FEI Weekly

January 24, 2020

Beware the 401(k) blackout and Ford's $2.2B pension plan headache.

Ford's $2.2B Pension Plan Headache

CNBC

Ford Motor expects to take a pretax hit of about $2.2 billion in the fourth-quarter due to contributions to its employee pension plans and retirement benefits. The automaker, in a filing with the SEC, said the loss includes $2 billion associated with pension plans outside the U.S. and $600 million connected to other post-retirement employee benefit plans globally.

3 Accounting Accident-Prone Scenarios

CFO

In all cases of acquisitions, partnering with accounting during diligence (prior to engaging in a transaction) will not only better educate stakeholders on the financial implications of an acquisition but can actually inform how to structure the transaction to meet the desired financial goals and key metrics. Next, where top-line revenue is a key metric and timing is important, the accounting team’s early involvement will be critical to ensure payment plans, incentives, and vendor agreements are structured accordingly. Finally, smart companies (and CFOs) use accounting to advise on lease options (prior to signing) to ensure that leases are structured in a manner that will benefit the company’s critical metrics (or will, minimally, not damage them).

LinkedIn: The 2020s Will Be All About Putting People First

Inc.

LinkedIn's 2020 Global Talent Trends report shows that companies are rethinking their relationship with candidates and employees, treating them with greater empathy to not only attract in-demand talent, but to retain their workforce amid increasing expectations of what employers owe their people. In the words of the report, "The 2020s will be all about putting people first."

Beware the 401(k) Blackout

Forbes

Many people with a 401(k) plan can avoid a blackout period by using what is called an in-service distribution. If you are still employed, determine if your company retirement plan allows for in-service distributions. If you qualify, consider the advantages and disadvantages of potentially rolling over your money to an individual retirement account (IRA), which wouldn’t be affected by a blackout, and also increases the number of investment options available to you.

Learn to Embrace Conflict

LinkedIn

Where there’s conflict, there’s an opportunity to grow. When discontent starts brewing, address the root of the conflict immediately. Learn how to reframe conflict and your teams will run more smoothly. If you have people on opposite sides of an idea, don’t try to rush resolution—as the leader, let things simmer and encourage further debate. By doing this, you’ll encourage people to tap into their passion, fight for their ideas, and engage with opposing opinions in a civil way.