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Retirement Plans Newsletter

April 27, 2021

6 New Job Opportunities

 

[Guidance Overview]

DOL Issues Much-Anticipated Retirement Plan Cybersecurity Guidance

"Recognizing that a plan sponsor's means for enforcement of service provider cybersecurity best practices will be largely contractual, the DOL recommended several contractual provisions ... [but] made clear that its list of recommended contractual provisions is not exhaustive ... Plan sponsors should consider integrating the online security tips in future educational campaigns directed at plan participants and in participant communications."  MORE >>

Thompson Hine

[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]

If You Have an ERISA Plan, You Need to Think About Cybersecurity

"Given an increasingly remote workforce for many plan sponsors, this new guidance is especially timely. If you are a plan fiduciary and do not have a cybersecurity policy for your plan, now it the time to do so. If you already have a cybersecurity policy, now is the time to review and update it in light of this new guidance."  MORE >>

Graydon

[Guidance Overview]

DOL Warns the ERISA Fiduciary Debate Is Far from Over

"In a set of FAQs elaborating Rule 3.0 that was published on April 12, DOL previewed its next steps ... DOL is serving notice that, absent unanticipated circumstances, it will proceed with each of the specified actions, either through rulemakings or subregulatory guidance as administrative law requires."  MORE >>

Eversheds Sutherland

The Holy Grail of Defined Contribution Plans: Income in Retirement (PDF)

"[T]he number-one step plan sponsors have taken to increase employee understanding of retirement readiness continues to be tools and advice on how to spend down in retirement, with 89% of total respondents saying that was their primary mechanism. The next-highest-ranked response was communicating account balances to participants in terms of projected retirement income, with 66% of overall respondents choosing this option."  MORE >>

PGIM

Estimating Leakage from Retirement Savings Accounts

"[This document] reports estimates of leakage among working-age individuals and analyzes the extent to which certain common life events contribute to leakage. The staff estimates that roughly 22 percent of net contributions made by those 50 or younger leaks out of the retirement savings system in a given year and finds that the most prominent factor associated with leakage from retirement accounts is job separation."  MORE >>

Joint Committee on Taxation [JCT], U.S. Congress

How Recordkeepers are Leading the Charge to Address the Emergency Savings Crisis (PDF)

21 pages. "[T]he issue of emergency savings is an urgent one for much of America. Retirement plan recordkeepers are acutely aware of this crisis and are well-positioned to play a pivotal role in addressing it. As recordkeepers recognize that many plan participants cannot cover the costs of short-term emergencies, let alone prepare for financially stable retirement, they are acting on this issue."  MORE >>

Commonwealth, and Defined Contribution Institutional Investment Association [DCIIA]

ARPA's Impact on Multiemployer Pension Plans and Contributing Employers

"[E]mployers that are contributing to a multiemployer pension plan that elects one or more elements of ARPA's funding relief should monitor possible changes in the plan's policies affecting employer contributions. Similarly, employers that are contemplating withdrawal ... should also monitor the directions of ARPA rulemaking and guidance, and the effect they may have ... on withdrawal liability calculations."  MORE >>

Epstein Becker Green

COVID-19 Retirement Plan Loan Recipients Took More Than Needed

"Nearly half of individuals who took a loan or withdrawal from their retirement plan during the COVID-19 pandemic agree or strongly agree they withdrew more than they needed. However, a significant amount (68%) of individuals agree or strongly agree they are now in a better place financially because they took a loan or withdrawal[.]"  MORE >>

401(k) Specialist

Fiduciary Duties Plan Sponsors Overlook and What They Can Do to Address Them

"[1] Putting employees first ... [2] Investment reviews ... [3] Employee education ... [4] Conflict-of-interest prevention ... [5] Revisiting plan design ... [6] Assuming fiduciary liability can be fully delegated ... [7] Regulatory filings."  MORE >>

Fiduciary News; free registration required

Lowe's Reaches Tentative Deal on ERISA Suit

"Lowe's Cos.... tentatively agreed to settle a lawsuit filed by a participant in a company 401(k) plan ... [who had] sued in April 2018 alleging that the plan fiduciaries and Aon had violated their ERISA responsibilities because the plan retained an underperforming investment from Aon in beginning in 2015."  MORE >>

Pensions & Investments

Competitive Pricing Rate for Pension Risk Transfer Costs Increased in March

"During March, the average estimated cost to transfer retiree pension risk to an insurer rose slightly, from 102.1% of a plan's total liabilities to 102.7% of those liabilities.... Annuity purchase costs reflecting competition amongst insurers also increased, from 99.3% in February to 99.7% in March."  MORE >>

Milliman

Benefits in General

Awarding Attorney Fees to the Plan When Plaintiff Refuses to Drop Suit After Reinstatement of Benefits

"What happens when the ERISA claimant files suit after the disability claim has been denied, and then the ERISA claims administrator reinstates benefits retroactively? Doesn't reinstatement 'moot' the issues in the lawsuit, or make claims regarding future benefits unripe -- requiring dismissal of the suit? YES it should. And a Plaintiff's decision to continue the case after reinstatement may expose the plaintiff to an award of attorney fees to the defendant." [Peer v. Liberty Life Assurance Co. of Boston, No. 19-13974 (11th Cir. Apr. 6, 2021)]  MORE >>

Lane Powell PC

Employee Benefits Jobs

View job as Employee Benefit Plan Auditor
for Cassell Plan Audits Employee Benefit Plan Auditor

Cassell Plan Audits

Telecommute / Saint Charles IL

View job as Employee Benefit Plan Auditor
for Cassell Plan Audits

View job as DB/CB Client Manager
for CMC Pension Professionals DB/CB Client Manager

CMC Pension Professionals

Telecommute / Glendale CA

View job as DB/CB Client Manager
for CMC Pension Professionals

View job as Client Manager / DC Consultant
for CMC Pension Professionals Client Manager / DC Consultant

CMC Pension Professionals

Telecommute / Glendale CA

View job as Client Manager / DC Consultant
for CMC Pension Professionals

View job as Employee Benefits Attorney
for Barclay Damon Employee Benefits Attorney

Barclay Damon

Albany NY / Buffalo NY / New Haven CT / New York NY / Rochester NY / Syracuse NY

View job as 401k Documents Consultant
for Newport 401k Documents Consultant

Newport

Minneapolis MN

View job as Senior 401k Documents Specialist
for Newport Senior 401k Documents Specialist

Newport

Minneapolis MN

Selected New Discussions

Forfeitures to Fund QNECs for Missed Deferrals Plus Gains

"Can a forfeiture account be used to fund QNECS that cover a lost opportunity to defer (plus gains)? I'm aware that testing corrections can be funded from forfeitures, but I'm looking for clarification or consensus on QNECS to cover LOTD. Also, for missed matches, are they included in the ACP, posted as a QNEC/QMAC, or can it be a non-elective subject to the same vesting as the match source?"

BenefitsLink Message Boards

Press Releases

Results of 2020 ESOP Executive Compensation Survey Now Available for Purchase

National Center for Employee Ownership [NCEO]

Webcasts and Conferences
(Retirement Plans or Exec Comp)

Conducting Effective Service Provider RFPs for ERISA Retirement Plans

July 14, 2021 WEBCAST

Strafford

Last Issue's Most Popular Items

DOL Issues New Cybersecurity Guidance Under ERISA

Dechert LLP

Retirement Plan Literacy: Answers to Common Employee Questions

Pension Rights Center

About That Pension Check ... A Miscalculation Case with Broader Implications

Jackson Lewis P.C.

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

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