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Retirement Plans Newsletter June 24, 2019 |
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Webcasts, Conferences |
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Discussions |
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This Newsletter:
BenefitsLink Health & Welfare Plans Newsletter:
Message Boards Digest:
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[Guidance Overview]
Military Retired Pay and Benefits Considerations in Divorce Proceedings "[While a state] court may divide a service member's pension during a divorce action within the property division, whether by stipulation or contested trial, it must have jurisdiction over the service member and it must make specific findings and awards. This may become a significant problem when practitioners do not fully understand applicable federal law and those fact patterns governed by the FSPA."
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[Advert.]
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Find, Fix and Avoid Plan Loan Mistakes: Some Basics "Plan sponsors who choose to include a loan feature in their retirement plan must take care to ensure their loan program is operated in compliance with the tax rules and the plan's loan policies to avoid unintended consequences for loan recipients and the plan.... [H]ere's an overview of the basic rules for plan loans and some best practices for finding, fixing and avoiding plan loan mistakes."
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Projected 2020 Retirement Plan Limits "These estimates are determined using the Code's cost-of-living adjustment and rounding methods, the Consumer Price Index for All Urban Consumers (CPI-U) through May, and estimated CPI-U values for June-September.... [F]igures can't be finalized until ... October."
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Index Funds Nearly Universal in Large 401(k) Plans "More than 95% of 401(k) plans with more than $10 million in plan assets offered index funds in their plan lineups in 2016, and 77% of 401(k) plans with less than $1 million offered them."
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Pensions Are Making Riskier Real Estate Bets "Pension funds are making riskier bets on real estate as investor demand for alternative assets rises ... They've been shifting a portion of their core real estate holdings to properties under development or renovation ... [P]ensions may pick up an additional 200 basis points to 300 basis points of yield by doing so."
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"The most significant extra-contractual obligation is withdrawal liability, a statutory exit fee imposed on employers that leave a plan that has unfunded vested benefits. However, even before a withdrawal, an employer's potential liability can also be affected by the plan rules adopted by the MEPP's trustees and other federal laws intended to encourage proper funding of the MEPPs[.]" [Bakery & Confectionary Union & Industry Int'l Pension Fund v. Just Born II, Inc., No. 17-1369 (4th Cir. Apr. 26, 2018)]
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President Names PBGC Advisory Committee Members "President Donald J. Trump has appointed the following members to serve on the Advisory Committee of the Pension Benefit Guaranty Corporation: Henry Charles Eickelberg ... Jeanmarie Grisi ... Babette Ann Ceccotti ... Guy Pinkman ... Donald J. Butt ... Regina T. Jefferson ... and Jackson Miller[.]"
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Selected Discussions |
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Plan Termination Required When Plan Sponsor Ceases Doing Business? Must a plan be terminated when there is no longer a business? By that I mean that a solo owner has retired and no longer has employees. The owner takes no further compensation.
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OK for a Small Plan to Have a Safe Harbor Match But No NHCE Deferrals? Owner has 4 hourly employees. The plan was set up with a safe harbor match. None of the NHCE hourly employees has enrolled in the plan although each is eligible. So only the owner has a balance. He continues to put in the maximum 401k and SH match for himself. Plan has no profit-sharing component, so no top-heavy minimum required. I'm not accustomed to seeing a plan in which only the owner has a balance. Any implications?
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Eliminate Loan Availability to Terminated Employees? A Safe Harbor 401k PSP permits all participants (including terminated employees) with vested account balances to take participant loans, with repayment via cashier's check (current employees use payroll withholding). Would an amendment to eliminate further loan availability to terminated employees be an impermissible elimination of a benefit, right or feature?
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Most Popular Items in the Previous Issue |
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Reg BI: How Rollovers Are Changing Under the New SEC Rules
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BenefitsLink.com, Inc.
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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 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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