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Retirement Plans Newsletter

July 27, 2021

4 New Job Opportunities


[Guidance Overview]

IRS Makes Helpful Changes to EPCRS and Modifies Anonymous Submission Process

"In its latest EPCRS update, the IRS has made some administrative revisions as well as important changes including: [1] an expanded Self Correction Program (SCP), including an extension of the general correction period, [2] updates to the rules for recovering overpayments, and [3] changes to the anonymous Voluntary Correction Program (VCP) submission process. These changes are generally effective July 16, 2021[.]"  MORE >>

Groom Law Group


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[Guidance Overview]

Exceptional Usefulness and Quality icon JCT Report: Present Law and Background Relating to Retirement Plans

66 pages. "The Senate Committee on Finance has scheduled a public hearing on July 28, 2021, titled 'Building on Bipartisan Retirement Legislation: How Can Congress Help?' The staff of the Joint Committee on Taxation has prepared a description of present law and data related to retirement income and saving for retirement." [JCX-32-21]  MORE >>

Joint Committee on Taxation [JCT], U.S. Congress

[Guidance Overview]

Best Interest Standard, Part 60: Compliance with PTE 2020-02

"[Some small firms] have opted for an educational (that is, no recommendations) approach to rollovers (because of the cost and effort to build compliant systems). Larger firms are adopting compliance approaches that can be automated. In addition, they will need to train hundreds or thousands of investment professionals on the new requirements by December 21."  MORE >>

District Court: Plaintiff Lacks Standing to Challenge Retirement Plan Investment Options and Fees

"The court found that plaintiff lacked standing to assert her ERISA claims for two main reasons. First, plaintiff included a list of the allegedly imprudent funds in her complaint, but Infinity provided evidence that all of her retirement assets were invested in a fund that was not included on the list.... Second, with respect to plaintiff's excessive fee argument, Infinity provided evidence that the one fund in which plaintiff invested did not pay any recordkeeping fees." [Lange v. Infinity Healthcare Physicians, S.C., No. 20-737 (W.D. Wis. Jul. 16, 2021)]  MORE >>

Jackson Lewis P.C.

Cybersecurity: Another Responsibility for Retirement Plan Sponsors and Fiduciaries

"Besides the specter of a DOL enforcement action, this guidance should remind plan sponsors that if a cybersecurity breach ever impacts their plan, they need to be prepared. Class action lawsuits that argue that they chose the wrong service provider or that PII was misused or not protected are possible. Service Providers like recordkeepers, TPAs, and advisors will likely be inundated with requests to divulge the precise details of their cybersecurity and information security practices."  MORE >>

Enterprise Iron

Majority of Investors Don't Fully Understand Investment Costs

"Those who think they understand expense ratios and basis points believe the average expense ratio considered no longer 'low cost' is 0.61%, which exceeds the asset-weighted average expense ratio of U.S. open-end mutual funds and exchange-traded funds. Fund price is not ranked highly as a primary criteria when evaluating investments like mutual funds and ETFs."  MORE >>

State Street Corporation

Second Quarter U.S. Annuity Sales Jump Nearly 40%, Marking the Highest Sales in More than a Decade

"Total preliminary U.S. annuity sales were $67.9 billion in the second quarter, up 39% from second quarter 2020. Year-to-date, annuity sales were $129 billion, 23% higher than prior year ... Total variable annuity (VA) sales were $32.8 billion in the second quarter, up 55% from prior year. This represents the highest quarterly VA sales in nearly six years. In the first six months of 2021, total annuity sales were $62.8 billion, 33% higher than prior year."  MORE >>


CRS Report on Social Security: The Windfall Elimination Provision (WEP)

18 pages. "The windfall elimination provision (WEP) ... reduces the Social Security benefits of certain retired or disabled workers who are also entitled to pension benefits based on earnings from jobs that were not covered by Social Security ... Recent legislation has generally proposed either to eliminate the provision for all or some affected beneficiaries, or replace the current-law provision with a new proportional formula based on past earnings from both covered and noncovered employment." [Report 98-35, updated Jul. 26, 2021]  MORE >>

Congressional Research Service [CRS]

Benefits in General

DOL Says Audio Recording Is Relevant to Participant's Denied Claim

"[DOL Information Letter 06-14-2021] emphasizes that information is relevant if it was generated in the course of making the benefit determination, regardless of whether it was relied upon in making the benefit determination. Thus, contrary to the plan's claim, whether the information was created, maintained, or relied upon for claim administrative purposes is immaterial."  MORE >>

Morgan Lewis

What’s the Secret to Employee Benefits for Nonprofits?

"Most organizations use their employee benefits to help attract and retain top talent. For nonprofits, this is even more important -- while salaries at nonprofits will usually benchmark below average, their benefits will usually be in the top quartile.... This places more weight on the benefits offering and more importance on employee satisfaction with their benefits package."  MORE >>

Corporate Synergies

Executive Compensation and Nonqualified Plans

Basics of Equity Compensation Programs

"Many companies, optimistic about these benefits, start equity compensation programs without sufficient planning. They're often surprised to discover the nuanced accounting requirements involved -- and the operational systems needed for a program to run smoothly."  MORE >>

Moss Adams LLP

Employee Benefits Jobs

View job as Senior Actuary
for Texas Pension Review Board Senior Actuary

Texas Pension Review Board


View job as Account Manager
for MAP Retirement Account Manager

MAP Retirement

Remote / Appleton WI

View job as Health Insurance Specialist (Compliance and Enforcement)
for Centers for Medicare & Medicaid Services [CMS] Health Insurance Specialist (Compliance and Enforcement)

Centers for Medicare & Medicaid Services [CMS]

Remote / Woodlawn MD / Bethesda MD

View job as Defined Contribution Consultant
for Aon Defined Contribution Consultant


CT / FL / GA / MN / NY / PA

Selected New Discussions

Lump Sum Window for Missing Participants

"Assume a DB plan offers a lump sum window. Shortly after the window closes, the plan administrator is contacted by a terminated vested participant who never received the paperwork because the address on file was outdated. Surely, this is a fairly common occurrence. What have others seen in terms of handling?"

BenefitsLink Message Boards

1% Interest Rate on Loans to Owner-Participants

"Husband/wife solo-401(k) plan. They were not using a TPA, have self-directed brokerage accounts, and used a loan recordkeeping system to take out 4 loans back in 2019 -- at a 1% interest rate. Not prime + 1% -- just a flat 1%. The other two loans had prime + 1% applied. Is there any possible way that a 1% interest rate would be a 'reasonable interest rate' for a solo-401(k) loan in the eyes of the IRS?"

BenefitsLink Message Boards

Press Releases

HealthComp Appoints Bill Leahy to Vice President of Sales


Retirement Clearinghouse Completes $10B+ in Retirement Account Consolidations

Retirement Clearinghouse

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Comprehensive Guide on the SECURE Act: Potentials and Pitfalls Explored


Knowledge Group

Executive Compensation Learnings from The Pandemic

August 30, 2021 WEBCAST

Knowledge Group

New PBGC Interim Final Rule: Special Financial Assistance, Withdrawal Liability Rules, Contribution Obligations

September 14, 2021 WEBCAST


IRA Institute

September 20, 2021 in CA


Last Issue's Most Popular Items

Text of DOL FAQs: Pension Benefit Statements -- Interim Regs on Lifetime Income Illustrations (PDF)

Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL]

Aon and Willis Towers Watson Mutually Agree to Terminate Combination Agreement


DOL Plan Audits Updated to Include Several Questions About Compliance with Its Cybersecurity Guidelines

Jackson Lewis P.C.

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

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