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The Standard
Portland OR / Cincinnati OH

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[Guidance Overview]

Calculating PBGC Variable-Rate Premiums for Delayed Prior Year Contributions

"The CARES Act, together with IRS Notice 2020-61, extended the deadline for minimum required contributions and contributions in excess of the minimum during calendar year 2020 until January 1, 2021. On September 23, 2020, the PBGC issued Technical Update 20-2 permitting contributions made in accordance with these extensions to be included for purposes of calculating the VRP." Icon to read more

Haynes and Boone, LLP


Virtual SPARK Forum -- Nov. 4-6

The retirement services industry's leading event for top 401(k) Plan providers, advisors, consultants, administrators & recordkeeping professionals. Join the Virtual SPARK Forum, gain expert insights and strategies to solve your most pressing challenges. Learn more

Sponsored by SPARK

[Guidance Overview]

To Vote or Not to Vote, That Is the DOL's Proxy Voting Question for ERISA Fiduciaries

"The DOL expressly states in the preamble that there is no presumption that abstaining from voting proxies is a per se fiduciary breach; rather, fiduciaries are required to vote proxies in a manner that is in the best interests of the plan, which requires a consideration of the likely impact on the plan's investment performance in light of the size of the plan's holdings in the issuer relative to the total investment assets of the plan, the plan's percentage ownership in the issuer, and the costs involved." Icon to read more


2018 Pension Insurance Data Tables Updated (PDF)

The third installment of the 2018 Data Tables for PBGC's Single-Employer and Multiemployer Programs and the private defined benefit pension system is now available. This installment includes various breakdowns of the number of plans, number of plan participants, hybrid plans, frozen plans, premium revenue and plan funding. Some of the breakdowns are by industry, location, and plan funded status. Icon to read more

Pension Benefit Guaranty Corporation [PBGC]

Generating and Protecting Lifetime Income: The Role of Deferred Income Annuities in Defined Contribution Plans

"[Defined benefit] pensions are now an endangered species, leaving younger generations of workers holding the bag to manage ... longevity risk, which requires making important decisions to avoid outliving their savings.... While [deferred income annuities are] well understood within the industry, they still have not made their way into the mainstream of today's defined contribution 401(k) plans, where they could serve an important role by replacing a portion of the guaranteed income that pensions used to provide." Icon to read more

Georgetown University Center for Retirement Initiatives

Changes in 401(k) Plan Account Balances, 2010-2018 (PDF)

24 pages. "[The 401(k) plan account balance for consistent participants] increased at a compound annual average growth rate of 13.9 percent from 2010 to 2018, rising from $63,756 to $180,251 at year-end 2018. The median 401(k) plan account balance for consistent participants increased at a compound annual average growth rate of 17.3 percent over the period, to $90,015 at year-end 2018." Icon to read more

Investment Company Institute [ICI]

New Jersey to Make Largest Pension Contribution in State History

"[T]he state will make a $4.7 billion payment before the next budget year ends June 30, 2021.... New Jersey pushed out the end of fiscal 2020 from June 30 to Sept. 30 as it navigated the impact of revenue fluctuations caused by the COVID-19 pandemic.... [Governor Murphy] said he will rely on a combination of spending cuts, tax increases, and borrowing to cover a $6 billion state budget shortfall -- and will keep his pledge to boost pension payments." Icon to read more

The Pew Charitable Trusts

DC Asset Managers Continue ESG Efforts Despite DOL Proposal

"Roughly half (48%) of defined contribution investment-only asset managers say a new proposal from the [DOL] concerning environmental, social and governance investing will be a significant barrier to adoption of ESG products in DC plans ... But the proposed regulation is not slowing down marketing and distribution efforts promoting DC-focused ESG products, as 56% of DCIO asset managers expect to increase these efforts during the next 12 months[.]" Icon to read more

Pensions & Investments

Pension Finance Update, September 2020

"Lower stock prices hit pensions during September. Both model plans ... lost ground last month, with Plan A dropping 2% and Plan B slipping 1% during the month. For the year, Plan A is now down 5% and Plan B is down more than 1% through the first three quarters of 2020." Icon to read more

October Three Consulting


ACLI Comment Letter to DOL on Proposed Registration Requirements for Pooled Plan Providers

"To further encourage the formation and operation of these important retirement savings programs, [these comments] focus on simplifying the Proposed Rule's registration requirements. We find several components of the registration requirements somewhat confusing while others rightly can be characterized as overly burdensome and unnecessary." Icon to read more

American Council of Life Insurers [ACLI]


The PBGC's Inconvenient Surplus

"The single-employer program had a surplus of $8.7 billion on September 30, 2019 ... The median projected surplus in ten years is $46 billion.... [Plan] sponsors now wonder why their levies need to be so high.... Two Proposals: [1] Stop Indexing! ... [2] Offset Premiums with Extra Plan Contributions.... Of course, these suggestions only work if the single-employer program is looked at in isolation." Icon to read more

The Principal Blog

Executive Compensation
and Nonqualified Plans

Why Do We Have to Worry About 409A? Our Incentive Plan Always Pays Out on Vesting

"The award will be considered vested at the time the retirement eligible executive could voluntarily walk out the door and still receive payment. Thus, if an award is granted to an executive who is 'retirement eligible' at the time of grant, the award would be vested at that time.... Unless the award is paid out within two-and-a-half months following the year the executive becomes retirement eligible, the award will provide deferred compensation!" Icon to read more

Miller & Chevalier

Selected Discussions
on the BenefitsLink Message Boards

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QNEC as a Receivable on Schedule H

"We are preparing Form 5500 for our client's 401(k) plan with a plan year ended December 31, 2019. In the course of the plan audit, it was discovered that the client applied an incorrect definition of compensation for deferral & matching contribution purposes. QNECs and additional matching contributions have been calculated, and will be deposited to the accounts prior to the end of 2020. Should the 2019 QNEC/matching contributions be reported as a receivable on the Form 5500 Schedule H?" Icon to read more

BenefitsLink Message Boards

Prohibited Transaction to Acquire Interest in an LLC That Owns Another Business?

"An owner, who sponsors, participates in, and is a trustee for a plan that covers NHCEs, wants to form an LLC with a friend in which they will each own 50% of the LLC. The LLC will totally consist of an interest in an existing, unrelated business. The owner would like to use plan assets to acquire his 50% share of the LLC. I am guessing that this would be a PT unless he were to own no more than 10% of the LLC - is this accurate?" Icon to read more

BenefitsLink Message Boards

Basic Question on FICA Taxes as Applied to Nonqualified Deferred Compensation

"There is, or at least was, a rule that if NQDC payments are subject to FICA taxes in, say, the first year of the program, then they are all withheld then, and not subject to FICA later. An accountant suggested that it can't be done any more; i.e., you'd have to withhold FICA each year. I'm not aware of any changes." Icon to read more

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Press Releases

PenChecks Trust®, ASPPA Open Applications for Prestigious QKA Scholarship Program
American Society of Pension Professionals & Actuaries [ASPPA]

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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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