Subscribe Now!
Free Daily News, Jobs, Webcasts, Discussions
Display and Distribute
Your Job Openings
COVID-19 News
COVID-19 Webcasts

Featured Jobs

Distribution Specialist

Carpenter Morse Group
(Telecommute / Longwood FL)

Carpenter Morse Group logo

Retirement Plan Consultant

Definiti
(Telecommute / Dallas TX / University Place WA / Spring TX)

Definiti logo

Free Daily News and Jobs

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Mobile App image LinkedIn icon
Twitter icon
Facebook icon

View Coronavirus (COVID-19) News and Resources

<< Older News  |  September 25, 2020

News

All News > Retirement Plan Administration

Get this news and more in our free daily email newsletters.
DOL's Proposed Rule Provides Framework for Employers to Classify Workers as Independent Contractors
Duane Morris LLP Link to more items from this source
[Guidance Overview]
Sept. 24, 2020

"The DOL's newly proposed regulations are intended to provide clarity to employers by adopting a simplified model framework for determining independent contractor status under the 'economic realities' test. The economic realities test, which often has been used by courts deciding worker classification issues, generally considers whether a person performing services for a potential employer as an independent contractor truly operates his or her own independent business that is not economically dependent on the employer."

Tags: Health Plan Administration  •  Health Plan Design  •  Retirement Plan Administration  •  Retirement Plan Design

Long-Term Part-Time Employee 401(k) Elective Deferrals
Kushner & Company Link to more items from this source
[Guidance Overview]
Sept. 23, 2020

"[Notice 2020-68] clarifies that all years of service, even years before 2021, must be considered for determining a long-term part-time employee's vesting in any employer contributions allocated to that participant's account.... Many employers were counting on only having to track part-time employee service on a going-forward basis after Jan. 1, 2021. However, this vesting service requirement likely adds a significant administrative burden on employers."

Tags: 401(k) Plans  •  Retirement Plan Administration  •  SECURE Act

PBGC Takes a U-Turn on CARES Act Contribution Delay
Mercer Link to more items from this source
[Guidance Overview]
Sept. 23, 2020

"The agency will now let sponsors amend their 2020 PBGC premium filings to reflect all contributions made by the CARES Act's extended contribution deadline -- even contributions made after the premium filing due date -- and request a refund of any excess variable-rate premium."

Tags: CARES Act  •  Coronavirus (COVID-19)  •  Retirement Plan Administration

Rehiring Employees by End of 2020 Could Prevent Partial Plan Terminations
Faegre Drinker Link to more items from this source
[Guidance Overview]
Sept. 23, 2020

"The IRS's response provides some reassurance for employers who rehire employees by the end of 2020 that they will decrease their risk of incurring a partial termination. However, employers should be aware that rehiring employees in 2020 will not preclude a future IRS determination of a partial termination. The IRS does not address the possibility that the applicable period may extend past 2020, particularly if the employer has a series of COVID-19 terminations of employment, which would affect the calculation of the turnover rate."

Tags: Coronavirus (COVID-19)  •  Retirement Plan Administration

DOL Guidance on Lifetime Income Illustrations: Coloring Within the Lines
Frost Brown Todd LLC Link to more items from this source
[Guidance Overview]
Sept. 23, 2020

"[P]roviding a lifetime income illustration to a younger person based on their current account balance and assuming that they are age 67 at the time they receive the disclosure is a very challenging prospect and may not provide much useful information. Providing lifetime income illustrations based upon both a current and a projected account balance may collectively provide more useful information, particularly for younger participants. As a result, some commenters are likely to press the DOL for changes that include a lifetime income stream based upon a projected account balance."

Tags: Retirement Plan Administration

Editor's Pick New 401(k) Coverage Rules for Long-Term, Part-Time Workers
E is for ERISA Link to more items from this source
[Guidance Overview]
Sept. 23, 2020

"The new rules under the SECURE Act ... ramp up between 2021 and 2024. However, some employer action is already required ... [This article] walks you through the new rules, including those contained in IRS Notice 2020-68 ... If inclusion of your long-term, part-time workers will push your existing plan over the 100 participant threshold, you might give thought to separating them out in a separate plan, such that both of your plans will be under the audit threshold."

