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Retirement Plans Newsletter

October 29, 2021

11 New Job Opportunities 11 New Job Opportunities


[Official Guidance]

Text of PBGC Request for Nominations to the Advisory Committee of the PBGC

"The Advisory Committee's prescribed duties include advising the Corporation as to its policies and procedures relating to investment of moneys, and other issues as the Corporation may request or as the Advisory Committee determines appropriate.... By February 19, 2022, the terms of three of the Advisory Committee members, one representing the general public and two representing employers, will have expired. Therefore, PBGC is seeking nominations for three seats."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

[Guidance Overview]

IRS FAQs Address Effect of Rehires on Pension Plan Qualification

"These FAQs interpret a requirement that does not apply to 401(k) plans ... But the FAQs nevertheless may be useful for 401(k) plan administration because one of the events permitting distribution of elective deferrals is 'severance from employment,' and questions occasionally arise regarding the effect of a participant's rehire when the participant's severance was relied upon as the basis for a 401(k) distribution."  MORE >>

Thomson Reuters / EBIA

[Guidance Overview]

The Search for Missing Participants Continues: DOL Guidelines

"Whether active or terminated, retirement plans are designed to provide benefits and it is the plan sponsor's responsibility to routinely search for missing participants."  MORE >>


[Guidance Overview]

New York Employers Without Sponsored Retirement Plans Must Automatically Enroll Employees in State-Run Retirement Program

"The Program is intended to be a self-sufficient retirement savings program in the form of a Roth individual retirement account (IRA). Its development and implementation will be overseen by the New York State Department of Taxation and Finance. However, enrollment in the Program is not yet open and implementation is not expected until 2022."  MORE >>

Davis Wright Tremaine LLP

[Guidance Overview]

Upcoming Deadline icon Qualifying New Jersey Employers Must Enroll Employees in New Jersey's Secure Choice Savings Program Before End of 2021

"All profit and non-profit New Jersey employers who employed at least 25 workers during the past calendar year, have been in business for at least two years, and do not offer their employees the ability to participate in a qualified retirement plan qualify. Employers with less than 25 employees may participate, but are not required to do so."  MORE >>

Goldberg Segalla

[Guidance Overview]

CalSavers Seeks to Readopt Amended Rules on Default Investments, Contributions, More

"The CalSavers Retirement Savings Board has issued a Notification of Proposed Emergency Regulation Action to readopt regulations that ... [1] amend the default investment option; [2] reduce the minimum contribution amounts for non-payroll contributions; [3] clarify the frequency during which non-payroll contributions can be made; [4] clarify the tax-qualified retirement plans that, if offered by an employer, would render them exempt; and [5] add a section clarifying how enforcement of employer compliance shall be made by the Board."  MORE >>

American Retirement Association [ARA]

KPMG, Fiduciaries Face ERISA Lawsuit from Former 401(k) Participants

"The complaint criticized 'the selection (and maintenance) of several funds … and payment of excessive record-keeping and administration fees that wasted the assets of the plan and the assets of participants because of unnecessary costs.' The plaintiffs alleged 'total plan costs were more than double that of its peers'[.]" [Ritorto vs. KPMG LLP, No. 21-1930 (D.N.J. complaint filed Oct. 27, 2021)]  MORE >>

Pensions & Investments

Using Annuities as an Alternative to Bonds to Improve Retirement Outcomes

"With historical capital market assumptions, the 50/50 portfolio has a 90% success rate for generating enough assets for sufficient retirement income. But with today's low interest rates, the 50/50 portfolio has a 37% success rate.... [R]eplacing 20% of the fixed-income allocation in a 70/30 portfolio with a fixed-income annuity would increase the success rate to 72%."  MORE >>

PLANSPONSOR; free registration may be required


ARPA Special Financial Assistance Applications: Interest Rate Blunders in Valuing Multiemployer Plan Liabilities

"In comparing how much bailout money insolvent multiemployer plans are asking from the government to what they reported as unfunded liabilities on their latest 5500 filings some substantial differences come to light. Now that most of the applications are online and the interest rates used for valuing [special financial assistance] liabilities have been divulged the idiocy of the method the PBGC forces these plans to use comes into focus."  MORE >>



Amicus Brief of U.S. Chamber of Commerce to Supreme Court in Northwestern Fiduciary Breach Case (PDF)

