|
|
Retirement Plans Newsletter
October 6, 2021
|
|
|
8 New Job Opportunities
|
| |
|
Sixth Circuit Withdrawal Liability Decision Casts Doubt on Use of PBGC Rate
"According to the 6th Circuit, a withdrawal liability interest rate that does not take into account the anticipated experience of the [multiemployer plan's (MEP's)] actual investment portfolio violates ERISA's mandate that the interest rate be based on the anticipated experience under the plan. It is virtually impossible to argue that the PBGC rate takes into account a MEP's investment portfolio or anticipated experience[.]" [Sofco Erectors, Inc. v. Trustees of Ohio Operating Engineers Pension Fund, No. 20-3639 (6th Cir. Sept. 28, 2021)] MORE >>
Akin Gump
|
|
[Sponsor]
New! ftwilliam.com Defined Benefit Compliance & Proposal Software
Alleviate business risks inherent in outdated, non-web-based software with ftwilliam.com’s 100% cloud-based, modern Defined Benefit Compliance & Proposal software - a complete proposal, valuation, and testing system. Secure & integrated. Learn More!
|
|
|
|
Sixth Circuit Rules Interest Rate Methodology Selected by Plan Actuary in Withdrawal Liability Calculation Violates ERISA
"If Sofco stands, any pension plan's use of the Segal Blend in withdrawal liability calculations may affect the accuracy of pre-withdrawal estimates, the amount of withdrawal liability assessed, the posture of any settlement negotiations and arbitration proceedings and even the efficacy of any previous settlement agreements entered into with the pension plan.... Additionally, the opinion discusses clear boundaries on the deference accorded to pension plan actuaries to determine the appropriate interest rate to use in withdrawal liability calculations." [Sofco Erectors, Inc. v. Trustees of Ohio Operating Engineers Pension Fund, No. 20-3639 (6th Cir. Sept. 28, 2021)] MORE >>
Ogletree Deakins
|
|
Seventh Circuit Weighs in on Arbitration and Class Waiver Provisions in Defined Contribution Plans
"The Seventh Circuit appears to have endorsed arbitration and class-waiver provisions in defined-contribution plans and indicated that it is likely to enforce those provisions against claimants who sue defined-contribution plans under ERISA Section 502(a)(2).... To maximize the enforcement potential of plan provisions, plan sponsors should ensure that arbitration and class-waiver provisions do not preclude relief available under ERISA and severability provisions should authorize courts to sever only those portions of a plan that are unenforceable or contrary to law." [Smith v. Bd. of Directors of Triad Mfg., Inc., No. 20-2708
(7th Cir. Sept. 10, 2021)] MORE >>
Faegre Drinker
|
|
Ohio District Court Dismisses Putative Class Action Challenging 401(k) Investment Performance and Fees
"With respect to administrative fees, the court reasoned that Plaintiffs had 'simply not provided the Court with sufficient factual allegations to permit an inference of imprudence.' ... With regard to the allegedly underperforming funds with unreasonably high fees, the court found that Plaintiffs failed to adequately describe any meaningful benchmark funds or sufficiently allege actionable underperformance." [Forman v. TriHealth, Inc., No. 19-613 (S.D. Ohio Sep. 24, 2021)] MORE >>
Jackson Lewis P.C.
|
|
Americans Shifting Retirement Plans Due to Pandemic
"[O]ver one-third (35%) of respondents have either moved up or pushed back their target retirement age, with 24% planning to retire later than previously expected and 11% seeking to retire earlier. For those planning to retire earlier than expected, almost half (48%) say they are moving up their timeline by three to five years." MORE >>
401(k) Specialist
|
|
[Sponsor]
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.
|
|
|
|
Employees Value Financial Wellness Programs
"43% of financial wellness program participants reported that their financial well-being was positively impacted by the pandemic. This is ... nearly double the rate of all employees (22%) and over double the rate of individuals not enrolled in a financial wellness program (20%)." MORE >>
Corporate Insight
|
|
Pensions and ESG: An Institutional and Historical Perspective
"With growing asset size, funded pensions ... and other large institutional investors became 'universal owners' and, along with thought leaders and regulators, drove the evolution of sustainable investing ... [Q]uestions remain, such as who will be most influential in determining the future of sustainable investing -- pensions and other institutional investors, governments, shareholders and companies -- as well as what it will look like.... [S]ustainability remains a work in progress and pensions are in a strong position to shape its evolution." [WP2021-19] MORE >>
Pension Research Council, The Wharton School of The University of Pennsylvania
|
|
SECURE Act Revisited
"With all [SECURE Act] provisions now effective, here's what Plan Participants need to know: [1] Required Minimum Distributions (RMDs) begin at age 72; [2] Elimination of the 'Stretch' IRA; [3] Penalty-free adoption/birth withdrawals; [4] Lifetime income strategies inside 401(k) plans; [5] Lifetime income disclosure rule." MORE >>
Benefit Resources Inc.