Tags: 401(k) Plans  •  Retirement Plan Administration  •  SECURE Act

IRS Announces Tax Relief for Hurricane Sally Victims
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
Sept. 23, 2020

"Victims of Hurricane Sally that took place on Sept. 14 now have until Jan. 15, 2021, to file various individual and business tax returns and make tax payments ... Individuals and households who reside or have a business in Baldwin, Escambia, and Mobile counties qualify for tax relief.... [C]ertain deadlines falling on or after Sept. 14, 2020, and before Jan. 15, 2021, are postponed through Jan. 15, 2021."

Tags: Health Plan Administration  •  Reporting to Government Agencies  •  Retirement Plan Administration

What Can Plan Sponsors Do to Bring Employees Up to the Optimal Deferral Target?
Fiduciary News; free registration required Link to more items from this source
Sept. 22, 2020

"[T]he company match alone cannot represent the sole target for salary deferral. It might represent a minimum, but it is very clearly not a good measure for the maximum (unless the match is extremely generous).... Plan sponsors shouldn't make the mistake to think assisting employees to save the optimal deferral percentage is limited to a periodic meeting. It should be inculcated throughout the organization.... Plan sponsors need to be more proactive to get employees to reach their salary deferral target."

Tags: 401(k) Plans  •  Retirement Plan Administration  •  Retirement Plan Design

The Value of Strategic Advisor Partnerships for Retirement Plans
Fiduciary Benchmarks Link to more items from this source
Sept. 22, 2020

"[B]oth generalist advisors, such as benefits brokers and wealth advisors, along with retirement plan specialists, are vital to supporting and sustaining the [401(k) plan] market.... [R]egardless of the size of the retirement plans you serve, opportunities for partnerships between generalist and specialist advisors are abound. This article will highlight these opportunities for collaboration and how financial professional partnerships can positively impact employers and their workforce."

Tags: Retirement Plan Administration  •  Retirement Plan Design

Text of PBGC Press Release 20-04: Expansion of COVID-19 Relief for Variable-Rate Premium Filers
Pension Benefit Guaranty Corporation [PBGC] Link to more items from this source
[Official Guidance]
Sept. 21, 2020

"[F]or premium filings due on or after March 1, 2020, and before January 1, 2021, the date by which 'prior year' contributions must be received by the plan to be included in plan assets will be extended to January 1, 2021. That means the discounted value of these contributions received by the plan after the premium is filed but on or before January 1, 2021, will be included in the asset value used to determine the variable-rate premium. Because of this relief, plans will be able to amend the premium filing to revise the originally reported asset value once all prior year contributions have been made and receive the corresponding refund of variable-rate premiums.' [PBGC notes that "This press release (PBGC PR 20-04) revises guidance issued July 20, 2020, COVID-19-Related Single-Employer Plan Sponsors and Administrators Questions and Answers (PBGC Web 016)."]

Tags: Coronavirus (COVID-19)  •  Funding of DB Plans  •  PBGC  •  Retirement Plan Administration

Family 'SECURity': Early Withdrawal Tax Exception for Qualified Births and Adoptions
Hall Benefits Law Link to more items from this source
[Guidance Overview]
Sept. 21, 2020

"[Notice 2020-68] clarifies that if a retirement plan is amended to allow qualified birth or adoption distributions, the plan is required to accept recontributions if the individual received such a distribution from that plan and the individual is eligible to make a rollover distribution to that plan at the time of recontribution. This suggests that an employee who receives a qualified birth or adoption distribution and then separates from service will not be able to make a recontribution to that plan. Presumably, however, these individuals would be able to recontribute the amount to an IRA."

Tags: 401(k) Plans  •  CARES Act  •  Coronavirus (COVID-19)  •  Retirement Plan Administration

September 22 is Last Chance for COVID-19-Related 401(k) Loans
Forbes Link to more items from this source
Sept. 21, 2020

"Congress loosened the rules for taking money out of retirement accounts for those adversely affected by COVID-19, but ... there's a deadline coming up for taking enhanced loans: It's September 22. The deadline for taking 401(k) or IRA distributions under the special rules is December 31."

