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Retirement Plans Newsletter

July 30, 2021

3 New Job Opportunities


[Guidance Overview]

DOL Clarifies Timing of Lifetime Income Disclosures in Benefit Statements

"Participant directed plans ... generally must furnish lifetime income disclosures by the benefit statement for the second quarter of 2022 ... For plans that do not allow for participant-directed investment, lifetime income disclosures must be included in the benefit statement for the first plan year ending on or after September 19, 2021, which ... for calendar year plans ... must be furnished no later than October 15, 2022."  MORE >>

Kilpatrick Townsend

[Guidance Overview]

DOL Provides FAQs on Interim Final Rule on Lifetime Income Disclosures for DC Plans

"The DOL acknowledges that 'many retirement plans have been providing various types of illustrations for several years.' The DOL notes that the ages in the interim final rule must be used for lifetime income disclosures, but that plan administrators may provide participants with additional lifetime income illustrations[.]"  MORE >>


[Guidance Overview]

IRS Giveth New Options for Voluntary Correction But Also Taketh Away

"If you are a plan sponsor or you are working with a plan sponsor that has a qualification failure that does not neatly fit within the safe harbor guidelines of EPCRS and you are not sure that you want to reveal your identity to the IRS in a VCP application, you should act fast and file an anonymous VCP application as soon as possible. The last day to file such an application is December 31st[.]"  MORE >>

Employee Benefits Law Group

Fifth Circuit: Plan Participants Lacked Standing to Bring ERISA Fiduciary Breach Claims

"[T]he Fifth Circuit observed that although the plan eventually began offering a stable value fund -- the plaintiffs' preferred type of capital preservation investment -- the participants never invested in this option. For that reason, the appellate court concluded that the participants failed to show that the challenged acts of the defendants caused their injury[.]" [Ortiz v. American Airlines, Inc., No. 20-10817 (5th Cir. Jul. 19, 2021)]  MORE >>

Jackson Lewis P.C.

Seventh Circuit Holds ERISA Does Not Preempt Bankruptcy Creditors' State Law Claims Against Corporate Directors and Officers

"The court noted the limited precedent in this area but that the Fifth Circuit and several district courts have held that ERISA does not preempt corporation-law claims against dual-hat directors and officers." [Halperin v. Richards, No. 20-2793 (7th Cir. Jul. 28, 2021)]  MORE >>

Roberts Disability Law

DOL Cyber Scrutiny Higher for 'Those Running the Systems'

"[According to Tim Hauser, Deputy Assistant Secretary for National Office Operations at EBSA, the] most detailed proscriptive best practices in the recent DOL guidance were aimed at recordkeepers and 'those running the systems' -- and the DOL has higher expectations on cybersecurity practices among those organizations. Costs/risk exposure are a relevant consideration -- the [DOL] would expect quite a bit more of those who have more data, and more exposure."  MORE >>

American Retirement Association [ARA]

Enforceability of Arbitration Provisions: There Might Be More to the Analysis

"When an arbitration provision is found in an ERISA plan document itself, courts have applied state-law principles when evaluating whether the plan document contains a binding agreement to arbitrate between and among the plaintiff, the plan itself and the defendants named in the lawsuit. Yet these courts have either ignored, or not adequately addressed, the fact that ERISA itself contains rules for contract formation. The ERISA rules for contract formation -- and not state-law principles -- might govern whether an agreement to arbitrate exists in an ERISA plan document."  MORE >>

Faegre Drinker

Do You Understand Your Investment Policy Statement?

"Even the most thorough and detailed IPS will be of limited utility unless the plan fiduciaries who are adopting the IPS can understand the document.... For that reason, an IPS should: [1] provide meaningful guidelines that committee members can apply in fulfilling their duties; and [2] be written a way that an intelligent and engaged committee member can understand and implement."  MORE >>

Verrill Dana LLP

Summary of DCIIA/SPARK 2021 Public Policy Series: Domestic Themes (PDF)

"The combination of a new administration and Congress in Washington, together with the COVID pandemic, shutdown, recession and recovery has focused industry minds and accelerated trends in policy, practice and technology. The defined contribution (DC) savings industry demonstrated notable resilience amid this market volatility and accelerated its consideration of many best practices that bode well for the future."  MORE >>

Defined Contribution Institutional Investment Association [DCIIA]

