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Retirement Plans Newsletter

December 21, 2021

10 New Job Opportunities 10 New Job Opportunities


Nokia of America Among Latest Targets of ERISA Excessive Fee Suits

"According to the complaint, the per-participant charge steadily increased from a low of $76 per participant in 2015 to a high of $116 per participant in 2020. [The complaint cites a] survey that found the majority of plans with more than 15,000 participants paid slightly less than $40 per participant recordkeeping, trust and custody fees." [Seibert v. Nokia of America Corp., No. 21-20478 (D.N.J. complaint filed Dec. 13, 2021)]  MORE >>

PLANSPONSOR; free registration may be required

A Changing Workplace: Predictions for 2022

"2022 will bring a shiny new set of headlines into focus for many retirement plan sponsors.... [1] A wave of benefit changes ... [2] Plan design gets more inclusive ... [3] Employee identity informs financial wellness ... [4] Innovation in the QDIA space ... [5] More ESG investment options ... [6] Cybersecurity becomes more than just an IT initiative ... [7] SECURE Act 2.0 (finally) gets real."  MORE >>


Keystone State Lays Foundation for State-Run IRA Program

"Pennsylvania's Keystone Saves program will be phased in over four years; the first two years are set aside for Treasury to set up the program, including an RFP process, and to implement a voluntary pilot."  MORE >>

American Retirement Association [ARA]

Annuities vs. Qualified Plan Periodic Payments: What Is the Difference and Which Is Right for Me?

"Here are some questions to consider before choosing: [1] Flexibility.... [2] Costs.... [3] Portability.... [4] Beneficiary impact.... [5] Consistent income stream.... [6] Individual tax impact.... [7] Returns."  MORE >>


Annuity Purchase Update, December 2021

"Annuity purchase interest rates dipped for Annuity Plan 1 and Annuity Plan 2.... Annuity purchase cost for retirees has consistently been between 98%-104% of the pension accounting value (GAAP PBO).... Despite the persistence of the COVID-19 pandemic, annuity purchase interest rates have experienced less volatility in 2021."  MORE >>

October Three Consulting


Comment Letter from 23 States to DOL Opposing Proposed Regs for ESG Investments in ERISA Plans (PDF)

12 pages. "The Department has insufficient justification for adopting a new rule that breaks markedly away from the primary and sacrosanct duty of protecting employee interests in their retirement investments.... Fiduciaries remain bound by statute to manage investments with an 'eye single' to maximizing the funds available to pay retirement benefits. Yet, the Proposed Rule promotes ERISA fiduciaries to subordinate those interests in favor of other objectives. The Proposed Rule does not protect employee retirement savings but increases the risk of loss and costs by encouraging investments that are often misleading, administratively costly, and historically untested.... The Proposed Rule risks the economic security of retirees to further a political agenda."  MORE >>

Officials of the State of Utah and 22 other states

Benefits in General

[Official Guidance]

IRS Provides Disaster Relief for Victims of Tornadoes in Illinois and Tennessee

"Victims of this month's tornadoes in parts of Illinois and Tennessee will have until May 16, 2022, to file various individual and business tax returns and make tax payments ... [T]he IRS is providing this relief to taxpayers affected by storms, tornadoes and flooding that took place starting on December 10 ... who live or have a business in Bond, Cass, Coles, Effingham, Fayette, Jersey, Macoupin, Madison, Montgomery, Morgan, Moultrie, Pike and Shelby counties in Illinois and Cheatham, Decatur, Dickson, Dyer, Gibson, Lake, Obion, Stewart, and Weakley counties in Tennessee."  MORE >>

Internal Revenue Service [IRS]

Sixth Circuit Panel Member Questions Basis for Remand to ERISA Plan Administrator

"[A] recent concurrence ... may indicate that at least some members of the federal judiciary are beginning to consider whether ERISA authorizes remands.... [T]he concurrence questioned why a private litigant (there, the plan administrator) would get a second bite at the apple via a remand rather than have the district court supervise additional litigation using normal rules of civil procedure." [Card v. Principal Life Ins. Co., No. 20-6217 (6th Cir. Nov. 2, 2021)]  MORE >>

Jackson Lewis P.C.

Employee Benefits Jobs

View job as Internal Wholesaler
for The Retirement Plan Company Internal Wholesaler

The Retirement Plan Company

AZ / CA / CO / NV / OR / UT / WA

View job as Internal Wholesaler
for The Retirement Plan Company

View job as Defined Contribution Administrator
for PACETPA Defined Contribution Administrator


Remote / Clovis CA / Las Vegas NV

View job as Defined Contribution Administrator

View job as Defined Benefit Administrator
for PACETPA Defined Benefit Administrator


Remote / Clovis CA / NV

View job as Defined Benefit Administrator

View job as Retirement Plan Consultant
for October Three Consulting LLC Retirement Plan Consultant

October Three Consulting LLC

Remote / Chicago IL / Irving TX / Jacksonville FL

View job as Retirement Plan Consultant
for October Three Consulting LLC

View job as Benefit Specialist
for October Three Consulting LLC Benefit Specialist

