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Retirement Plans Newsletter

December 20, 2021

6 New Job Opportunities 6 New Job Opportunities


[Guidance Overview]

Text of SEC Staff Statement Regarding Form CRS Disclosures

"The Committee's review of relationship summaries observed good examples of simple, clear disclosures.... At the same time, the Committee observed areas where compliance improvements appear to be needed.... [This Statement describes] some of the Committee's observations -- first, with respect to the specific disclosure topics required by the form's instructions, and second, with respect to the general requirements pertaining to content, format, and website posting."  MORE >>

Standards of Conduct Implementation Committee, U.S. Securities and Exchange Commission [SEC]


Learn the Basics!

Are you new to the retirement plan industry or a professional looking for a review? ASCi’s Fundamentals of Qualified Retirement Plans 5-Part Series will give you a solid foundation in the rules applicable to qualified retirement plans. Register Now!

Sponsored by ASC

PBGC Asks U.S. Supreme Court to Deny Hearing for Delphi Salaried

"The [PBGC] has filed a brief with the U.S. Supreme Court opposing the Delphi Salaried Retirees Associations' request to have the justices hear their claims against a 2009 decision not to cover pensions for 21,000 salaried retirees after Delphi, formerly Packard Electric went bankrupt.... If the court does not decide to hear the case, some lawmakers say they will still try to use legislation to help the retirees." [Black v. PBGC, No. 19-1419 (6th Cir. Sep. 1, 2020; cert. pet. filed Jul. 22, 2021)]  MORE >>


Voya Faces ERISA Complaint Targeting Its Own Plan

"The complaint alleges these funds were not selected and retained for the plan as the result of an impartial or otherwise prudent process, but were instead selected and retained by the defendants because they benefited financially from including these options in the plan." [Ravarino v. Voya Financial Inc., No. 21-1658 (D. Conn. complaint filed Dec. 14, 2021)]  MORE >>


401(k) Fiduciary Litigation: 'Underperformance'

"[O]ften, the court (and indeed sometimes the litigants) do not seem to understand how alleged underperformance may simply be the result of a different funds/fund types' investment strategy.... [F]iduciaries should identify, ideally before an investment fund is selected for inclusion in the plan's fund menu, a benchmark against which they are prepared to judge it." [In re LinkedIn ERISA Litigation, No. 20-5704 (N.D. Cal. Nov. 16, 2021)]  MORE >>

October Three Consulting

Measuring DC Plan Success Requires Going Beyond Common Metrics

"Greater engagement and education from plan sponsors and recordkeepers are key, but they need more information from participants about employee retirement readiness to form a clearer picture."  MORE >>

PLANSPONSOR; free registration may be required

Pooled Plan Arrangements: Looking Back and Looking Ahead

"[P]ooled solutions have been around for decades ... As with any retirement solution, pooled plans have nuances advisors should know and understand. Pooled plans may not be appropriate for every organization or retirement plan practitioner."  MORE >>

Deborah Rubin, via American Retirement Association [ARA]

To Bond, or Not to Bond, That Is the Question (for Public Employers)

"One obvious risk associated with [issuing taxable Pension Obligation Bonds (POB) as] a funding strategy is the possibility that the targeted return on plan assets is not achieved. But how big is this risk and how significant is it? After all, wouldn't a plan sponsor have to make up the shortfall whether or not a POB was used as a funding device?"  MORE >>

Watkins Ross

The Effects of an Increase in the Retirement Age on Health: Evidence from Administrative Data

"The analysis is based on official records covering all individuals insured by the public health system in Germany and including all certified diagnoses by practitioners.... The empirical findings ... provide evidence that the increase in the retirement age negatively affects health outcomes as the prevalence of several diagnoses, e.g., mental health, musculoskeletal diseases, and obesity, increases."  MORE >>

Mara Barschkett, Johannes Geyer, Peter Haan, and Anna Hammerschmid, via SSRN

What Drives Variation in Investor Portfolios? Evidence from Retirement Plans

"Using plan-level portfolio allocation data for the near universe of 401(k) plans over the period 2009-2019, ... [this study finds that plans] with wealthier and more educated participants tend to have higher equity exposure while plans with more retirees and minorities tend to have lower equity exposure. These patterns cannot be explained by differences in 401(k) menus or participation costs."  MORE >>

