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Retirement Plans Newsletter

October 4, 2021

4 New Job Opportunities 4 New Job Opportunities


[Guidance Overview]

New California Law Increases Public Employer Exposure to Damages for CalPERS Compensation Reporting Errors

"Senate Bill (SB) 278 ... adds Government Code section 20164.5 and will go into effect on January 1, 2022. [The new law creates] new and in some cases retroactive financial exposure for CalPERS agencies already struggling to fund their pension obligations.... SB 278 would shift almost all of the consequences for reporting later disallowed compensation to the employer."  MORE >>

Liebert Cassidy Whitmore


Get Ready For The Year End With a Robust CRMW!

Organize, Manage & Track year-end data collection, restatements & other important deadlines with ASC’s industry focused CRMWs! Both CATTS & PensionPal offer flexible task management, unlimited reporting, streamlined data integration and more!

Sponsored by ASC

Exceptional Usefulness and Quality icon DOL's Cybersecurity Guidance: Practical Pointers for Fiduciaries (PDF)

12 pages. "[O]ver the last few years, litigation has emerged arising from 'account takeovers' of and thefts from individuals' private retirement accounts, and the [GAO] conducted a formal study of cybersecurity issues as they relate to defined contribution retirement plans. Following the GAO's report, the [DOL] issued significant informal guidance on these issues. This article will provide an overview of legal and practical considerations in the United States relating to cybersecurity issues for DC Plans."  MORE >>

Keightley & Ashner LLP, via International Pension Lawyer

Murder Victim's Son Can Get Money from 401(k) Accounts Linked to Killers

"The son of a man murdered by a Colombian guerrilla group can obtain money from a 401(k) account connected to the perpetrators, a Massachusetts federal judge ruled, deciding a novel legal question involving federal benefits and anti-terrorism laws.... The [Terrorism Risk Insurance Act of 2002] begins with a 'notwithstanding' opening clause, signaling that it's intended to override any conflicting federal statutes, including [ERISA], [the judge] said." [Caballero v. Fuerzas Armadas Revolucionarias de Colombia, No. 21-11393 (D. Mass. Sep. 30, 2021)]  MORE >>

Bloomberg; subscription may be required

Six Excessive Fee Suits Paused Pending SCOTUS Ruling

"A federal judge has put a half dozen 401(k) excessive fee suits on hold pending a decision by the U.S. Supreme Court in a case that 'will likely clarify the pleading requirements for ERISA breach of fiduciary claims in cases such as this.' ... In 'sua sponte' orders, [the district court judge] explained that 'after the parties filed their briefs, the United States Supreme Court granted certiorari in Divane v. Northwestern University ... 'a case[ii] upon which Defendants' motion to dismiss is largely based.' That case is set for arguments on Dec. 6, 2021, with a ruling anticipated before the term ends in June 2022."  MORE >>

American Retirement Association [ARA]

DOL Teases Cryptocurrency Interest

"[The Acting EBSA Secretary] recently commented that the DOL finds the prospect of cryptocurrency investments in 401(k) plan lineups 'troubling.' This may be a sign of DOL focus on the increasing frequency of ERISA plan investments in cryptocurrency vehicles, including funds with cryptocurrency exposures."  MORE >>

Morgan Lewis


Plan Sponsor Cybersecurity Webinar - October 12

Hear from a Dept of Homeland Security CISA liaison and other top cyber experts. Educate retirement plan sponsors on how to better secure plans and employees from attacks, evaluate vendors administering employee benefits and much more. Free to attend.

Sponsored by SPARK

What Do a Newly Married Employee, a Long-Term Employee, and a Change of 401(k) Recordkeepers Have in Common?

"A recent [district court case] is a reminder that retirement plan beneficiary forms need to be reviewed and possibly updated after a marriage. In addition, these forms may no longer reflect the participant's wishes over time or may need to be re-executed if the plan sponsor changes the plan's recordkeeper." [Moore v. NCR Corp. Plan Admin. Comm., No. 20-4140 (N.D. Ga. Aug. 30, 2021)]  MORE >>

Dickinson Wright

Revenue Sharing Declines Among DC Plan Sponsors

"Between 2014 and 2019, the percentage of plans using revenue sharing in investment pricing declined to 15.2% from 21.2% ... During this period, the percentage of plans using a combination of revenue sharing and institutional pricing fell to 25.3% from 35.5%. Meanwhile, the percentage of plans relying solely on institutional pricing rose to 59.5% from 43.4%."  MORE >>

