Fine-Tuning Implementation of the CARES Act
The IRS has issued two notices and a FAQ to clarify how defined contribution (DC) plan sponsors should implement the provisions of the act, touching on required notices, tax reporting, and recordkeeping
Main Street vs. Wall Street
While Wall Street was in celebration mode, much of Main Street continued to suffer. Against the backdrop of stellar asset price performance, rising cases of the virus in the U.S. tempered optimism going into quarter-end
Pandemic Reshapes the Outlook for Farmland Investments
View Newsletter There may never be another global event akin to the COVID-19 pandemic in our lifetimes that more clearly tests the investment thesis for farmland as a component of a diversified institutional investment portfolio. Investors make strategic allocations to farmland for its diversification potential, low correlation to more traditional asset classes, and inflation-hedging properties. […]
How the Fed’s COVID-19 Programs Affected Markets and Investors
Since the start of the COVID-19 pandemic in March, financial markets have experienced levels of disruption not seen since the Global Financial Crisis of 2008. After bid-ask spreads widened dramatically in March across a broad array of fixed income sectors—including off-the-run U.S. Treasuries!—a series of Federal Reserve programs has restored investor confidence and liquidity, and […]
How Investment Managers Are Handling the Pandemic’s Impact
View Survey This month Callan conducted a survey aimed at gauging how investment managers have been coping with the impact of COVID-19 and the subsequent quarantine on their operations, and to gather insights about their plans. As our industry navigates the uncertainty, devastation, and confusion surrounding the pandemic, we found that managers across the globe […]
Our DC Index Had a Noteworthy First Quarter
The Callan DC Index™ tracks roughly 100 defined contribution (DC) plans with about $250 billion in total assets. The Index serves as a proxy for the DC universe and provides plan-related statistics such as asset class prevalence, average allocation figures, and the average number of plan investment options. With our comprehensive perspective on the DC […]
Callan Survey: DC Plan Response to CARES Act Varied by Industry and Recordkeeper
Callan conducted a survey in mid-April to assess what defined contribution (DC) plan sponsors have done in response to the CARES Act and the recent economic turmoil spurred by the pandemic. The survey includes responses from 63 non-government plan sponsors, and in general we found that their actions were primarily influenced by the industry they […]
What Just Happened?
The full return of the economy depends on the confidence that we are safe to resume jobs, travel, consumption, and daily interaction. Until then, the global economy will be hampered in ways we can only partly anticipate; the unmeasurable risk of the global health crisis will dominate for some time
Guidance on Substantial Workforce Cuts and DC Plan Terminations
Employers that reduce their workforce or discontinue defined contribution (DC) plan eligibility for certain employee groups may experience an inadvertent “partial plan termination.” If not properly managed, this event could result in a disqualification of the entire plan. Background A partial plan termination is typically triggered by a distinct event or series of events (e.g., […]
How the Coronavirus Relief Bill Affects DC Plans
The coronavirus relief bill, known as the CARES Act, seeks to address the recent economic tremors stemming from the coronavirus pandemic. Certain provisions look to liberalize loan and distribution availability for certain DC plan participants (i.e., “qualified individuals”). Background The CARES Act was signed into law on March 27. Drafting this legislation was expedited, which […]