What Is a Section 415(m) Plan, and When Might You Need One?

"A section 415(m) plan is a special type of 'excess benefit plan' available exclusively to governmental employers. It is not a tax-qualified plan under Code section 401(a), but it does receive special tax treatment.... An excess contribution plan might be considered in situations where a public agency has one or more employees who may be entitled to significant additional amounts of current (or deferred) compensation."  MORE >>

Best Best & Krieger LLP

Gen Z Is Ready to Take on Retirement Investing

"A record 1.4 million investors in this age group opened up accounts at Fidelity Investments, according to third quarter data from the firm -- almost double the number of investors in this generation from the year before. Meanwhile, other retirement savers stayed the course, even when the market fluctuated ... IRA balances ticked slightly upward while the average account balance for 401(k) and 403(b) plans declined moderately from the quarter before."  MORE >>

MarketWatch

What's a Safe Retirement Spending Rate for the Decades Ahead?

"Using forward-looking estimates for investment performance and inflation, ... the standard rule of thumb should be lowered to 3.3% from 4.0%, assuming a balanced portfolio, fixed real withdrawals over a 30-year time horizon, and a 90% probability of success ... This should not be interpreted as recommending a withdrawal rate of 3.3% ... because the ... assumptions that underlie the withdrawal-rate calculations -- a long time horizon, a fixed real withdrawal system, and high odds of success -- are conservative."  MORE >>

Morningstar

CRS Report: Social Security Coverage of State and Local Government Employees (PDF)

34 pages. "Proposals to make Social Security coverage mandatory for newly hired state and local government employees have been part of the policy debate for years.... [T]he impact on state and local plans and the net effect on total benefits would vary across plans and across individuals ... [E]ight states accounted for almost three-fourths (73%) of noncovered state and local government employees ... Three states accounted for almost half (48%) of noncovered state and local government employees[.]" [R46961, Nov. 10, 2021]  MORE >>

Congressional Research Service [CRS]

[Opinion]

Achieving Scale in Pensions Through Portfolio Aggregation

"There are more than five thousand distinct public sector pension plans sponsored by states, counties, cities, and special districts.... While assets are highly concentrated -- the 25 largest plans account for more than half of all pension assets -- the vast majority of pension plans are actually very small.... [The authors] propose that pension systems explore the benefits of scale through consolidated investment organizations or by allocating to portfolio aggregators. How might this be achieved?"  MORE >>

Pension Pulse

[Guidance Overview]

2022 Quick Benefit Facts (PDF)

"[This] single-sheet reference [shows] key 2020-2022 annual limits for retirement plans on one side, with health, fringe benefit and [ACA] figures on the other. Nearly all 2022 amounts are now official."  MORE >>

Mercer

Equity Sharing in Compensation Planning

"First, consider what objectives you are trying achieve by implementing a stock-based compensation strategy.... Consider who you are trying to benefit with this type of arrangement and whether they are likely to make use of and appreciate it.... Finally, consider what regulatory hurdles may lie in the way of achieving your goals."  MORE >>

Employee Benefits Law Group

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PBGC Sending Non-Filing Notices for Plans That Have the Hurricane Ida Extension

"The PBGC has been sending non-filing notices for plans that were due 10/15/2021, even though these plans are entitled to the January 2022 Ida extension. Clients are getting upset. Any thoughts?"

BenefitsLink Message Boards

Prohibited Transaction? Purchase of Life Insurance from Plan Using Property

"A plan participant wants to purchase life insurance owned by his qualified 401(k) plan. The plan and the participant intend to follow the requirements of PTCE 92-6 and eliminate the PT concerns. However, the participant wants to use IBM stock to purchase the insurance. I could argue that as long as all the requirements of 92-6 are met an in-kind purchase of the insurance should be covered by PTCE 92-6. However, there is also a concern that the use of IBM stock to purchase the insurance will be deemed a separate prohibited sale or exchange between the plan and the participant party in interest and will not be covered by 92-6. Any thoughts on this?"

BenefitsLink Message Boards

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Lockton and Creative Planning Announce Agreement to Join Forces Creating a Market Leading Retirement Practice

Lockton

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Recap of the ASPPA Annual 2021

December 2, 2021 in FL

ASPPA Benefits Council [ABC] of North Florida

Ask A Benefits Attorney

December 15, 2021 WEBCAST

Miller Johnson

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Bundled or Unbundled 401(k) Provider? How to Choose

Employee Fiduciary

Retirement Plan Issues When Rehiring Employees

Holland & Hart LLP

Extended Pension Interest Rate Relief to Become Law; Other Reforms Pending

Mercer