Pensions & Investments

Pension Plan Annuity Purchase Update

"[P]ension buyout sales picked up significantly in Q2, totaling $5B. This is the second highest total for a second quarter of a calendar year, trailing only the $8B in Q2 2018 and representing a 119% increase from Q2 2020.... 87 buyout contracts were sold in Q2 2021, compared to 72 contracts in Q2 2020. Pension buyout sales in 2021 are expected to total $25B to $30B."  MORE >>

River and Mercantile

FAS87 ASC715 Discount Rates and Moody's Rates, September 30, 2021

An unofficial monthly report of the Moody"s Daily Long-term Corporate Bond Yield Averages and Moody"s Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).  MORE >>

BenefitsLink Message Boards

Social Security Announces Redesigned Statement

"The agency conducted extensive research, review, and testing to make the updated Statement easy to understand. The new Statement is shorter, uses visuals and plain language, and includes fact sheets tailored to a person's age and earnings history. It also includes important information people have come to expect from the Statement, such as how much a worker and family members could expect to receive in Social Security benefits and a personalized earnings history, in a clear, concise manner."  MORE >>

U.S. Social Security Administration [SSA]


Pension Rights Center Comment Letter to IRS on Notice 2021-40, Physical Presence Requirement for Spousal Consents (PDF)

13 pages. The temporary waiver of the physical presence requirement ... is based solely on the social distancing restrictions necessitated by a national public health emergency.... [T]he burden to justify any permanent change rests on the industry and business groups that have been heavily lobbying Treasury-IRS to eliminate the physical presence requirement for spousal consents.... [T]he business community"s arguments do not hold up, and should not be credited to support any permanent weakening of spousal protections."  MORE >>

Pension Rights Center

Benefits in General

[Guidance Overview]

Upcoming Deadline icon 2021 Plan Amendment Deadlines and Other Looming Fourth Quarter Considerations

"[1] Cafeteria plan and FSA plan amendments for COVID-19 election change and other relief.... [2] Health FSA changes: qualified medical expenses.... [3] Health FSA change: $550 carryover.... [4] Group medical plan changes: COVID-19 testing, vaccines, telemedicine.... [5] Retirement plans: hardship distribution amendment deadline.... [6] Pre-approved 401(k) and other defined contribution plans: restatement deadline.... [7] Retirement plans: cybersecurity compliance.... [8] Mental Health Parity and Addition Equity Act (MHPAEA): comparative analysis, compliance.... [9] No Surprises Act: group health plan surprise billing, transparency.... [10] Tax law compliance: remote and hybrid workers."  MORE >>

Jackson Lewis P.C.

Employee Benefits Jobs

View job as DC Administrator
for MGKS DC Administrator


Remote / Phoenix AZ

View job as DC Administrator
for MGKS

View job as Senior Technical Advisor (Health)
for Employee Benefits Security Administration [EBSA] Senior Technical Advisor (Health)

Employee Benefits Security Administration [EBSA]

Remote / Washington DC

View job as Client Services Specialist
for IJOIN Client Services Specialist


Remote / Scottsdale AZ

View job as Employee Benefits Associate Or Counsel
for Morris, Manning & Martin, LLP Employee Benefits Associate Or Counsel

Morris, Manning & Martin, LLP

Atlanta GA

Selected New Discussions

Minor Conflict of Interest Question for a TPA

"Turns out that my spouse knows professionally a business owner who has been referred to me. Is that something that would typically be disclosed up front by a TPA as a conflict of interest?"

BenefitsLink Message Boards

Press Releases

Signify Health and HealthComp Collaborate to Develop Value-Based Health Benefits

Signify Health

IRI Announces Results of 2021 Board of Directors Elections

Insured Retirement Institute [IRI]

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

What You Should Know About: SIMPLE IRA Plans


IRS [Internal Revenue Service]

DOL ERISA Enforcement 2021 Update

October 6, 2021 WEBCAST

Morgan Lewis

The Future of the Retirement Plan Industry: The Answer to Business Challenges Lies in the Cloud

October 7, 2021 WEBCAST


Hot Topics in Employee Benefits: What We’re Seeing – October 2021

October 14, 2021 WEBCAST

Morgan Lewis

Last Issue's Most Popular Items

AT&T Win Is Road Map for Defense of 401(k) Fees

Bloomberg Law

Form 5500 Proposal Reflects SECURE Act Changes and More


Recent Court Decisions Extend the Statute of Limitations for Breach of Fiduciary Duty Lawsuits Under ERISA

Verrill Dana LLP

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

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