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Retirement Plans Newsletter

October 12, 2021

4 New Job Opportunities 4 New Job Opportunities

 

[Official Guidance]

Text of IRS Notice 2021-57: Funding Relief for Multiemployer DB Pension Plans Under the American Rescue Plan Act of 2021 (PDF)

21 pages. "This notice provides guidance for sponsors of multiemployer defined benefit pension plans on the elections under sections 9701 and 9702 of [ARPA], and the relief provided under section 9703 of [ARPA], relating to sections 431 and 432 of the Internal Revenue Code. These provisions permit plan sponsors to: [1] Elect to delay designating a plan as being in endangered, critical, or critical and declining status under section 432(b)(3), as applicable, or to delay updating the plan's funding improvement plan or rehabilitation plan, as applicable; [2] Elect to extend the plan's funding improvement period under section 432(c)(4) or the rehabilitation period under section 432(e)(4), as applicable; and [3] Spread certain investment losses and other experience losses related to COVID-19 over a period of up to 30 years in determining charges to the funding standard account under section 431."  MORE >>

Internal Revenue Service [IRS]

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Federal Appellate Ruling on the Segal Blend May Change Calculation of Pension Fund Withdrawal Liability

"Blended rates have the effect of increasing an employer's withdrawal liability, sometimes doubling, tripling, even quadrupling or more what it would be if the plan's funding rate had been used. While this ruling doesn't invalidate the use of a blended rate per se for all [multiemployer plans], it sets a compelling precedent that will influence the outcome of future disputes." [Sofco Erectors, Inc. v. Trustees of Ohio Operating Engineers Pension Fund, No. 20-3639 (6th Cir. Sep. 28, 2021)]  MORE >>

Fox Rothschild LLP

Defining Who Is a Fiduciary Is Central to ERISA, Biden's EBSA Pick Says

"[Lisa Gomez, President Joe Biden's pick to head EBSA,] said that if confirmed, she looks forward to working with the [SEC] as well as with Labor 'to be briefed on the efforts of looking at the definition of a fiduciary in different contexts, and taking another look at the conflict of interest rule and how it would apply in different situations.' "  MORE >>

ThinkAdvisor

Exceptional Usefulness and Quality icon Modern Portfolio Theory, the Prudent Investor Rule and Fiduciary Investing

"While most financial advisers are aware of the 'total portfolio' approach of MPT and the Rule, they are often unfamiliar with other key tenets of MPT and the Rule. Consequently, many financial advisers are unaware that their practices may be totally inconsistent with MPT and the Rule, leaving them exposed to liability for financial losses sustained by their clients."  MORE >>

The Prudent Investment Fiduciary Rules

Do 401(k) Plan Sponsors Have Fiduciary Responsibilities for Employees in Retirement?

"If you think the web of fiduciary duties is complex in a 401k plan that focuses on getting employees to save for retirement, imagine how much more intricate it becomes if the plan also has to cater to retired employees."  MORE >>

Fiduciary News; free registration required

DCIO Service Providers Report Significant Momentum

"The average defined contribution investment-only (DCIO) provider's assets under management (AUM) rose 30% over the 12 months leading up to June 30, aided by market gains of around 10% in just the first half of 2021[.]"  MORE >>

planadviser

17.5 Million Americans Leave 'Free' Retirement Plan Money on the Table

"17% of workers with access to an employer-sponsored plan don't currently contribute. And among those who do, 12%, or 17.5 million people, leave company matching funds on the table[.]"  MORE >>

CNBC

Pension Indicator, September 2021

"Volatility returned to the markets in September. Investors digested weaker economic data, negative headlines out of China's property sector, politics surrounding the ongoing debt ceiling, and a hawkish tone out of the Federal Reserve's last meeting." [Charts illustrate likely returns based on plan status and investment mix.]  MORE >>

Findley

Corporate Pension Funded Ratio Holds Steady in September

"The market value of assets declined by $38 billion while the monthly discount rate climbed from 2.65% in August to 2.78% in September, resulting in just a slight funded status increase of $1 billion compared to the month prior. The funded ratio remained flat during this time, at 97.3%."  MORE >>

