Retirement Plans Newsletter

November 15, 2019 logo logo
Search   ·   Past Issues   ·   Get Message Boards Digest   ·   Get Health & Welfare News

Job Openings

View job as DC Plan Administrator DC Plan Administrator

The Benefit Advantage
Auburn Hills MI / Telecommute

View job as Retirement Sales Consultant Retirement Sales Consultant

Alerus Financial
Minneapolis MN

►Get Instant Job Alerts

►View More Jobs

►Post a Job

Webcasts, Conferences

Emerging Opportunities in Employee Benefits
December 3, 2019 in CT
NIPA [National Institute of Pension Administrators] - Connecticut Chapter

What Lies Ahead for Retirement Plans and Plan Sponsors in 2020
December 11, 2019 WEBCAST
CAPTRUST Financial Advisors

►See 109 Upcoming Webcasts and Conferences

►See 1412 Recorded Webcasts


New Topics on the BenefitsLink Message Boards

New Comments and Topics

All Topics, Grouped by Forum

This Newsletter:
Subscribe Now

BenefitsLink Health & Welfare Plans Newsletter:
Subscribe Now

Message Boards Digest:
Subscribe Now

[Official Guidance]

Text of 2019 IRS Form 5329: Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts (PDF)

"If you only owe the additional 10% tax on early distributions, you may be able to report this tax directly on Schedule 2 (Form 1040 or 1040-SR), line 6, or Form 1040-NR, line 57, without filing Form 5329.... Complete this part if you took a taxable distribution before you reached age 59-1/2 from a qualified retirement plan (unless you are reporting this tax directly on Form 1040 or Form 1040NR).... You may also have to complete this part to indicate that you qualify for an exception to the additional tax on early distributions or for certain Roth IRA distributions."

Internal Revenue Service [IRS]


Electronic Disclosure under ERISA: How to Effectively Use Technology without Sacrificing Compliance

Sponsored by Lorman and BenefitsLink

Dec. 3 webinar. Gain a better understanding of how to use technology while staying compliant under ERISA. BenefitsLink discountLearn more

[Guidance Overview]

2020 PEPRA Compensation Limits for CalPERS and CalSTRS Pension Plans

"The 2020 PEPRA compensation limits are $126,291 for Social Security members and $151,549 for non-Social Security members. These limits are the maximum pay that a California public agency can recognize in a defined benefit plan for PEPRA members, i.e. those first hired by a public employer in 2013 or later. 'Classic' members hired from 1996 through 2012 are subject to the higher Section 401(a)(17) pay limit that applies to private sector employees."

Van Iwaarden Associates

Update on Hardship Distribution Regs

"The IRS guidance on the timing of the amendments has been confusing. For 401(k) plans, the IRS clarified the deadline a bit better in the final regulations, but further guidance is welcomed.... [T]he deadline for amending 401(k) plans is no later than the due date of the employer's 2020 tax return (plus extensions), even though some of the provisions may have been effective in the 2019 plan year. At this time, it is not clear when 403(b) plan documents must be updated. "


DOL Releases Proposed Electronic Disclosure Safe Harbor

"While governmental pension plans are largely exempt from ERISA notice and disclosure requirements, rules applicable to private sector retirement plans often serve as a 'best practice.' "


Annuity Purchase Update: November 2019 Interest Rates

"[T]he average duration 7 and duration 15 annuity purchase interest rates increased by roughly 25 basis points since September 2019. This increase in rates since September led to a corresponding decrease in annuity purchase prices of almost 2% for Annuity Plan 1 and more than 4.5% for Annuity Plan 2. The activity of plans purchasing annuities remained constant throughout 2019 and has dramatically increased in the fourth quarter."

October Three Consulting


Reading this on your mobile device? Get the BenefitsLink App!

Sponsored by BenefitsLink

Now available on Google Play and in the App Store, the free BenefitsLink mobile app includes all the same great content as the daily newsletter -- news, jobs, events, message boards -- at your fingertips when you're on the go. Download today! Learn more

Lessons From Down Under: The Problem With Getting Only Half of the Retirement Equation Right

"As EBRI's research has noted about U.S. retirees in the current environment, Australian retirees seem to be hoarding their nest egg not because they want to but out of fear of longevity risk. Essentially, they are self-insuring so that they won't run out of money as they age.... Just as people have many needs along the way as they accumulate money for retirement, so the path to decumulation is not likely to be one-size-fits-all but instead quite heterogeneous."

