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Retirement Plans Newsletter

May 18, 2021

2 New Job Opportunities


[Guidance Overview]

New Mandatory Retirement Savings Program for Certain New York City Employers

"The program provides for a default employee contribution rate of 5% ... [C]ontributions are capped at the annual federal IRA maximum ... [E]mployers must remit funds deducted from the earnings of each participant for deposit in IRAs on the earliest practicable date.... Employees may roll the accounts over into employer plans where eligible."  MORE >>

Jackson Lewis P.C.

[Sponsor] – Plan Data Intelligence (PDI)

PDI is a powerful 5500 database. Find prospects and demonstrate value add with best-in-class Operational Benchmark Reports. Benchmark plans against standard and customized user-defined peer groups. Learn more or 612-605-2266

Sponsored by Burrmont Compliance Labs LLC

[Guidance Overview]

DOL's Cybersecurity Guidance: Practical Pointers for Fiduciaries

"Fiduciaries should ask potential and incumbent DC plan recordkeepers if they provide a participant guarantee.... For legitimate reasons, service providers may not want to share details of their cybersecurity programs. Nonetheless, the agreement should include a reasonable degree of specificity, which the DOL's best practices may provide.... Fiduciaries may want to post copies of the Online Security Tips on HR or benefit portals, or on the plan's website."  MORE >>

Keightley & Ashner LLP

[Guidance Overview]

ERISA Cybersecurity Lessons for Employers

"In recent years, DOL guidance that eased rules related to electronic communications to plan participants might have helped make participants more susceptible to phishing attempts that masquerade as official plan communications.... The DOL now appears to be attempting to strike a balance between increased electronic communication and cybersecurity measures."  MORE >>

Ogletree Deakins

[Guidance Overview]

Best Interest Standard of Care for Advisors, Part 50

"This article discusses mitigation techniques described by the DOL in FAQ 17. The mitigation measures developed by broker-dealers for compliance with Reg BI's Conflict Obligation will be helpful for complying with the DOL's mitigation requirements for investment professionals. And, in some cases, those measures may be helpful in satisfying the DOL's mitigation requirements for the financial institutions subject to Reg BI (that is, for broker-dealers)."  MORE >>

Retaining Company Stock Did Not Breach Fiduciary Duty Despite Knowledge of Undisclosed Liabilities

"Although the disclosure of the multi-billion dollar liabilities caused a significant drop in the price of the company's stock, the court concluded that the suggestion that the disclosure was inevitable and, thus, should have been made to plan participants at least 10 years earlier, was too conclusory to state a claim for the breach of duty of prudence under the applicable pleading standards." [Varga v. General Electric Co., No. 20-1144 (2d Cir. Feb. 4, 2021; unpub.)]  MORE >>

Wolters Kluwer; free registration required

Fiduciary Liability Risks Go Up When Retaining Retiree Assets

"It's clear the needs of asset accumulators (those saving for retirement) are different than the needs of asset decumulators (those spending in retirement). This may create a bit of a 'split-interest trust' scenario for plan sponsors.... [T]here's no escaping increased fiduciary liability when the plan retains retiree assets."  MORE >>

Fiduciary News; free registration required

New Outlook on Income

"The pursuit of retirement income solutions for defined contribution (DC) plans has been underway for the better part of the last decade, yet adoption remains low.... This paper offers insights and a conceptual evaluation framework to help plan sponsors assess retirement income solutions in a more strategic and informed way."  MORE >>

T. Rowe Price; free registration required

'Acronym Plans' in the SECURE Act: PEPs, MEPs, and GOPs

"One of the most hyped elements of the Act, some say PEPs may become the dominant retirement plan type within the next ten years. But do PEPs live up to the hype? What about similar SECURE Act provisions that created group of plans (GoP) and enhanced existing multiple employer plans (MEPs)?"  MORE >>


IRS Says Lack of Detail Is a Common Error in VCP Submissions

"On an updated webpage, the IRS reminds plan sponsors, or their representatives, to make sure their voluntary correction program (VCP) submissions are error-free before submitting them.... [S]ubmissions where the descriptions of operational failures didn't specify the plan sections not followed or the number of participants affected by the failure were not processed."  MORE >>

PLANSPONSOR; free registration may be required

Retirement Plan Committee Responsibilities

"If you are like most 401k plan sponsors, you worry about whether your retirement plan committee is discussing the right things at your committee meetings. Is the retirement plan committee using its time wisely talking about what is important? Or do you spend way too much time reviewing investment performance?"  MORE >>

Lawton Retirement Plan Consultants

Is the Retirement-Income Party Finally Over?

"Over the decades, retirees have been able to withdraw ever-increasing amounts of income from their portfolios. But have the festivities finally run their course?"  MORE >>

John Rekenthaler, in Morningstar

GAO Report: Retirement Security -- Debt Increased for Older Americans Over Time, But the Implications Vary by Debt Type

"The share of older households with debt was 71 percent in 2016 compared to 58 percent in 1989 ... [F]rom 2003 to 2019, individuals in their late 70s often had higher shares of credit card and student loan debt that was late than those aged 50-74." [GAO-21-170, pub. Apr 16, 2021, released May 17, 2021]  MORE >>

U.S. Government Accountability Office [GAO]


Understanding Why a Retirement Income Crisis Is Coming

"The fundamentals of retirement saving have evolved from the 'three-legged stool' model of pensions, personal savings, and Social Security. But Americans, by and large, haven't adjusted with it.... The combination of changing retirement fundamentals and market conditions means many of those approaching retirement don't have the resources they planned on."  MORE >>


Benefits in General

How to Inspire Employee Engagement When Benefit Programs Don't Change

"A comprehensive and well-organized benefits intranet or portal can boost employee engagement by making benefits information clearer and more accessible.... Providing decision support can be invaluable to employees ... Even if your core benefits haven't changed, there may be small changes employees need or want to know about."  MORE >>

Tango Health

Employee Benefits Jobs

View job as Retirement Plan Consultant
for DWC - The 401(k) Experts Retirement Plan Consultant

DWC - The 401(k) Experts


View job as Retirement Plan Consultant
for DWC - The 401(k) Experts

View job as Retirement Plan Administrator
for Allied Consultants, Inc. Retirement Plan Administrator

Allied Consultants, Inc.

Chino Hills CA

Selected New Discussions

Purchaser of Plan Sponsor's Assets Wants to Become New Plan Sponsor

"Suppose corporation A sponsors a plan. Newly formed corporation B now purchases the assets of corporation A. Corporation A still exists. No controlled group/affiliated service group involved. Can corporation B assume the liabilities of the corporation A plan and become the new plan sponsor, if both corporations are willing?"

BenefitsLink Message Boards

Press Releases

Morneau Shepell Rebrands to LifeWorks, Reflecting Company's Purpose of Improving Lives and Business


Principal® Announces New Leaders in Retirement and Income Solutions

Principal Financial Group

T. Rowe Price Accelerates Transformation of Its Retirement Recordkeeping Business

T. Rowe Price

Webcasts and Conferences
(Retirement Plans or Exec Comp)

Update on Pending Pension Relief from ARPA

May 26, 2021 WEBCAST


IRAs, Rollovers and DOL Fiduciary Rule Compliance

June 8, 2021 WEBCAST

Faegre Drinker

Last Issue's Most Popular Items

Three Tricky Decisions for Every Retiree


IRS Guidance About SECURE Act's Beneficiary RMD Provisions Requires Revision

Law Offices of Albert Feuer, via SSRN

Fiduciary Investment Advice: Implications of DOL Prohibited Transaction Exemption 2020-02

Jackson Lewis P.C.

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

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