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Retirement Plans Newsletter

January 17, 2022

9 New Job Opportunities 9 New Job Opportunities


[Guidance Overview]

DOL, PBGC Announce Retirement Plan Civil Penalties for 2022

"[A chart] shows DOL's maximum penalties relevant to single-employer [DB] and [DC] plans for 2022 and 2021. The increased amounts apply for penalties assessed after Jan. 15, 2022, for violations occurring after Nov. 2, 2015.... PBGC's 2022 maximum penalty under ERISA Section 4071 for single-employer DB plans is $2,400 a day (up from $2,259 in 2021) ... [for] penalties assessed after Jan. 14, 2022."  MORE >>


Milliman Accused of Failing to Prune Bad Investments from 401(k)

"The proposed class action lawsuit accuses the defendants of failing to prudently monitor the plan's investments and failing to remove three of the plan's 'poorly performing investment options.'... It says that by the end of 2013, Milliman's plan was the sole investor in the conservative and moderate funds and represented about 97% of assets in the aggressive fund." [Mattson v. Milliman, No. 22-0037 (W.D. Wash. complaint filed Jan. 13, 2022)]  MORE >>

PLANSPONSOR; free registration may be required

Participants Need Help with Lifetime Income Projections

"Recordkeepers are bolstering education, projection modeling tools and tailored advice capabilities to support plan participants and encourage them to remain on track for retirement income planning."  MORE >>

PLANSPONSOR; free registration may be required

'Smart' Enters the U.S. PEP Market

"'Smart' is the recently-launched American branch of a British fintech with expertise in a kind of retirement savings plan that's called a 'master trust' in the UK and a 'pooled employer plan' or PEP in the U.S. [which] aims to reduce the often clunky process of accessing 401(k) savings in retirement to a few thumb strokes on a smartphone or key strokes on a laptop ... Historically, U.S. recordkeepers have performed this critical function reluctantly, inefficiently or not at all."  MORE >>

Retirement Income Journal

Annuity Purchase Update, January 2022

"Plan Funding Status increased, leaving 2021 as one of the best years for pensions. The average pension plan improved their funding status around 10%. The Pension Risk Transfer market place hit a record year, closing 2021 at over $38 billion. This is a 40% increase since 2020. Interest rates are expected to rise in 2022, which will correspond to lower annuity purchase costs. Plan sponsors should begin preparing for an annuity purchase to exploit favorable pricing."  MORE >>

October Three Consulting

San Francisco Retirement System Drops DFA Funds for Underperformance

"The pension fund said Dimensional Fund Advisors' value bias underperforms 'during periods of strong outperformance of growth, which has been the case for much of the last 10-plus years.'... DFA's emerging markets core strategy fund had underperformed its benchmark ... by 6 basis points on an annual basis since 2011. It underperformed the benchmark by 9 basis points over a trailing 7-year period."  MORE >>

Institutional Investor

Illinois Pension Funding Moving in Positive Direction

"Actual contributions have been significantly less than the tread water cost [(the amount needed to prevent the unfunded actuarial liability from increasing if all assumptions are met)]... however this trend has reversed this year. When the total contributions are above the tread water cost ... the [unfunded actuarial liability (UAL)] is expected to decline[.]"  MORE >>


San Diego's Pension System Compares Favorably to Systems Across State, Nation

"While the city's pension debt is nearly $3 billion, most pension systems face similar gaps between their investment assets and long-term projections of what they will owe employees when those employees eventually retire.... And the city's ratio, which just climbed from 70.2 percent to 74.3 percent thanks to the robust stock market, has been in the top quarter of those national pension systems several times in recent years."  MORE >>

The San Diego Union-Tribune


The Real Retirement Fraud: Not Enough 401(k) Plans

"A new paper [entitled The Great American Retirement Fraud] rehashes (and embraces) some old beliefs, blatantly ignores the full impact of workplace savings, disregards the reality that deferrals are temporary -- and kills a lot of trees in the process.... [T]he 401(k) is the only way we have ever gotten working Americans to save for retirement. Those who have access to those programs are doing well. The only problem with the 401(k) is that not enough working Americans have access to one. "  MORE >>

Data 'Points'

