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July 12, 2018 logo logo
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Senior Pension Administrator
Scholz & Friends Enlightened Retirement Group, Inc.
in TX

Counsel - Corporate Benefits & ERISA Attorney
M&T Bank
in DE, NY

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Webcasts, Conferences

Advantage of ESOP's
July 17, 2018 in OH
Financial Executives International

Office of Civil Rights "OCR" is Auditing Now. Next Steps and How to Comply
July 20, 2018 WEBCAST

Guide to the Fundamental Rules of Tax-Free Roth 401(k)s
July 23, 2018 WEBCAST
Clear Law Institute

Is Your Retirement Plan Really Safe? Creditor Protection of Retirement Plan Assets
July 26, 2018 WEBCAST
Appleby Retirement Consulting Inc.

Plan Corrections: Fixing the Broken Plan Workshop
October 12, 2018 in OR
FIS Relius Education

►See 131 Upcoming Webcasts and Conferences

►See 1398 Recorded Webcasts


New Topics on the BenefitsLink Message Boards

New Comments and Topics

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[Official Guidance]

Text of PBGC Interest Rate Update for Benefits Payable in Terminated Single-Employer Plans, August 2018

"The August 2018 interest assumptions under the benefit payments regulation will be 1.25 percent for the period during which a benefit is in pay status and 4.00 percent during any years preceding the benefit's placement in pay status. In comparison with the interest assumptions in effect for July 2018, these assumptions represent no change in the immediate rate and are otherwise unchanged."
Pension Benefit Guaranty Corporation [PBGC]

[Advert.] -- Get Reliable Answers for your 5500 Questions

Sponsored by Burrmont Compliance Labs LLC

"ASK THE AUTHOR" Personalized help for all of your tough 5500 questions in 4 business hours from noted author and speaker S. Derrin Watson, J.D. Including any supporting schedules: 8955-SSA, 1099-R, 5330 and more). Sign up or email

Your Plan Will Face a Cyberattack -- Here's How to Prepare (PDF)

"[T]he focus of cyberattacks in the [DC] world has shifted from hardened targets like recordkeepers and custodians to plan sponsors, which often lack the extensive cybersecurity defenses of their vendors.... A cybersecurity framework (CSF) provides guidance for how organizations can assess and improve their ability to prevent, detect, and respond to cyberattacks. There are a variety of frameworks that plan sponsors and recordkeeping vendors can use to manage their risk[.]"
Callan; free registration may be required

SEC Prioritizes Data Security and Expects More Mature Cybersecurity Programs

"[R]egulators and law enforcement are focused on cybersecurity threats that rely on investment services platforms and resources to target or harm the investing public. For registered investment advisers and broker-dealers, the primary implication of this focus is that the SEC will continue to expect more mature cybersecurity programs that adapt to the changing threat environment and appropriately manage and communicate risks to investors and other market participants[.]"
Alston & Bird

Should Participant Behavior Influence Investment Lineup Offerings?

"[T]here are, we think, significant reasons for saying 'No': ... [T]here's the difficulty of determining whether participants are moving money from a fund due to underperformance or for other reasons.... [By] engaging participants on their reasons for the actions taken are fiduciaries obligating themselves to provide counter arguments or explanations justifying the decision to continue holding the fund(s)? ... If participants deeply disfavor a particular fund offering, even though the investment guidelines favor it, might there be some obligation to replace it with a similar fund that participants perceive more favorably? If so, is this a weighty enough consideration to balance the negatives noted above?"
Fiduciary Plan Governance, LLC

New Actuarial Standard Requires Risk Disclosures in Pension Reports

"The intent of this new standard is to require pension actuaries to better educate (and disclose to) employers and pension plan sponsors about the risks facing their plans such as (but not limited to) plan maturity measures.... This alert describes some of the key features of the new standard and our view of the impact on plan sponsors in a question and answer format."


