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Retirement Plans Newsletter

March 31, 2021

1 New Job Today


[Official Guidance]

Text of PBGC Notice of Submission for OMB Approval: Survey of Nonparticipating Single Premium Group Annuity Rates

"PBGC's regulations prescribe actuarial valuation methods and assumptions (including interest rate assumptions) to be used to determine the actuarial present value of benefits under single-employer plans in involuntary or distress terminations and the value of benefits and certain assets under multiemployer plans that undergo a mass withdrawal of contributing employers.... The interest rates are intended to reflect current conditions in the annuity markets. To determine these interest rates, PBGC gathers premium rate data from insurance companies that are providing annuity contracts to terminating pension plans through a quarterly survey.... PBGC is proposing several changes to the survey[.]"  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

[Official Guidance]

Text of PBGC Final Regs: Rescission of Final Rule on PBGC Guidance Documents

"On August 26, 2020, the [PBGC] published a final rule on guidance implementing an Executive order entitled 'Promoting the Rule of Law Through Improved Agency Guidance Documents,' and providing policy and requirements for issuing, modifying, withdrawing, and using guidance; making guidance available to the public; a notice and comment process for significant guidance; and taking and responding to petitions about guidance.... [T]his final rule rescinds PBGC's rule on guidance."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

[Guidance Overview]

DOL Revokes Trump Administration Guidance That Provided Relief to QPAMs for Convictions Under Foreign Law

"At issue ... is the condition ... that prohibits a QPAM from relying on the exemption for a period of ten years if the QPAM is convicted of certain enumerated crimes ... and whether or not a conviction under foreign law would prevent the QPAM from being able to satisfy such condition."  MORE >>


Most Taking CRDs in 2020 Did So Mainly Out of Desperation

"Nearly 70% of participants don't plan/are unable to pay back any of the money they withdrew from their retirement account.... The majority (62%) used their loan or withdrawal to simply pay essential expenses, with 48% using it for their mortgage or rent."  MORE >>

401(k) Specialist

Pandemic Reveals Demand for Virtual and Self-Serve 401(k) Education

"One third of all participants in Schwab's 2020 education sessions chose to view virtual material at a time of their choosing rather than attending live online sessions, representing a 207% increase in attendance at on-demand sessions compared to 2019."  MORE >>

Charles Schwab

Designing a 401(k) Plan: Six Key Decisions

"[1] Define the 'Employer' ... [2] Understand the differences between safe harbor and traditional 401(k) plans [chart included] ... [3] Choose your employee and employer contributions ... [4] Define plan compensation ... [5] Define employee eligibility ... [6] Choose your distribution and loan options."  MORE >>

Employee Fiduciary

Talking Points for QACAs, Coverage Requirements and After-Tax Contributions

"Not only does automatic enrollment help employees make retirement savings a priority, the automatic enrollment feature also defaults participant contributions all the way up to the company’s maximum matching amount. QACA plans check many boxes for a plan sponsor."  MORE >>


Federal Watchdog Warns of Cybersecurity Risks to Employer-Sponsored Retirement Plans

"The Government Accountability Office (GAO) said retirement plans such as 401(k)s face higher risk of cyberattack because the [DOL] has not clarified the cybersecurity responsibilities of employers and other fiduciaries, or provided guidance for safeguarding employees' savings and personal data."  MORE >>


Exceptional Usefulness and Quality icon Retire That Thinking: Uncovering Better Strategies for Retirement Readiness (PDF)

"Nearly 7 in 10 investors (68%) are confident they will reach their retirement goals ... Nearly 9 in 10 investors (87%) favor creating a regular 'retirement paycheck' to manage spending during their retirement years."  MORE >>

Capital Group

Kentucky Legislators Override Veto of Bill Revising Retirement Plan for Future Teachers

"The House and Senate, both with GOP supermajorities, voted to override [Gov. Andy Beshear's] veto of House Bill 258, which would create a 'hybrid' pension tier blending defined benefit and contribution components for new Kentucky teachers hired starting in 2022."  MORE >>


Executive Compensation and Nonqualified Plans

Exceptional Usefulness and Quality icon ESPPs: Tax-Return Mistakes to Avoid

"[1] Paying tax too early on the discount.... [2] Not filing Form 8949 after an immediate sale of ESPP shares at purchase.... [3] Directly using what appears as the cost basis on your Form 1099-B.... [4] Paying the wrong tax on the discount.... [5] Using the wrong price when there is no lookback.... [6] Paying tax twice on the discount."  MORE >>

Employee Benefits Jobs

View job as 401(k) Retirement Plan Administrator
for Alliance Pension Consultants, LLC

401(k) Retirement Plan Administrator

Alliance Pension Consultants, LLC

Deerfield IL

Press Releases

Transamerica Enhances Voluntary Workplace Benefits with ClaimsMinder


American Trust Partners with TAG Resources to Launch Pooled Employer Plan

American Trust

Webcasts and Conferences
(Retirement Plans or Exec Comp)

Fiduciary Institute Series 2021: Part 6 - ERISA Litigation Hot Topics

April 14, 2021 WEBCAST

American Bar Association Joint Committee on Employee Benefits [JCEB]

Fiduciary Institute Series 2021: Part 5 - Fiduciary Hot Topics

April 14, 2021 WEBCAST

American Bar Association Joint Committee on Employee Benefits [JCEB]

Pension De-Risking Tools Debate: Annuitization vs Hibernation

May 27, 2021 WEBCAST

Society of Actuaries

Last Issue's Most Popular Items

Text of Draft IRS Publication 598: Tax on Unrelated Business Income of Exempt Organizations (PDF)

Internal Revenue Service [IRS]

Forfeitures: The Final Frontier

Ferenczy Benefits Law Center

Fee and Investment Litigation 2015-2020: Five Year Review of Developments and Best Practices to Mitigate Risk, Part I (PDF)

Jackson Lewis P.C., via Benefits Law Journal

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

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