[Guidance Overview]

DOL Issues FAQs Clarifying Lifetime Income Illustration Rules

"On balance, the FAQs did not change any of the Rule's substantive requirements, but helpfully clarified several points relating to the timing and manner of the Rule's implementation."  MORE >>

Morgan Lewis

ERISA Plan Terms Control Against Defendants, Too

"The Ninth Circuit [held] that the doctrine of equitable estoppel could not be invoked against an ERISA plan trustee to contradict the terms of the plan. Allowing the terms of the side agreement to prevail, the court stated, would plainly violate those Plan terms mandating that the Plan not pay more than fair market value. The Ninth Circuit thus joined the Fourth Circuit in barring the defensive use of equitable estoppel to contradict an ERISA plan's express terms." [Wong v. Flynn-Kerper, No. 19-56289 (9th Cir. Jun. 7, 2021)]  MORE >>

Seyfarth

Plaintiffs in Excessive Fee Suit Overcome Hurdles to Move the Case Forward

"Most of the plaintiffs' claims ... concerned the active suite of the Fidelity Freedom target-date funds (TDFs), which was the plan's qualified default investment alternative (QDIA). The lawsuit alleges that the active suite consistently underperformed the benchmark index suite of the Fidelity Freedom Funds, while charging much higher management fees, resulting in much higher expense ratios than comparable funds." [In re Omnicom ERISA Litigation, No. 20-4141 (S.D.N.Y. Aug. 2, 2021)]  MORE >>

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What Drives Fiduciary Liability?

"Aon surveyed 12 top carriers for fiduciary liability insurance to understand their views on the biggest sources of fiduciary risk within the control of fiduciaries for defined benefit (DB) and defined contribution (DC) plans subject to ERISA.... Key takeaways ... [1] Fees are very important. [2] Committee minutes are important, but it matters less who takes them. [3] Investment advisors are viewed as a moderate influencer of premiums. [4] Employer stock in DC plans remains a top concern for insurers. [5] Environmental, social, and governance (ESG) options in DC plans play a minor role in pricing fiduciary liability insurance."  MORE >>

Aon

401(k) Fiduciary Liability Insurance: Factors That Raise Premiums

"Revenue sharing is paid based on a percentage of plan assets.... [M]ost 401(k) administration services scale (i.e., increase) with employee headcount, not assets. This disconnect can result in a 401(k) plan with lots of assets paying much higher fees than a comparable plan with fewer assets for the same level of administration services.... Unless all 401(k) plan investments pay the same rate of revenue sharing, ... participants invested in funds that pay a high rate of revenue sharing will pay a disproportionate share of administration fees."  MORE >>

Employee Fiduciary

Connecticut to Launch Pilot of Auto-IRA Program

"Before the full MyCTSavings program is rolled out across the state, the CRSA is looking for interested employers to take part in an exclusive pilot of the program. The CRSA bills it as a chance to be one of the first to offer the program to employees and help influence the program for other business owners."  MORE >>

American Retirement Association [ARA]

Pension Finance Update, July 2021

"Pension finances slipped again in July due to lower interest rates. Both model plans ... lost ground last month: Plan A dropped 1% in July but remains up 9% for the year, while the more conservative Plan B lost a fraction of 1% last month and remains up more than 2% through the first seven months of the year[.]"  MORE >>

October Three Consulting

Lockheed Reduces Pension Woes by Nearly $5 Billion, Forecasts Hit to Profit on Actuarial Changes

"Lockheed Martin Corp said ... it would cut its pension liabilities by about $4.9 billion and revised down its forecast for the full-year due to actuarial losses it expects to incur. The U.S. weapons maker has purchased group annuity contracts from Athene Holding Ltd and will transfer pension obligations and related plan assets for about 18,000 U.S. retirees and beneficiaries to the retirement services provider."  MORE >>

