Retirement Plans Newsletter

August 24, 2017 logo logo
Get Health & Welfare News | Advertise | Unsubscribe | Previous Issues | Search


Retirement Plan Administrator
Enhanced Retirement Solutions, LLC
in NY

Benefits Advisor
in CA

►See 142 Jobs

►Post a Job

Webcasts, Conferences

Actuary as an Expert Witness
ASPPA [American Society of Pension Professionals & Actuaries]

Retiree Medical Valuations for Pension Actuaries
ASPPA [American Society of Pension Professionals & Actuaries]

Defined Contribution Symposium
September 14, 2017 in CA
Institutional Investor

Fiduciary Hot Topics
September 20, 2017 in TX
ASPPA Benefits Council [ABC] of Dallas/Fort Worth

►See 182 Upcoming

►See 1225 Recorded


New Topics on the BenefitsLink Message Boards

New Comments and Topics

All Topics, Grouped by Forum

Subscribe Now to This Newsletter (free)

We also publish the BenefitsLink Health & Welfare Plans Newsletter (free): Subscribe Now

DOL to Withdraw Proposal for Guide to Help Understand Fee Disclosures
"[EBSA] is removing from its agenda a regulations project that was proposed during President Obama's administration to require that retirement plan service providers create and deliver a guide to help plan fiduciaries better locate certain information in required fee and service disclosures."


SPARK Forum - November 5-7, 2017 -- The Breakers, Palm Beach, FL

Sponsored by SPARK

Join us at the retirement services industry's leading event for top marketing, sales, administration and record keeping professionals. Comprehensive agenda to meet the needs of 401(k) Plan Providers, Financial Advisors and Third Party Administrators.

Fiduciary Rule Compensation Standard Should Be Void, Groups Tell Court of Appeals
"The 'reasonable compensation' standard in the fiduciary rule's best-interest-contract exemption is so vague that it's unconstitutional, annuity providers ... told a federal appeals court ... Fidelity and MV Group made their argument in a friend-of-the-court brief filed Aug. 22 in the U.S. Court of Appeals for the District of Columbia Circuit in support of the National Association for Fixed Annuities -- a group that is challenging a 2016 district court decision that upheld the Labor Department's fiduciary rule."
Bloomberg BNA

First Half 2017 Annuity Sales Reach Lowest Level in 16 Years
"Second quarter results for total annuity sales were $53.9 billion, a slight uptick from first quarter, but an 8 percent decline from this quarter last year. This is the fifth consecutive quarter of decline in overall annuity sales. It is also the sixth straight quarter fixed sales have outperformed VA sales, which hasn't happened in almost 25 years."
LIMRA Secure Retirement Institute

Nonprofit Retirement Plans: An Overview of 403(b) Options
"Unlike 401(k) plans, not every 403(b) plan must comply with ERISA regulations. In fact, non-ERISA plan assets accounted for 57% of all 403(b) assets in 2013 ... 79.1% of employees participated in their employer's 403(b) plan, a figure comparable to the participation rate in 401(k) plans. Similarly, 403(b) participants deferred 6.2% of their salary toward retirement in 2015. This figure is not far off the 6.8% employee deferral rate for 401(k) plans."

Public Pension Funded Ratio Continues to Improve Through Second Quarter, Now at 73.0% (PDF)
"The strong equity returns in Q2 led public plan asset growth to outpace the rise in pension liability, increasing the estimated funded status of the 100 largest U.S. public pension plans by $33 billion from the end of March 2017 through the end of June 2017 ... During the second quarter, the deficit dropped from $1.314 trillion to $1.281 trillion. As of June 30, the funded ratio stood at 73.0%, up from 72.0% at the end of March."


Online Learning Course: 401(k) Plan Administration

Sponsored by International Foundation of Employee Benefit Plans [IFEBP]

Learn more about plan design issues, plan investments, fiduciary responsibility and plan fees, employee communications and investment education, automatic enrollment, participant loans, distributions, and plan amendment and termination.