EBRI [Employee Benefits Research Institute]

GoalMaker Targeted in New Excessive Fee Suit

"The plaintiffs in the case are participants in the AutoZone 401(k) plan, which has some $545 million in assets and approximately 15,000 participants ... and while they raise a number of issues in common with this genre of excessive fee lawsuits, they devote most of their focus on Prudential's GoalMaker offering, which had been established as the plan's default investment option." [Miller v. AutoZone, Inc., No. 19-2779 (W.D. Tenn. complaint filed Nov. 13, 2019)]

National Association of Plan Advisors [NAPA]

Bill to Consolidate Public Safety Pension Funds of Illinois Localities Passes State Legislature

"A bill to consolidate hundreds of local public safety worker retirement systems in Illinois to ease funding pressures on municipalities won final approval in the state legislature on [Nov. 14].... The measure consolidates about 650 police and firefighter pension funds into two statewide funds in an effort to reduce administrative costs and boost investment returns."



Take Politics Out of Public Pension Plans

"[I]nstead of the hundreds of millions of dollars our states spend each year trying to 'beat the market,' the vast majority waste those taxpayers' dollars and employee contributions, and then compound it by failing to produce 'alpha': returns in excess of a reasonable benchmark. Our politicians then continue the abuse by manipulating the way our funds calculate unfunded liabilities."

Institute for Pension Fund Integrity


Will Illinois Botch Local Pension Consolidation?

"[A]ll these pension systems are placed on a funding schedule to reach 90% funding at some point in the 2040s or 2050s, varying by plan. But the Tier 2 liabilities will become an ever greater share of the liabilities, so the relatively small portion of the liability attributable to them in 2019 is not a meaningful measure of the long-term impact of restoring the benefit reductions for new hires.... [T]he 'savings' due to increased investment earnings will not be shared by all police and fire plans uniformly; plans for larger cities will gain less because they are now in a better position than the smaller-asset plans."

Elizabeth Bauer, in Forbes

Benefits in General

Deskless Yet Informed: Successful Plan Communications for Hard-to-Reach Employees (PDF)

"Whether working on the shop floor, behind the wheel of a truck, in a warehouse, in a checkout lane, or in any number of other job venues and capacities, deskless employees can be a problematic audience for effective benefits communication.... [O]rganizations will benefit from addressing four primary obstacles to effective communication with deskless employees: communication barriers, managers/supervisors as the conduit, subject matter 'inexperts' and an information void for spouses."

Benefits Quarterly, published by the International Society of Certified Employee Benefit Specialists [ISCEBS]

Selected Discussions
on the BenefitsLink Message Boards

Use Carryforward Losses to Offset Income from Roth Conversion?

"Last year, I had significant capital losses in a cash management account held at Merrill Lynch. I used the $3,000 last year as a way to reduce my taxable income and I still have several thousands that I can roll into 2019 tax year. My question is, can I use those losses to offset a conversion of funds from my traditional IRA to my Roth IRA?"

BenefitsLink Message Boards

Safe Harbor 3% Non-Elective Contributions -- Traditional vs. QACA

"We are looking into taking over the third party administration of a plan that currently has a QACA that utilizes the 3% non-elective contribution safe harbor method that vests after two years of vesting service. We are exploring changing the ADP safe harbor method to traditional 3% non-elective which is 100% vested immediately, but if the administrator is already successfully administering the QACA, I am thinking this may not be in their best interest. Is the ability to administer the QACA properly the only difference between a two year difference in vesting requirement, or are there other considerations?"

BenefitsLink Message Boards

Loan from Plan Assets to Unrelated Business Gives Rise to Unrelated Business Taxable Income?

"If a retirement plan makes a loan to an unrelated operating business, and the interest is a fixed rate plus a percentage of the business profits, would that trigger UBTI? Does it make a difference if the business is a corporation, partnership or LLC?"

BenefitsLink Message Boards

► 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

Call for Presentations: 2020 Annual ISCEBS Employee Benefits Symposium
ISCEBS {International Society of Certified Employee Benefit Specialists]

Most Popular Items in the Previous Issue

Facts About Women and Retirement (PDF)
Transamerica Center for Retirement Studies

Automated Emergency Savings Plans: The Next Big Thing?
American Society of Pension Professionals & Actuaries [ASPPA], 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.

Links to web sites other than and are offered as a service to our readers; we were not involved in their production and are not responsible for their content.

Unsubscribe  |   Change Email Address  |   Privacy Policy