Retirement Plans Newsletter

May 24, 2019

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Jobs

Call Center Specialist
Alerus
in Arden Hills MN

COBRA/FSA Administrator
Pension Dynamics Company LLC
in Pleasant Hill CA

Employee Benefits Investigator
Employee Benefits Security Administration, U.S. Department of Labor
in Pasadena CA / Telecommute

Employee Benefits Investigator (Recent Graduate)
Employee Benefits Security Administration, U.S. Department of Labor
in Pasadena CA / Telecommute

Senior Enforcement Advisor
Employee Benefits Security Administration, U.S. Department of Labor
in Boston MA / New York NY / Philadelphia PA / Silver Spring MD / Atlanta GA / Fort Lauderdale FL / Covington KY / Chicago IL / Kansas City MO / Dallas TX / Pasadena CA / San Francisco CA / Seattle WA / Telecommute

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Webcasts, Conferences

Pensionomics 2018: Measuring the Economic Impact of Multiemployer DB Pension Expenditures
May 29, 2019 WEBCAST
National Institute on Retirement Security


June 4, 2019 WEBCAST
Convergent Retirement Plan Solutions, LLC

►See 142 Upcoming Webcasts and Conferences

►See 1546 Recorded Webcasts


Discussions

New Topics on the BenefitsLink Message Boards

New Comments and Topics

All Topics, Grouped by Forum


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[Guidance Overview]

The Art of Self-Correction: Retirement Plan Loan and Document Failures Under EPCRS

"Self-correction requires an analysis of the facts of a plan operational failure to determine whether self-correction is an option as well as the correction process. It is imperative ... to maintain the correction data and document the process taken to correct a mistake as evidence of the decision to self-correct and the manner in which the correction was made."
DLA Piper

[Advert.]

Earn Your Certificate This June in San Diego

Sponsored by International Foundation of Employee Benefit Plans [IFEBP]

The Certificate in Retirement Plans provides an overview of defined benefit and defined contribution plans, Social Security, basic investment principles, qualified plans, 401(k) plans and the legal and regulatory environment surrounding plans today.


House Passes the SECURE Act

"What are the absolute gems in this version of the SECURE Act? [1] Creates the Pooled Employer Plan (the new name for what has been referred to as an open MEPs). [2] Increases the Required Minimum Distribution start date from 70-1/2 to 72 (no one likes calculating a half year). [3] Allows penalty-free distributions of up to $5,000 within a year for new parents (birth or adoption). [4] Extends the period of time for companies to adopt new plans beyond the end of the year to the due date for filing the company tax return. [5] Permits employers to add a safe-harbor feature to their existing 401(k) plans once the year has already started if they agree to make at least a 4% of pay contribution to employees (instead of the regular 3%). What is potentially much ado about nothing? The annuities!"
DWC

House Passes SECURE Act by 417-3 Vote

"Many believe the overwhelming bipartisan support for SECURE in the House makes early passage of a final bill by the Senate more likely. In the current context, however, risks to final passage remain.... On May 14, 2019, Senators Portman (R-OH) and Cardin (D-MD) introduced the Retirement Security and Savings Act of 2019. The bill generally tracks legislation the Senators introduced last year, and many of the proposals included in it are expected to be part of the nextbipartisan retirement policy reform effort (after SECURE/RESA)."
October Three Consulting

Senate Could Vote Friday on Bill Expanding Annuity Options in Plans

"The SECURE Act is designed to expand access to workplace retirement plans, particularly for small businesses, and will improve the ability for employers to extend greater access to annuity options in those plans. House committees have debated the proposal for several weeks."
InsuranceNewsNet.com

[Advert.]

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Sponsored by Pension Rights Center

Are you an experienced attorney who can draft QDROs? Sign up to receive pension client referrals from the Pension Rights Center. We are looking for attorneys who have experience drafting QDROs in any state. There is never any obligation to take cases we refer to you.


Benefits in General

District Court Rejects Attempt to Certify Class Against Third-Party Plan Administrator

"In affirming its denial of class certification, the court recognized that ERISA Section 502(a)(3) does not address which parties may be sued under the statute and 'admits of no limits . . . on the universe of possible defendants.' However, the court recognized that there are limits on a plaintiff's ability to bring a Section 502(a)(3) claim against a nonfiduciary.... The court ultimately found that the appropriate equitable relief requirement doomed the plaintiff's class claims against the third-party administrator." [Duggan v. Towne Properties Group Health Plan, No. 15-623 (S.D. Ohio, Mar. 31, 2019)]
Baker Hostetler, via Lexology; free registration required

Surprise! A QDRO Can Apply to a Welfare Benefit Plan

"When the plan administrator receives a QDRO for a pension plan, does it have an affirmative duty to ask whether the divorce decree has any provisions regarding life insurance beneficiary designations? If the plan administrator receives a divorce decree with a provision regarding a life insurance beneficiary designation, does it have an affirmative obligation to determine whether the domestic relations order is 'qualified' and, if not, advise the parties so it can be corrected? Does the plan administrator need to revise its QDRO procedures to apply to welfare benefit plans as well as pension plans?"
Dickinson Wright

Executive Compensation
and Nonqualified Plans

Seven Venial Sins of Executive Compensation

"Certain compensation practices are known for raising investor concerns, leading to difficult conversations between investors and boards and higher levels of investor opposition of executive pay programs. But beyond outright egregious practices, a careful review of the diverse set of compensation programs available may reveal some compensation practices that do not appear as significantly concerning but can raise pointed questions about a compensation program's alignment with shareholders' interests."
Institutional Shareholder Services [ISS]; free registration required

Selected Discussions
on the BenefitsLink Message Boards

Sole Proprietor Cash Balance Plan -- Can Contribute Personally-Owned Securities Rather Than Cash?

This is a cash balance plan for a sole proprietor with employees. We completed the annual contribution calculation, client asking if contributions must be made in cash or he can transfer some personally owned securities into the plan as contribution. I'm leaning towards "no". The plan document makes no mention.
BenefitsLink Message Boards

EPCRS Corrective Amendments -- Override Normal Timing for Advance Notice Requirement under a Safe Harbor Plan?

Regarding corrective amendments to conform plan language to actual operation -- I'm guessing this does not override the normal timing requirements for advance notice in a safe harbor plan. Agree? Or is it meant to allow self-correction n such a situation?
BenefitsLink Message Boards

Disclosing Specific Investments When Trust's Investments are Pooled

Is the Plan Sponsor required to disclose to a participant the specific funds or stocks they are investing in for a pooled Profit Sharing Plan?
BenefitsLink Message Boards

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Press Releases

Most Popular Items in the Previous Issue

House Passes Bill Making Big Changes to U.S. Retirement System
The Wall Street Journal; subscription may be required

Employers Link Student Loan Payments to 401(k)s
Squared Away Blog, by the Center for Retirement Research at Boston College

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Lois Baker, J.D., President  loisbaker@benefitslink.com
David Rhett Baker, J.D., Editor and Publisher  davebaker@benefitslink.com
Holly Horton, Business Manager  hollyhorton@benefitslink.com

BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587. Copyright 2019 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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