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Retirement Plans Newsletter
December 21, 2021
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10 New Job Opportunities
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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
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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 >>
CAPTRUST
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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]
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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 >>
Milliman
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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
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[Opinion]
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
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Benefits in General |
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[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]
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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.
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Employee Benefits Jobs |
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Benefit Specialist
October Three Consulting LLC
Remote / Chicago IL / Irving TX / Jacksonville FL
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Selected New Discussions |
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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
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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
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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
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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
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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
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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
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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
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Press Releases |
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Wellbeats Joins Castlight Health's Digital Health Ecosystem
Wellbeats
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ARA Files Suit to Protect QKA® Trademark
American Retirement Association [ARA]
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Webcasts and Conferences
(Retirement Plans / Executive Compensation) |
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Wellness in the Workplace: Findings From the 2021 WWS
February 2, 2022 WEBCAST
EBRI [Employee Benefit Research Institute]
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ERISA Counsel and Attorney-Client Privilege: What You Don't Know About the Fiduciary Exception Could Hurt You
February 16, 2022 WEBCAST
Strafford
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Last Issue's Most Popular Items |
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Voya Faces ERISA Complaint Targeting Its Own Plan
planadviser
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Use Your IRA and This 'Life Hack' If Your Estimated Tax Payments Haven't Been High Enough
Slott Report
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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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