|
Retirement Plans Newsletter September 5, 2018 |
|
|
Jobs
|
|
Webcasts, Conferences To Claim or not to Claim? The Social Security Question
|
|
Discussions |
|
This Newsletter:
BenefitsLink Health & Welfare Plans Newsletter:
Message Boards Digest:
|
Senior Pension Administrator|
[Official Guidance]
Text of PBGC Comprehensive Premium Filing Instructions (PDF) 65 pages. "Modified 9/4/2018 to update payment address information on page 2 and to clarify application of a Variable-rate Premium exemption on page 35."
|
|
[Advert.]
New! ftwilliam.com Distribution Tracking Software
Our cutting-edge Distribution Tracking Software, built by retirement service providers, makes distribution preparation and tracking faster and more efficient. Know exactly where each distribution is so nothing slips through the cracks. Learn more! |
|
Strategies to Decode Human Nature and Improve Employee Savings (PDF) "[1] Motivate. Make employees aware of the need for change and motivate them to take action. [2] Optimize. Assist and encourage employees to gather facts, learn strategies, study options, and help build their capability to make and adopt a decision. [3] Realize. Support employees in making and implementing a decision. [4] Evaluate. Help monitor progress and make adjustments if necessary."
|
|
Abbott 401(k) Program to Help Employees Who Have Student Debt Could Become National Model "Most employers with a student loan perk make monthly cash payments against an employee's debt to the loan holder, typically about $100 per month, but those payments are taxed. Abbott's program is unique because the employer makes a tax-free contribution to an employee's 401(k) on the condition that the employee make student loan payments."
|
|
How Your 401(k) Can Make the Leap from Good to Great "[An] employer who sponsors a plan can benefit through improved engagement by: [1] Branding and marketing the plan as superior in design so it becomes a recognized and appreciated benefit... [2] Communicating that this superior plan, and specifically, how the employer's financial support (matching contributions, non-elective contributions, etc.) illustrates company interest in each employees' financial wellness, and [3] Highlighting the special aspects of the plan that make it useful and impactful for the diverse set of participants and their diverse needs."
|
|
Deadlines for Adopting 401(k) Safe Harbor Provisions "Generally, a plan sponsor that intends to use the standard 401(k) safe harbor provisions (i.e., mandatory employer matching contributions or nonelective contributions) for a plan year must adopt those provisions before the first day of that plan year (i.e., adopt the safe harbor provisions in 2017, effective for 2018). However, there are some exceptions for: [1] newly established 401(k) plans; [2] newly established employers; [3] businesses that already have a profit sharing plan in place; and [4] sponsors that follow the 'maybe provisions'[.]"
|
|
[Advert.]
J.P. Morgan Retirement Link: Helping you build stronger retirement plans
97% of clients agree Retirement Link takes a proactive approach in helping participants reach their goals. Through our strategic business planning process, our Relationship Managers work to simplify the complex and empower better decisions. |
|
The SEC's 'Best Interest' Proposal: A Step Forward, or a Setback? "By waiting to see how various segments of the industry responded to the DOL's Rule -- and ultimately what did it in from a legal perspective -- the SEC has been able to formulate a proposal that can take into consideration the desires of both proponents and opponents of the Fiduciary Rule.... In attempting to feature 'the best of both worlds,' the SEC risks omitting requirements deemed critical by one or both sides of the issue.... For some, the reliance on regulators isn't seen as adding value to the industry in general and specifically to the issue of fiduciary."
|
|
Pension Finance Update, August 2018 "Pension sponsors enjoyed more good news in August, marking five consecutive months of improvement for pension finances. Both model plans ... gained ground last month -- traditional Plan A improved almost 1% while the more conservative Plan B gained less than 1%. For the year, Plan A is more than 8% ahead, while Plan B is up almost 2%[.]"
|
|
[Opinion]
Merrill Lynch Can't Restore the Bad Old Days of Conflicts "[T]he SEC stopped short of imposing a fiduciary standard on brokers, which means they can keep their conflicts if they disclose them to clients. Merrill, the company that led the way on the fiduciary rule, ... announced ... that it would reinstate traditional brokerage for retirement accounts in October, giving new life to the conflicts it had eliminated.... Merrill says it's bringing back traditional brokerage accounts because some clients are clamoring for it, but it's hard to see why."