Mark Egan, Alexander MacKay, and Hanbin Yang, Via SSRN

Use Your IRA and This 'Life Hack' If Your Estimated Tax Payments Haven't Been High Enough

"If it is discovered that previous estimated tax payments were not enough to cover income for the year, a taxpayer could take a distribution from his IRA ... [and] elect to have up to 100% withheld for taxes. This tax withholding will be treated as if it were paid in evenly throughout the year, across all quarterly payments, even if the withholding tax was taken from a distribution on December 31st.... Had we attempted to make up the difference of underpaid estimated taxes with a single payment directly from a non-qualified account, the payment would have all counted for the fourth quarter ... Additionally, by following the 60-day rollover guidelines, we can replace the IRA dollars sent to the IRS."  MORE >>

Slott Report


The Hidden Message in the Northwestern 403(b) Oral Argument

"Justice Kagan's discrediting of the 'menu of options' defense, combined with the 1st Circuit's discrediting of the 'apples and oranges' defense based upon comment m of Section 90 of the Restatement (Third) of Trusts, should send a clear message to plan sponsors and and investment fiduciaries -- choose your advisers well!" [Hughes v. Northwestern Univ., No. 18-2569 (7th Cir. Mar. 25, 2020; oral arg. transcript Dec. 6, 2021)]  MORE >>

The Prudent Investment Fiduciary Rules

Executive Compensation and Nonqualified Plans

Exceptional Usefulness and Quality icon 2021 End of Year Plan Sponsor 'To Do' List: Executive Compensation

"[1] Last chance to correct certain Section 409A document failures discovered in 2021.... [2] Nonqualified deferred compensation deferral elections should be made on or before December 31, 2021.... [3] Take certain action to address impact of Tax Cuts and Jobs Act on Section 162(m).... [4] Code Section 6039 information statements due by January 31, 2022."  MORE >>

Snell & Wilmer

Employee Benefits Jobs

View job as Retirement Plan Administrator - 401(k)/DC Specialist
for Altigro Pension Services, Inc. Retirement Plan Administrator - 401(k)/DC Specialist

Altigro Pension Services, Inc.

Remote / Fairfield NJ

View job as Retirement Plan Consultant
for Wipfli Retirement Plan Consultant



View job as Director, TPA Relations
for Vestwell Director, TPA Relations


Remote / New York NY

View job as Plan Document Specialist
for Vestwell Plan Document Specialist


Remote / New York NY

View job as Retirement Plan Administrator
for KB Pension Services Retirement Plan Administrator

KB Pension Services


View job as Defined Benefits Retirement Plan Consultant
for Economic Group Pension Services (EGPS) Defined Benefits Retirement Plan Consultant

Economic Group Pension Services (EGPS)


Selected New Discussions

EFTPS -- Inactivating Unused Accounts After 18 Months

"We have a few small plans whose only tax deposit is for the annual withholding on participant RMDs. This is usually done through EFTPS with no problem, but now as we approach the end of the year, they are being surprised that they are unable to login to their EFTPS accounts. I was told by a representative that accounts are being inactivated due to not having made a tax deposit in the past 18 months. Considering that RMDs were suspended in 2020, these small plans haven't made a tax deposit since 2019. So they have had to go through the trouble of re-enrolling, waiting for the PIN to arrive in the mail, etc., and hope they can get the tax deposit in before the end of the year. Just ridiculous."

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Fundamentals of Qualified Plans


FIS Retirement Education

The Washington Outlook: Plan Sponsor Implications


CAPTRUST Financial Advisors

Last Issue's Most Popular Items

DOL Nonenforcement Policies for Rollover Advice Rules: Some Prohibited Transaction Exemptions Apply Now

Fred Reish and Joan Neri, via planadviser; free registration required

Fast-Approaching Deadlines for Employee Benefit Plans

Venable LLP

Text of IRS Notice 2022-03: Standard Mileage Rates for 2022 (PDF)

Internal Revenue Service [IRS]

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

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