Retirement Plans Newsletter

December 9, 2019

BenefitsLink.com logo
EmployeeBenefitsJobs.com logo
Search   ·   Past Issues   ·   Get Message Boards Digest   ·   Get Health & Welfare News

Job Openings

View job as Pension Plan Administrator Pension Plan Administrator

American Pension Advisors, Ltd.
Indianapolis IN

View job as Defined Contribution Plan Administrator Defined Contribution Plan Administrator

The MandMarblestone Group, llc
Philadelphia PA / Telecommute

►View More Jobs

►Post a Job

►Get Instant Job Alerts


Webcasts, Conferences


Discussions

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 PBGC Notice of Approval of Alternative Arbitration Procedure: American Arbitration Association

12 pages. "This notice advises interested persons that the [PBGC] has approved a request from the American Arbitration Association (AAA) for approval of an alternative arbitration procedure."

Pension Benefit Guaranty Corporation [PBGC]

[Sponsored]

Easily Generate Hardship Interim Amendments for ASC's Plan Documents!

Sponsored by ASC

ASC is a top document provider in the Industry! Our newly released Hardship Distribution Interim Amendment Wizard lets you generate Hardship Interim Amendments, using your own default provisions, SMMs & more. Email sales@asc-net.com to learn more. Learn more


[Guidance Overview]

SEC Clarifies Form CRS Relationship Summary Format and Delivery Requirements (Incl. Relief for Fund Advisers)

"On November 26, 2019, staff of the Division of Investment Management and the Division of Trading and Markets released an installment of FAQs to help registrants prepare for the June 2020 implementation deadline for Form CRS. The FAQ addressed Form CRS's: [1] relationship summary format; and [2] delivery requirements. The first of the two questions concerning delivery requirements provides guidance regarding the delivery of Form CRS to existing retail clients and customers via June 2020 quarterly account statements, the annual Form ADV update, or other periodic reports."

Kilpatrick Townsend

Can Your Plan Records Be Hacked?

"Fiduciaries should ... make sure their in-house systems are as secure as possible ... [and] should also: [1] Make sure their service providers' systems are secure. [2] Insist that their service provider agreements permit them to audit their service provider's systems. [3] Include specific cybersecurity obligations in their service provider agreements. [4] Be careful about agreeing to service provider contract provisions that may limit their remedies if there is a security breach. [5] Not assume their existing fiduciary liability policy provides cybersecurity coverage."

PenChecks

Pension Funding Index, December 2019 (PDF)

"The funded status of the 100 largest corporate defined benefit pension plans increased by $15 billion during November ... The deficit lessened to $243 billion primarily due to investment gains.... As of November 30, the funded ratio increased to 86.8%, from 86.1% reported at the end of October. Pension funding has improved by $64 billion over the past three months primarily due to positive market performance."

Milliman

For Some 401(k) Holders, Picking Funds Is as Simple as ABC -- Unfortunately

"401(k) plan participants are more likely to invest in mutual funds at or near the top of alphabetical listings.... On average, each of the top four funds on such a list receives 10% more money than it would receive if money was allocated equally among the investment options ... Funds in the fifth through 10th places on a plan’s list receive 5% less investment than they would if money was allocated equally, while each fund appearing after the 10th position contains 10% less investment allocation[.]"

The Wall Street Journal; subscription may be required

[Sponsored]

The Latest Word on MEPs and PEPs -- complimentary webinar December 12

Sponsored by Trucker Huss

DOL regs now permit employer associations and PEOs to sponsor MEPs and IRS proposed regs provide a mechanism to deal with the one-bad-apple rule. The SECURE Act would significantly expand their reach. Register now to hear the latest developments. Learn more


[Opinion]

Multiemployer Compromises Needed

"The House bill avoids any benefit cuts for employees and retirees and does not increase PBGC premiums.... The Senate bill ... is designed to shore up the PBGC and place the burden of rescuing the troubled plans on participants, retirees and plan sponsors.... [T]he Pension Analytics Group ... proposes that if a plan is within 15 years of becoming insolvent it should be required to cut the benefits to the PBGC level.... Somewhere in the middle of these proposals lies a plan to help multiemployer plans survive, preferably without taxpayer money or raiding the now-healthy PBGC single-employer plan[.]"

Pensions & Investments

[Opinion]

Editor's Pick Putnam Investments, LLC v. Brotherston: The End of 'Business as Usual' for 401(k) Plans

"The predominant invest options in many 401(k) plan continue to be actively managed mutual funds. However, the evidence with regard to the historical performance of actively managed mutual funds shows that the overwhelming majority of actively managed funds are cost-inefficient, not only consistently underperforming comparable passively managed, or index funds, but doing so at a significantly higher price. So much for the three fiduciary requirements of prudence set out in the Restatement."

The Prudent Investment Fiduciary Rules

Benefits in General

Best Practices in Administering Benefit Claims: Litigation Aspects

"Strategically, of course, the plan administrator's goal is to find the quickest means to get the case dismissed. And, putting the administrative record in the hands of the participant prior to the participant commencing an action often helps put the plan administrator in a better position to try to get the case dismissed ... [A] good administrative record is key to setting up the possibility of an early resolution of a benefit claim dispute."

Proskauer

Multiemployer Health and Welfare Fund Statistics, Fall 2019 (PDF)

"The average plan could pay for approximately one year and one month of benefits and expenses with its net assets. There was an aggregate increase in net assets from 2016 to 2017 of approximately 0.7 months of total expenses. Total income exceeded total expenses by approximately 10.6%, an increase of 1.4 percentage points over the prior year. Administrative expenses represented 5.6% of total expenses on average, a decrease of 0.3 percentage points over the prior year."

Milliman

Selected Discussions
on the BenefitsLink Message Boards

Can a DB Plan Be Based Upon Section 736(a) Income?

"Partner Joe (over age 70) retired in 2017 from partnership XYZ, LLC (a large law firm) and started receiving IRC §736(a) payments (distributive share or guaranteed payment under IRC §707(c)) for a period of 48 months and in form of a Schedule K-1. These payments are subject to self-employment tax. Joe also has clients on the side with whom he consults. Not sure how he is paid yet but can assume schedule C. Joe wants to start a pension plan on both incomes. Can he do that? How about only on the K-1 he is getting from XYZ, LLC? The plan will be for 2019, 2020 and 2021.

BenefitsLink Message Boards

No Form 5500 Ever Needed if Assets Less Than $250,000?

"I remember someone once telling me that if Plan Assets were under $250,000 the Plan was not required to file Form 5500 but I don't see that in the Form 5500 instructions. Does it only apply to those who file Form 5500-EZ?"

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

Most Popular Items in the Previous Issue

What You Don't Know, Can Hurt You: ERISA's Statute of Limitations Conundrum (PDF)
Jose Jara and Anthony Fassano of Archer & Greiner P.C., via Tax Management Compensation Planning Journal

BenefitsLink.com, 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

Article submission: Online form

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.

Links to web sites other than BenefitsLink.com and EmployeeBenefitsJobs.com 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