Retirement Plans Newsletter

January 5, 2021

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The Finway Group
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Webcasts, Conferences

ERISA Litigation and Employee Stock Ownership Plans
January 14, 2021 WEBCAST
American Bar Association Joint Committee on Employee Benefits [JCEB]

ERISA Fiduciary Basics
January 21, 2021 WEBCAST
American Bar Association Joint Committee on Employee Benefits [JCEB]

DCIIA Innovation Forum
January 26, 2021 WEBCAST
Defined Contribution Institutional Investment Association [DCIIA]

Understanding ADP/ACP Testing for your Defined Contribution Plan
February 10, 2021 WEBCAST
ISCEBS [International Society of Certified Employee Benefit Specialists]

►See All 43 Upcoming Webcasts and Conferences

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[Official Guidance]

Text of 2020 Instructions for Form 5500-EZ: Annual Return of a One-Participant (Owners/Partners and Their Spouses) Retirement Plan or a Foreign Plan (PDF)

10 pages. "Effective for plan years beginning after 2019, a one-participant plan or a foreign plan required to file an annual return can file Form 5500-EZ electronically using the EFAST2 filing system or file Form 5500-EZ on paper with the IRS. Form 5500-SF is no longer used by a one-participant plan or a foreign plan in place of Form 5500-EZ.... An amendment for a one-participant plan or a foreign plan that previously filed electronically using Form 5500-SF must file amended return electronically." [Also available: 2020 IRS Form 5500-EZIcon to read more

Internal Revenue Service [IRS]

2021 Compliance Calendar for Retirement Plans (PDF)

"The deadlines in this calendar are for plans with calendar-year plan years. This chart is intended to provide plan sponsors with a list of notable deadlines[.]" Icon to read more

TRI-AD

Revenue Sharing Affects DC Plan Participant Investment Choices

"[F]unds that revenue share are ... less likely to be deleted from revenue-sharing plans.... [F]unds that tend to revenue share on other menus and tend to pay higher rebates are significantly more likely to be added to revenue-sharing plans.... [R]ebates translate into higher expense ratios in the retirement setting, while direct fees are not significantly different across revenue-sharing and non-sharing plans. Consequently, participants face higher all-in fees in revenue-sharing plans." Icon to read more

PLANSPONSOR; free registration may be required

Case Study: Comparing Defined Contribution Plan Designs

"The owner was willing to spend on staff an amount equal to 5.0% of their total combined payroll. In this case, a cross-tested plan with 401(k) safe-harbor features was the best design. The results show the differences that can be obtained from various plan designs. The best design for any given situation will vary depending on employee ages and salaries, as well as company objectives." Icon to read more

Retirement Management Services, LLC

Annuity Settlements for Small Benefits

"[E]ven for plans not at the VRP headcount cap, with respect to (relatively) smaller benefits, annuity settlement may be an efficient strategy. For almost all pension plans, there exists a threshold, greater than zero, below which these settlements make sense." Icon to read more

October Three Consulting

How Best to Annuitize Defined Contribution Assets?

"The analysis shows that the 'Social Security bridge' provides the highest level of utility for households with median wealth ... Introducing such an option as the default in 401(k) plans would require no legislative or institutional changes and would greatly enhance the welfare of participants." Icon to read more

Center for Retirement Research at Boston College

The Effect of Early Claiming Benefit Reduction on Retirement Rates

"The increase in the [full retirement age] decreased the retirement rate at age 62 by about 5 percentage points (or 30 percent) for men and by about 2 percentage points (or about 20 percent) for women. The retirement rate at age 63 to 65 was not affected.... [A] 1 percent increase in the early claiming reduction decreases the retirement rate by between 0.7 and 0.9 percentage points for men and between 0.2 and 0.4 percentage points for women." Icon to read more

Center for Retirement Research at Boston College

Health of Largest U.S. Corporate Pension Plans Showed No Improvement in 2020

"[T]he aggregate pension funded status is estimated to be 87% at the end of 2020, unchanged from 87% at the end of 2019.... [T]he pension deficit is projected to be $233 billion at the end of 2020, slightly higher than the $230 billion deficit at the end of 2019. Pension obligations increased 5% from $1.75 trillion in 2019 to an estimated $1.83 trillion in 2020." Icon to read more

Willis Towers Watson

St. Joseph's Pension $30M Settlement Provides an Incremental Victory

"Hope remains for the eventual restitution of the full amount of the plan thanks in part to a [2018 bill] ... to prevent a settlement with one responsible party, or 'tortfeasor', to absolve the other responsible parties of the responsibility of an equitable settlement.... In 2019 ... another bill, also now enacted, [required] any nongovernmental pension plans not covered by [ERISA] and have 200 or more members to comply with ERISA's reporting requirement." Icon to read more

Warwick Post

Benefits in General

[Guidance Overview]

Consolidated Appropriations Act, 2021 Benefits Summary

"[1] Retirement Plans: Partial plan termination relief ... Limited retirement plan disaster relief ... Money purchase plan coronavirus-related distributions ... Multiemployer plan minimum age for distributions during working retirement ... Transfers of excess pension assets to retiree health or life accounts ... [2] Temporary relief applicable to FSA administration ... [3] Extended employer assistance for student loans ... [4] Employer group health plans: ... New surprise medical billing rules ... New mental health parity rules." Icon to read more

Holland & Hart LLP

District Court Rejects Plaintiff’s Fee Request in Connection with State Court Remand of Action Removed Under ERISA

"A recent decision out of the District Court of New Jersey exemplifies how even the most seemingly mundane procedural act — removal — implicates procedural and legal nuances with which courts continue to grapple." [Newton v. South Jersey Paper Products Company, Inc., No. 19-17289 (D.N.J. Dec. 17, 2020)] Icon to read more

Robinson & Cole LLP, via LexBlog

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BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587. Copyright 2021 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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