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Retirement Plans Newsletter August 16, 2019 |
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Webcasts, Conferences Benefit Trends 2019: Fad or Future?
Is it Pensionable? Hybrids, Lump Sums, & Other Pensionable Compensation Challenges
Update on ERISA Litigation and Lessons Learned
Why Is Everybody Talking About MEPs? What You Need to Know
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Discussions |
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This Newsletter:
BenefitsLink Health & Welfare Plans Newsletter:
Message Boards Digest:
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"[T]he present value of additional accumulations over 40 years resulting from 'partial' auto portability (participant balances less than $5,000 adjusted for inflation) would be $1,509 billion, and the value would be $1,987 billion under 'full' auto portability (all participant balances).... Auto portability produces significant decreases in retirement deficits ... ranging from 13 percent for single females to 29 percent for married households where the female dies first.... [By combining] auto portability with auto-IRAs ... the Retirement Savings Shortfalls (RSS) would be reduced by an additional $293 billion for a total reduction of $697 billion or 18.2 percent of the current deficit." Employee Benefit Research Institute [EBRI] |
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Millennials Are Determined to Retire Early; Here's How They Can Actually Pull It Off "Get strategic about paying down student debt... Don’t skimp on your 401(k) contributions... Invest in a diversified portfolio of small stocks... Get a Roth IRA... If it’s not a bill, pay it with cash... Hire a certified financial planner; it can be a one time thing... If buying a house, consider a multi-family home you can rent out... Turn a side hustle into a nest egg... Don’t overlook Social Security... Rethink retirement. Perhaps you can still work part time doing something you enjoy." NBC News |
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Primer on Completion Portfolio Management "As plan sponsors approach the end of their de-risking glidepath and begin to think about the structure of their end-state/hibernation portfolio, a logical next step is to customize their fixed income assets to more precisely match the exposures of the liability. Naturally, this step can introduce challenges and complexity. Utilizing a completion manager can address many of these challenges." NISA Investment Advisors |
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Bankrupt Coal Operator Blackjewel Cleared to Terminate 401(k) Plan "Participants were notified Aug. 9 by Blackjewel that they can choose to receive a cash distribution or roll over the balance to a qualified plan. The plan custodian is American Funds and the third-party administrator is Benefits Plans Services Inc. Choices must be made by Sept. 13." Pensions & Investments |
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[Opinion]
No, Public Pension Reform Experiments Have Not Failed "It is entirely possible for a state or city to properly fund a Defined Benefit pension plan; it just takes discipline ... But it is only a Defined Contribution program that can wholly remove from legislators the temptation to ask (OK, require) future generations to pay for this year's benefit accruals ... Only a Defined Contribution ensures that the retirement benefit is always by definition 100% funded. And only in a Defined Contribution program is the benefit defined up front and transparent to all." Elizabeth Bauer in Forbes |
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Benefits in General |
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What Is a 'Functional' Fiduciary? "The appellate court made clear that a participant or beneficiary does not have to allege a plan administrator or named fiduciaries also satisfy the functional fiduciary test to assert an ERISA claim. Anyone who performs functional duties may be considered a fiduciary." [Dawson-Murdock v. National Counseling Group, Inc., No. 18-1989 (4th Cir. Jul. 24, 2019)] Compliance Dashboard |
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Selected Discussions |
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ASG Rules Apply to Non-Profits for 457(b) Plans? Is there any reason why the ASG rules wouldn't apply? Never happened to see a situation where a non-profit member of an ASG sponsors a 457(b) plan, but I wouldn't think it is unheard of. BenefitsLink Message Boards |
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Calculating 25% of Eligible Compensation for Deductibility Limit The IRS says: "However, an employer’s deduction for contributions to a defined contribution plan (profit-sharing plan or money purchase pension plan) cannot be more than 25% of the compensation paid (or accrued) during the year to eligible employees participating in the plan (see Employer Deduction in Pub 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans)." So who are considered eligible employees participating in the plan? For profit sharing purposes, does this include employees who were participating during the plan year but terminated before the last day of the plan year, specifically if the plan document states that profit sharing won't be paid to employees not employed on the last day of the year? BenefitsLink Message Boards |
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Normal Retirement Age Forfeitures Due to 415 I've heard that a participant stuck at the 415 comp limit post-NRA will suffer an impermissible forfeiture unless a suspension of benefits notice has been timely provided. If true, what are the acceptable corrections? If the plan contains a RASD feature can this be used? If not, can the plan simply self-correct by paying the forfeited annuity payments with interest? BenefitsLink Message Boards |
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ftwilliam Distribution Tracking Software Has anyone used ftwilliam's Distribution Tracking Software (DTS)? It has some features that look very appealing but I'm wondering how much time you spent setting it up and whether you've been successful getting clients to use it to initiate and sign off on distribution and loan requests. BenefitsLink Message Boards |
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Press Releases |
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Kantor & Kantor, LLP Ranked in 2019 "Best Law Firms"
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Federal Judge Orders Virginia Company's Former CEO and Institutional Fiduciary to Restore $6,502,500 to Employee Stock Ownership Plan
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Empower Retirement names Chief Product Officer
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Court Sentences Omaha, Nebraska, Resident to Jail, Orders $276,878 In Restitution After U.S. Department of Labor Finds Benefits Fraud
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Most Popular Items in the Previous Issue |
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Administering Hardship Distributions Should Not Be a Hardship
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The End of Favorable Tax Treatment for Inherited IRAs?
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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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