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Retirement Plans Newsletter

April 13, 2021

3 Jobs Today

 

[Guidance Overview]

Single-Employer Funding Provisions Under ARPA

"The Act extends ... and enhances the interest rate stabilization provisions that were first introduced in MAP-21 (in 2012), which would have started to be phased-out in 2021 under the prior law.... [T]echnical guidance from the IRS regarding the application of retroactive elections of both the amortization and interest rate relief is sorely needed."  MORE >>

Groom Law Group

[Sponsor]

DCIIA/SPARK Public Policy Series

DCIIA/SPARK Public Policy Series, May 4 – 6, 2021 (domestic themes) and June 23 – 25, 2021 (global themes). Topics include: Updates from the Hill and DOL / Treasury, Workplace of the Future, Privacy and cybersecurity. Register Now.

Sponsored by SPARK and DCIIA

[Guidance Overview]

ARPA Single Employer Pension Plan Relief

"The interest rate stabilization changes are effective for plan years beginning in 2020. However, a plan sponsor may elect to delay the application of the changes to any plan year beginning before January 1, 2022."  MORE >>

First Actuarial Consulting Team [FACT]

[Guidance Overview]

ARPA Multiemployer Pension Plan Relief

"if a plan is filing for financial assistance, it is important to consider the impact of [the] increased PBGC premiums ... [If] the trustees are making an election to hold their zone status the same as the prior year, certain disclosures will need to be re-filed and notices resent to the various parties within 30 days of the election being made."  MORE >>

First Actuarial Consulting Team [FACT]

Another Court Finds 401(k) Plan Participant Data Is Not a Plan Asset

"As a threshold matter, the court rejected the plaintiffs' foundational contention that participant data is a plan asset, noting that 29 C.F.R. Sections 2510.3-101 and -102, which define 'plan assets,' do not mention data." [Harmon v. Shell Oil Co., No. 20-021 (S.D. Tex. Mar. 30, 2021)]  MORE >>

Faegre Drinker

Judge Finds in Favor of Principal Life's Process for Setting GIC Crediting Rate

"Following a six-day trial, Judge John A. Jarvey ... agreed with Principal that a conflict of interest is not enough, standing alone, to establish a breach of fiduciary duty.... Jarvey said the market for products, such as the GIC, adequately protects investors." [Rozo v. Principal Life Ins. Co., No. 14-0463 (S.D. Iowa Apr. 8, 2021)]  MORE >>

planadviser

IRS Announces New Retirement Plan Compliance Initiatives

"TE/GE's webpage includes three new checks relating to employee benefit plans: [1] Unrelated business income.... [2] Inflated assets.... [3] Partial plan termination."  MORE >>

Mercer

Offering Alternative Investments to 401(k) Participants

"Whether any category of alternative investments ought to be considered for the menus offered to 401(k) participants is a fact-intensive question.... These determinations may change over time with new factual circumstances, e.g., greater acceptance of a particular asset class by investors ... the emergence of robust markets which provide more experience with particular investment categories."  MORE >>

Prof. Edward A. Zelinsky, via SSRN

Gamification Tips for 401(k) Education

"Gamification may be driven by a perception that it appeals to younger workers, but all age groups intuitively understand what it means.... 401k plan sponsors and their service providers can use a tip learned from corporate trainers who use gamification and must contend with the issue of privacy."  MORE >>

Fiduciary News; free registration required

[Opinion]

Would a New Proposal Really Solve the Retirement Crisis?

"[R]eading the proposal one would think the notion of matching contributions and automatic enrollment had not only been pioneered by the TSP, but that it was the only place on the planet where such innovative structures could be found."  MORE >>

American Retirement Association [ARA]

[Opinion]

What If Low-Income American Workers Had Access to Wealth-Building Vehicles Like the Federal Employees' Thrift Savings Plan? (PDF)

18 pages. "[The authors] [1] summarize the academic literature that explores the impact of different policies on the savings behavior of low-income individuals, [2] relate the lessons from this literature to evidence regarding the effectiveness of the TSP program, [3] sketch a policy that makes TSP available to all low-income individuals, and [4] simulate the wealth creation that such a policy could generate."  MORE >>

Prof. Theresa Ghilarducci and Kevin A. Hassett, for Economic Innovation Group

Benefits in General

Ninth Circuit Approves ERISA Plan Forum Selection Clause

"ERISA jurisprudence is not uniform, raising the risk of inconsistent interpretations by different courts.... The Court noted that a forum selection clause can support the important ERISA goal of uniform plan administration by having the same court interpreting the plan." [Becker v. U.S. District Court for the Northern District of California, Oakland, No. 20-72805 (9th Cir. Apr. 1, 2021)]  MORE >>

Seyfarth

Executive Compensation and Nonqualified Plans

March to the Beat of Your Own Drummer: Amazon’s Executive Compensation Practices

"Salaries at Amazon are extremely modest. ... While executive officers receive vacation, medical, 401(k) benefits and other benefits generally available to all Amazon employees, they are not provided with benefits under nonqualified deferred compensation or supplemental executive retirement plans or cash severance programs."  MORE >>

McCarter & English

Employee Benefits Jobs

View job as Plan Administrator for Non-Qualified Retirement Plans
for Newport Plan Administrator for Non-Qualified Retirement Plans

Newport

Lake Mary FL

View job as Plan Administrator for Non-Qualified Retirement Plans
for Newport Plan Administrator for Non-Qualified Retirement Plans

Newport

Dallas TX

View job as Defined Contribution Administrator
for Primark Benefits Defined Contribution Administrator

Primark Benefits

Telecommute / Burlingame CA

Selected New Discussions

Refinancing a Participant Loan Suspended by the CARES Act

"I received question about a loan that was suspended under the CARES Act by a qualified individual. The loan was reamortized in January 2021 and one year was tacked on to their original final repayment date. Let's say it was suspended upon initiation of the new loan with a 60 month term and once reamortized it was to be repaid over 72 months. Participant made three monthly payments since January 2021 and has 69 months left. He is looking to refinance the loan, which is permitted under the plan. The new replacement loan will be within the 50%/50,000 loan limit and HOLB. Question -- do you think they can refinance the loan (replacement loan with a new loan amount) over the 69 remaining months, or are they subject to no more than 60 months on a non-principal residence loan because it is technically a new loan?"

BenefitsLink Message Boards

Code Section 4960 Applies to ESOPs?

"Does the 4960 tax to excessive compensation paid to executives apply to the executives of a company that is 100% owned by an ESOP?"

BenefitsLink Message Boards

Press Releases

Teresa Hassara Named President of FuturePlan by Ascensus

Ascensus

Federal Court Appoints Independent Fiduciary as Claims Administrator of Medova Arrangement

Employee Benefits Security Administration [EBSA], U.S. Department of Labor

Shareholder Lisa Kathumbi Rejoins Littler in Columbus

Littler

Voya Offers First-of-Its-Kind Nonqualified Deferred Compensation Distribution Portfolios for Workplace Clients

Voya Financial

Wilshire Selected as Investment Fiduciary for Retirement Leaders’ Consortium

Wilshire Associates

RetirementTrack Resonates as Participants Seek Choice for Their Investments

OneAmerica

Last Issue's Most Popular Items

IRS Lists Solo 401(k) Plans as Audit Target

E is for ERISA

Text of IRS Notice 2021-25: Temporary 100% Deduction for Business Meal Expenses (PDF)

Internal Revenue Service [IRS]

AT&T Workers Challenging Pensions Keep California Venue

Cohen Milstein

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

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