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Retirement Plans Newsletter

May 19, 2021

4 New Job Opportunities


[Official Guidance]

Text of IRS Notice 2021-33: Weighted Average Interest Rates, Yield Curves, and Segment Rates for May 2021 (PDF)

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate ... In addition to providing these rates for current periods, this notice provides 24-month average segment rates for earlier periods for plan years beginning in 2020 and 2021 ... reflecting the modifications made by Section 9706(a) of [ARPA]."  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

The Big Apple Joins a Small Crowd, with Possible Headaches for Tri-State Employers

"No conflict should arise between the City's program and the New York State Secure Choice Savings Program ... Connecticut and New Jersey have authorized, but not yet implemented, mandatory auto-IRA programs for employers located in those states ... [T]here may be employers located within the metropolitan New York City area whose employees will be subject to differing mandates depending on whether employed in New Jersey, Connecticut or the City itself[.]"  MORE >>


[Guidance Overview]

Considerations for Corporate DB Plan Sponsors After ARPA

"ERISA funding and plan sponsor elections ... Unintended prefunding balance consequences ... Cash contributions and tax deductibility ... Benefit restrictions and other triggers ... PBGC premiums ... Pension accounting expense ... Incentives for de-risking via window programs ... Asset allocation ... Pension buyouts and plan termination."  MORE >>


Ninth Circuit Holds California Mandated IRA Program Not Preempted by ERISA

"[The] holding could deter future challenges to other state-administered IRA plans. Colorado, Illinois, Maryland, Oregon, and New Jersey have already enacted plans similar to CalSavers. If this trend continues, multistate employers may have to comply with differing benefit laws in various states." [Howard Jarvis Taxpayers Ass'n v. California Secure Choice Ret. Savings Program, No. 20-15591 (9th Cir. May 6, 2021)]  MORE >>

Faegre Drinker

What's Included When a Participant Requests Plan Documents?

"[It] could be argued if benefit-related decisions were made or even discussed at committee meetings then the minutes, or at least applicable portions of the minutes, would have to be provided. This issue is clearly open to interpretation and argument, and there have been legal cases where courts have differed on their rulings as to the treatment of committee meeting minutes."  MORE >>

Retirement Learning Center, LLC

Municipal Pension Funding Increased in Recent Years But Challenges Remain

"The Pew Charitable Trusts has examined funding data for 100 pension plans in 33 cities from 2015 to 2017. The analysis found a $145 billion shortfall in 2017 between assets on hand and the liabilities for promised benefits, representing an aggregate funded ratio of 68%, only slightly below the overall state pension plan funded ratio of 69%.... [F]iscal health varies widely across jurisdictions, and a quarter of the cities in the study continue to report significant funding challenges."  MORE >>

The Pew Charitable Trusts

Financial Perspectives on Aging and Retirement Across the Generations (PDF)

89 pages. "36% of respondents say the pandemic negatively impacted their overall financial situation ... 4 in 10 [Millennials experienced] job loss or a pay decrease.... 35% of workers have changed or considered changing when they plan to retire as a result of COVID-19 with most of these respondents delaying their retirement[.]"  MORE >>

Greenwald Research for Society of Actuaries


Withdrawing 401(k) Funds After Retirement Is Not the Problem: Here's What Is

"[W]hy all of the fuss over distribution planning, when the real problem is on the front end -- contributions? ... After the Obama administration made a strident push for a new fiduciary rule, commission-heavy annuity sales plummeted. Requiring all 401(k) plans to offer an annuity option at retirement would be manna from heaven for ailing insurance companies."  MORE >>

Pension Consultants, Inc.

Benefits in General

2021 Financial Life Benefits® Impact Report (PDF)

19 pages. "Even amid the pandemic, employees made progress toward their retirement with average 401(k) account balances increasing from $74,000 to $81,000 ... [R]etirement plans offering target-date funds [increased by] 17% and those offering sustainable investment options [grew] by 9% ... Employees are taking control of health care expenses, increasing their HSA balances by 17% and investing these savings to help cover future health care expenses."  MORE >>

Bank of America

Employee Benefits Jobs

View job as Plan Administrator
for Prime Pensions, Inc. Plan Administrator

Prime Pensions, Inc.

Florham Park NJ

View job as Plan Administrator
for Prime Pensions, Inc.

View job as Defined Benefits Specialist
for Corestaff Services Defined Benefits Specialist

Corestaff Services

Enfield CT

View job as Defined Benefit Plan Consultant
for Planned Retirement Consultants & Administrators, LLC Defined Benefit Plan Consultant

Planned Retirement Consultants & Administrators, LLC

Telecommute / Ridgewood NJ

View job as 401k & Defined Contribution Plan Consultant
for Planned Retirement Administrators & Consultants, LLC 401k & Defined Contribution Plan Consultant

Planned Retirement Administrators & Consultants, LLC

Telecommute / Ridgewood NJ

Selected New Discussions

Default Beneficiary Designations Are Changed by an Appendix

"Reviewing a plan for takeover. The base document provides for a default beneficiary of: 1. Surviving Spouse; 2. Participant's issue, per stirpes; 3. Participant's surviving parents, in equal shares; or 4. Participant's estate. Fairly standard stuff. Now, in the document's 'Appendix', this default is modified to be: 'the Participant's spouse, children, or parents, then estate.' Other than no 'per stirpes' for the children, what, if any, is the real legal effect of this?"

BenefitsLink Message Boards

Different Eligibility Requirements for 401(k) Contributions

"I'm taking over a plan that has two sets of eligibility requirements for 401(k) contributions: (i) Senior Managers - 21 and 6 months of service, and (ii) All Other Employees - 21 and 1 year of service. That's discriminatory because the managers participate sooner. What do you think?"

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans or Exec Comp)

A Detailed Dive into Qualified Domestic Relations Orders

May 25, 2021 WEBCAST

Western Pension & Benefits Council

Advanced Pension Virtual Conference

August 31, 2021 WEBCAST

FIS Relius Education

Fundamentals of Qualified Plans Virtual Workshop

October 26, 2021 WEBCAST

FIS Relius Education

Last Issue's Most Popular Items

Understanding Why a Retirement Income Crisis Is Coming


Retirement Plan Committee Responsibilities

Lawton Retirement Plan Consultants

New Mandatory Retirement Savings Program for Certain New York City Employers

Jackson Lewis P.C.

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

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