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Retirement Plans Newsletter

January 13, 2022

3 New Job Opportunities 3 New Job Opportunities


[Official Guidance]

Text of PBGC Inflation-Adjusted Civil Penalties

"Section 4302 ... authorizes PBGC to assess a civil penalty of up to $100 a day for failure to provide a notice under subtitle E of title IV of ERISA. Section 4071 ... authorizes PBGC to assess a civil penalty of up to $1,000 a day for failure to provide a notice or other material information under subtitles A, B, and C of title IV and sections 303(k)(4) and 306(g)(4) of title I of ERISA.... The multiplier for 2022 is 1.06222. The adjusted maximum amounts are $2,400 for section 4071 penalties and $320 for section 4302 penalties."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

District Court Weighs In on Private Equity and Hedge Funds in 401(k) Plans

"The District Court dismissed the plaintiffs' 'conclusory allegations' that the Intel Funds' substantial allocations of alternative assets was a per se breach of the plan fiduciaries' duty of prudence. The District Court also dismissed the plaintiffs' allegations that the Intel Funds were imprudently designed when compared to comparator benchmark funds selected by the plaintiffs[.]" [Anderson v. Intel Corp. Investment Policy Comm., No. 19-4618 (N.D. Cal. Jan. 8, 2022)]  MORE >>

Debevoise & Plimpton LLP

Supreme Court Opinion on Civil-Service Pension Payments Based on Employment as a Dual-Status Military Technician and the Social Security Windfall Provision (PDF)

12 pages. "Retirees receive Social Security benefits based on a progressive formula that awards a percentage of average past earnings.... The formula originally did not account for earnings from jobs exempt from Social Security taxes, many of which provide separate pensions. In response to this potential windfall, Congress modified the formula to reduce benefits when a retiree receives such a separate pension payment. But Congress left benefits unchanged if the pension payment was 'based wholly on service as a member of a uniformed service.' ... The National Guard of the United States is defined as a uniformed service, Section 410(m), so whether the uniformed-services exception applies depends on whether Babcock's technician work was service 'as' a member of the National Guard. It was not." [Babcock v. Kijakasi, No. 20-480 (S. Ct. Jan. 13, 2022)]  MORE >>

Supreme Court of the United States

ESOP Internal Trustee Fiduciary Liability: Swords and Shields

28 presentation slides. What are an employee stock ownership plan"s (ESOP) internal trustee's fiduciary duties? What are some of the most common liability areas for trustees? And how can trustees prevent common liability pitfalls?  MORE >>

McDermott Will & Emery

Target-Date Fund Flows Bounce Back in 2021

"Investor contributions to target-date mutual funds made a comeback in 2021 after the popular retirement savings vehicles saw net redemptions for the first time in 2020. During the 2021 calendar year, net flows into target-date mutual funds totaled about $24 billion, up from net outflows of $7.2 billion in 2020. Despite the rebound, net contributions were still down from their $69.9 billion peak in 2017 and less than half of the $59.8 billion of net flows in 2019."  MORE >>



Annual Funding & Retirement Plan Notices – What to Know [Webinar]

Join the experts, Morgan Lewis and PBI Research, to learn about current requirements, 2022 predictions, best practices of sending AFNs and other retirement plan notices, and how to save time and resources with plan communications.

Sponsored by PBI Research Services

Corporate Pensions End 2021 Just Shy of Full Funding

"In 2021, corporate pension funding improved by $183 billion for the year ... Plan assets outperformed expectations, posting an annual return of 8.33% and a gain of nearly $64 billion.... The funded ratio climbed from 90.3% at year-end 2020 to 99.6% as of December 31, 2021. The last time the monthly funded ratio was this close to full funding was August 2008 (at 100.3%)."  MORE >>


Exceptional Usefulness and Quality icon Public Sector Employers Implement Programs to Improve the Financial Health of Employees