New ERISA Regulations for Disability Claims and Appeals

Sponsored by Lorman and BenefitsLink

August 13 webinar will explain what new practices to follow, how to change past practices to become compliant with the new regulations, and the risks of non-compliance. Discount for BenefitsLink readers.

Brown University Retirement Plan Lawsuit Advances

"The workers can move on with their claims related to record-keeping services, including that Brown acted imprudently by using more than one record-keeper, not employing competitive bidding in its selection, and allowing the plans to pay excessive administrative fees ... The workers also can advance their claim that the university breached its fiduciary duties by selecting more expensive funds with poor historical performance, such as the CREF stock account and the TIAA real estate account[.]" [Short v. Brown Univ., No. 17-318 (D.R.I. July 11, 2018)]
Bloomberg BNA

Alight Solutions 401(k) Index(tm): June 2018 Observations

"Only one day of above-normal trading activity in June. Continued movement away from equities, with 13 of 21 days favoring fixed income funds. On average, 0.013% of balances were traded daily."
Alight Solutions

Why You Should Be Especially Careful with Future Roth Conversions

"In the past, you would have been able to 'test' the Roth waters with conversions, with the assurance that you could recharacterize those conversions by the applicable deadline, if you changed you mind.... Under the Tax Cuts and Jobs Act ... any Roth conversion that you perform on January 1, 2018 and after must remain as Roth conversions, and included in your income for the year in which the assets leave your traditional retirement account."
Appleby Retirement Dictionary

Participants Should Watch for Late 401(k) Deposits

"One thing participants do not review often enough is contribution deposit dates. Reviewing this information not only ensures that your employer is timely depositing your contributions, but also that any late contributions include an extra lost opportunity contribution in accordance with the [DOL] rules."
Slott Report


Actuaries Want Plan Sponsors to Provide More Complicated Benefit Statements

"[T]he [American Academy of Actuaries] would like to see plan sponsors provide significantly more information to their participants. Needless to say, this additional information would make the hard-copy benefit statement required by law much more complicated to prepare and potentially more confusing to participants."
Ken Steiner, FSA Retired

Benefits in General

Time to 'Tune Up' Your Employee Benefit Service Provider Agreements

"[A]reas of potential concern with service provider agreements that may warrant a closer look. [1] Use of employee data ... [2] Indemnification.... [3] Agreement term."
Wilkins Finston Friedman Law Group LLP

Executive Compensation
and Nonqualified Plans

CEO Compensation in the Largest U.S. Companies

"[T]he long-term incentive (LTI) grant value/opportunity -- that is, not the eventual payout value -- has increased anywhere from approximately 3-8% annually, depending on the year and the industry.... LTI payouts can be two or three times the size of the initial grant value. Couple this with the fact that LTI grants make up more than a majority of the total annual pay opportunity for CEOs, and it is clear that perceived high pay levels are largely due to the long-term incentive pay component."
Meridian Compensation Partners, LLC

Selected Discussions
on the BenefitsLink Message Boards

Can a One-Participant Plan (or Just the Trust) Continue After the Death of the Sole Participant?

Can a one-participant plan (or just the plan's trust) continue after the death of the sole participant?
BenefitsLink Message Boards

Mid-Year Plan Termination and Failed ADP Test

Calendar Year plan terminating mid-year in 2018. Plan Sponsor is hoping to have all participants paid out before 12/31/2018, to avoid a 2019 5500 filing. However, the Plan has failed the ADP Test for the 2018 Plan Year (from 01/01/2018 to date of termination -- business sold). Is it possible to calculate corrective distributions mid-year to avoid the 2019 5500 filing? If so, do I just use the gain/loss to a current date?
BenefitsLink Message Boards

EPCRS for Missed Deferral Opportunity: Eligible for 25% Correction Method?

Failure began in 2014 and goes all the way through today. Can the plan sponsor use the 25% correction option for the most recent years? Or, because the failure goes back so far, must 50% be used (to correct for the whole enchilada)?
BenefitsLink Message Boards

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David Rhett Baker, J.D., Editor and Publisher
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BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587. Copyright 2018, 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.

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