logo logo

Retirement Plans Newsletter

February 10, 2022

11 New Job Opportunities 11 New Job Opportunities


[Official Guidance]

Text of SEC Proposed Rule: Cybersecurity Risk Management for Investment Advisers, Registered Investment Companies, and Business Development Companies (PDF)

243 pages. "The [SEC] is proposing new rules.... to require registered investment advisers and investment companies to adopt and implement written cybersecurity policies and procedures reasonably designed to address cybersecurity risks. The Commission also is proposing a new rule and form under the Advisers Act to require advisers to report significant cybersecurity incidents affecting the adviser, or its fund or private fund clients, to the Commission."  MORE >>

U.S. Securities and Exchange Commission [SEC]

[Guidance Overview]

SEC Proposes New Cybersecurity Rules for RIAs and Funds

"Currently, RIAs, investment companies and business development companies must comply with various rules that may implicate their cybersecurity practices, such as books-and-records, compliance, and business continuity regulations, but there is no specific cybersecurity program. Building on those requirements, the SEC has proposed new rule 206(4)-9 under the Advisers Act and new rule 38a-2 under the Investment Company Act."  MORE >>

American Retirement Association [ARA]

[Guidance Overview]

IRS Issues First Cumulative List of Changes for Preapproved 403(b) Plans

"This is the first cumulative list specifically for preapproved 403(b) plans.... The new list covers changes applicable to 403(b) plans since Oct. 1, 2012.... The on-cycle submission period begins May 2, 2022, and ends May 1, 2023. After IRS has completed its review of all applications, employers will have approximately two years to adopt a newly approved plan document."  MORE >>


[Guidance Overview]

New IRS Rules Help Young IRA Owners

"IRS Notice 2022-06 ... has dramatically improved the ability of IRA owners under age 59 and a half to withdraw penalty-free money from their accounts using a 'series of substantially equal periodic payments,' or SOSEPP. Though new longer life expectancies slightly reduce the maximum initial payment under a SOSEPP, a substantial increase in the permitted interest-rate assumption (to 5%) significantly increases it."  MORE >>

Natalie Choate, via Morningstar

[Guidance Overview]

IRS Updates Safe Harbor Methods for 'Substantially Equal Periodic Payment' Exception

"[T]he primary impact of this relief will be in the IRA and 403(b) markets, although participants in qualified plans may be affected too. Plan sponsors and recordkeepers should implement these changes, choosing among the available compliance options -- and consider whether to affirmatively notify current account holders receiving payments before age 59½ of the opportunity to modify the distribution stream."  MORE >>

Groom Law Group

Alert (High Risk Issue) icon District Court: 'Heightened Risk of 401(k) Plan Litigation' Is Not a Basis to Shield Attorney-Fiduciary Communications

"The district court ordered the communications to be produced and differentiated between attorney review based on pending or anticipated litigation, which is privileged, and review based on 'a general fear of liability,' which is not privileged. The court was 'not persuaded that the prevalence of other 401(k) litigation during the relevant time period is a specific enough litigation risk' to trigger the protection of attorney-client privilege[.]" [In re GE ERISA Litigation, No. 17-12123 (D. Mass. Jan. 26, 2022).  MORE >>

Jackson Lewis P.C.

Second Lawsuit Challenges DOL on Investment Advice Rule

"A second lawsuit in one week challenges the [DOL's] authority to enforce its Investment Advice Rule governing transactions involving retirement account dollars.... The trade group claimed the guidance essentially 'rewrote' the regulation, in the process, imposing burdensome documentation and investigation requirements on their members.' [American Securities Ass'n. v. DOL, No. 22-0330 (M.D. Fla. complaint filed Feb. 9, 2022)]  MORE >>

Supreme Court Reaffirms Duty to Continuously Monitor Plan Investments and Service Provider Fees

"[T]he Supreme Court did not determine the scope of the fiduciaries' monitoring responsibilities. It also did not address the issue of whether the plan's use of multiple recordkeepers (as is not unusual for 403(b) plans) caused the plan to overpay for administrative services." [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022)]  MORE >>


January 401(k) Trades Reach Highest Levels in a Year

"[W]ith the backdrop of a volatile stock market, 401(k) investors traded an average of 0.017% of balances daily -- the highest levels in a year. The month saw five above-normal trading days, which ... is a stark increase from the three days seen in all of 2021. Investors favored moving assets into fixed income over equity 13 out of 20 days, and total transfers as a percentage of starting balance stood at 0.15%."  MORE >>


Reflecting Non-Financial Assets in Your Asset Allocation Strategy

"Ignoring the value of non-risky non-financial assets like Social Security, pensions and life annuities can result in significantly overstating the actual amount of investment risk a household may actually be taking. On the other hand, an asset allocation strategy that does not consider funding of Essential Expenses with non-risky investments may understate household investment risk."  MORE >>

Ken Steiner, FSA Retired

Alternative Investments in Defined Contribution Plans (PDF)

43 presentation slides. "The types of alternative investments discussed are: Private Real Estate, Hedge Funds and Private Equity.... This presentation also details current thinking as to the Benefits, Considerations and Challenges of offering alternative investments in DC plans. Potential next steps are provided for fiduciaries considering implementing alternatives in their plan. The summary assessment includes a look at current usage as well as possible future usage of alternative investments in defined contribution plans."  MORE >>

Defined Contribution Institutional Investment Association [DCIIA]

Continued Uncertainty in 2022 Fiduciary Liability Insurance Market

"In response to the increase in claims, insurance carriers universally adjusted Fiduciary Liability insurance terms and conditions. Actions taken include reducing limits offered, increasing retentions and increasing both primary and excess premiums. Additionally, carriers addressed excessive fee exposure by adding separate retentions for excessive fee or class action claims, sub limits for excessive fee claims and/or excessive fee exclusions. Several carriers limited their Fiduciary Liability appetite to excess only placements."  MORE >>