Tags: 401(k) Plans  •  CARES Act  •  Coronavirus (COVID-19)  •  Retirement Plan Administration

PBGC Modernizes De Minimis Distribution Rates
Morgan Lewis Link to more items from this source
[Guidance Overview]
Sept. 18, 2020

"This change is part of the PBGC's ongoing modernization initiative.... [T]he Final Rule also discontinues the PBGC's monthly calculation and publication of interest rate assumptions.... Treasury and the IRS confirmed that there is no violation of the anti-cutback rules just because the Final Rule results in a change in the method of determining the interest rate used to determine lump-sum distributions, even if that results in lower lump-sum amounts."

Tags: Retirement Plan Administration

Portable Benefit Solutions: Financial, Health & Retirement (PDF)
Women's Institute for a Secure Retirement [WISER] Link to more items from this source
Sept. 18, 2020

16 pages. "One of the challenges in building an entrepreneurial ecosystem is that the new jobs created rarely offer employee benefits.... [This] project aimed to assess the feasibility of an online platform to serve as a virtual human relations department for entrepreneurs, self-employed workers, independent contractors, freelancers and other workers without access to benefit resources.... The use of online, fintech platforms hold great promise for bridging this gap and connecting independent workers with information, services and opportunities to build a stronger financial future."

Tags: Health Plan Administration  •  Health Plan Design  •  Retirement Plan Administration  •  Retirement Plan Design

Evaluation Scorecard for Retirement Income Products
Newport Group Link to more items from this source
Sept. 18, 2020

"While ... a large body of knowledge ... has been developed regarding selecting and monitoring traditional investment options within participant directed retirement plans, the new lifetime income options don't easily fit within existing frameworks. The purpose of this paper is to propose a set of metrics that plan sponsors and their consultants can use in assessing the suitability of a retirement income strategy as an investment option within a participant directed retirement plan."

Tags: Retirement Plan Administration  •  Retirement Plan Design

Editor's Pick PBGC Bids a Not-So-Fond Farewell to Old Lump Sum Rates
Mercer Link to more items from this source
Sept. 18, 2020

"The final rule adopts the Internal Revenue Code Section 417(e) basis for lump sums payable by PBGC. For private-sector [DB] plans using the old tiered rates for lump sums and other purposes, the rule provides an alternative table that should closely align with the former methodology. The new rule is effective for valuation dates on or after Jan. 1, 2021."

Tags: Retirement Plan Administration

COVID-19 Layoffs Can Cause Partial Retirement Plan Termination
Frost Brown Todd LLC Link to more items from this source
Sept. 17, 2020

"Employers may consider amending retirement plans to count a certain amount of furlough time due to COVID-19 as hours of service that count for plan vesting purposes. This likely will not cost much to the employer, can go a long way in fostering goodwill with employees, and will not result in lost vesting service for employees who return from furlough."

Tags: Coronavirus (COVID-19)  •  Retirement Plan Administration  •  Retirement Plan Design

DOL Interim Final Rule on Pension Benefit Statements: Lifetime Income Illustrations Now Scheduled for Federal Register Publication
Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL] Link to more items from this source
[Official Guidance]
Sept. 17, 2020

97 pages. "When applicable, the interim final regulation requires plan administrators of ERISA defined contribution plans to express a participant’s current account balance, both as a single life annuity and a qualified joint and survivor annuity income stream. These two income stream illustrations, which must be on the same pension benefit statement, will help participants better understand how the amount of money they have saved so far converts into an estimated monthly payment for the rest of their lives, and how this impacts their retirement planning. The regulation provides plan administrators with a set of assumptions to use in preparing the lifetime income illustrations, as well as model language that may be used for benefit statements by plan administrators who wish to obtain relief from liability for the illustrations. The interim final regulation also requests comments from interested parties on the requirements and methodologies of the regulation

"This interim final rule is effective on September 18, 2021, and shall apply to pension benefit statements furnished after such date....

"Written comments on the interim final rule must be received by [60 days after date of publication in the Federal Register, now scheduled for September 18, 2020]."