Reuters

Understanding the Basics of Annuities

"[N]ot all annuities are the same ... Some might fit your situation and preferences, some may not. Some have high commission costs, and others do not. Avoiding them completely is like ignoring a tool in your toolbox that might be exactly what you need. There are many types of consumer annuities available; each with its own unique characteristics."  MORE >>

EisnerAmper

RMDs Are Back: How to Soften the Tax Blow

"Take your first RMD early ... Make a Qualified Charitable Distribution (QCD) ... Invest in a Qualified Longevity Annuity Contract (QLAC) ... Continue working."  MORE >>

ORBA

What Multiemployer Plan Trustees Need to Know About Form 5500

"[Form 5500] reports a wide array of qualitative and quantitative information about the plan for a given plan year.... For each of the main schedules, [this article summarizes] the following: [1] A high-level description of the form and what it discloses. [2] What the information contained within the schedules can tell you. [3] How the information may impact your approach to decision-making for your plan."  MORE >>

Withum Smith+Brown, PC

Road Contractor to Pay $20.7 Million for Stealing Prevailing Wage Fringe Benefit Contributions

"Beyond the prevailing wage violations, withholding but failing to timely deposit pension, health or other fringe benefit contributions also can trigger substantial criminal and civil liability for an employing business and its owners and management under [ERISA].... Risks of these and other workforce liabilities are rising as the current Administration makes investigation and enforcement of wage and other employment, labor and benefit laws a priority."  MORE >>

Solutions Law Press

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Filing Deadline When Usual Due Date Falls on a Weekend?

"Received a call from an accountant on Friday, who files 5500s for his clients, asking whether 5500s were due on July 31, because the 31st was on a weekend. Was it July 31, or instead Monday, August 2?"

BenefitsLink Message Boards

RMD Calculation for Beneficiaries

"Participant over age 72 passed away in 2020. The RMD was waived in 2020. His spouse (beneficiary) passed away in 2021. She was over age 72 as well. The 3 children are the beneficaries. RMD is required for 2021, based on 12/31/2020 value. Whose date of birth would the RMD be based on?"

BenefitsLink Message Boards

Plan Amendment to Exclude HCEs After One HCE's Participation Has Begun?

"Plan A excludes a large class of employees who are required to be included in testing for minimum coverage. Coverage testing had never been an issue in the past due to there being no HCEs (non-profit entity, so no owners). Now there is a HCE under compensation rules, and we have a coverage test failure. Plan Sponsor of Plan A wishes to amend Plan A going forward so that HCEs are excluded from participating in order to pass minimum coverage under Treas. Reg. Section 1.410(b)-2(b)(6). Does this proposed amendment violate anti-cutback provisions? Any other concerns?"

BenefitsLink Message Boards

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LeafHouse, iJoin® Partner to Deliver a Personalized Managed Account Solution with Breakthrough Pricing

iJoin

Marc Schmeeckle Joins SageView Advisory Group in Denver

SageView Advisory Group

HUB International Strengthens Retirement and Private Wealth Capabilities with Addition of Randy Grose In Colorado

HUB International

Insured Retirement Institute Wins 'Power of A' Award for Advocacy

Insured Retirement Institute [IRI]

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ASEA Actuarial Symposium

August 12, 2021 WEBCAST

American Society of Enrolled Actuaries [ASEA]

Demystifying Form 5500s & Nondiscrimination Testing

August 12, 2021 WEBCAST

Wrangle, an Ascensus Company

Voluntary Fiduciary Correction Program

August 26, 2021 WEBCAST

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

Annual Benefits Forum: How To Be an ERISA Superhero

September 15, 2021 WEBCAST

Williams Mullen

HSA Fundamentals

October 19, 2021 WEBCAST

Ascensus

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Benefit Statement Changes Begin in September: Is Your Plan Administrator Ready?

Fox Rothschild LLP

What Happens When You Squeeze a Vendor Too Tight

Strategic Benefits Advisors

How To Prepare for a Plan Audit

ORBA