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Retirement Plans Newsletter September 4, 2020 |
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Newly Posted DOL's Fiduciary Proposal - What Firms Should Be Considering Now
IRA Rollovers: A Best Practice Guide
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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]
41 pages. The IRS has issued its fourth quarter update to the agency's 2019-2020 Priority Guidance Plan, in which it describes guidance projects in the current fiscal year. Retirement plan items begin on page 14. Internal Revenue Service [IRS] |
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[Guidance Overview]
"On June 3, 2020, the [DOL] provided valuable insights via [Information Letter 2020-06-03], addressing private equity investment (PEI) within defined contribution retirement plans ... Based on the letter and other guidance ... [this article provides] a checklist of considerations that are relevant when deciding whether to allow PEI in participant-directed 401(k) plans." Carlton Fields |
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"If all workers take a coronavirus-related distribution and fail to repay it, the overall reduction in retirement balances is projected to be 20 percent. The lowest age groups are least impacted -- in part because their current account balances are too small for them to take the full $100,000 distribution." Employee Benefit Research Institute [EBRI] |
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"If the fiduciary rule saga has made one thing clear, it is that creating consensus about conflict of interest regulations is hard work. Even supporters of the new [DOL] proposal say there is room for improvement." planadviser |
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"The estimated aggregate funding level of pension plans sponsored by S&P 1500 companies increased ... to 83 percent as a result of an increase in discount rates and equity markets. As of August 31, 2020, the estimated aggregate deficit of $433 billion decreased by $124 billion as compared to $557 billion measured at the end of July ... Typical discount rates for pension plans ... increased from 2.20 percent to 2.46 percent." Mercer |
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Benefits in General |
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[Guidance Overview]
"Recognizing that there are distinct advantages of both HRAs and 401(a) plans, it is often difficult for public employers and their union bargaining partners to settle on the right 'mix' of the plans and benefits. The new IRS private letter ruling specifically gives individual employees the ability to choose the amounts of future employer contributions to an HRA or to a 401(a) plan." Best Best & Krieger LLP |
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"[An] employer-sponsored retirement plan ... is likely to suffer from market volatility.... [E]mployer-sponsored health and welfare plans will see upticks in claims issues ... and coverage (or no coverage) for novel treatments is sure to generate litigation.... Practice the 'Three Ds' = Deliberate, Decide, and Document.... Communicate responsibly with participants.... Review the distribution terms of your plans and stay in contact with your record keeper." Constangy, Brooks, Smith & Prophete LLP |
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"Designing, implementing and analyzing compensation strategies as a part of an employer's total rewards strategy requires agility and stamina. Most importantly, organizations must utilize strong data to back a thorough understanding of what it takes today and will take in the future to balance business needs with the ability to attract, retain and reward employees using every total rewards tool, including compensation." Findley |
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"[A]lmost 60 percent of workers said it was either extremely or very important for an employer to be open to benefits negotiations.... Although the Paychex survey found that 401(k) matching or discretionary contributions are the most desired benefit (cited by 75 percent of respondents), employers must tread carefully when considering these requests so that they do not run afoul of IRS nondiscrimination requirements. Similarly, the 47 percent of surveyed workers who requested subsidized insurance premiums may not realize that employers face a thicket of tax, legal and regulatory issues if they give some employees, and not others, certain health benefits." Society for Human Resource Management [SHRM]; membership may be required to view article |
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Selected Discussions |
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► It's easy to sign up and participate in discussions! Post answers, ask questions, create custom feeds and views. Join your peers (and potential referral sources or customers)—there is no charge. |
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"Plan has a fixed match with last day/1000 hours requirement (waived for RDD). 12/31 PYE. Effective 7/1/2020 they amend to remove the match. Are they obligated to fund the match through 7/1?" BenefitsLink Message Boards |
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"LLC has elected to be taxed as a corporation. For purposes of the attribution rules under 1563(e)(2), do you still have to look at 5% owners of the LLC in determining whether a controlled group exists? Does it matter whether it is an S-Corp or a C-Corp? I cannot find anything in the 1563 regs, but my guess is that the answer to both questions is no." BenefitsLink Message Boards |
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Press Releases |
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OneDigital Acquires DS Benefits Group
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Most Popular Items in the Previous Issue |
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Miss a Plan Restatement Deadline? SCP to the Rescue!
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Election 2020: Retirement Policy Positions
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DOL Sharpens Focus of Plan Proxy Voting
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