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Retirement Plans Newsletter December 2, 2020 |
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Newly Posted Uploading Forms 2848/8821 with Electronic Signatures
IRS Meeting for Pre-approved Plan Providers: Discussion of Third Cycle Pre-Approved Defined Benefit Plan Submissions
Retirement Plans for Small Employers and Self-Employed
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Discussions |
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This Newsletter:
BenefitsLink Health & Welfare Plans Newsletter:
Message Boards Digest:
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[Guidance Overview]
"[IRS Notice 2020-82] extends to January 4, 2021 the deadline for a plan sponsor's election to add to a prefunding balance or to use a prefunding account balance to offset the minimum required contribution for the 2020 plan year. The guidance further provides that if a contribution is made by January 4, 2021, the amount of the minimum required contribution that is satisfied by the contribution (and the amount that can be added to the plan's prefunding balance related to any excess contribution) is determined by computing the applicable interest adjustment using the actual contribution date." Hodgson Russ LLP |
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[Sponsored]
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![Sponsored by International Foundation of Employee Benefit Plans [IFEBP]](https://benefitslink.com/bnrs/2020/ifebp-elearningsale-top.jpg "Sponsored by International Foundation of Employee Benefit Plans [IFEBP]")
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[Guidance Overview]
"A special IRS-approved correction method available for elective deferral failures in 401(k) and 403(b) plans with automatic contribution features ... will not be available to correct elective deferral failures that begin after [December 31]. It remains available, however, for a limited time to correct elective deferral failures that begin on or before that date. The loss of this favorable correction method going forward serves as a good reminder to plan sponsors to confirm that their plans, in operation, are correctly implementing employee elective deferrals." Verrill Dana LLP |
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52 pages. "In this reporting period, [PBGC OIG] completed an investigation into a bribery scheme, in which the now former Procurement Director accepted cash, gifts, and the promise of a future job from a government contractor in exchange for steering professional service contracts to the company.... [OIG is] conducting an audit to determine if Procurement Department practices may have allowed contract steering and to look for indications of other contracting improprieties." Office of Inspector General, Pension Benefit Guaranty Corporation [PBGC] |
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"Building on the framework of the SECURE Act, Representatives Richard Neal and Kevin Brady have introduced the Securing a Strong Retirement Act of 2020, already being referred to as SECURE Act 2.0. [The proposal] contains changes that would further encourage plan adoption and retirement savings, as well as solutions to operational problems that have bedeviled plan sponsors for many years." Cohen & Buckmann, P.C. |
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"Stocks enjoyed their strongest month of the year in November, propelling pensions toward positive territory for the year. Both model plans ... gained ground last month, with Plan A adding close to 5% and Plan B close to 2% during the month. For the year, Plan A is down less than 1% and Plan B is even through the first eleven months of 2020." October Three Consulting |
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"[In November,] annuity purchase prices declined 0.22% for Annuity Plan 1 and 1.33% for Annuity Plan 2. The fourth quarter is very busy for insurers. It is imperative to start the [pension risk transfer] process immediately to secure insurer availability for a purchase this year. Plan funded status has generally declined for pension plans in 2020 and PBGC premiums will increase next year." October Three Consulting |
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Benefits in General |
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"Perception of company benefits has a direct impact on employee satisfaction, productivity, retention, and recruitment.... Current trends are showing that each of the four or five generations which may be represented in your organization have different concerns." Inside Business |
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"[T]ypically claimants seeking ERISA-governed benefits make claims for recovery under Section 1132(a)(1)(B). Now you are likely seeing more simultaneous assertions of equitable claims for breach of fiduciary duty and disgorgement under Section 1132(a)(3). A successful claimant asserting this theory may recover additional forms of monetary relief, and may get broader discovery. But the availability of relief under Section 1132(a)(3) claims is narrow ... So, how do you defend Section 1132 (a)(3) equitable claims?" [Davis v. Hartford Life & Accident Ins. Co., No. 19-6091 (6th Cir. Nov. 19, 2020)] Lane Powell PC |
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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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"Not-for-profit client adopted a SEP on a Merrill Lynch SEP document (not IRS form) with a fiscal year end of 9/30. Can a SEP have a fiscal year? I have seen only calendar-year SEPs." BenefitsLink Message Boards |
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"Is the relief for failure to adopt a written 403(b) plan document still available under EPCRS for a 403(b) plan that was not in existence in 2009? We have a 403(b) plan which became effective in 2014, but never adopted a plan document. Can we submit a VCP using the Model VCP Schedule 2?" BenefitsLink Message Boards |
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Press Releases |
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Most Popular Items in the Previous Issue |
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Income Is the Outcome: A Review of Lifetime Income Solution (PDF)
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The Basics of Terminating a DC Plan
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Which Fiduciary to Hire: 3(21) or 3(38) Fiduciaries?
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BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587. Copyright 2020 BenefitsLink.com, 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 BenefitsLink.com, 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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