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Compass Retirement Consulting Group, Inc.
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PCS Retirement
Telecommute / FL / PA

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PCS Retirement
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PCS Retirement

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[Guidance Overview]

How to Sign Your Life Away... Electronically

"[IRS News Release IR-2021-20] notes that using the online tool with a Secure Access account is the only method to submit electronic signatures on the Form 2848 ... [P]lan sponsors, plan administrators, and their representatives will still need to coordinate handwritten signatures on other documents for matters before the IRS." Icon to read more



ASC Webcast: EPCRS -- Face Plan Failures Head-on & Succeed!

Learn how to fix plan failures under EPCRS’ Self Correction and Voluntary Compliance Programs with industry renown John Griffin, J.D., LL.M. Register Now! Learn more

Sponsored by ASC

[Guidance Overview]

Disclosure Required: Lifetime Income Estimates on Defined Contribution Plan Benefit Statements

"The rule contemplates that lifetime income illustrations will be disclosed to participants as part of their periodic benefit statement, and will include an explanation of the assumptions used to generate the illustration. The Lifetime Income Disclosure Rule includes model disclosure language and lists several key assumptions[.]" Icon to read more

McDermott Will & Emery

Auto-Enrollment, TDFs Continue DC Plan Domination

"Average participation is at 82% ... Plans that utilize auto-enrollment have increased from 21% in 2005 to 64% in 2020....Target date funds have become ubiquitous, with 96% of plans offering them, up from 76% in 2005 ... Forty-two percent of plan assets are invested in TDFs[.]" Icon to read more

401(k) Specialist

Will DOL's Withdrawal of Support Doom Revival of ERISA Challenge to CalSavers?

"The move by the Biden administration is not surprising as President Biden voiced support for auto-IRA type programs during the 2020 Presidential race. Seven states in total have adopted some type of payroll deduction IRA programs." Icon to read more

Murphy Austin

The 'Annuity Puzzle' and Model Portfolios: The Advantages of Partial Annuitization

"The paper presents a model that demonstrates the advantages of partial annuitization in the most straightforward manner." Icon to read more

Dimitry Mindlin, via SSRN

Proposed Multiemployer Plan Bailout Would Freeze Benefit Plan Limits

"[T]he Butch Lewis Emergency Pension Plan Relief Act of 2021 ... would impose a cost-of-living freeze on: the Code Section 415(c) annual contribution limit for defined contribution plans; the Section 415(b)(1)(A) annual defined benefit limit; and the Section 401(a)(17) annual compensation limit." [See House Ways and Means Committee Print and Section-by-Section description.] Icon to read more

American Retirement Association [ARA]


Common Sense and Cost-Efficiency: Making Employee Retirement Income Secure Again

"ERISA was enacted to provide employees with protection against employer abusive practices in connection with company pension plans. However, some of the recent arguments by the courts seemingly inequitably protect the employers at the expense of the employees." Icon to read more

The Prudent Investment Fiduciary Rules


Don't Reel In the Mutating 403(b) Phish

"[T]eacher inboxes are being inundated by even more phishy 403(b) emails. Last week alone more than two dozen of these dubious inquiries were forwarded to [the author] ... Here’s a sampling of the increasing deceptive tactics being deployed." Icon to read more



The Equitable Bermuda Triangle: The Gaslighting of Public School Employees

"If the multi-vendor environment is so good for the employee, why aren't companies like Apple Corporation rushing to ditch their single vendor plans (Apple uses Fidelity Investments)? If having multiple vendors is so beneficial, why is there so much opposition to adding at least one low-cost, high-quality vendor?" Icon to read more

The Teacher's Advocate

Executive Compensation
and Nonqualified Plans

Fiduciary Breach and Fraudulent Inducement Claims Survive Motion to Dismiss in Delaware Chancery Court

"The case suggests that companies should ... [e]nsure any integration clauses in executive separation agreements do not include explicit anti-reliance provisions if the company is relying on any extra-contractual statements." [McDonald's Corp. v. Easterbrook, No. 2020-0658 (Del. Ch. Feb. 2, 2021)] Icon to read more

Thomson Reuters Practical Law

Exceptional Usefulness and Quality icon2021 Compensation Committee Handbook (PDF)

120 pages. "[This Handbook] is intended to help compensation committee members understand and comply with the duties imposed upon them. [It describes] in some detail the concepts underlying a variety of areas within the bailiwick of compensation committees (for instance, the types of equity awards that are commonly granted and their respective tax treatment) and to provide our perspective on some of the many decisions that compensation committees must make (for instance, the pros and cons of hiring a compensation consultant and the factors that go into that hiring decision)." Icon to read more


Selected Discussions
on the BenefitsLink Message Boards

► 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.

Can I Add an Adopting Employer After Year-End?

"New plan was signed/adopted by 12/31/2020, sponsored by sole-proprietor (husband). Now they want to add another sole proprietor (wife) for 2020 as an adopting employer. Can this be done retroactively?" Icon to read more

BenefitsLink Message Boards

Fees Paid from Former Employees' Accounts But Not Current Employees' Accounts

"An employer wants to pay for all the participant-related fees, so that no fees are taken from employee account balances. However, they do NOT want to pay for the participant fees once the employee leaves employment and becomes a former employee. If the employee fails to roll out the 401k account balance, the fees will be taken from their account. Anyone see any issues with this? Is there guidance/best practices around this?" Icon to read more

BenefitsLink Message Boards

Loan Source Restrictions on Proceeds -- How is 50% Cap Affected?

"Plan uses a common record-keeper/custodian that also processes participant loans online: Principal. The plan assets consist of only deferrals and safe harbor match (100% vested, not QACA). The plan's loan policy restricts the loan proceeds source to just deferrals. Joe Participant has the same amount of $ in deferrals and SH match. The record-keeper is unable/refuses to process a loan for 50% of the participant's vested balance (essentially 100% of the deferral balance). They are insisting the only way it is possible would be for the plan to amend its loan policy to allow the loan to be taken from all sources. Is that right?" Icon to read more

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Has the Age of Index Investing Passed?
Lawton Retirement Plan Consultants

View COVID-19 News and Resources, Inc.
56 Creeksong Road
Whittier, North Carolina 28789
(407) 644-4146

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Lois Baker, J.D., President
David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager

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