Supreme Court Will Hear Northwestern 403(b) Case

"Issue: Whether allegations that a defined-contribution retirement plan paid or charged its participants fees that substantially exceeded fees for alternative available investment products or services are sufficient to state a claim against plan fiduciaries for breach of the duty of prudence under [ERISA]." [Hughes v. Northwestern Univ., No. 18-2569 (7th Cir. Mar. 25, 2020; cert. pet. granted No. 19-1401, Jul. 2, 2020)]  MORE >>

SCOTUSblog

Notes from Meeting of Actuaries 'Intersector Group' with IRS, April 2021 (PDF)

13 pages. Topics include: [1] Phased retirement and nondiscrimination; [2] Statutory hybrid plan issues; [3] Partial plan termination issues; [4] Lump sums that are the greater of Section 417(e) and some other basis; [5] Applicability of excise taxes on multiemployer plans remaining in critical status after 10-year rehabilitation period; [6] Variable annuity pension plans; [7] Late retirement actuarial increases for cash balance plans; [8] Funding waivers; [9] Nondiscrimination testing; [10] ARPA guidance.  MORE >>

American Academy of Actuaries, Conference of Consulting Actuaries, Society of Actuaries, and ASPPA College of Pension Actuaries [ACOPA]

Retirement Funding Update, Second Quarter 2021

"Recent interest rate movements and internet search activity further reinforce belief that inflation concerns will subside. Interest rates spiked through the end of March 2021, making the first quarter of 2021 the worst quarter for the treasury market in 40 years. Rates have since trended lower by approximately 15%. This downward move signals the bond market's lack of concern with longer-term inflation risks."  MORE >>

Lockton

FAS87 ASC715 Discount Rates and Moody's Rates, June 30, 2021

An unofficial monthly report of the Moody's Daily Long-term Corporate Bond Yield Averages and Moody's Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).  MORE >>

BenefitsLink Message Boards

Developing a One-Page Financial Plan and Its 'Technical Appendix'

"[T]he full financial plan is incredibly important. The breadth and depth of the work that financial planners do cannot fit on one page. But it's equally important to acknowledge that the full financial plan becomes 'outdated' the instant that a client walks out of the presentation meeting, and in the end, most clients simply can't absorb the full extent of numbers and details that are encapsulated in a comprehensive financial plan."  MORE >>

Nerd's Eye View

Understanding the Importance of Commonality When It Comes to Retirement Advice

"Black and Hispanic Americans were asked if 'working with an advisor who has had a similar upbringing or life experience as you' was an important criterion: 61 percent of Black respondents and 57 percent of Hispanic respondents, vs. 41 percent for White respondents, said this criterion was important. However, ... [only] 45 percent [of female workers said] this was important. Also of less importance to female workers was whether the advisor was the same gender as them: Only 27 percent said this was important, compared with 39 percent of males."  MORE >>

Employee Benefits Research Institute [EBRI]

[Opinion]

The Obvious, If Overlooked, Retirement Crisis Solution

"[A] recent SEC report [titled Perspectives on Retirement Readiness] says the solution is not to increase investment risk, as has been the justification for target-date fund (TDF) risk at the target retirement date. Rather, the solution is modifying behavior by encouraging beneficiaries to save more. Excessive risk at the target date could be the next 401(k) scandal because it can be argued that many TDFs are designed for profit rather than the benefit of participants: there's a conflict of interest."  MORE >>

401(k) Specialist

Executive Comp Considerations Before Taking the Company Public

"Companies considering or preparing to go public should ensure they are prepared with appropriate and market-based compensation structures. Regardless of whether a company enters the public realm via a [special purpose acquisition company (SPAC)] business combination or the more traditional IPO route, the way a company should prepare from a human capital and an executive compensation perspective is very similar."  MORE >>

Alvarez & Marsal

Change in Control Considerations for Stock Options

"Refer to the plan document and the grant agreements to determine if accelerated vesting applies upon a 'change in control.' If so, check the definition of 'change in control.' ... If we have acceleration of stock option vesting upon the consummation of the De-SPAC transaction, do we have a Code Section 280G issue?"  MORE >>

Nelson Mullins, via PLI Plus

► View More Jobs    ► Post a Job    ► Subscribe to Job Alerts

Retention of Plan Documents

"In the scope of a VCP filing, we are including some non-amender failures for the last two restatements. Has anyone had the experience of the IRS asking the plan to produce documents prior to the ones included in the VCP filing? Is there a rule that an employer must retain a copy of each and every restatement and amendment?"

BenefitsLink Message Boards

In Divorce, Can Court Order 75% of Husband's FERS/CSRS Pension to Wife If Parties Agree on It?

"I read another post relating to a QDRO that said there was no limit on how much of a former spouse's retirement can be awarded in divorce. But it seems that the FERS/CSRS regulations limit the award to 50-55%. Am I correct?"

BenefitsLink Message Boards

► View All Discussions    ► Get a free Daily Digest

SageView Advisory Group Grows in the West with Acquisition of MJM401k

SageView Advisory Group

MissionSquare Research Institute Announces Expansion of Public Plans Database

MissionSquare Research Institute

17.5 Million Lay Fiduciaries Responsible for More Than $26 Trillion of U.S. Investment Assets

Center for Board Certified Fiduciaries

► View More Press Releases

► View All Upcoming    ► View Webcast Recordings

View ARPA Webcasts

View COVID-19 Webcasts

Plan Termination and Successor Plans

Retirement Learning Center, LLC

Text of IRS Publication 5528: Nonqualified Deferred Compensation Audit Technique Guide (PDF)

Internal Revenue Service [IRS]

IRS Updates Audit Guide for Nonqualified Plans

Groom Law Group