"[T]he maximum amount of earnings subject to Social Security tax will increase in 2021 from $137,700 to $142,800, based on a 3.7% increase in the 'national average wage' during 2019.... IRS will soon release limits applicable to retirement plans for various purposes in 2021, based on a 1.22% increase in CPI-U between the 3rd quarter of 2019 and the 3rd quarter of 2020. Based on this increase, we expect increases in most limits applicable to retirement plans in 2020." 
October Three Consulting
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"With the decline in interest rates thus far in 2020, plans may expect a further increase in their variable rate PBGC premium for 2021 because the value of the 'unfunded vested benefits' may be quite a bit higher in 2021 compared to 2020.... The spot segment rates in December 2020 will be used to determine variable rate premiums in 2021 for calendar year plans unless the Alternative Premium Funding Target has been elected." 
Morgan Lewis
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"72 total buyout contracts were sold in Q2 2020, a decrease of 35% compared to Q2 2019. Year to date sales of $6.7 billion are down 25% compared to the $8.9 billion sold in the first half of 2019.... Second half sales will likely be more in line with recent years and should easily exceed the total of the first half of 2020. Pricing continues to remain very competitive." 
River and Mercantile Solutions
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"[T]he court concluded that Alight was the only defendant sufficiently alleged to be a fiduciary, and thus dismissed all claims against the Abbott Labs defendants but allowed the claims against Alight to move forward. The case highlights the evolving nature of ERISA cyber-security litigation and represents the second case where plaintiffs survived a motion to dismiss alleging that plan service providers were fiduciaries when allegedly failing to prevent cyberfraud from draining participant accounts[.]" [Bartnett v. Abbott Laboratories, No. 20-2127 (N.D. Ill. Oct. 2, 2020)] 
Groom Law Group
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"While it would not address systemic problems such as coverage, a dashboard could reduce the strain that a complex retirement system imposes on households. An effective dashboard could help employees and other savers, employers, recordkeepers, asset managers, plan providers, and the government, all of whom have an interest in ensuring that workers understand and manage their retirement savings appropriately." 
The Brookings Institution
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"[T]ake-up of private annuities remains low. Other financial products, such as managed payout funds, have certain advantages but are not yet available in most retirement plans.... [This paper explores] the potential for a different financial product -- a tontine -- to help people manage their assets in retirement. Tontines are investment pools where members commit funds irrevocably and where the resources and income claims of members who die are given to members who survive." 
The Brookings Institution
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Benefits in General
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"Applicable large employers should be aware of how breaks-in-service following a rehire of furloughed employees affect eligibility provisions and waiting periods under the employer's group health plan. If benefits continued during the furlough, potential employee 'catch-up' payments are needed if the employer paid employee premiums during this period.... It is also important for employers to review the impact of adjustments to compensation on benefit contributions and eligibility and remind returning employees to review these changes and resume contributions to retirement plans." 
Epstein Becker Green, via Bloomberg Law
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Executive Compensation and Nonqualified Plans
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"Here are several questions that committees should ask to inform their decision making. [1] How did the bank perform relative to budget and/or goals set at the beginning of the year, and how were those results impacted by COVID-19? ... [2] How did the current expected credit loss (CECL) accounting standard impact our performance? ... [3] How have we performed relative to our peers? ... [4] What can we afford? ... [5] How have non-executive employees been impacted? ... [6] How will the communities we serve react to these payouts?" 
Meridian Compensation Partners, LLC
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Selected Discussions on the BenefitsLink Message Boards
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"I have a few clients who signed profit sharing plan documents for 2019, but due to COVID opted not to make their contributions and instead plan to start in 2020. Since there were no contributions in 2019 and the assets are $0, is it necessary to file a Form 5500 with $0 assets?" 
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