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Retirement Plans Newsletter

June 23, 2021

3 New Job Opportunities


Alert (High Risk Issue) icon Colorado Court Finds ERISA Preempts State Divorce-Revocation Statute

"The decision ... settled an open question in Colorado regarding whether ERISA preempts 'post-distribution' lawsuits under Colorado's divorce-revocation statute. Specifically, the court held that ERISA preempts lawsuits against a former spouse to recover plan benefits that were distributed to the former spouse as the named beneficiary." [Ragan v. Ragan, No. 20CA0038 (Col. Ct. App. May 27, 2021)]  MORE >>


House HELP Subcommittee Hearing: Examining Pathways to Build a Stronger, More Inclusive Retirement System

June 23 full committee hearing. Page includes video along with written testimony by [1] Dr. Teresa Ghilarducci, The New School for Social Research; [2] Dr. Nari Rhee, University of California at Berkeley; and [3] Dr. Andrew Biggs, American Enterprise Institute. Mr. David Certner, AARP, also listed as witness.  MORE >>

Health, Employment, Labor, and Pensions [HELP] Subcommittee; Committee on Education and Labor, U.S. House of Representatives

What Are the Most Common Matching Formulas?

"[In] 2020, Vanguard administered more than 180 distinct match formulas for plans offering an employer match ... Among plans offering a matching contribution, 72% -- covering 62% of participants -- provided a single-tier match formula ... 21% of plans -- covering 27% of participants -- [used] multi-tier match formulas, such as a dollar-for-dollar match on the first 3% of pay and 50 cents per dollar on the next 2% of pay."  MORE >>

American Retirement Association [ARA]

What Happens to a Defaulted Plan Loan?

"Regulatory requirements ... Plan policies ... The cure period ... Deemed distributions are taxable ... Offsets may be taxable or rolled over ... Repayment relief in special situations."  MORE >>

Newport Group

SEC Issues First-Ever Penalties for Deficient Cybersecurity Risk Controls

"[T]he SEC and NYSDFS are now using their enforcement powers to ensure that companies implement robust cybersecurity risk management systems. With cyberattacks ever present and constantly evolving, it is only a matter of time that a company's cybersecurity risk management efforts and related controls ... will be exposed to regulatory scrutiny."  MORE >>

Holland & Knight

Secure Retirement Institute Predicts Increase in Money Moving from DC Plans to IRAs

"Every year, defined contribution plan participants roll over more than $500 billion into IRAs after they retire or change jobs. [SRI®] predicts this to exceed $760 billion within the next five years. SRI research estimates that IRA rollovers represented approximately $565 billion in 2019, and jumped to $623 billion in 2020 ... Driven largely by the accrual of balances in workplace savings plans, rollovers rank among the largest financial transactions Americans will make."  MORE >>

LIMRA Secure Retirement Institute® [SRI]

Annuities, Retirement, and the Pandemic: Assessing America's Retirement Readiness (PDF)

10 pages. "[M]any of us (42%) ... have become more risk-averse when it comes to our finances. As a result, a vast majority of Americans, 86%, say that guaranteeing their income in retirement is important.... Sixty-three percent of Black/African Americans and 53% of Hispanic respondents had to access their savings to pay for daily expenses during the pandemic.... Overall, older Americans (55+) and those who are currently retired ... are less likely to have no savings or to dip into existing savings as a result of the pandemic."  MORE >>

Indexed Annuity Leadership Council [IALC]

401(k) Rollovers: How to Make an Informed Decision

"To retire as soon as possible, you must avoid three pitfalls when saving throughout your working years -- underperforming investments, inappropriate asset allocation, and excessive administration fees.... The 401(k) and IRA features you want for the long-term [are] ... market returns ... professional investment advice ... minimal administration fees ... The key differences between 401(k) and IRA accounts [are listed side-by-side]."  MORE >>

Employee Fiduciary


Why You Don't (Yet) Have an ESG Option in Your 401(k)

"[A recent survey] found that 90 percent of participants who knew of ESG-related options offered by their employer invested in them. And nearly 70 percent of participants who weren't offered an ESG option, or weren't sure, said they might contribute more to their 401(k) if one were available.... Why haven't 401(k)s joined the ESG revolution? Here [are] a few of the main reasons -- along with the reasons they're no longer relevant."  MORE >>


Benefits in General

Using Mandatory Arbitration to Avoid ERISA Class Actions, Part 2: Recent Legal Decisions on Whether Plan Sponsors Can Compel Arbitration (PDF)

"[1] Who decides whether arbitration applies? ... [2] Can general employment agreement or handbook provisions cover ERISA claims? ... [3] Must there be considerations? ... [4] Who must consent to mandatory arbitration? ... [5] Can an arbitrator award plan-wide relief?"  MORE >>

Cohen & Buckmann P.C., via Bloomberg Law

Executive Compensation and Nonqualified Plans

So Your Company Granted You RSUs. Now What?

"[1] Understand your grant and its documents.... [2] Know the tax impact.... [3] Have a strategic plan for the shares after vesting."  MORE >>

Employee Benefits Jobs

View job as DC Administrator
for MGKS DC Administrator


Telecommute / Phoenix AZ

View job as DC Administrator
for MGKS

View job as Defined Contribution Analyst
for The Benefit Practice Defined Contribution Analyst

The Benefit Practice

Stamford CT / Maitland FL

View job as Defined Contribution Analyst
for The Benefit Practice

View job as Transition Specialist
for AssuredPartners Investment Advisors Transition Specialist

AssuredPartners Investment Advisors


Press Releases

Holland & Knight Adds Executive Compensation Attorney Eric Rubin in Philadelphia

Holland & Knight

HealthComp Appoints Justin Tran to Senior Vice President of Medical Cost Management Services


Bank of America Launches Personal Retirement Strategy, a New Digital Investment Advisory Program

Bank of America

Principal® and Lockton Increase Businesses’ Access to Sophisticated Retirement Options as Clients Rapidly Join New Pooled Employer Plan

Principal Financial Group

Centivo Acquires Assets from Apostrophe, Inc.


Webcasts and Conferences
(Retirement Plans or Exec Comp)

Cybersecurity: Demystifying DOL's Guidelines

July 20, 2021 WEBCAST

The Retirement Advantage [TRA]

DOL Fiduciary Rule Compliance: IRAs, Rollovers, Investments, Issues for Advisers, Plan Sponsors, and Administrators

August 18, 2021 WEBCAST


409A Guidance on Nonqualified Deferred Compensation Plans: Compliance Strategies

September 1, 2021 WEBCAST


Last Issue's Most Popular Items

DOL Issues Its First Cybersecurity Guidance for Plan Sponsors, Fiduciaries and Service Providers

King & Spalding

Plan Sponsor Pitfalls When Using a Section 3(38) Investment Manager


Tenth Circuit Makes Clear That Arms-Length Service Agreements Without Evidence of a Prior Relationship Are Not Prohibited Transactions

Jackson Lewis P.C.

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

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