Tags: Retirement Plan Administration

IRS Provides Additional SECURE Act Guidance
Ascensus Link to more items from this source
[Guidance Overview]
Sept. 17, 2020

"Notice 2020-68 [1] clarifies that employers may receive a credit for each year during a single three-year period, starting in the first year that an employer adds an EACA.... [2] clarifies that each eligible employer that participates in a multiple employer plan (MEP) may receive the tax credit.... [3] states that employers with qualified retirement plans and 403(b) plans that are not maintained by a public school will have until the last day of the first plan year beginning on or after January 1, 2022, to amend their plans for the SECURE Act and the Bipartisan American Miners Act."

Tags: 401(k) Plans  •  MEP/PEP  •  Retirement Plan Administration  •  Retirement Plan Design  •  SECURE Act

The Intersection of Coronavirus and Partial Qualified Plan Termination (PDF)
Bodman PLC Link to more items from this source
[Guidance Overview]
Sept. 17, 2020

"[IRS] guidance indicates that participants will generally not be treated as having an employer-initiated severance from employment for purposes of calculating the 'turnover rate' if rehired by the end of calendar year 2020. However, the FAQ leaves a number of issues open and unresolved when it comes to determining whether the plan has experienced a partial termination."

Tags: Coronavirus (COVID-19)  •  Retirement Plan Administration

Excessive Fees Settlement Results in Litigation Involving Employer's Excess Insurer
Thomson Reuters Practical Law Link to more items from this source
Sept. 17, 2020

"In an insurance dispute arising from coverage of two ERISA settlements, the Ninth Circuit held that -- as a matter of first impression -- an excess insurer may not challenge the coverage decisions of underlying insurers, absent evidence of fraud or bad faith or a contractual provision reserving the right to challenge such decisions[.]" [AXIS Reinsurance Co. v. Northrop Grumman Corp., No. 19-55135 (9th Cir. Sep. 14, 2020)]

Tags: Retirement Plan Administration

Are Cybercriminals Stalking Your 401(k) Plan?
Benefits Law Group of Chicago Link to more items from this source
Sept. 17, 2020

"At least two pending federal cases deal with attacks on individual 401(k) plan accounts. The fact patterns are similar: a participant submits an electronic benefit withdrawal request to the employer or the plan's record keeper. The request is passed on to the plan's custodian for implementation.... Implementing an additional verification step could not only prevent cybercrime but also could establish a better defense based on the provider's claim of non-fiduciary status."

Tags: 401(k) Plans  •  Cybersecurity  •  Retirement Plan Administration

IRS Announces Tax Relief for Oregon Wildfires and Straight-Line Winds Victims
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
Sept. 17, 2020

"Victims of Oregon wildfires and straight-line winds that began September 7 now have until January 15, 2021, to file various individual and business tax returns and make tax payments.... Individuals and households who reside or have a business in Clackamas, Douglas, Jackson, Klamath, Lane, Lincoln, Linn and Marion counties qualify for tax relief."

Tags: Health Plan Administration  •  Reporting to Government Agencies  •  Retirement Plan Administration

Text of IRS Notice 2020-72: Weighted Average Interest Rates, Yield Curves, and Segment Rates for September 2020 (PDF)
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
Sept. 16, 2020

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under Section 417(e)(3), and the 24-month average segment rates under Section 430(h)(2) ... In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under Section 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate under Section 431(c)(6)(E)(ii)(I)."

Tags: Funding of DB Plans  •  Retirement Plan Administration

IRS Clarifies 'SECURity' Through 401(k) Plan Expansion to Long-Term, Part-Time Workers
Hall Benefits Law Link to more items from this source
[Guidance Overview]
Sept. 16, 2020

"As a result of the difference between service taken into consideration for elective deferral eligibility and service taken into consideration for vesting of other employer contributions, employers that elect to expand eligibility for employer contributions are required to track service ... over two different periods, posing potentially significant administrative burdens.... [S]maller employers with a substantial employee base of part-time workers may be newly subject to [the Form 5500 Independent Qualified Auditor's Report] requirement beginning in 2024. "

Tags: 401(k) Plans  •  Retirement Plan Administration  •  Retirement Plan Design  •  SECURE Act


<< Older News  |  September 25, 2020

© 2020 BenefitsLink.com, Inc.