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Retirement Plans Newsletter

August 19, 2021

3 New Job Opportunities


[Guidance Overview]

IRS Updates the Employee Plans Compliance Resolution System

"EPCRS describes certain permissible methods for correcting overpayments and excess amounts. The EPCRS Update modifies and clarifies these methods and creates two new methods for correcting overpayments from defined benefit plans ... The EPCRS Update also clarifies that when a qualification failure is eligible for the de minimis thresholds ... the plan sponsor is not required to make a corrective contribution to the plan."  MORE >>

Trucker Huss

[Guidance Overview]

Exceptional Usefulness and Quality icon Considerations for Sponsors of Qualified Plans for Year Ending 2021, Year Beginning 2022

"[R]equired changes that must be adopted by the end of 2021 are minimal, and many plan sponsors have likely already amended their plans.... Changes for 2022: [1] Updated life expectancy tables for IRC Section 401(a)(9) required minimum distributions ... [2] Lifetime income illustration ... [3] Expiration of one-year toll under COVID-19 relief ... [4] Expiration of temporary relief from requiring in-person participant elections and spousal consent ... [5] Deadline to formally adopt CARES Act and SECURE Act amendments."  MORE >>

Morgan Lewis

District Court Rejects $79 Million Settlement Agreement for DST Plan Fiduciary Breach Claims (PDF)

"Plaintiffs' injunctive provision seeks to enjoin non-parties, including the Secretary of Labor, from bringing or prosecuting their claims. While Plaintiffs attempt to characterize this as a traditional bar order, it is plainly not.... Accordingly, the Court denies Plaintiffs' motions for [preliminary] approval of the class action settlements.' [Ferguson v. Ruane Cuniff & Goldfarb Inc., No. 17-6685 (S.D.N.Y. Aug. 17, 2021)]  MORE >>

U.S. District Court, Southern District of New York

Second Circuit Revives Breach of Fiduciary Duty Claims in Class Action Against NYU Retirement Plans

"While the Second Circuit agrees generally that the prudence of each investment is not assessed in isolation, the principle that a portfolio should be assessed holistically does not preclude critical assessment of individual funds.' [Sacerdote v. New York Univ., No. 18-2707 (2d Cir. Aug. 16, 2021)]  MORE >>

Roberts Disability Law

Cyber Insurance for 401(k) Plans Rises in Cost and Demand

"[C]overage is now harder to get, and it costs more, largely due to the higher volume of attacks that resulted in higher loss ratios for insurers.... [U]nderwriting is [now] done on an individual basis -- and applicants need to show that they have good cybersecurity practices. That includes having multifactor authentication, data backups in a secondary location that are updated regularly and having the ability to put all critical systems back online within 10 days of an attack[.]"  MORE >>

Fred Barstein, via RPA Convergence


SPARK Forum - November 7-9, 2021 -- The Breakers, Palm Beach, FL

3 days packed with actionable insights for advisors, recordkeepers and plan providers. Explore latest trends, strategies and ideas to lead through disruption. Join the retirement event with the most senior audience and network with purpose. Register Now.

Sponsored by SPARK

Who Is an Independent Contractor?

"[T]he determination of whether a person who provides services to a business is considered an employee or independent contractor is based on the degree of 'control or direction' provided by the business to the worker ... It is important for the business owner to look at the entire relationship with the worker, consider the degree of his or her right to direct and control the worker's actions and, finally, to document each of the factors the business owner uses to arrive at the determination."  MORE >>

Retirement Learning Center, LLC

Despite Ongoing Uncertainty, Q2 Retirement Account Balances and Contributions Increase as Employees Begin to Feel More Positive

"Average retirement account balances increased to record levels for the third consecutive quarter, with long-term retirement savers seeing significant gains. In addition, Baby Boomers increased their contributions to 401(k) and IRA accounts, while the average 401(k) savings rate reached a new high. Positive investing behavior, including a decreasing number of outstanding 401(k) loans, was complemented by positive investor sentiment, with workers reporting reduced levels of stress and anxiety."  MORE >>


Best Practices When Adding Cryptocurrency to Your 401(k) Investment Line-Up

"Plan participants, for example, should get access to high-quality, personalized educational content and tools to make sure they understand the asset, the risks associated with it and the role it can play in a properly diversified portfolio. Plan advisors should then monitor allocations and alert employees when their crypto allocation exceeds prudent thresholds."  MORE >>

Forbes; subscription may be required

Does Your Public Agency’s Plan Have Dormant Accounts That Should Be Paid Out?