Milliman

Fresh, New-Look Social Security Statement Debuts

"Redesigned look and feel to statements replaces old text-heavy four-page document with two pages of 'easy to read' boxes, charts and graphs."  MORE >>

401(k) Specialist

What to Know About 2021 Required Withdrawals from Retirement Accounts

"Don't overlook required minimum distributions from your retirement accounts this year. After being waived for 2020, those RMDs ... are again in force for 2021. That's in addition to the RMD age changing to 72 from 70½ as of last year and new IRS life expectancy tables -- which are used to calculate those withdrawals -- going into effect next year."  MORE >>

CNBC

How Does Media Coverage of Social Security Affect Worker Behavior?

"News coverage tends to emphasize the depletion date over the ongoing tax revenues, often with alarming headlines.... Participants responded to headlines on trust fund depletion by reducing their intended claiming age, with no change in their intended savings rate. If workers follow through with such intentions, claiming early would lock in lower monthly benefits without increased saving to make up the gap."  MORE >>

Center for Retirement Research at Boston College

[Opinion]

403bwise Creates School District 403(b)/457(b) Vendor Database and Grading System

"There are 14,344 school districts in the country. To date we have vendor data for close to 4,000 school districts. This represents close to 28% of all school districts. We are adding vendor lists daily.... We also created an A-F rating system.... Every K-12 employee should have access to both unbiased information and at least one quality, low-cost investment choice. Schools should ban sales agents from selling products on campus and marketing via teacher email in boxes."  MORE >>

403bwise

[Opinion]

Do You Really Need to Save That Much for Retirement?

"Financial journalists often mention salary-based rules of thumb -- such as those published by Fidelity and other asset-management firms -- for retirement savings.... These guidelines can be appealing because of their simplicity ... [A]sset-management firms (and most financial advisors) have a vested interest in getting investors to save more because higher balances translate into higher fees. [This article will] test whether these guidelines are reasonable and dig into the assumptions behind them [and] explain why they might not be an accurate benchmark for every investor. "  MORE >>

Morningstar

Employee Benefits Jobs

View job as "You Break It, We Fix It" Administrator
for Nova 401(k) Associates "You Break It, We Fix It" Administrator

Nova 401(k) Associates

Remote / Houston TX / Dallas TX / Scottsdale AZ

View job as "You Break It, We Fix It" Administrator
for Nova 401(k) Associates

View job as Health Insurance Specialist (Recent Graduates)
for Centers for Medicare & Medicaid Services [CMS] Health Insurance Specialist (Recent Graduates)

Centers for Medicare & Medicaid Services [CMS]

Remote / San Francisco CA / Atlanta GA / Chicago IL / Boston MA

View job as Senior Retirement Specialist
for Alerus Senior Retirement Specialist

Alerus

Remote

View job as Sales Support Specialist
for Alerus Sales Support Specialist

Alerus

Remote

Selected New Discussions

Hurricane Ida 5500 Relief for Plan in New York City

"One of my audited plans is in NYC and wants to take advantage of the 1/3/22 deadline. From what I'm reading, there's nothing special to do-- just file before the new deadline, and the IRS is supposed to know by the address that the plan sponsor is eligible for the relief. Does that sound right?"

BenefitsLink Message Boards

Press Releases

iJoin Taps Chris Phillips to Lead its Growing National Sales Team

iJoin

Centivo Named by Blackstone’s Equity Healthcare as a Preferred Health Plan Offering for its Portfolio Companies

Centivo

SageView Expands Wealth Management Business with Acquisition of Bloomfield Hills Fiinancial

SageView Advisory Group

OneDigital Retirement + Wealth Hires Saumen Chattopadhyay as Chief Investment Officer

OneDigital

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Top Employee Benefit Challenges for 2022

October 21, 2021 WEBCAST

Thomson Reuters / EBIA

IRA Required Minimum Distributions

December 9, 2021 WEBCAST

Ascensus

Last Issue's Most Popular Items

New IRS Issue Snapshot Tackles Deemed Distributions

Mercer

A Possible Solution to the Potential Restrictions on 'Mega IRAs'

Slott Report

Even the Experts Can't Figure Out How to Plan for Retirement Income

Kiplinger

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

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