October Three Consulting LLC

Remote / Chicago IL / Irving TX / Jacksonville FL

View job as Benefit Specialist
for October Three Consulting LLC

View job as Director of Qualified Retirement Plans
for Klaas Financial Director of Qualified Retirement Plans

Klaas Financial

Madison WI / Loves Park IL

View job as Senior Consultant, Non-Qualified Plans
for Newport Senior Consultant, Non-Qualified Plans


Remote / Chicago IL / Lake Mary FL / Richmond VA / Dallas TX / Los Angeles CA

View job as Plan Administrator for Non-Qualified Retirement Plans
for Newport Plan Administrator for Non-Qualified Retirement Plans


Lake Mary FL / Dallas TX / Richmond VA / NC

View job as Senior Implementations Relationship Manager
for Vestwell Senior Implementations Relationship Manager


Remote / New York NY

View job as National Benefits Coordinator
for AFGE National Benefits Coordinator


Washington DC

Selected New Discussions

Calculating the 2022 RMD Amount That's Not Allowable for Rollover

"Person terminated in 2021 and his required distribution date is 4/1/2022. The form of benefit taken is a lump sum. The amounts not eligible for a rollover should be calculated for 2 years, 2021 and 2022. Generally to calculate the amount of RMD that is not eligible for rollover under the account method, you would divide the lump sum amount by the distribution period taken from the Uniform Life Table. The two distribution periods will correspond to the age of a participant as of 12/31/2021 and as of 12/31/2022. Effective 1/1/2022 the IRS amended the Uniform Life Table with longer distribution periods, and therefore smaller RMD amounts.

So question is: Will you use both distribution periods from the amended table, or will you use the distribution period from the old table when calculating RMD amount associated with 2021, and the distribution period from the new table when calculating RMD amount associated with 2022?"

BenefitsLink Message Boards

Form 5500 Required If Otherwise Exempt Employer Adopts an ERISA 403(b) Plan Document?

"Non-profit organization's plan qualifies for non-ERISA status, but utilized an ERISA 403(b) document (apparently unintentionally). Has never filed a Form 5500. Obviously can use DFVCP program, so costs are not onerous. I see no option. By executing an ERISA document, it seems to me that they have elected ERISA status, and they can't say it is 'non-ERISA' just because they would otherwise qualify for non-ERISA status. Agree?"

BenefitsLink Message Boards

Moving Money from Cash Balance Plan into a Roth IRA

"I have a cash balance plan that is terminating. A participant wants to roll his cash balance money into a Roth IRA. Do I withhold the 20% and report it as taxable on the 1099-R? How would I code the 1099-R?"

BenefitsLink Message Boards

PBGC's 'MyPAA' Site Is Offline Until Dec. 22 -- What the Heck?

"The PBGC has shut down its site until 9 p.m. on December 22. How can this be, given that filings must be done prior to January 3, 2022?"

BenefitsLink Message Boards

402(g) Limit Applies to State Employee Who Also Works in Private Sector?

"State employee participates in a state-sponsored retirement plan. He also works for his wife's firm, which has a 401(k) plan. I know 415 limits are plan-specific, but is there an individual 402(g) limit that combines contributions to the state-run plan as well as the private plan?"

BenefitsLink Message Boards

Plan's Definition of Compensation Is 'Base Salary' But Deferrals Taken from a 'COVID-19 Bonus'

"A non-governmental 457(b) Adoption Agreement defines compensation as 'Base Salary'. A participant elected to have 5% of pay deducted and contributed to the plan in 2021. The plan sponsor paid a 'COVID-19 Bonus' in 2021, withheld 5% from that bonus, and contributed it to the 457(b) Plan. The participant is fine with the 5% withholding, so would a plan amendment to the definition of compensation to include bonuses suffice?"

BenefitsLink Message Boards

Audit Requirement for a New 200+ Participant ESOP

"Group: Plan sponsor adopted an ESOP in November 2021. I'm told they have 200 participants. I note they fall into a large plan. Because the adoption date falls late in the year (for the first short year), is the plan exempt from the usual independent audit requirement until plan year that ends December 31, 2022? Also, when is an audit merely a 'limited scope' audit? Is that determined by the IQPA? The plan sponsor?"

BenefitsLink Message Boards

Press Releases

Wellbeats Joins Castlight Health's Digital Health Ecosystem


ARA Files Suit to Protect QKA® Trademark

American Retirement Association [ARA]

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Wellness in the Workplace: Findings From the 2021 WWS

February 2, 2022 WEBCAST

EBRI [Employee Benefit Research Institute]

ERISA Counsel and Attorney-Client Privilege: What You Don't Know About the Fiduciary Exception Could Hurt You

February 16, 2022 WEBCAST


Last Issue's Most Popular Items

Voya Faces ERISA Complaint Targeting Its Own Plan


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

Slott Report

Text of SEC Staff Statement Regarding Form CRS Disclosures

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

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

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