48 pages. "Amici file this brief to provide a roadmap for evaluating the plausibility of inference-based claims like those asserted in petitioners' complaint and the countless other ERISA class-action complaints that have flooded federal courts in recent years.... Under ERISA as elsewhere, circumstantial allegations should be rigorously analyzed, in context. For claims of fiduciary breach, context includes both the broad discretion and flexibility that fiduciaries enjoy under ERISA, and the realities of plan management that fiduciaries face.... Cheapest is not always best." [Hughes v. Northwestern Univ., No. 18-2569 (7th Cir. Mar. 25, 2020; cert. pet. granted No. 19-1401, Jul. 2, 2020)]  MORE >>

U.S. Chamber of Commerce

Benefits in General

IRS Updates Process for Issuing FAQ Guidance and Clarifies Scope of Reliance

"Although FAQs provide crucial and timely guidance that can help taxpayers understand new tax laws, ... they are neither precedential nor binding on the IRS, and they may be deleted or modified at any time without any official record of prior versions. This announcement of a more formal process for issuing and tracking FAQ guidance, combined with the clarifying statement on reliance, is a positive development. Also helpful is the IRS's promise to retain past versions of FAQ guidance, but cautious taxpayers and their advisors should still save their own copies."  MORE >>

Thomson Reuters / EBIA

Executive Compensation and Nonqualified Plans

Tips for Structuring LLC Incentive Compensation

"LLCs wanting to offer incentives to a broader group of employees typically do so through a cash bonus plan. These bonus plans are rights to cash only, so there is no possibility to get capital gains treatment, unlike an equity award, but they are very flexible.... There are some considerations for cash plan compliance depending on design choices with respect to Code Section 409A[.]"  MORE >>

Holland & Hart LLP

Employee Benefits Jobs

View job as Retirement Plan Administrator
for TPP Retirement Plan Specialists, LLC Retirement Plan Administrator

TPP Retirement Plan Specialists, LLC

Remote / Overland Park KS

View job as Retirement Plan Administrator
for TPP Retirement Plan Specialists, LLC

View job as Retirement Plan Consultant
for DWC - The 401(k) Experts Retirement Plan Consultant

DWC - The 401(k) Experts


View job as Retirement Plan Consultant
for DWC - The 401(k) Experts

View job as Client Relationship Manager
for The Retirement Advantage, Inc. (TRA) Client Relationship Manager

The Retirement Advantage, Inc. (TRA)


View job as Transaction Coordinator
for The Retirement Advantage, Inc. (TRA) Transaction Coordinator

The Retirement Advantage, Inc. (TRA)


View job as Retirement Plan Client Account Manager
for BOK Financial Retirement Plan Client Account Manager

BOK Financial

Dallas TX / Houston TX

View job as Plan Administrator/ Consulting
for Associated Pension Consultants Plan Administrator/ Consulting

Associated Pension Consultants

Chico CA / Sacramento CA

View job as General Attorney
for Pension Benefit Guaranty Corporation [PBGC] General Attorney

Pension Benefit Guaranty Corporation [PBGC]

Remote / Washington DC

View job as Tech Operations Manager
for Nationwide Tech Operations Manager


Columbus OH

View job as Lead Client Executive
for Transamerica Lead Client Executive


Remote / DC / MD / NY / VA

View job as Plan Administrator
for BlueStar Retirement Services Inc. Plan Administrator

BlueStar Retirement Services Inc.


View job as Senior Manager, Group Compliance
for NRECA Senior Manager, Group Compliance


Arlington VA / DC / MD

Selected New Discussions

Rollover of a Life Insurance Death Benefit Into a Roth IRA

"If a 401(k) plan owns a term life insurance on the life of a participant, and the participant dies, the death benefit goes to his children as beneficiaries. The children are requesting that the death benefit, which is income tax-free, be directly rolled over into a Roth IRA. I see no problem with this, but their accountant is saying that an income tax-free death benefit can't be rolled over to a Roth IRA. Am I right?"

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Yes, You Should Consider Commodities In A Retirement Plan

November 4, 2021 WEBCAST

Broadridge Financial Solutions, Inc.

DOL PTE 2020-02 Compliance: An RIA Guide to Readiness

November 16, 2021 WEBCAST

Faegre Drinker

Target Date Funds in the Spotlight: How Well Are 401(k) Participants Using Them?

November 30, 2021 WEBCAST

EBRI [Employee Benefit Research Institute]

Last Issue's Most Popular Items

Retirement, Mega Roth Provisions Dropped from Reconciliation Bill

American Retirement Association [ARA]

Does Your Plan Use a Limited Scope Audit for Form 5500 Financial Reporting?

The Wagner Law Group

What Happens to Participants' 457(b) Deferral Elections When They Pass Away?

Best Best & Krieger LLP

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

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