA?
pension freeze does not automatically reduce a plan fiduciary's ERISA duties. Although many functions relating to a frozen plan are settlor functions, such as the adoption of legally-required amendments, the plan fiduciary continues to be responsible for the administration of the frozen pension and the investment of its assets.23
Do you have to file a 5500 for a frozen pension?
frozen pension must continue to file annual Form 5500 reports until a plan is terminated. As noted earlier, the sponsoring employer must indicate on the Form 5500 as to whether the pension plan is “hard-frozen;” in other words, that no participants are accruing any new benefits under the plan. A frozen pension also remains subject to the disclosure rules applicable to ongoing plans, such as the requirement that updated summary plan descriptions and summary annual reports be provided.21 Further, certain notices relating to the funded status of certain underfunded frozen pensions may also be required.22
When did the pay freeze end?
The pay freeze actually ended in January 2014. At that time, employees received an across-the-board increase of 1%. It was the first across-the-board raise since a 2% increase in January 2010. The freeze did not impact payments such as bonuses, overtime, within-grade increases and promotion pay raises.
Who is Ralph Smith?
He has written extensively on a full range of human resources topics in books and newsletters and is a co-founder of two companies and several newsletters on federal human resources.
Should federal employees worry about freezing?
Some readers have commented that since a freeze is not a certainty, federal employees should not spend time worrying about it and the media should essentially ignore it as it can be upsetting. There is some validity to that argument as worrying about a possible event beyond your control can be a waste of time and energy.
Should I increase my TSP contributions?
For any employee who is not maxing out contributions to the Thrift Savings Plan (TSP), this would be a good time to increase your contributions as you may want or need the money in retirement. Looking at spending habits and making adjustments to lower spending may also be a possibility for some.
Will there be a pay freeze in 2019?
No one knows if there will be a pay freeze in 2019. There is a chance the initiative to freeze pay will never materialize and proposals will quietly disappear without any press release or fanfare.