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[Guidance Overview]
The IRS's Gradual Shift on Applying 415 Limits to 403(b) Plans
"With the demise of the [403(b) Maximum Exclusion Allowance], and with the growing focus of the IRS on employer accountability, we saw a shift over the years to treating the 415 limit as an employer-based limit, not an individual limit.... Publication 571 seems to have solved this for us. It appears that the transition is now complete. There is no 415 aggregation of contributions to 403(b) contracts from unrelated employers[.]"
Business of Benefits
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[Advert.]
National Employee Benefits Day is April 2, 2018
![Sponsored by International Foundation of Employee Benefit Plans [IFEBP]](https://benefitslink.com/bnrs/2017/IFEBP_March28NEBD_top.jpg "Sponsored by International Foundation of Employee Benefit Plans [IFEBP]")
This National Employee Benefits Day learn more about the theories of behavioral decision making and how to positively influence employee benefits communication and the decisions of your participants. Plan to attend a free webcast on April 2! Learn More.
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Contingent Workers: Consequences for Qualified Retirement Plans
"In particular, [employers] should pay attention to: [1] Plan eligibility terms and definitions of employee, independent contractor, and leased employee; [2] Consistency of classification-related definitions in all documents and communications, including SPDs and enrollment brochures; [3] Plan language on the treatment of workers following reclassification; [4] Service crediting for workers who have converted to employee status, where required; [5] Proper inclusions and exclusions of classifications for purposes of testing; [6] Written contracts with all independent contractors, to ensure that they effectively express the intent of the relationship."
Conduent
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DB Plans Holding Their Own, EBSA Finds
"Despite the long-term trend, EBSA reports that in 2015, growth among private DB plans outstripped that of private DC plans -- the number of DB plans grew by 1.8%, while the number of DC plans went up by 1.2%. Also, the increase in contributions was sharper for DB plans than for DC plans; contributions to DB plans rose by 10.9%, while contributions to DC plans grew by 7.7%."
American Society of Pension Professionals & Actuaries [ASPPA]
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Here's What DOL Might Do Next with the Fiduciary Rule
"Ten days after an appeals court in New Orleans vacated an Obama-era consumer protection rule on retirement savings, the Labor Department, industry groups, and attorneys can't seem to make sense of what will happen next.... The case would be ready for Supreme Court review because of the apparent split in the circuit court rulings. But the Tenth Circuit decision involved a narrower issue about the fiduciary rule, while the Fifth Circuit's decision was about the entire rule, so the rulings might not have been truly split."
Bloomberg BNA
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Workers Look to Employers for Security as Retirement Confidence Drops
Infographic. "The 2017/2018 Global Benefits Attitudes Survey reveals that while the importance of retirement security has increased sharply over the past few years, workers' retirement confidence has slipped. This is being driven, in part, by increasing financial pressures preventing many from saving for retirement."
Willis Towers Watson
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GAO Recommends Changes for U.S. Participants in Foreign Retirement Plans
"[GAO Report GAO-18-19 recommends] that the IRS clarify how US taxpayers report their participation in foreign plans for US tax purposes, and further analyze the information that is being reported to them in order to gain a better understanding of such plans that might lead to possible exemption. The report also recommends that Congress consider changing the tax law to allow tax-deferred transfers between foreign plans."
Groom Law Group
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State and Local Government Spending on Public Employee Retirement Systems (PDF)
Updated March 2018. "This update provides figures for public pension contributions as a percentage of state and local government direct general spending for FY 2015, and projects a rate of spending on pensions on an aggregate basis for FY 2016.... Employers in FY 2016 contributed a total of $141 billion to pension benefits for employees ... Over $280 billion is paid out annually from these trusts to retirees and their beneficiaries[.]"
National Association of State Retirement Administrators [NASRA]
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TPA Accused of Stealing Assets from Retirement Plans
"Vantage Benefits has already been ordered to restore funds to one 401(k) plan; now a new lawsuit accuses it of stealing funds from MBA Engineering's 401(k) and cash balance plans as well as approximately 20 others.... According to the complaint, the Vantage defendants stole approximately $2,269,653.43 in retirement assets from the participants of the plans."
planadviser
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Benefits in General
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Was Your Employee Benefit Plan Selected for Examination? Don't Panic!
"With enough preparation, even your worst expectations shouldn't be so bad. A significant element of being prepared is self-auditing. Regularly. Focus particularly on the most common compliance issues.... Both the IRS and the DOL publish self-audit tools.... Both the IRS and DOL publish examination guides.... Some examinations will involve on-site visits and others will not."
Jackson Lewis P.C.
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Executive Compensation
and Nonqualified Plans
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Five Primary Components of an Effective Long Term Incentive Plan
"[1] Determine business drivers that trigger awards.... [2] Determine what level of executive should be eligible to participate.... [3] Determine share rates.... [4] Allocation of award among eligible group.... [5] Award distribution."
Fulcrum Partners LLC
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Big Question Under CEO Pay Ratio Rule: Who Is Your Median Employee?
"Who is the worker at the midpoint of the employee population in terms of compensation? Rules and guidance from the [SEC] allow some flexibility with this determination. As a result, companies aren't just answering one big question when identifying that special median somebody, but instead addressing a number of smaller questions along the way."
Bloomberg BNA
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Common U.S. Securities Problems with Canadian Stock-Based Compensation Plans
"For companies that are cross-listed and file reports with the [SEC], the intention is typically to register the underlying securities by filing a Form S-8 with the SEC. For companies that do not file SEC reports -- whether publicly traded in Canada or privately held -- the intention is typically to rely on the exemption provided by Rule 701 under the Securities Act of 1933 and exemptions under the securities laws of the states in which awards will be granted."
Dorsey
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Selected Discussions
on the BenefitsLink Message Boards
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Fix ADP by Recharacterizing HCE's Contribution as Catch-Up?
A 401(k) plan has failed the ADP test. Instead of refunds, a QNEC has been made by the plan sponsor. When calculating the QNEC, can I re-characterize some of the HCE's contribution as catch-up? For example, if one HCE (over age 50) has $5,000 in contributions, can I re-characterize this as catch-up to bring the HCE average ADP down and use that figure to calculate the QNEC, or do I have to use the HCE ADP average with all contributions under $18k?
BenefitsLink Message Boards
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BenefitsLink.com, Inc.
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Winter Park, Florida 32789
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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 2018 BenefitsLink.com, 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 BenefitsLink.com, 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.
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Regional Client Services Manager
