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July 29, 2020 logo logo
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Job Openings

View job as Defined Benefit Plan Administrator for MGKS Defined Benefit Plan Administrator  View job

Phoenix AZ

View job as 403(b)/457 Account Manager for Nova 401(k) Associates 403(b)/457 Account Manager  View job

Nova 401(k) Associates
Telecommute / Houston TX / Dallas TX / Scottsdale AZ

View job as Defined Contribution MEP Account Manager for Nova 401(k) Associates Defined Contribution MEP Account Manager  View job

Nova 401(k) Associates
Telecommute / Houston TX / Dallas TX / Scottsdale AZ

View job as Compliance Analyst (QKA) for Newport Retirement Services Compliance Analyst (QKA)  View job

Newport Retirement Services

View job as MEP Account Manager for Administrative Fiduciary Services MEP Account Manager  View job

Administrative Fiduciary Services
Telecommute / Houston TX

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View COVID-19 News and Resources

[Official Guidance]

Treasury Department Notice of Multiemployer Pension Plan Application to Reduce Benefits: Building Material Drivers Local 436 Pension Fund

"The Board of Trustees of the Building Material Drivers Local 436 Pension Fund has submitted an application to reduce benefits under the plan in accordance with [MPRA]. The purpose of this notice is to announce that an application ... has been published on the website of the Department of the Treasury, and to request public comments on the application from interested parties, including participants and beneficiaries, employee organizations, and contributing employers[.]"

U.S. Department of the Treasury

[Guidance Overview]

PBGC Issues FAQs on CARES Act Contribution Delay

"The CARES Act gives employers until Jan. 1, 2021, to make any minimum required contributions originally due during the 2020 calendar year. However, the Act didn't extend the deadline for Form 5500 ... or the PBGC premium package ... [T]he variable-rate premium may only reflect contributions received by the premium filing date. PBGC confirms that sponsors may not submit an amended filing reflecting a later contribution and then request a refund. The FAQs note that the delay gives sponsors an extra month to make their 2019 contributions (Oct. 15 instead of Sept. 15). But that is still 2-1/2 months earlier than the deadline contemplated by the CARES Act."


[Guidance Overview]

PBGC Issues Q&As Related to the Pandemic and the CARES Act

"The Q&As provide detail on when and how to report a failure to make required minimum contributions in light of the new CARES Act deadline. The PBGC also states that it will process distress termination applications during this time and that PBGC-initiated terminations of single-employer pension plans will continue to occur."


[Guidance Overview]

DOL Issues Proposed Rule on ESG Investing for ERISA Plans: Implications for Plan Sponsors and Investment Managers

"Plan fiduciaries would need to ensure ... that investment policy statements do not have a different investment selection or monitoring process for ESG investments than the process for investments that do not consider ESG factors. Plan sponsors and other responsible fiduciaries also have a responsibility to monitor their consultants and advisers ... The Proposed Rule also includes specific guidance for fiduciaries of individual account plans[.]"

K&L Gates

[Guidance Overview]

DOL Releases Much-Anticipated Electronic Disclosure Safe Harbor Final Rules for Retirement Plans

"Employers with existing websites may find it easier to migrate to the new notice-and-access safe harbor. However, such employers will need to make a number of operational and administrative changes before they can safely transition into this new safe harbor. Employers who do not have a website will likely find the direct email approach a more logical fit; ... some retooling of their existing procedures will likewise be necessary."

Jones Walker


Plan Advisor Checklist: Identifying the Best Retirement Plan Prospects

Retirement plan prospecting can be difficult. Successful advisors are targeted and focused on bringing new ideas to clients and prospects. Use this checklist to define your target audience, identify meaningful opportunities and communicate your value. Learn more

Sponsored by October Three

[Guidance Overview]

DOL Formalizes Reinstatement of 'Five-Part Test' for Fiduciary Investment Advice and Proposes Relief for Investment Advice Fiduciaries

"Similar to the now vacated Best Interest Contract (BIC) Exemption from the 2016 package, the proposed exemption requires IRA advice fiduciaries to comply with duties of prudence and loyalty as a condition for relief ... [T]he proposed exemption does not create a private right of action for failure to meet the terms of the exemption. Instead, a failure to meet the exemption's conditions will result in a non-exempt prohibited transaction to which excise taxes will apply under Section 4975 of the Code until corrected."

Goodwin Procter

[Guidance Overview]

Successor Beneficiary RMDs After Death of an Inherited IRA's Owner

"While Successor Beneficiaries who inherit accounts from beneficiaries taking RMDs using the 'stretch' provision will get the 10-Year Rule (from scratch), some Successor Beneficiaries (i.e., post-SECURE Act beneficiaries of Non-Eligible Designated Beneficiaries) will 'only' be able to step into the initial beneficiary's shoes, and will have to empty the balance of the IRA by the end 10-year period established by the original 10-year rule (i.e., the Non-Eligible Designated Beneficiary's 10-year window)."

Nerd's Eye View

Heightened Worry About Risk and Growing Interest in Retirement Income

"[F]our in 10 retirement plan participants are most concerned about market risk, a significant increase from last year.... Participants worry about different types of risk, particularly market risk... Participants are looking to employers for a retirement income solution. Interest in ESG among plan participants is increasing. Standard of living expectations are dramatically different between Boomers and Millennials. Some 75% of participants would be interested in holistic financial advice from their employers. Participants look to their employers for support; in fact, participants are looking for 'extreme' automatic 401(k) plans."

American Century Investments

Social Security: What Happens If the Trust Funds Run Out? (PDF)

24 pages. "After depletion, the trust funds would continue to receive tax revenues, from which a majority of scheduled benefits could be paid. One option would be to pay full benefits on a delayed schedule; another would be to make timely but reduced payments.... Maintaining financial balance after trust fund insolvency would require substantial reductions in Social Security  benefits, substantial increases in tax revenues, or some combination of the two.... Trust-fund insolvency could be avoided if expenditures were reduced or receipts increased sufficiently." [RL33514, updated Jul. 29, 2020]

Congressional Research Service [CRS]

Executive Compensation
and Nonqualified Plans

[Guidance Overview]

Editor's Pick Keys to Excise Tax on Executive Compensation Paid by Tax-Exempt Organizations

"[1] No grandfathering ... [2] 'ATEO' (Applicable Tax-Exempt Organization) includes most tax-exempts ... [3] Must aggregate ATEOs with related organizations (the 'related group'): 50% test ... [4] Covered employees: once covered always covered ... [5] Special timing rule for remuneration ... [6] Beware of 'parachutes': they're easier to trigger than you might expect ... [7] Medical services exception: reasonable, good faith allocation ... [8] Applicable year for organizations with non-calendar fiscal years ... [9] Allocation and payment of excise tax ... [10] Per se unreasonable and non-good faith interpretations."


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Amending the Definition of Comp for Current Plan Year

"A client intended for their 401(k) plan to exclude bonuses from the definition of compensation for purposes of both deferrals and matching contributions. The plan document includes bonuses. The client wants to amend the plan's definition of compensation effective 1/1/2020. It's a calendar year plan. It's not a safe harbor plan. Can the amendment be retroactive to the start of the plan year?"

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Press Releases

Most Popular Items in the Previous Issue, Inc.
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David Rhett Baker, J.D., Editor and Publisher
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BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587. Copyright 2020, 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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