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Retirement Plans Newsletter

June 8, 2021

3 New Job Opportunities


Empire State Poised to Enact Mandatory Auto-IRA Program

"The State Senate voted 44-19 on June 7 to approve NY A03213-A, legislation that would convert the existing New York state secure choice auto-IRA saving program from being voluntary to mandatory for private sector employers that do not offer a retirement plan and employ 10 or more employees. The legislation is now cleared for the signature of New York Gov. Andrew Cuomo (D)."  MORE >>

American Retirement Association [ARA]


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Northern Trust Faces New Fiduciary Breach Allegations

"The complaint claims that the Northern Trust Focus Funds have significantly underperformed their benchmark indexes and comparable target-date funds (TDFs) since their launch in 2010, performing worse than 70% to 90% of peer funds, but says the defendants continued to use the funds as the plan's default investment option." [Conlon v. The Northern Trust Company, No. 21-2940 (N.D. Ill. complaint filed Jun. 1, 2021)]  MORE >>


Collective Investment Trusts: Important Fiduciary Considerations

"CITs are often less expensive to create/maintain and may be more flexible than their mutual fund counterparts given that they are subject to a different regulatory framework. While this may be a benefit to their fee structure, it can also be challenging because CITs often suffer misconceptions when compared to mutual funds. [This article describes] the most common misconceptions and frequently asked questions by fiduciaries."  MORE >>

Manning & Napier

Is a Cash Balance Plan Right for Your Company?

"A cash balance plan is advantageous when the company's owners or its targeted employees: [1] Are age 40 or older and are generally older than other staff; [2] Need to maximize tax-deductible contributions beyond the scope of a DC plan; [3] Are behind on retirement savings goals and need to accumulate funds more rapidly; and [4] Can afford to make larger contributions based on their age and compensation."  MORE >>


Missing the 401(k) Plan Match

"Depending on when the plan sponsor chooses to calculate and contribute matching dollars, an employee contributing the maximum amount of deferrals ($19,500 for 2021) may miss some of their potential matching funds if they try to contribute all of it early in the year rather than equally out of each paycheck during the year."  MORE >>

TriStar Pension Consulting

When and for Whom Are Roth Conversions Most Beneficial? A New Set of Guidelines, Cautions and Caveats

"Future tax rates need not be higher for a conversion to pay off ... [T]he greatest benefit accrues to taxpayers who can make the conversion partly in the zero percent tax bracket, i.e., during a year with no other taxable income.... [A] Roth conversion will almost always pay off if given enough time, i.e., for life spans that extend past 90 and so long as annual distributions from converted amounts are not taken."  MORE >>

Edward F. McQuarrie, via SSRN

Money Management During Retirement

"Now that you've retired, your income situation is likely quite different than while you were working. That means your money management techniques may need some adjustments. Here's a few things to keep in mind as you enjoy your retirement years."  MORE >>

Meld Financial, Inc.

2021 Update: Public Plan Funding Improves as Workforce Declines

"While initial expectations for public pensions were low due to COVID, financial markets rebounded and municipal tax revenues were quite resilient. Yet one other COVID-related factor -- cuts to the state and local workforce -- impacted public pension finances in FY 2021. These cuts had little impact on funded status and required contribution amounts, but they do explain the rise in contribution rates, which are expressed as a share of lower payrolls."  MORE >>

Center for Retirement Research at Boston College

Benefits in General

District Court Confirms Participant Must Exhaust Administrative Remedies Before Filing Suit

"The court concluded that the participant had adequate notice of the appeal timeline ... [and] observed that the participant's assertion of administrative inconvenience, without more, was insufficient to demonstrate that some 'extraordinary circumstances' stood in the participant's way and prevented timely filing." [Benson v. Tiffany and Company SPD, No. 20-1289 (S.D.N.Y. May 10, 2021)]  MORE >>

The Wagner Law Group

Multi-Factor Authentication Is Now Required to Secure Cyber Insurance

"According to the Verizon 2020 Data Breach Investigation Report, 4-in-5 hacking-related breaches use stolen or weak passwords. Such evidence underscores the immediate need for making multi-factor authentication essential to the cybersecurity strategies of employee benefit plan administrators."  MORE >>