"This effort is part of a MissionSquare Research Institute collaboration with the International Public Management Association For Human Resources (IPMA-HR) and the National Association of State Treasurers Foundation (NASTF) ... Each fact sheet provides a summary of the jurisdiction's approach, outcomes, lessons learned, and future plans. Additionally, the fact sheets provide ideas, advice, and networking opportunities for other public employers exploring financial wellness programs.... The Financial Wellness Fact Sheets also are available on an interactive map."  MORE >>

MissionSquare Research Institute

How to Sync Your Retirement Plans with Your Business

"The value of your business can change over the years, based on endless variables: demand for your goods and services, the economic climate, employee performance, and the success or failure of a new venture. Therefore, it's crucial that you not put all your retirement nest eggs into one basket. To put it another way: it's important to diversify your plans with other sources of retirement income."  MORE >>


The Role of IRAs in U.S. Households' Saving for Retirement, 2021 (PDF)

40 pages. "In mid-2021, 37 percent of US households owned [IRAs]. More than eight in 10 IRA-owning households also had employer-sponsored retirement plan accumulations or had defined benefit plan coverage.... Rollovers from employer-sponsored retirement plans have fueled the growth in IRAs..... IRA withdrawals were infrequent and mostly retirement related.... Eighty-three percent of households that made traditional IRA withdrawals were retired."  MORE >>

Investment Company Institute [ICI]

Employee Benefits Jobs

View job as Benefits Manager
for Hunton Andrews Kurth Benefits Manager

Hunton Andrews Kurth

FL / GA / NY / TX / VA

View job as Account Manager
for Leading National TPA Account Manager

Leading National TPA


View job as Retirement Plan Administrator
for Integrated Pension Services, Inc. Retirement Plan Administrator

Integrated Pension Services, Inc.

Remote / Leominster MA

Selected New Discussions

Anyone Seeing DOL Investigations After VFCP Letter Received (Late Deferrals)?

"We're seeing an increase in the number of VFCP letters received from the DOL as a result of 5500 reporting of late deferrals. Is anyone else seeing this increase? Are you seeing any further DOL activity (investigations) as a result of the letters? I read a message from fall of last year, but I'm wondering whether there are any updates."

BenefitsLink Message Boards

Mandatory Federal Withholding When All Assets Distributed In-Kind (and Are Illiquid)?

"Suppose a plan has all non-liquid assets. If a participant selects a lump sum distribution and receives it in the form of non-liquid investments, is the plan required to withhold 20% federal on the distribution?"

BenefitsLink Message Boards

Paying DFVC Fee -- Better to Use Pay Online Using Online Calculator?

"Before Christmas, a client who left me came back telling me the new TPA had disappeared and didn't file a 2019 or 2020 Form 5500. Simple question re paying the $1,500 fee ($750 for each year): when you complete the online calculator, if you follow it all the way through it takes you to a payment option. Is that the best way to go? There is an option to mail in a check... not advisable?"

BenefitsLink Message Boards

Fidelity Bond for Non-Qualfying Assets-- Capped at $500k?

"Plan has $2MM in assets, of which $1.5MM are in non-qualifying assets (real estate and partnerships). Does the bond have to be the full $1.5MM? Or it is capped at the traditional $500,000?"

BenefitsLink Message Boards

Press Releases

Groom Law Group Announces Promotions

Groom Law Group

Fidelity Investments® Adds $146 Billion in Assets to Workplace Benefits Platform In 2021

Fidelity Investments

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Post-Year-End Plan Adoption; Funding Update After the American Rescue Plan

January 27, 2022 WEBCAST

Western Pension & Benefits Council

Compliance Basics: Health, Welfare and Retirement (Level 1)

February 16, 2022 WEBCAST

New England Employee Benefits Council [NEEBC]

Last Issue's Most Popular Items

Taxes in Retirement: How All 50 States Tax Retirees


Guide to Church Retirement Plans, Part 1


Defensive Plan Provisions Might Mitigate ERISA Lawsuits

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

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