Executive Compensation and Nonqualified Plans

[Guidance Overview]

Reopening of the Comment Period for Pay for Performance: Additional Disclosures May Be on the Way

"[T]he SEC is considering whether registrants should be required to disclose additional performance measures ... specifically [1] pre-tax net income, [2] net income and [3] a measure selected by the registrant that represents the most important performance measure used to link compensation actually paid during the fiscal year to company performance.... [T]he reopening release requests comment on the application to smaller reporting companies of the 2015 proposal and the additional disclosure requirements discussed in the reopening release."  MORE >>

Debevoise & Plimpton LLP

[Guidance Overview]

SEC Proposes Much More Extensive 'Pay for Performance' Disclosures

"[The SEC] proposal last week to greatly expand what companies would include in their Dodd-Frank 'pay versus performance' disclosure also would require an extensive disclosure of the many performance measures that are most important to companies. Requiring a tabular disclosure of pay measures would prompt companies to reassess how they present the details of their pay programs in their CD&As, so that some companies may decide that a more extensive or different pay discussion is warranted."  MORE >>

Willis Towers Watson

Employee Benefits Jobs

View job as Retirement Plan Administrator/Consultant
for Heartland Consulting Group, Inc. Retirement Plan Administrator/Consultant

Heartland Consulting Group, Inc.


View job as Retirement Plan Administrator/Consultant
for Heartland Consulting Group, Inc.

View job as Employee Benefits, Executive Compensation and ERISA Attorney
for Smith, Gambrell & Russell, LLP Employee Benefits, Executive Compensation and ERISA Attorney

Smith, Gambrell & Russell, LLP

Atlanta GA / Jacksonville FL

View job as Employee Benefits, Executive Compensation and ERISA Attorney
for Smith, Gambrell & Russell, LLP

View job as Plan Consultant
for BPAS Plan Consultant


Remote / Syracuse NY

View job as Plan Consultant
for BPAS

View job as ESOP Administrator
for Blue Ridge ESOP Associates ESOP Administrator

Blue Ridge ESOP Associates


View job as Defined Benefits Administrator
for California Benefit Planners Defined Benefits Administrator

California Benefit Planners

Pasadena CA

View job as Defined Contribution Plan Administrator
for Pension Planning Consultants, Inc. Defined Contribution Plan Administrator

Pension Planning Consultants, Inc.

Remote / Albuquerque NM / AZ

View job as VP Sales Consultant (Retirement industry)
for FuturePlan, by Ascensus VP Sales Consultant (Retirement industry)

FuturePlan, by Ascensus

Remote / Charlotte NC / SC

View job as Employee Benefits/ERISA Attorney
for Arnall Golden Gregory LLP Employee Benefits/ERISA Attorney

Arnall Golden Gregory LLP

Atlanta GA

View job as Education Consultant
for Alerus Education Consultant



View job as Retirement Contribution Processor
for Alerus Retirement Contribution Processor


Remote / MN / ND

View job as Retirement Program Manager
for Stanford University Retirement Program Manager

Stanford University

Redwood City CA

Selected New Discussions

Employee Left with Less Than 500 Hours -- Exclude from Cross Testing?

"A standardized prototype is deemed to pass and allows you to give nothing to an employee who terminated with less than 500 hours. I have a volume submitter document that has each person in their own group. Can I exclude this employee form testing?"

BenefitsLink Message Boards

Is ESOP Stock in Participant's Account Counted in '5% Owner' Determination?

"A plan participant has 3% stock ownership in the company sponsoring the plan. If you add the stock he is entitled to under their ESOP, though, he would have just over 5%. Would stock ownership under an ESOP be considered in determining who is a greater than 5% owner for purposes of having to take an RMD?"

BenefitsLink Message Boards

Top Heavy Minimum Contribution for Partners -- Who Pays?

"I have a law firm that has approximately 25 partners. A few are more than 1% owners but their net earned income is below $150,000, so they're non-key. Is the law firm required to fund the top heavy minimum, or is that an obligation of the partner who is a non-key employee?"

BenefitsLink Message Boards

RMD Calculation -- Use the Old Table or the New Table?

"Plan year ends September 30, 2021. Participant's DOB is 2/1/1940. What factor should I use? The old table (17.9 years) or the new table (19.3 years) to calculate the RMD? I'm using the value of the plan's assets as of 9/30/2021."

BenefitsLink Message Boards

Press Releases

Micruity Raises $5.1M to Pensionize 401(k) Plans


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Hot Topics in Employee Benefits and Executive Compensation: What's New in 2022?



Fiduciary Status & IRA Rollovers: The Advisor Impact of PTE 2020-02

February 22, 2022 WEBCAST

Wealth Management

Why Employers Shouldn't Forget About Executive Compensation

March 10, 2022 WEBCAST


Investment Options in DC Plans

April 27, 2022 WEBCAST

Conference of Consulting Actuaries

Last Issue's Most Popular Items

A Brief Preview of 2022 Required Changes for Retirement Plans

Faegre Drinker

New Developments Pave the Way for Private Equity in Retirement Plan Investments (PDF)

King & Spalding, via Law360

Second Circuit Finds No Successor Liability for ERISA Withdrawal Where Employer Did Not Acquire Unionized Facility or Employees


Unsubscribe  |   Change Email Address

Search Past Issues   |   Privacy Policy

Submit an Article   |   Contact Us   |   Advertise Here

Copyright 2021, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

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

Links to web sites other than and are offered as a service to our readers. We are not involved in their production and are not responsible for their content.