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Distribution Assistant Team Leader
Nova 401(k) Associates
in Scottsdale AZ

Experienced 401(k) Distribution Specialist
Nova 401(k) Associates
in Scottsdale AZ

Senior Pension Consultant
The Ryding Company
in Westlake Village CA / Telecommute

Participant Services Specialist
BlueStar Retirement Services, INC
in Ponte Vedra Beach FL

Senior Plan Operations Specialist
BlueStar Retirement Services, INC
in Ponte Vedra Beach FL

Special Projects Account Manager
Nova 401(k) Associates
in Houston TX / Telecommute

RVP - Retirement Plans Wholesaler
in Sacramento CA

Client Relationship Manager
Loren D. Stark Company
in Houston TX

Pension Administrator
KB Pension Services
in Bradenton FL

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Striking Down Decades-Old Precedent, Ninth Circuit Rules That ERISA Breach of Fiduciary Duty Claims May Be Arbitrated

"The holding in Dorman is momentous because it explicitly states that there is support in Supreme Court precedent for enforcing arbitration agreements and class and collective action waivers in cases involving breach of fiduciary duty claims where an ERISA plan contains such provisions and waivers. The decision, however, leaves unanswered whether claims of benefits in the Ninth Circuit may be subject to arbitration." [Dorman v. The Charles Schwab Corp., No. 18-15281 (9th Cir. Aug. 20, 2019; also unpub. memo. opinion)]



SPARK Forum - November 3-5, 2019 -- The Breakers, Palm Beach, FL

Sponsored by SPARK

Join us at the retirement services industry's leading event for top marketing, sales, administration and record keeping professionals. Comprehensive agenda includes topics for Record Keepers, 401(k) Plan Providers, Financial Advisors and Cyber Security Professionals.

Ninth Circuit Reverses Itself and Finds That at Least Some ERISA Claims Can Be Compelled to Arbitration

"It's not clear whether the panel decision in Dorman will stand, although it is almost certainly correct in light of recent precedent.... Barring another change in the law, together these cases seem to stand for the proposition that many types of ERISA cases may be subject to arbitration if the plan documents are drafted properly, but much larger questions remain. Chief among those questions is whether the employer or plan would really want claims of this type (or any particular type) resolved by an arbitrator." [Dorman v. The Charles Schwab Corp., No. 18-15281 (9th Cir. Aug. 20, 2019; also unpub. memo. opinion)]

BakerHostetler via Lexology; free registration required

Employers: Don't Fly Solo on Fiduciary Issues

"There are essentially two types of fiduciary support available: administrative and investment. Which services make sense for a particular plan depends upon the employer’s needs and the relative amount of control the company wants to exercise over specific decisions regarding its retirement plan."


How Millennials Are Becoming Leaders in Retirement Planning

"Just over half of millennials have set goals for their retirement planning and roughly 83% of them say they’re headed in the right direction in meeting those goals. These percentages far exceed that of the number of Gen X and Baby Boomers that are setting and meeting goals for their retirement."

Retirement Industry Trust Association [RITA]

Proposed Legislation Would End Government Double Counting of PBGC Premium Hikes

"Increases in single-employer PBGC premiums would no longer double-count as revenue available both to support the agency and to fund general government spending, under legislation introduced in the House (HR 4035). The bipartisan Pension and Budget Integrity Act would move premiums 'off budget' so lawmakers could not raise pension plans' insurance premiums to help pay for unrelated spending."


What Is Cash Flow Duration and What Can It Tell Us About Actuarial Liabilities?

"The article defines Macaulay duration and Modified duration and discusses how duration is used to approximate the change to actuarial liability resulting from changes in the interest rate used to discount future cash flows.... [D]urations from varying types of plans are compared and errors in the estimates of liability change are used to highlight the topic of convexity. The article concludes by discussing how duration is present in the understanding and applying of more advanced actuarial topics."


Critical Factors That People Get Wrong About Retirement

"[1] The cost of inflation.... [2] The cost of taxes.... [3] The cost of long-term care.... [4] What you'll get from Social Security.... [5] When you’ll retire.... [6] How long your retirement will last."

Data 'Points'

A Down-Market Survival Guide for Preretirees

"[1] See where you stand.... [2] Turbocharge savings.... [3] Take control of your retirement date.... [4] Revisit the 'safe' portion of your portfolio.... [5] Assess your equity positioning.... [6] Factor in withdrawal sequencing and Social Security start date.... [7] Evaluate anticipated lifestyle changes.... [8] Assess your insurance safety net. "

Morningstar Advisor

Is $1 Million in Retirement Savings Enough?

"[T]here is no simple answer to the question of how much you will need in order to feel financially secure.... [Y]ou should make assumptions about the future and crunch your numbers based on your best estimates, your specific circumstances and your retirement goals.... [We] believe the Actuarial Approach, with its separate consideration of recurring and non-recurring expenses in retirement, is a powerful and effective tool for developing a spending budget and for making other financial decisions."

Ken Steiner, FSA Retired


Editor's Pick Are Public Pensions in a Crisis? Part 4: On Closing DB Plans and Replacing with DC

"[P]ublic pensions are in crisis in places were they are in crisis because of benefits already accrued.... If it were just a case of future benefits, then solutions would be easier. But the problem is that the unfunded liabilities ... are getting to a level where they simply cannot be paid with a reasonable expectation via raising taxes (where all the contributions come from).... Closing DB financially-stressed plans is akin to 'stop the bleeding' in trauma situations: no, stopping the bleeding does not fix the problem, but it stabilizes the situation so that people can actually be saved."


Selected Discussions
on the BenefitsLink Message Boards

How to Report the Direct Rollover of a Loan Note?

Participant terminates with outstanding loan - rolls loan note over to new employer's plan. Reported on 1099 as code G, or not reported at all?

BenefitsLink Message Boards

Beneficiaries Don't Want the Participant's Death Benefit

A participant died and left a 60-month preretirement death benefit payable. No beneficiary designation, no spouse, no children. The plan contacted his mother, who would be the default beneficiary under the plan terms. She said she wants nothing to do with it. Apparently the participant has a sister as well, but the mother said the sister wouldn't want it either (she would be next default beneficiary after the mother). What would you do if the default beneficiary refuses to apply for the benefit?

BenefitsLink Message Boards

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Press Releases

Most Popular Items in the Previous Issue

Life Expectancy in 2019 (PDF)
Society of Actuaries, 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 2019, 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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