Seeing the Bigger QDIA Picture

"A close look at selecting and evaluating qualified default investment alternatives (QDIA) forces some questions about the value an adviser can add to the process.... [Although] advisers may be good at helping to craft custom funds, this might not always be appropriate.... [T]here are so many different low-cost, off-the-shelf solutions that most plan sponsors can typically find one that meets their needs[.]"  MORE >>


Benefits in General

How a Contemporary Benefits Administration Solution Can Elevate Your Employee Experience

"Nearly 70% of HR professionals surveyed felt a contemporary ben admin system can help employees better understand their benefit options.... 66% of HR professionals surveyed reported that a contemporary ben admin system improved the relationship between HR and the rest of the organization.... 63% of HR professionals feel a contemporary ben admin system can help employees feel better connected to their healthcare experience."  MORE >>


Executive Compensation and Nonqualified Plans

Trends in Executive Compensation Litigation

"This Article discusses trends in executive compensation-related litigation relating to: [1] Failures to adequately disclose perquisites paid to named executive officers (NEOs) as required by Item 402 of Regulation S-K ... [2] Compensation paid to a controlling shareholder relating to the individual's role as an executive or board member ... [3] Executive misconduct ... This Article also recommends actions for companies to consider in light of the recent executive compensation-related litigation."  MORE >>

Thomson Reuters Practical Law

Employee Benefits Jobs

View job as Defined Benefit Pension Administrator
for Actuaries Unlimited, Inc. Defined Benefit Pension Administrator

Actuaries Unlimited, Inc.


View job as Defined Benefit Pension Administrator
for Actuaries Unlimited, Inc.

View job as Senior Implementation Manager
for Ubiquity Retirement + Savings Senior Implementation Manager

Ubiquity Retirement + Savings

Remote / San Francisco CA / AZ / CO / FL / IL / KY / LA / MA / MS / NC / NJ / NV / NY / OH / OR / RI / SC / TN / TX / WA

View job as Senior Implementation Manager
for Ubiquity Retirement + Savings

View job as Economist
for Pension Benefit Guaranty Corporation [PBGC] Economist

Pension Benefit Guaranty Corporation [PBGC]

Remote / Washington DC

Selected New Discussions

DC Plan Termination and Post PPA (Cycle 3) Restatement

"If a plan is terminating effective 8/31/2021, does the pre-approved document still need to be restated for Cycle 3? I know that it would need to be amended for CARES/SECURE, but is the restatement required?"

BenefitsLink Message Boards

$24,000 Salary Is Reasonable for a 6-Year-Old's Part-Time Work?

"Many small-business 401(k) plans allow an owner's young children as participants. To support contributions, the child must be capable of, and actually perform, real work that is useful to the business. If the business does no advertising (or uses none in which a model's image would appear), is there an age that is too young for an owner's child to be a worker?"

BenefitsLink Message Boards

Lifetime Income Disclosures by Small Plans -- What's a Small TPA to Do?

"Our company is small and deals with small plans. Are there other TPAs out there that have non-participant directed funds that need the new lifetime income disclosure coming up in September? We also have fiscal plan year ends, and I have several 9/30 plans. What type of solution have you found for this or are you already using a product that will produce this disclosure?"

BenefitsLink Message Boards

5330 for Lost Earnings on Late 401(k) Deferral Deposit -- Is There a De Minimis Exception?

"I just did the calculations and the participant gets $3.25. They will make the deposit into the account for late deposits. At 15%, the penalty is 49 cents. Is there any requirement to File a Form 5330? This seems so ridiculous."

BenefitsLink Message Boards

Press Releases

HUB International Announces New Employee Benefits Data Analytics Tool

HUB International

OneDigital and Ascensus Create OneDigital Complete Retirement Solution


Aflac Selected as Administrator for Connecticut Paid Leave Program


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

DCIIA / SPARK Public Policy Series - Domestic


Defined Contribution Institutional Investment Association [DCIIA]

DCIIA / SPARK Public Policy Series - Global


Defined Contribution Institutional Investment Association [DCIIA]

Last Issue's Most Popular Items

The Mega Backdoor Roth: Here We Go Again


IRS Goes for Gold with EPCRS Expansion

Eversheds Sutherland

Updated IRS Correction Principles and Changes to VCP Outlined in EPCRS Revenue Procedure 2021-30

Internal Revenue Service [IRS]

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

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