Executive Compensation and Nonqualified Plans

Leaving Your Job? Pay Attention to Your Stock Options

"If you have stock options with the company you are leaving, you should quickly act (or not act) with your eyes wide open. Your company is not obligated and may not remind you about any stake you are entitled to, much less the expiration date of the award."  MORE >>

Foley & Lardner LLP

Employee Benefits Jobs

View job as Retirement Plan Administrator
for Fulton Bank / Fulton Financial Advisors Retirement Plan Administrator

Fulton Bank / Fulton Financial Advisors


View job as Retirement Plan Administrator
for Fulton Bank / Fulton Financial Advisors

View job as Retirement Plan Administrator
for Benefit Consultants Group Retirement Plan Administrator

Benefit Consultants Group

Cherry Hill NJ

View job as Retirement Client Services Manager
for Newport Retirement Client Services Manager


Remote / Folsom CA / Chicago IL / Saint Petersburg FL / Lake Mary FL / La Crosse WI / Charlotte NC / Mobile AL / Overland Park KS / Dallas TX / West Des Moines IA / Los Angeles CA / Pittsburgh PA

View job as Retirement Relationship Manager - 401(k), 403(b)
for Newport Retirement Relationship Manager - 401(k), 403(b)


Remote / Folsom CA / Saint Petersburg FL / Lake Mary FL / Chicago IL / West Des Moines IA / Overland Park KS / Minneapolis MN / Lake Mary FL / Charlotte NC / Greensboro NC / De Pere WI / La Crosse WI / AZ / CO / GA / MA / MD / MI / MO / NJ / NY / OH / SC / TX / VA

View job as Investment Consultant Analyst / Associate Consultant - Fiduciary Consulting Services
for Newport Investment Consultant Analyst / Associate Consultant - Fiduciary Consulting Services


Lake Mary FL / Saint Petersburg FL

View job as Account Manager, Retirement Plans
for Human Interest Account Manager, Retirement Plans

Human Interest

Remote / San Francisco CA

View job as Retirement Plan Administrator
for Prime Pensions Northwest, LLC Retirement Plan Administrator

Prime Pensions Northwest, LLC

Eugene OR

View job as Defined Benefit Administrator - Experienced
for MGKS Defined Benefit Administrator - Experienced


Remote / Phoenix AZ

View job as Senior Retirement Analyst
for Dunbar, Bender & Zapf, Inc. Senior Retirement Analyst

Dunbar, Bender & Zapf, Inc.

Remote / Pittsburgh PA

Selected New Discussions

Calculating Net Income for LLC/S Corp with a New York Pass-Through Entity Tax Election

"How should the net LLC income be calculated after back outs for an LLC that made the PTET election for 2021? Example: $100,000 LLC income, PTET payment = $6,850, net LLC income flows through to K-1 = $93,150. Is the SS/Medicare tax ($6,580.84) deducted from $93,150 along with the employer profit sharing contribution ($17,313.83) for the member with adjusted net income of $69,255.33? If not, then what is the way to approach this calculation when a PTET election is made?"

BenefitsLink Message Boards

In-Service Withdrawal Was Not Authorized by Plan Document

"So, the 100% owner, who is over age 65 (NRA), takes a distribution from the plan. Problem is that the plan does NOT permit in-service distributions, even at NRA. I THINK this overpayment can be corrected under SCP with a retroactive amendment to conform plan terms to the operation of the plan. I haven't delved deeply into Rev. Proc. 2021-30 yet -- just going from memory. But I wonder if anyone has dealt with this recently and has an opinion?"

BenefitsLink Message Boards

Press Releases

Corporate Insight Announces Annual User Experience Awards in Investing and Retirement, Highlighting Rise of Mobile Apps and Holistic Financial Planning

Corporate Insight

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

What's New? 457 and 403(b) Plans Compliance

January 25, 2022 WEBCAST

American Bar Association Joint Committee on Employee Benefits [JCEB]

Last Issue's Most Popular Items

Surviving a DOL Cybersecurity Audit: A Preparedness Checklist for Plan Fiduciaries

McDonald Hopkins, via Bloomberg Tax's Tax Management Compensation Planning Journal

DOL Increases Civil Money Penalties for 2022

Thomson Reuters Practical Law

Can You Afford to Retire Early?

Charles Schwab

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

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