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Retirement Plans Newsletter December 10, 2019 |
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Webcasts, Conferences Electronic Disclosure under ERISA: How to Effectively Use Technology without Sacrificing Compliance
Compensation Case Studies - The Ins and Outs
FLSA: New Updates
Designing Equity Compensation and Employment Agreements for Startup and Emerging Growth Companies
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Discussions |
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This Newsletter:
BenefitsLink Health & Welfare Plans Newsletter:
Message Boards Digest:
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[Official Guidance] "This notice specifies updated mortality improvement rates and static mortality tables to be used for defined benefit pension plans under Section 430(h)(3)(A) of the Internal Revenue Code and section 303(h)(3)(A) of [ERISA]. These updated mortality improvement rates and static tables ... apply for purposes of calculating the funding target and other items for valuation dates occurring during the 2021 calendar year. This notice also includes a modified unisex version of the mortality tables for use in determining minimum present value under Section 417(e)(3) of the Code and section 205(g)(3) of ERISA for distributions with annuity starting dates that occur during stability periods beginning in the 2021 calendar year." Internal Revenue Service [IRS] |
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[Sponsored]
New Edition! The 2020 Pension Answer Book by Stephen J. Krass
The 2020 Pension Answer Book by renowned pension expert Stephen J. Krass explains the most recent laws, regulations, private rulings, and court decisions affecting retirement plans. One source -- expert answers in a time-saving Q&A format. Learn more! |
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[Guidance Overview] PBGC Final Rule Amends Regulation on Allocating Assets in Terminating Single-Employer Plans "The final rule amends Appendix D to update the table used for determining a participant's probability category. The new table, Table I-20, applies for valuation dates in 2020. The PBGC issued the final rule without notice and public comment, citing plan administrators' need for the updated information in early 2020." Thomson Reuters Practical Law |
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[Guidance Overview] AAA Amends Withdrawal Liability Arbitration Rules to Obtain PBGC Approval "The amended rules provide some welcome relief to employers who wish to challenge withdrawal liability assessments and set forth a much more equal burden to arbitrate assessments between multiemployer plans and employers. Specifically, the new rules are changed in three ways: [1] The AAA lowered the fees required to initiate arbitration by tens of thousands of dollars. [2] Both parties now must share the fees equally. [3] Either party may object to an arbitrator within 10 days of appointment." Drinker Biddle |
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E-Delivery of Retirement Plan Communications Could Improve Retirement Readiness "Electronic delivery for retirement plan communications could save participants up to $450 million a year ... Over the course of their savings lives, this could boost participants' returns by 9% ... The SPARK Institute says 99% of retirement plan participants have access to the Internet, and 88% use the Internet on a daily basis. Final account balances could increase by 63% due to e-delivery nudges to participants to increase their deferral rates." PLANSPONSOR; free registration may be required |
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Is Your Defined Contribution Plan Ready for 2020? "Measure workforce financial stress.... Consider decision-support tools and financial coaching.... Explore innovative design solutions.... Make plan investments work harder.... Design a sustainable plan to fit future growth.... Assess the innovations occurring in DC plans to ensure they are the most sustainable for employees in all stages of life.... Delegate investment choices to an OCIO.... Conduct fee and service benchmarking.... Adopt controls to minimize cyber risk.... Prepare for the SECURE Act." Willis Towers Watson |
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[Sponsored]
FTW Webinar: Current Pension Developments with Sal Tripodi, 2 CEs
Join ftwilliam.com on December 11 for a CE webinar: Current Developments Affecting Retirement Plan Matters! Sal Tripodi of TRI Pension Services will review important current developments and how they affect plan design and administration. Register now |
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Beyond SECURE: the Next Round of (Possible) Bipartisan Retirement Legislation "[This article reviews] key proposals ... that are not part of SECURE but are being actively considered as part of the next round of retirement legislation. These include Congressman Neal's 2017 Automatic Retirement Plan Act (HR 4523) and Retirement Plan Simplification and Enhancement Act (HR 4524), the Portman-Cardin 2019 Retirement Security and Savings Act [S 1431], and proposals to address the multiemployer plan financial crisis." October Three Consulting |
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Sun Capital Wins -- But All Private Equity Funds May Not "How can a private equity fund investor be tagged with pension withdrawal liability? ... How did the Court determine there was no partnership? ... How are private equity investors still at risk of withdrawal liability? ... How does a private equity fund relying on the venture capital operating company exception to the plan asset rules deal with the partnership factor of control over the business when the fund holds less than 80% of the target or portfolio company?" [Sun Capital Partners III, LP v. New England Teamsters & Trucking Industry Pension Fund, Nos. 16-1376, 19-1002 (1st Cir. Nov. 22, 2019)] Nelson Mullins |
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Corporate Pensions Head for Extinction as Nature of Retirement Plans Changes "The practice of companies sending monthly retirement checks to their former workers is headed for extinction, and remaining pension funds are in tough financial shape. Nearly two-thirds of pension funds are considering dropping guaranteed benefits to new workers within the next five years ... By late 2019, the average pension fund had 85% of the funds necessary to meet its obligations over time due largely to low interest rates[.]" USA TODAY |
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Why Are We Seeing More Cases of 'Fear of Spending' Among Retirees? "No matter what the economic data shows, the unknowns will continue to spook those unfamiliar with the heretofore unchartered terrain of retirement. As the same time they enter this new terra incognita, they are asked to flip their fiscal mental posture 180 degrees. This is no easy task for anyone." Fiduciary News |
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Benefits in General |
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All in the Family: Why Controlled Group Rules Matter "The determination as to whether or not two companies are members of the same group touches all areas of executive compensation and employee benefits, and can have a material impact on whether or not you are operating your benefit plans and executive compensation arrangements in accordance with applicable rules." Foley & Lardner LLP |
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Selected Discussions |
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Safe Harbor Match Suspended: Testing on Pre-Suspension Portion of Plan Year? "Plan suspended their safe harbor match as of 9/1/2019. PY is 12/31. There was no other match made for the year. Do I need to do both the ADP test and the ACP test for the safe harbor that was made during 2019 prior to suspension?" BenefitsLink Message Boards |
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Denying a Plan Loan Application Due to Particpant's Bankruptcy "A 401k plan allows for plan loans for any reason. A participant who is requesting a loan recently declared bankruptcy. The company is aware of it because they received a court order to terminate his wage attachment for child support. Can (and should) a Plan Administrator deny the request for the loan because they have reason to believe (i.e., the bankruptcy) that the plan loan would not be paid back?" BenefitsLink Message Boards |
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Press Releases |
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Westminster Consulting Introduces New Initiative: Human Capital Advisory Services
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Most Popular Items in the Previous Issue |
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Putnam Investments, LLC v. Brotherston: The End of 'Business as Usual' for 401(k) Plans
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Text of PBGC Notice of Approval of Alternative Arbitration Procedure: American Arbitration Association
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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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