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Retirement Plans Newsletter

February 21, 2022

8 New Job Opportunities 8 New Job Opportunities


It's [Not] Too Late Baby, Now It's [Not] Too Late... for Required Minimum Distributions

"Late payment of required minimum distributions (RMDs) is an ongoing source of plan sponsor headaches.... If the RMDs extend over many years, VCP might be the only avenue available for the sponsor to fix the error and maintain Plan qualification.... If RMD failures do not extend beyond the past three years, the sponsor can correct using the self-correction program (SCP)."  MORE >>

Holland & Hart LLP

Recordkeeping Fee Suit Questions Revenue Sharing Arrangement

"Using arguments that closely resemble other lawsuits filed by plaintiffs represented by the increasingly active law firm Capozzi Adler, the plaintiffs here allege that the defendants breached the duties they owed to the plan and to the plaintiffs by failing to adequately monitor and control the plan's recordkeeping costs." [Fritton v. Taylor Corporation, No. 22-415 (D. Minn. complaint filed Feb. 14, 2022)]  MORE >>

PLANSPONSOR; free registration may be required

ERISA Fiduciary Prudence Does Not Necessarily Reflect Modern Portfolio Management

"The demands of ERISA prudence do not reflect modern portfolio management, which seeks to manage risk by examining the portfolio as a whole. Rather, ERISA fiduciaries have a duty to make available only prudent investment choices to plan participants investing their own accounts. Investment choices deemed imprudent are not rehabilitated by looking at all the investment options available to participants as a whole." [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022)]  MORE >>

Burns Levinson

Proposed Legislation Backs Automatic Reenrollment

"The [Auto-Reenroll Act of 2022 (HR 6782)] would enhance auto-enrollment plans by amending safe harbors in ERISA and the Internal Revenue Code to encourage plan sponsors to reenroll non-participants at least once every three years, unless the individual affirmatively opts out again."  MORE >>

American Retirement Association [ARA]

Benefits in General

Second Circuit Upholds Plan's Denial of Severance Benefits Based on Layoff Definition Applying Section 409A

"The court concluded that the plan correctly interpreted the term 'layoff' as excluding terminations based on disability, and that this interpretation was consistent with regulations under Section 409A (which were incorporated in the plan's definition of layoff)." [Soto v. Disney Severance Pay Plan, No. 20-4081 (2d Cir. Feb. 16, 2022)]  MORE >>

Thomson Reuters Practical Law

Executive Compensation and Nonqualified Plans

What Happens When Proxy Advisors Say No to Executive Compensation?

"ISS and GL, the two most influential proxy advisory firms, may significantly impact a company's [say-on-pay (SOP)] vote with their recommendations.... [W]ith Against recommendations from both ISS and GL increasing, Say on Pay approvals are decreasing.... Although SOP support typically decreases about 24 percent with an ISS Against recommendation, the range of voting outcomes can vary widely."  MORE >>

Farient Advisors

Employee Benefits Jobs

View job as Client Relations Manager/Compliance Analyst
for Alliance Benefit Group of Houston, Inc. Client Relations Manager/Compliance Analyst

Alliance Benefit Group of Houston, Inc.

Remote / Houston TX

View job as Client Relations Manager/Compliance Analyst
for Alliance Benefit Group of Houston, Inc.

View job as Documents Specialist
for Newport Documents Specialist


Mobile AL / Minneapolis MN / Pittsburgh PA

View job as Sr. Actuarial Analyst
for Newport Sr. Actuarial Analyst


Chicago IL / Dallas TX

View job as ESOP Analyst
for Newport ESOP Analyst


Remote / MI

View job as ERISA Specialist
for Newport ERISA Specialist


Minneapolis MN

View job as Document Specialist
for Compass Document Specialist


Remote / Stratham NH

View job as Benefits Advisor (English and/or Spanish) (Recent Graduates)
for Employee Benefits Security Administration [EBSA] Benefits Advisor (English and/or Spanish) (Recent Graduates)

Employee Benefits Security Administration [EBSA]

Remote / Atlanta GA

View job as Management Analyst
for Pension Benefit Guaranty Corporation [PBGC] Management Analyst

Pension Benefit Guaranty Corporation [PBGC]

Remote / Washington DC

Selected New Discussions

Compensation Used For EBAR Calculation

"I'm having a tough time finding it in our document, but are you allowed to exclude compensation received prior to becoming a plan participant in a cash balance plan (specifically in the EBAR calculation)? We have it set that way for the Profit Sharing Plan. I'm just wanting to see if we could for the cash balance plan as well. I'm leaning 'no'."

BenefitsLink Message Boards

Ugly Divorce, Domestic Violence Restraining Order Against Alternate Payee

"I'm told by the attorney who retained me to draft a QDRO that the participant/petitioner's address cannot be in the QDRO due to a domestic violence restraining order against the Alternate Payee/Respondent. Will the plan administrator qualify the DRO without the participant's address anywhere?"

BenefitsLink Message Boards

Can Employer Contribution Formula Be $2.50 Per Hour Worked?

"Is it permissible to have a DC plan in which employer contributions are a flat amount per hour worked, e.g., $2.50 per hour? I can't find anything that specifically prohibits this approach. Employer is trying to move away from a union pension with an hourly accrual rate."

BenefitsLink Message Boards

Sponsor Wants to Allocate Contributions to Terminated Participants Despite Last-Day Rule in Document

"I have a client that wants to fund a discretionary profit-sharing contribution and would like to include terminated participants. The plan has the last day rule. Can this be done by adding language to the declaration? It won't taking any benefit away from active participants such as lowering the allocations they are receiving."

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Common 401(k) Plan Errors


Nova 401(k) Associates

Last Issue's Most Popular Items

409A Checklist for Employment Agreements

The Wagner Law Group

PBGC Updates Selection Criteria for Standard Termination Audits


IRS Issues Revised 2022 Form W-4P and New Form W-4R


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

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