|
|
The 80% Pension Funding Myth (PDF)
"Pension plans are generally better evaluated on the strategy in place to attain a funded ratio of 100% within a reasonable period of time. The financial health of a pension plan depends on many factors in addition to funded status -- including the size of any shortfall compared with the resources of the plan sponsor. Projections under a range of scenarios can be particularly useful in evaluating the plan's expected funding trajectory and assessing plan health." MORE >>
American Academy of Actuaries
|
Executive Compensation and Nonqualified Plans |
|
Financing Stock Option Exercises In A Private Company: A Financial Advisor's Guide
"A whole cottage industry has sprouted up over the past decade that provides financing capital to private company optionholders.... Optionholders can generally expect to give up one quarter to one half of the stock's upside on average, including fees, with these types of financings.... One of the largest advantages is optionholders' ability to exercise their options without having to self-finance with what could be a very significant outlay of cash." MORE >>
myStockOptions.com
|
Employee Benefits Jobs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected New Discussions |
|
Muslim Client Has Issue with Hypothetical Fixed Interest Rate Under CB Plan
"A group of physicians is considering a cross-tested combination, 401(k) and cash balance. One owner-doctor is Muslim and is questioning the hypothetical interest on the allocation when expressed as a fixed-rate. He is fine with the 401(k) assets being market-driven, but has concerns about the cash balance allocation. [1] Anyone ever handle anything similar? [2] Can the hypothetical interest be 0 for his allocation class or is that a reduction? [3] Is there a better way to explain the interest part that may avoid his objection?"
BenefitsLink Message Boards
|
|
IRS Says Our Package of Applications for Extensions of Time Didn't Get There on Time
"We sent a large group of 5558s to the IRS via Fed Ex on July 27th. Our clients have started receiving denials of the 5558 because they were not received timely. Tried calling the IRS and they have too many calls and the line just hangs up on you. I know this happened back in 2010, wondering if anyone else has had this issue this year?"
BenefitsLink Message Boards
|
|
Replacing a DB Plan with a Cash Balance Plan
"Taking over a case that has two plans: a Profit Sharing and a fully funded Defined Benefit Plan. Is there any issue with terminating the DB Plan, rolling it into an IRA and then opening a new Cash Balance Plan?"
BenefitsLink Message Boards
|
|
|
Press Releases |
|
HSA Bank Launches First of its Kind Retirement Healthcare Calculator, Bringing Future Savings Top of Mind for Americans
HSA Bank
|
|
Ascensus Plans to Add Nearly 400 New Associates Through 2022
Ascensus
|
|
DOL Recovers $25k for Akron Retirement Plan After Investigation Finds Company Owner Failed to Forward Contributions
Employee Benefits Security Administration [EBSA], U.S. Department of Labor
|
|
Ameritas Acquires Bluestar Retirement Services
Ameritas
|
|
Securian Financial and SageView Advisory Group Introduce Highly Personalized Managed Account Solution for Workplace Retirement Plans
Securian Financial Group
|
|
BlackRock’s Retirement Income Solution a Major Step Forward for American Retirement Security
BlackRock
|
|
|
Webcasts and Conferences
(Retirement Plans / Executive Compensation) |
|
What You Should Know About: SARSEP IRA Plans
RECORDED
IRS [Internal Revenue Service]
|
|
|
|
|
|
|
Last Issue's Most Popular Items |
|
Budget Bill Seeks Retirement Plan Mandate, Roth Conversion Ban
Mercer
|
|
Sixth Circuit Strikes Down 'Segal Blend' for Calculation of Multiemployer Plan Withdrawal Liability
October Three Consulting
|
|
How Plan Sponsors Can Boost Cybersecurity
Voya
|
|
Unsubscribe |
Change Email Address
Search Past Issues |
Privacy Policy
Submit an Article |
Contact Us |
Advertise Here
Copyright 2021 BenefitsLink.com, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.
BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587.
Links to web sites other than BenefitsLink.com and EmployeeBenefitsJobs.com are offered as a service to our readers. We are not involved in their production and are not responsible for their content.
|
