2019 Pension Insurance Data Tables: First Installment (PDF)

39 pages. "The first installment of the 2019 Data Tables for PBGC's Single-Employer and Multiemployer Programs and the private defined benefit pension system is now available. This installment includes various breakdowns of PBGC claims, guaranteed benefit payments, and summaries of PBGC operations."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

Curtain Falls on IBM Stock-Drop Case

"After more than five years of litigation and a trip to the Supreme Court, the ERISA stock-drop litigation against fiduciaries for IBM's [ESOP] has ended with a modest $4.75 million settlement ... The opinion of the 2nd US Circuit Court of Appeals in the case -- which found plaintiffs' pleadings sufficient to survive a motion to dismiss -- still stands, possibly leaving a narrow path for future stock-drop litigation." [Jander v. Ret. Plans Comm. of IBM, No. 15-3781 (S.D.N.Y. memorandum in support of motion for approval of settlement proposal, April 2, 2021; order approving settlement Apr. 28, 2021)]  MORE >>

Mercer

Develop Your Fiduciary Toolkit (PDF)

"A fiduciary toolkit equips finance and human resources executives with knowledge, procedures, and performance measurements to drive operations, strategy, and compliance.... [ERISA], which defines fiduciary behavior principles, does not codify best practices.... This article examines the categories of those practices and how to evidence conformance to them."  MORE >>

Roland Criss, via Journal of Compensation and Benefits

Ascensus Sells for $3 Billion After Failing to Draw Buyers for One-Third Less in 2018

"The firm became a private-equity magnet for rolling up third-party administrators of 401(k) and health savings plans, becoming a standalone recordkeeping force rivaling Fidelity Investments and others.... Holding out a couple of years came at a financial cost. Genstar and Aquiline sold 25% of their equity to Atlas Merchant Capital and GIC in 2018 at a far lower valuation."  MORE >>

RIABiz

Auto-Enroll IRA Program Approved in New York City

"The legislative action would create a mandatory automatic enrollment [IRA] program for employers that do not offer a retirement plan and employ at least five people. It awaits the mayor's signature or veto.... The council also voted to establish a retirement savings board to facilitate the implementation the retirement security program."  MORE >>

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FAS87 ASC715 Discount Rates and Moody's Rates, April 29, 2021

An unofficial monthly report of the Moody's Daily Long-term Corporate Bond Yield Averages and Moody's Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).  MORE >>

BenefitsLink Message Boards

[Opinion]

Tougher DOL Fiduciary Rule Is on the Way. But When?

"Labor has given itself 'good breathing room by letting the exemption go into effect, calming the waters, people at least know what the rules are right now,' ... 'The FAQs [issued April 13] help; people know where things stand. I would certainly think it's a top three priority, but I think it's number three behind ESG and proxy,' [Preston Rutledge, former head of EBSA] opined."  MORE >>

ThinkAdvisor

[Official Guidance]

Text of IRS Disaster Relief Notice AL-2021-01, for Victims of Severe Storms, Straight-Line Winds, and Tornadoes in Alabama

"Victims of severe storms, flooding, landslides and mudslides that began March 25, 2021 now have until August 2, 2021, to file various individual and business tax returns and make tax payments.... Individuals and households affected by severe storms, straight-line winds, and tornadoes that reside or have a business in Bibb, Calhoun, Clay, Hale, Jefferson, Perry, Randolph, and Shelby counties qualify for tax relief."  MORE >>

Internal Revenue Service [IRS]

[Official Guidance]

Text of IRS Disaster Relief Notice KY-2021-01, for Victims of Severe Storms, Flooding, Landslides and Mudslides in Kentucky

"Victims of severe storms, flooding, landslides and mudslides that began February 27, 2021 now have until June 30, 2021, to file various individual and business tax returns and make tax payments ... Individuals and households affected by severe storms, flooding, landslides and mudslides that reside or have a business in Boyd, Breathitt, Carter, Casey, Clay, Cumberland, Elliott, Estill, Floyd, Franklin, Jackson, Johnson, Knott, Knox, Lawrence, Lee, Lincoln, Magoffin, Marion, Martin, Mason, Morgan, Ohio, Pike, Powell, Rockcastle, and Wolfe counties qualify for tax relief."  MORE >>

Internal Revenue Service [IRS]

Employers Have Options to Help Employees with Student Loan Debt

"The employer can pay off the principal and interest on the employee's student loan, and the amount paid on behalf of the employee is excluded for income tax purposes and for payroll tax purposes.... [In 2018] the IRS issued a private letter ruling to Abbott Laboratories that authorized Abbott to make an employer contribution ... to its 401(k) Plan on behalf of those employees who were paying off their student loans but not making a 401(k) deferral into the 401(k) Plan.... In 2019, the IRS signaled that it was going to turn the Abbott private letter ruling into a revenue ruling[.]"  MORE >>

Friday Eldredge & Clark LLP

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Adding Self-Employed Business as a Participating Employer in Existing Plans -- Qualifies Under SECURE Act?

"A client sponsors two plans: Cash Balance and 401(k). The client is a corporation owned 50/50 by two brothers. The W-2 wages the brothers receive from the corporation are well below the annual wage limits, and the contributions are well under current year allocation limits. Their accountant suggests that they set up a Keogh plan for one of the brothers' Schedule C income. I'd prefer to include the Schedule C income in the current plan. Is that smart?"

BenefitsLink Message Boards

Trouble with PBGC Website While Attempting to Upload 2021 Forms

"Has anyone successfully uploaded PBGC Forms after the update on PBGC's website? We sent an inquiry to PBGC and they think it's a problem with our web browser. We've tried Internet Explorer, Google Chrome, Microsoft Edge and Firefox and we have the same issue with every one. If anyone has had success, what web browser are you using?"

BenefitsLink Message Boards

Starting an Owner-Only 401(k) Plan After Reclassifying the Only Employee to Be an Excluded Contractor

"A prospect (a doctor) who has one employee (W-2 wages) wants to terminate her and then engage her as a 1099-R independent contractor. Then, the next month, he wants to start up a 401(k) plan that covers only himself and his wife, whom he will bring onto the payroll. Do you see issues with this?"

BenefitsLink Message Boards

Investment by a Profit Sharing Plan in a Surgery Center

"A physician practice would like to make a loan from its pooled profit sharing plan (6 participants) to a surgery center as an investment. The loan will earn 10% interest and it'll be for 1 or 2 years. It would be a loan of $100,000 (out of $1.8 million assets). Would it be legally permitted?"

BenefitsLink Message Boards

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The Cerrado Group Announces TSC as Newest Member Firm

The Cerrado Group

Arconic Reduces Gross Pension Obligation by $1 Billion with Purchase of Group Annuity Contract

MassMutual

UNITE HERE Launches Website for Beneficiaries of Pension Plans Taken Over by Athene

UNITE HERE

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Saving for Health Care in Retirement: How HSAs and 401(k)s Fit Together

June 9, 2021 WEBCAST

EBRI [Employee Benefit Research Institute]

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DOL Issues New Cybersecurity Guidance: What Plans and Service Providers Need to Know

Trucker Huss

A Tax-Savvy Approach to Help Make the Most Out of Your Retirement Income

T. Rowe Price

Participant Data: Plan Asset, or Fair Game for Recordkeeper Marketing of Non-Plan Products?

Trucker Huss