|
|
[Opinion]
Inequitable and Inconsistent Interpretations of ERISA's 'Actual Knowledge' Standard "Some of the courts ... only require that a plan participant have knowledge of the underlying the transaction creating the violation, but not that a violation has occurred. Other courts require that a plan participant have actual knowledge of the transaction and the fact that it constitutes a violation of ERISA. A third group of courts have adopted a hybrid interpretation of the 'actual knowledge' requirement.... [This] results in an inequitable situation where a plan participant's ERISA protections may depend on where they live rather than the facts of their case."
|
|
[Opinion]
"[F]ocusing on spending rates at least puts the focus back on what households can control -- what they spend, and what they earn -- rather than focusing on or criticizing a savings rate that ultimately is more a result of other decisions than a decision unto itself. And also helps to recognize that, for most middle-income households where spending is challenging, it is actually far better to focus on housing and transportation costs than trying to trim vacations, clothing, lattes and avocado toast from the budget. But the question still remains: what is a prudent spending rate for typical household expenses[?]"
|
|
Benefits in General |
|
[Guidance Overview]
IRS Guidance Softens Impact of Recent UBIT Changes on Benefit Plan Investors "Effective for tax years beginning after December 31, 2017, benefit plans with two or more unrelated trade or businesses will no longer be able to 'net' the income and losses of the businesses in the aggregate when determining the UBIT. Instead, the UBIT for the tax year is based on the sum of the unrelated business income (UBI) (but not less than $0) for each trade or business.... The new law also limits the application of the carryover of net operating losses for tax years beginning after December 31, 2017 to the UBI of the same trade or business in future years."
|
|
Judge Kavanaugh's Record in Benefits, Labor, and Employment-Related Cases "Judge Brett Kavanaugh has decided numerous benefits, labor, and employment-related cases during his dozen years on the District of Columbia Court of Appeals. While the Supreme Court nominee's record in these areas shows a tendency to side with employers, he has also found merit in employees' claims."
|
|
Selected Discussions |
|
Correction of Failed Coverage Test We failed coverage testing for our match. We decided to correct by giving QNECs to non-highly compensated employees (non-HCEs). Do we need to give QNECs to all the non-HCEs? Can we pick one group to contribute to and leave out another group? What about people who are no longer employees -- do we have to include them? Can we include some but not all of them? We have a group of people who are arguably benefits-ineligible that we'd like to exclude, but there is an argument that they're eligible, so if we are required to include all the non-HCEs, we may have to give them QNECs as well.
|
|
Trump Executive Order Boosts MEPs (PEPs? ARPs?) I'm OK with expanding MEPs, as long as it is done in a responsible way. It sounds like those of us involved in government affairs will have a busy winter/spring with the 180 day clock in the Executive Order. I was a little disappointed that the EO did not include anything on missing and recalcitrant participants. MEP fans, did you get what you expected out of the EO?
|
|
Loan to Acquire Principal Residence But Deal Falls Through Assume an individual promptly repays a 401(k) loan amount, plus interest for the few days he had the funds. Two months later, he's set to buy a house. Would you treat the first loan as "never happened" for purposes of the subsequent loan limits, or would you treat it as part of the highest outstanding balance in the last 12 months?
|
|
► Subscribe to the BenefitsLink Message Boards Digest— a free daily email of all new discussions (not just the selected few shown above). View a sample issue. |
|
Press Releases |
|
Strategic Alignment Further Establishes National Firm's Presence in Texas
|
|
Connectum Capital Management A.S. is the First Norwegian Investment Advisor Certified for Investment Advisor Fiduciary Excellence
|
|
New Site Highlights ICI Research and takes on Common Myths about the US Retirement System
|
|
Most Popular Items in the Previous Issue |
|
President Trump Issues Executive Order on Retirement Security
|
|
Consolidation of Record Keepers for 401(k) Plans 'Worrisome'
|
Connect
|
BenefitsLink.com, 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 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.
Links to web sites other than BenefitsLink.com and EmployeeBenefitsJobs.com are offered as a service to our readers; we were not involved in their production and are not responsible for their content.