"Many holders of dormant accounts would at least consider a rollover or voluntary cash-out if they are told they would have to pay a more substantial recordkeeping fee for the maintenance of their accounts.... Although ... a lot of governmental 401(a) plans seem to require written consent to distributions in excess of $5,000, it appears that this rule does not apply to governmental plans generally and could be amended out of the document if warranted."  MORE >>

Best Best & Krieger LLP

Executive Compensation and Nonqualified Plans

San Francisco Will Tax Employers Based on CEO Pay Ratio

"Companies with a CEO pay ratio of 100:1 or more will be subject to the Measure L tax, and the tax rate will increase for every additional 100 times the CEO's pay exceeds the median worker's pay. The tax rate reaches its maximum level when the ratio reaches 600 to 1, with a maximum tax on payroll of 2.4 percent or a surcharge on the gross receipts tax of up to .6 percent."  MORE >>

Society for Human Resource Management [SHRM]; membership may be required to view article

Compensation Committee Responsibilities Continue to Expand

"Companies are seeking to formalize board-level oversight of ESG; human capital management (HCM); diversity, equity, and inclusion (DE&I), talent development; and succession planning. Companies are facing external pressures to address these areas and the compensation committee is usually the logical board committee to exercise this oversight. As a result, this committee's responsibilities are growing in both scope and complexity."  MORE >>

Meridian Compensation Partners, LLC

Key De-SPAC Executive Compensation Issues

"The typical de-SPAC transaction involves a publicly traded special purpose acquisition company (SPAC) that merges with a target private operating company, with the result that the operating company becomes publicly traded.... De-SPAC transactions and change in control protections.... Potential delay in implementing equity compensation program.... Shareholder approval of equity incentive plans.... New or amended employment agreements."  MORE >>

Foley & Lardner LLP

Employee Benefits Jobs

View job as Retirement Plan Administrator
for Bates & Company, Inc. Retirement Plan Administrator

Bates & Company, Inc.

Remote / Winter Park FL

View job as Retirement Plan Administrator
for Bates & Company, Inc.

View job as Senior Retirement Analyst
for Dunbar, Bender & Zapf, Inc. Senior Retirement Analyst

Dunbar, Bender & Zapf, Inc.

Remote / Pittsburgh PA

View job as Senior Account Administrator
for Coastal Pension Services, LLC Senior Account Administrator

Coastal Pension Services, LLC

Remote / Columbia MD

Selected New Discussions

How to Appoint a Contingent Successor Trustee?

"I have a client that wants to setup a successor trustee, just in case. But I don't see a provision to do so in the plan document. Is there something else that I can have signed, outside of the terms of the plan document, that authorizes and names a contingent successor trustee?"

BenefitsLink Message Boards

Any Actuarial Tables for Same-Sex Spouses?

"We need to calculate survivor benefits for a spouse, but we only have male/female, female/male mortality tables. Do male/male and female/female tables exist that we can use? Or is it okay to use the opposite-sex tables even for same-sex couples? If we do the later, are there any special considerations (i.e. do we need to notify the parties or obtain consent)?"

BenefitsLink Message Boards

Press Releases

Seven Attorneys from The Wagner Law Group to Be Recognized in 2022 Edition of the Best Lawyers in America©

Wagner Law Group P.C.

ShareBuilder 401(k) Issues Reminder as Important 401(k) Deadline Approaches, Offers Price Break to Businesses That Set Up New Plans in August and September

Sharebuilder 401k

The Best Lawyers in America 2022 Recognizes 18 Groom Attorneys

Groom Law Group

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

The Plan Sponsor Experience: A Proactive Approach to Retirement Plan Cost Management


Francis Investment Counsel

Basics and Update on IRS and DOL Correction Programs

August 26, 2021 WEBCAST

Hunton Andrews Kurth

Last Issue's Most Popular Items

IRS Issue Snapshot: Expansion of Rollover Options Includes Savings Incentive Match Plan for Employees (SIMPLE) IRA Plans

Internal Revenue Service [IRS]

IRS Issue Snapshot: Application of Section 415(c) When a 403(b) Plan Is Aggregated with a Section 401(a) Defined Contribution Plan

Internal Revenue Service [IRS]

IRS Issue Snapshot: Section 457(b) Eligible Deferred Compensation Plan -- Written Plan Requirement

Internal Revenue Service [IRS]

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

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