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Retirement Plans Newsletter

July 14, 2021

4 New Job Opportunities


[Guidance Overview]

New Withdrawal Liability Rules for Pension Bailout Recipients

"[To] prevent [special financial assistance (SFA)] payments from indirectly subsidizing employer withdrawals, the rule requires [multiemployer pension plans (MEPPs)] receiving SFA payments to use mass withdrawal interest assumptions in the calculations. These conservative assumptions ... will increase the overall unfunded liability of a MEPP and, in turn, increase the gross amount assessable to employers."  MORE >>



Advanced Pension Conference – Aug. 31 - Sept. 2, 2021

FIS Fall educational events are opened for registrations. Earn up to 13 CE credits at the virtual Advanced Pension Conference on Aug 31-Sept 2, 2021. Fundamentals of Qualified Plans, a 5-part live webcast, offers up to 25 CE credits. Register here.

Sponsored by FIS

[Guidance Overview]

PBGC Interim Final Rules Summary 2021

"Given the requirement that SFA must be invested in high-quality bonds, trustees may want to revise their overall investment allocations to account for this addition of fixed-income assets, although the regulations do not seem to require trustees to do so.... Any deaths of participants with survivor benefits that occurred between the time of a benefit suspension and an SFA award will require careful attention as to restoration of benefit payments over the months in between."  MORE >>

First Actuarial Consulting Team [FACT]

[Guidance Overview]

PBGC Issues Regs on Special Assistance for Troubled Multiemployer Plans

"The amount of special financial assistance [SFA] allowed by the PBGC regulations ... practically ensures that the plan will be insolvent by 2052.... Plans with an existing MPRA benefit suspension and/or partition ... that apply for the SFA will be able to restore benefit cuts, but then must drop the benefits to the PBGC guarantee level upon later insolvency. Plans that maintain their MPRA suspension may be able to pay the reduced level of benefits indefinitely."  MORE >>


Alert (High Risk Issue) icon DOL Intensifies Cyber Readiness Inquiries Among Retirement Plan Administrators

"The increase in DOL inquiries ... [is] surprising in light of the short amount of time that has elapsed since the DOL first published a summary of best practices in this area.... [M]any of the areas addressed by the summary involve fiduciary determinations (as opposed to non-fiduciary areas of plan design and administration), creating an added urgency to address cyber readiness for retirement plans."  MORE >>

Debevoise & Plimpton LLP

Worker Misclassification Alleged in ERISA Lawsuit

"Although he was classified as an independent contractor, the plaintiff participated in Yum corporate events and team meetings, the company dictated his hours, he was given an office in Taco Bell's corporate headquarters and he used a company email address and the company's computer systems to perform his work." [Alders v. YUM! Brands, Inc., No. 21-1191 (C.D. Cal. complaint filed Jul. 9, 2021)]  MORE >>

PLANSPONSOR; free registration may be required

Private Retirement Systems and Sustainability: Insights from Australia, the U.K. and the U.S.

"[The authors] examine the policy frameworks and important structural variables ... [and] identify key structural challenges within national retirement systems. These include market fragmentation, principal-agent conflicts in personal pensions, and the role of service providers. [The] results provide insight into how, or whether, retirement systems can facilitate desirable economic, social, and environmental outcomes."  MORE >>

Pension Research Council, The Wharton School of The University of Pennsylvania

IRA Tax Planning: Minimizing the RMD Ticking Time Bomb

"For married couples slightly years apart in age, it may be more advantageous to have more Roth money in the older spouse's name."  MORE >>



Testimony to the ERISA Advisory Council: Understanding Brokerage Windows in Self-Directed Retirement Plans (PDF)

"Trade volume is on the rise within SDBAs, and average account balances are rising modestly. However, there are potential risks involved with self-directed accounts, particularly if participants do not understand investments or how markets tend to work in the long run."  MORE >>



Testimony to the ERISA Advisory Council: Gaps in Retirement Savings Based on Race, Ethnicity and Gender (PDF)

"[It] would be helpful ... for the [DOL] to provide clarification that such segmented education continues to be classified as education and not investment advice that could open plan sponsors up to new potential fiduciary liability ... Another development that could be helpful in closing the savings gap would be emergency savings programs that plan participants could access in the event of emergency expenditures."  MORE >>

American Benefits Council

Employee Benefits Jobs

View job as Retirement Plan Consultant
for Michigan Pension & Financial, Inc. Retirement Plan Consultant

Michigan Pension & Financial, Inc.

Telecommute / Farmington MI

View job as Retirement Plan Consultant
for Michigan Pension & Financial, Inc.

View job as Junior Plan Advisor
for DirectAdvisors Junior Plan Advisor


Latham NY

View job as Regional Sales Director
for Pentegra Regional Sales Director


Telecommute / West Harrison NY / CA / NV

View job as Attorney Adviser
for Pension Benefit Guaranty Corporation [PBGC] Attorney Adviser

Pension Benefit Guaranty Corporation [PBGC]

Telecommute / Washington DC

Selected New Discussions

Transferring a Whole Life Policy Into a 401(k) Plan

"Client wants to transfer a whole life policy on his life to a profit sharing plan in which he is a participant. I believe a class PTE allows a transfer subject to certain requirements dealing with value. Can he make it as an in-kind contribution equal to the cash surrender value?"

BenefitsLink Message Boards

Who Should File 5500s After Everybody's Dead?

"A deferred vested 401(k) participant (from a job decades ago) was recently contacted by a service provider who told him that he's responsible for filing an annual Form 5500 for the plan. The company no longer exists, and the owners are dead. It seems to me that the filing obligation falls on the shoulders of the service provider. Agree?"

BenefitsLink Message Boards

Full Vesting at Plan Termination Required for Participants No Longer Working for Plan Sponsor?

"When a plan is terminating as per IRS all participants would require to be 100% vested. Does that mean terminated as well as active participants? One plan that's terminating has participants who left employment in 2020. The client believes these participants should not be 100% vested, and that only active participants should be 100% vested."

BenefitsLink Message Boards

Press Releases

HealthComp Appoints Reference-based Pricing Thought Leader John Powers to Vice President of Sales


NAPA Launches ESG Certificate Program for Advisors

National Association of Plan Advisors [NAPA]

SHRM Introduces ‘SHRM 401(k) Solutions by Raymond James®’ Enabling Small Businesses to Relieve Burden of Offering 401(k)

SHRM [Society for Human Resource Management]

Securian Financial’s Matthew King Elected NIPA President

Securian Financial Group

Natixis Investment Managers to Partner with the National Association of Plan Advisors on ESG Certificate Program

Natixis Investment Managers

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

What Employers Need to Know About the PBGC’s Interim Final Rule About the Special Financial Assistance Program

July 19, 2021 WEBCAST


The Conundrum of Uncashed Checks

July 29, 2021 WEBCAST

PBI Research Services

IRA University

September 29, 2021 WEBCAST


Last Issue's Most Popular Items

PBGC Issues Much Anticipated Interim Final Rule on Special Financial Assistance Under American Rescue Plan Act

Seyfarth Shaw LLP

What the Supreme Court's Decision in a 401(k) Fee Case Could Mean for ESOPs

Faegre Drinker

1 in 3 Employees Has Picked Up Bad Cybersecurity Habits Since Working Remotely


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

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