The 'Pension Crisis' Is a Myth, Part Four
"When a pension plan is closed ... it can no longer invest on an infinite time horizon. At a certain point in time, all of the participants in the plan will be retired and will be collecting benefits and no new employees will be paying into the plan. As the number of retired members in the plan continues to increase over time, with fewer and fewer active members contributing, the plan must shift to more conservative, lower-return investments in order to maintain the assets they already have. This makes it more difficult to pay down any unfunded liability already present in the plan."
National Public Pension Coalition


American Retirement Association Weighs in on Nevada Fiduciary Law
"The comment letter ... concludes that courts would find that the Nevada statute is preempted by ERISA to the extent it seeks to regulate financial advisers who provide services to a retirement plan governed by ERISA, to the plan's fiduciaries and/or to the plan's participants or beneficiaries."
American Retirement Association

Benefits in General

Are Your Plans Impacted by the New Regs on Disability Claims?
"The Final Rule governs employee benefit plans subject to ERISA that offer disability benefits, not just disability plans. In addition to disability plans, it is not unusual for a retirement plan to provide disability benefits. It is also common for ERISA-covered benefit plans to waive premiums or provide some other form of benefit in the event of a disability."
Graydon Head & Ritchey LLP

ERISA Mediation Strategies: Hear 'Em Out
"In many cases, allowing the plaintiff to tell their side of the story may go a long way to facilitating a settlement. This may be the first time they get to talk face-to-face with someone representing the other side. After months of frustration dealing with a benefits administrator over the phone, through emails, or letters, getting the chance to be heard can be an important step in bringing their claim to a close."
Butterfield Schechter LLP

Retiree Health Costs Surge
"The estimate for retiree health care spending rises to an average of $275,000 per couple, excluding long-term care expenses. This is an increase of $15,000 from 2016. Health care continues to be one of the largest expenses in retirement.... And that applies only to retirees with traditional Medicare insurance coverage, and does not include costs associated with nursing home care."

on the BenefitsLink Message Boards

Real Estate Brokers: Aggregated with National Brokerage Firm under Code Section 414?
"5 individual real estate brokers have left an existing business A and are going to work with new Company B (a national firm with offices in 35+ other cities). Each of the 5 are establishing their own LLC and will receive a 1099 from Company B for commissions. Each is responsible for their own expenses. The 5 will not own any of Company B. Company B (a national firm) will have an office and staff with 3 administrative type employees. These employees will be eligible for Company B's retirement plan. One of the LLC members wants to establish a plan for her and not include any of the other LLCs or the 3 employees of Company B. It is common in the real estate business for the brokers to be independent. After a review of the management service group rules I do not see a problem. Any thoughts would be appreciated."
BenefitsLink Message Boards

Treat Required Minimum Distribution as a Qualified Charitable Distribution?
"A 401(k) participant wants to treat her RMD for the year as a qualified charitable distribution. She is eligible for an in-service distribution, so since these rules apply only to IRA's we could transfer her money to an IRA first and she could make the charitable distribution from there. However, isn't the RMD required before the rollover to the IRA? Is there any way around this hiccup?"
BenefitsLink Message Boards

Money Purchase Merger Into 401(k): Segregation of Investments Required?
"A governmental money purchase plan (which did not permit in-service withdrawals) is merging into a grandfathered 401(k) plan, which permit hardship withdrawals. Following the merger, does the money purchase monies have to be segregated to retain the in-service withdrawal restriction OR can participants take hardship withdrawals of these dollars?"
BenefitsLink Message Boards

H2A Agricultural Employee -- Excludable for Qualified Plan Purposes?
"Is an H2A agricultural employee an excludable employee for qualified plan purposes? So far, all I know is that these employees work 9 months per year in the US. Are there other questions that need to be asked and answered in order to determine if they need to be included for coverage testing?"
BenefitsLink Message Boards

Press Releases

Connect   LinkedIn logo   Twitter logo   Facebook logo, Inc.
1298 Minnesota Avenue, Suite H
Winter Park, Florida 32789
(407) 644-4146

Lois Baker, J.D., President
David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager

BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587. Copyright 2017, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

Links to web sites other than and are offered as a service to our readers; we were not involved in their production and are not responsible for their content.

Unsubscribe | Privacy Policy