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August 26, 2020 logo logo
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[Guidance Overview]

IRS Issues CARES Act Guidance for Single Employer DB Plan Relief (PDF)

"[T]he CARES Act allows plan sponsors to delay until January 1, 2021 contributions otherwise due during 2020 ... The deduction rules have not changed.... [M]inimum contributions must increase with interest from the valuation date until the deposit date.... [T]he CARES Act permitted plan sponsors to elect to use the AFTAP certified for the last plan year ending in 2019 for any plan year that covered part of 2020.... [The IRS] requires written notification of the election by the plan sponsor to the plan's enrolled actuary and to the plan administrator.... [T]he election only applies prospectively from the date that the plan sponsor made it[.]" Icon to read more

Cowden Associates, Inc.


Join ASC's Rich Hochman, J.D., at the WP&BC Virtual Luncheon!

Learn what changed in the most recent DB restatement, changes under Revenue Procedure 2019-19 for employers who missed their restatement deadline, and more with ASC's Rich Hochman, Director, Retirement Plan Consulting Services. Register Here! Learn more

Sponsored by ASC

[Guidance Overview]

Exceptional Usefulness and Quality iconDOL Presses Forward with Lifetime Income Disclosure in Defined Contribution Plans

"Implementing the IFR may require many recordkeepers and other service providers to develop new systems capable of making the required disclosures.... [R]ecordkeepers that currently provide lifetime income estimates will need to determine if they want to change their estimates in order to conform to the IFR or, alternatively, provide both sets of estimates.... [T]he DOL is seeking comments on the assumptions and methodology used to derive the [lifetime income illustrations], the required participant explanations/model language, as well as the overall benefits of the [illustrations]." Icon to read more

Groom Law Group

[Guidance Overview]

Making Defined Contribution Plan Benefits Look Like Annuity Payments: Interim DOL Guidance Regarding Lifetime Income Illustrations

"The Interim Rule provides different disclosure requirements for plans that allow participants to purchase deferred income annuity contracts or qualifying longevity annuity contracts but excludes such disclosures from the limitation on liability otherwise available under the Interim Rule.... [A]ny portion of a participant's account that is not invested in such deferred annuities must still be converted into the lifetime income stream illustrations in accordance with the Interim Rule's requirements and assumptions." Icon to read more

Sidley Austin LLP

[Guidance Overview]

IRS Modifies Language in Safe Harbor Special Tax Notice

"[C]hanges that qualified governmental plans should consider making to their Special Tax Notices[:] [1] New exception to 10% additional tax under Code Section 72(t)(1) for Qualified Birth or Adoption Distributions ... [2] Increase in individual's Required Minimum Distribution age ... [3] Coronavirus-related distributions." Icon to read more

Ice Miller LLP

[Guidance Overview]

DOL Issues Proposed Regs Establishing Registration Requirement for Pooled Plan Providers

"The DOL, although candid about the lack of guidance provided, does not explain how pooled employer plans can be structured like existing multiple employer plans, since the DOL preamble also states that the SECURE Act's 'bad apple' relief is only available to multiple employer plans that comply with the SECURE Act, and thus the major operational confusion for existing multiple employer plans remains to be resolved." Icon to read more

The Wagner Law Group


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]

Upcoming Deadline iconIRS Provides Reprieve for Hybrid Plan Determination Letter Filings ... Sort Of

"Last year, the IRS opened the determination letter process for a limited time period for individually-designed hybrid plans.... Determination letter applications under this limited opportunity must be filed by August 31, 2020.... While the deadline for the filing was not extended and remains next Monday, August 31, 2020, applicants are permitted to submit 'incomplete' filings by August 31, 2020, and supplement the applications through the end of 2020.... This publication did not give any relief for obtaining signatures on the applicable filing forms or for providing notices to interested parties." Icon to read more


Stakeholders Want More Substantive PEP Guidance from DOL

"Though they applaud the direction the [DOL] is taking, expert ERISA attorneys say a new proposed rule does not sufficiently explain how pooled employer plans can be structured like existing multiple employer plans." Icon to read more


Relief Beyond August 31 for RMD Repayments

"If you received your RMD in July or August, the normal 60-day deadline will give you additional time beyond August 31 to repay the RMD. And, if you are a 'qualified individual,' you don't have to sweat the August 31 or 60-day deadlines at all because you have plenty of time to repay your RMD.... Since your RMD is a CRD, you have three years to return it to an IRA or workplace plan." Icon to read more

Slott Report

More Employees Are Taking Coronavirus-Related Distributions

"Almost a quarter of U.S. workers (22%) have borrowed money from their retirement accounts.... As the pandemic continues throughout 2020 and even into 2021, more reports are expressing concerns over its effect on the retirement industry.... [A] World Economic Forum estimate ... projects the retirement savings gap will grow by 5% each year and ultimately reach $400 trillion by 2050." Icon to read more


Eleventh Circuit Affirms Denial of Special Early Retirement Benefits to Factory Workers Following Sale of Employer by Parent Company

"Appellants claim they are entitled to [special early retirement] benefits after Mueller Group, LLC, the former parent company of U.S. Pipe, which employed them, sold its interest in U.S. Pipe to USP Holdings. Upon the sale, Appellants kept their same jobs at the same plant; the Bessemer plan never shut down.... The court rejected Appellants' 'metaphysical argument' that they were laid off because they lost their jobs with Mueller even though they kept their jobs at the Bessemer plant." [Hill v. Employee Benefits Admin. Comm. of Mueller Grp. LLC, No. 18-14026 (11th Cir. Aug. 24, 2020)] Icon to read more

Kantor & Kantor

Estimated Cost of Retiree Pension Risk Transfer Decreases in July

"During July, the estimated cost to transfer retiree pension risk to an insurer decreased by 140 basis points, from 104.2% of a plan's total liabilities to 102.8% of those liabilities. This means the estimated retiree PRT cost for the month is now 2.8% more than those plans' retiree accumulated benefit obligation (ABO)." Icon to read more


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IRS Tax Levies on 403(b) Annuity Contracts

"Can the IRS enforce a tax levy on 403(b) plan annuity contract payments? Does it matter if the 403(b) plan is an ERISA plan? Are these answers any different if the levy is imposed on the 403(b) annuity contracts before they are distributed?" Icon to read more

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Press Releases

DOL Obtains Default Judgment to Restore $65,842 to Defunct Ohio Company Retirement Plan
Employee Benefits Security Administration [EBSA], U.S. Department of Labor

SS&C Automates Retirement Plan Onboarding
SS&C Technologies Holdings, Inc.

ARA Launches Women in Retirement Council
American Retirement Association [ARA]

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View COVID-19 News and Resources, Inc.
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David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager

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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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