Euclid Specialty Managers

2021 U.S. Benefits Trend Report

"Key findings in the report include: ... [1] 65% of employers include social connectedness in their well-being strategy.... [2] 69% of employees say having a wider array of benefits would increase loyalty to their employer.... [3] 73% of employees said they are interested in support and guidance to help them understand how much money to put aside for retirement, emergency savings and healthcare expenses."  MORE >>


Employee Benefits Jobs

View job as Employee Benefits Attorney
for Miller Canfield Employee Benefits Attorney

Miller Canfield

Telecommute / Detroit MI / Chicago IL

View job as Retirement Plan Services Plan Consultant
for Dubuque Bank and Trust Retirement Plan Services Plan Consultant

Dubuque Bank and Trust


View job as Third Party Administrator (Account Manager)
for Staffordshire Benefit Consulting LLC Third Party Administrator (Account Manager)

Staffordshire Benefit Consulting LLC

Voorhees NJ

Selected New Discussions

Distribution Made from Corporate Account Rather Than Trust's Account

"Plan trustee liquidates funds to pay a terminated participant. Doesn't open a trust checking account -- deposits the funds to corporate account, and on the SAME day sends check to participant, or directly to the participant. Would this invalidate a rollover because it technically didn't come from a 'trust' account?"

BenefitsLink Message Boards

Opportunity for Unreduced Early Retirement Benefit Means Actuarial Increase at Normal Retirement?

"Plan provides that normal retirement age is 65. However, early retirees and vested terminated participants can elect to receive unreduced benefits as early as age 60. Is there any requirement that benefits be actuarially increased if a terminated vested participant does not apply for benefits until, for example, age 65? or, because the plan is not decreasing the amount payable at normal retirement age (age 65), is it free simply to tell the participant who applies late, 'Sorry, we know you could have started receiving full benefits at age 60 if you had applied on time, but because you didn't, you won't receive either a make-up for the missed payments or an actuarial increase'?"

BenefitsLink Message Boards

Coronavirus-Related Distribution Requested Dec. 26 But Not Paid Until Jan. 4

"Participant submitted the paperwork for a Coronavirus Related Distribution on December 24, 2020. The assets were transferred out of the participant account and plan trust account on December 26. They were transferred to a paying agent. The paying agent didn't send the distribution until January 4, 2021. The paying agent is refusing to treat this as a coronavirus related distribution because the check wasn't sent until January 4, 2021 (past the 12/31 CRD deadline). Has anyone else had any issues like this?"

BenefitsLink Message Boards

Press Releases

EPIC Employee Benefits Solution Group Wins Multiple Communicator Awards


NET Institute, a Division of ICARE, Earns Best of Orlando Award for Addiction Career Training

International Center for Addiction and Recovery Education [ICARE]

TRA Hires Paul Phan as Regional Sales Consultant

The Retirement Advantage [TRA]

Compass Benefit Advisors, LLC Joins OneDigital


Webcasts and Conferences
(Retirement Plans or Exec Comp)

Plan Document Issues for 2021

June 16, 2021 WEBCAST

ASPPA [American Society of Pension Professionals & Actuaries]

Not Doing RFPs for your Retirement Plan? Learn Why This Can Be a Costly Mistake Your Organization is Making

June 17, 2021 WEBCAST

Twelve Points Retirement Advisors

Are You at Risk? What to Know About Retirement Plan Fee Class Action Litigation and What You Can Do About It

July 15, 2021 WEBCAST

Jackson Lewis LLP

ERISA Revenue Sharing Arrangements: Addressing Possible Plan Assets Status, Pursuing Due Diligence

July 29, 2021 WEBCAST


Last Issue's Most Popular Items

Three Important Lessons from an Otherwise Unremarkable 401(k) Fee Case


Businesses and Employees May Get a Retirement Savings Boost If 'SECURE 2.0' Passes

Principal Financial Group

ERISA Bond: What Is It and Do I Need One?

Legacy Retirement Solutions

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

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