Data & Research October 6, 2014

Form 5500 Data Highlights DB to DC Shift

Data from 2012 Form 5500 filings of retirement plans provides evidence of the increasing coverage of employees by defined contribution (DC) rather than defined benefit (DB) plans.
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The number of DB plans slipped in 2012, by 3.4%, according to “Private Pension Plan Bulletin Abstract of 2012 Form 5500 Annual Reports” by the Department of Labor’s Employee Benefit Security Administration (EBSA). The number of active participants in DB plans decreased for the 13th straight year, by 4.2% in the same year.

Meanwhile, although the total number of DC plans declined by 0.8%, the number of 401(k)-type plans rose in 2012, from 513,000 to 516,000. The number of active participants in 401(k)-type plans grew by 3%.

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DC plan contributions increased by 6.9%, to $352.8 billion, and DB plan contributions decreased by 4.8%, to $128.7 billion. Meanwhile, DB plans disbursed $70.4 billion more than they collected in contributions, while DC plans disbursed $19 billion less than they received in contributions.

The number of DB plans that report being fully frozen decreased in 2012, to 10,200, from 10,400 in 2011. The share of DB plan assets in plans that were frozen jumped, from 12% in 2011, to 13.9% in 2012.

Assets for both DB and DC plans increased in 2012. DB plan assets increased 8% to $2.72 trillion, while DC assets increased 11.3% to $4.26 trillion.

The EBSA report is at http://www.dol.gov/ebsa/pdf/2012pensionplanbulletin.pdf.

Deals & People October 6, 2014

Seyfarth Adds Employee Benefits Partner in D.C.

James Napoli has joined Seyfarth Shaw LLP as a partner in the law firm’s employee benefits and executive compensation practice.
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Napoli has more than 20 years of experience counseling employers on various aspects of employee benefit programs, including health care reform implementation and litigation, ERISA litigation and other matters affecting tax-qualified retirement plans. Previously he was co-chair of the Employee Retirement Income Security Act (ERISA) practice group at Constangy, Brooks & Smith LLP. Napoli is based in Washington, D.C.

His practice focuses on advising businesses on executive compensation plans and group health plan issues, as well as retirement plan design, implementation and administration. Napoli also has experience litigating matters involving claims to benefits and breach of fiduciary duty under ERISA. In addition, he negotiates investment management agreements, administrative services agreements, and several other forms of agreements that create relationships between employers, service providers, and ERISA plans.

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A frequent writer and speaker on employee benefit matters, Napoli is a member of the Health and Welfare Task Force of the American Benefits Council, the Employee Benefits Committee of the Labor Section of the American Bar Association and the Steering Committee for the Healthcare Reform Center and Policy Institute. He received his J.D. from the University of Akron School of Law and earned his B.A. at Cleveland State University.

More information on Seyfarth Shaw is available at www.seyfarth.com.

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