[Official Guidance]

Text of IRS Operational Compliance List, Updated for Items Effective in 2021 and 2022

"Effective in 2022: Final Regulations relating to updated life expectancy and distribution period tables used for purposes of determining minimum required distributions ...  Effective in 2021: [1] Qualified cash or deferred arrangements (CODAs) must allow long-term employees working at least 500 but less than 1,000 hours per year to participate ([SECURE Act] Section 112).... [2] Extension of Temporary Relief from the Physical Presence Requirement for Spousal Consents Under Qualified Retirement Plans (Notice 2021-03)."  MORE >>

Internal Revenue Service [IRS]

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This Thursday! Pooled Employer Plans (PEPs)

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[Guidance Overview]

Recommendations for Tracking Part-Time Employees – from an Auditor's Perspective

"Because 2024 is the earliest a [part-time employee (PTE)] could qualify to enter a 401k plan under this provision, plan sponsors may not be paying attention to this provision of the 2019 SECURE Act yet. However there are a few tasks and procedures plan sponsors and TPAs should be implementing now to ensure eligibility for PTEs is correctly applied on January 1, 2024."  MORE >>

Bradley J. Bartells, CPA, via LinkedIn

[Guidance Overview]

IRS Updates Operational Compliance List for Retirement Plans Through 2022

"The [operational compliance (OC)] List doesn't provide a comprehensive inventory of every item of IRS guidance or new legislation, but reminds plan sponsors about revised operational requirements taking effect during a calendar year, even if conforming amendments are due later. This update to the OC List is the first since June 2020, and notes several revised operational requirements for 2020, along with a few changes taking effect in 2021 and 2022."  MORE >>

Mercer

Third Circuit to Consider Class Certification Issues Percolating in ERISA Fee Litigation

"The Third Circuit will review a Pennsylvania district court's decision to certify a 60,000+ person class in an ERISA fiduciary breach lawsuit claiming mismanagement of a defined contribution plan's investments and recordkeeping fees. This appeal queues up guidance on a hotly litigated issue in recent ERISA cases: can defined contribution plan participants challenge the prudence and loyalty of retaining a plan investment option they never invested in?" [Boley v. Universal Health Servs., Inc., No. 21-8014 (3d Cir. order granting leave to appeal May 18, 2021)]  MORE >>

Jackson Lewis P.C.

The DOL's Cybersecurity Guidance in Practice

"[P]rovider resistance is one practical challenge plan sponsors could face when trying to implement the guidance. The DOL doesn't address what plan sponsors should do in that case.... [T]here's also a risk that the guidance becomes viewed by potential litigants and the DOL as a minimum standard."  MORE >>

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Portman, Cardin Reintroduce Sweeping Retirement Reform Bill

"[The] Retirement Security and Savings Act (S 1770) ... [addresses] four major opportunities in the existing retirement system: [1] allowing people who have saved too little to set more aside for their retirement; [2] helping small businesses offer 401(k)s and other retirement plans; [3] expanding access to retirement savings plans for low-income Americans without coverage; and [4] providing more certainty and flexibility during Americans' retirement years."  MORE >>

American Retirement Association [ARA]

Senators Revisit Bill to Create Retirement Account Lost-and-Found

"[T]he Retirement Savings Lost and Found Act of 2021 [S 1730] ... would use data that employers are already required to report to create the database and would require plan sponsors to send lost, uncashed checks of less than $1,000 to the Office of Retirement Savings Lost and Found -- which the bill directs the secretaries of Treasury, Labor and Commerce to create -- so that individuals can locate their money."  MORE >>

Pensions & Investments

Delaware Joins the State Auto-IRA Push

"[The proposed legislation] would require private-sector businesses with five or more employees that ... do not currently offer employees access to a tax-favored retirement plan to participate in the automatic payroll deduction IRA program. Employees could opt out of participation."  MORE >>

National Tax-Deferred Savings Association [NTSA]

Kroger Reaches Deal with Unions to Shore Up Retirement Benefits

"Fred Meyer and [Quality Food Center] workers belonging to four local unions have ratified an agreement with Kroger to transfer approximately $400 million in pension liabilities from an underfunded plan to the UFCW Consolidated Pension Plan ... The agreement ... covers benefits for more than 10,600 workers at the two Kroger banners and is intended to keep the grocer's exposure to market risk at a minimum while cutting administrative costs[.]"  MORE >>

Grocery Dive

[Guidance Overview]

DOL Rescinds Independent Contractor Classification Regs, Eyes Adoption of 'ABC' Standard

"[T]he DOL decided its previous multifactor test better met the text, purpose, and current interpretation of the FLSA.... The ABC test, which has been applied by state courts in California and Massachusetts, among others, is seen as more likely to classify workers as employees rather than independent contractors."  MORE >>

Schiff Hardin

Support for Say-on-Pay Votes Continues to Erode

"A number of large companies in the U.S. have received significant opposition to their executive compensation packages during this proxy season.... But even for the large-cap companies that didn't generate headlines with a significant percentage of shareholder votes against executive compensation packages, support is gradually decreasing."  MORE >>

Corporate Secretary

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PTE 79-60 -- Commission for an Insurance Agent/Broker Who Is the Employer

"I've been doing some research to see if there is an update to prohibited transaction exemption PTE 79-60. I have a broker who wants to start a defined benefit plan and include insurance in the plan where he is the broker. I've always known about the 5% rule, i.e., his commission from this transaction cannot exceed 5% of the total insurance commissions income received for the year. I found nothing to the contrary, i.e., no changes. Please let me know your thoughts/comments, if any. (PS insurance in pension plans should be illegal!)"

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T. Rowe Price to Lower Expenses Across Target Date Lineup and Expand Offering with New Blend Fund Series

T. Rowe Price

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MEAP 401(k) Plans with Managed Accounts as a Differentiator

May 26, 2021 WEBCAST

The Retirement Advantage [TRA]

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EBSA Privacy and Cybersecurity Guidance: Takeaways and Next Steps

McDermott Will & Emery

Employee Benefits Attorney Rick Menson Dies

Dignity Memorial

Q&As on DOL Investigations of Retirement Plan Advisers

Retirement Income Journal