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Retirement Plans Newsletter

February 28, 2022

5 New Job Opportunities 5 New Job Opportunities


[Official Guidance]

Text of PBGC Submission for OMB Approval: Request for Coverage Determination Form

"PBGC is proposing to add a new question to Part II inquiring about the number of eligible participants with no accrued benefit. This addition is intended to garner a more accurate count of a plan's participants. Finally, PBGC is amending Question 4 of Part III applicable to a plan seeking a determination as a substantial owners plan. Under the amendment, a plan will need to provide the dates when participants separated from service, in addition to dates and amounts of payment to them. This addition is intended to allow PBGC to properly count payees who may still be participants in a plan even after distributions have occurred."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

[Guidance Overview]

Are Your Employer 'Pick-Ups' Properly Documented?

"[E]mployee contributions to most governmental 401(a) plans ... generally will be made on an after-tax basis. One way that a governmental plan sponsor can change the tax treatment of such employee after-tax contributions (to make them pre-tax) is to 'pick them up' in accordance with Internal Revenue Code section 414(h)(2) and applicable IRS guidance."  MORE >>

Best Best & Krieger LLP

[Guidance Overview]

Best Execution Standard

"Registered broker/dealers (B/Ds) and investment advisers have long been required to comply with a 'best execution' standard when making trades for their clients. That obligation is now one of the conditions a financial institution and financial professional must meet to take advantage of [PTE 2020-02]. The failure to meet the standard will result in the loss of exemptive relief."  MORE >>

Groom Law Group, via planadviser; free registration required

[Guidance Overview]

Proposed RMD Regs Reflect SECURE Act Changes

"The proposed regulations would apply to determine RMDs for calendar years beginning on or after January 1, 2022. The proposed regulations on Section 1.402(c)-2 would apply for distributions on or after January 1, 2022. Additionally, the proposal related to excise taxes would apply for taxable years beginning on or after January 1, 2022."  MORE >>

Thomson Reuters Practical Law

The 'Fiduciary Responsibility Trinity': ERISA Fiduciary Law After the Hughes/Northwestern Decision

"The trinity is composed of three key ERISA related decisions -- Tibble v. Edison International, Brotherston v. Putnam Investments, LLC, and Hughes.... [T]he combined impact of the trinity decisions is that cases will now be decided based on their merits, not on legal fictions such as the 'apples and oranges' and 'menu of options' defenses. This should result in more protection for plan participants in the form of fewer dismissals of 401(k)/403(b) ... as long as the attorneys for plan participants properly plead such cases to meet SCOTUS' plausibility standard for pleading."  MORE >>

The Prudent Investment Fiduciary Rules

California’s Auto-Retirement Program Denied Supreme Court Review

"The U.S. Supreme Court declined to hear a case asking whether California's automatic retirement program for workers without employer-sponsored plans can coexist alongside [ERISA] ... The lawsuit by Howard Jarvis Taxpayers Association ... asked the court to strike down the CalSavers Retirement Savings Program as preempted by the federal ERISA statute." [Howard Jarvis Taxpayers Association v. California Secure Choice Ret. Savings Program, No. 20-15591 (9th Cir. May 6, 2021; cert. denied Feb. 28, 2022)]  MORE >>

Bloomberg Law

To Terminate or Not to Terminate: The Pension Question

"[S]ome plan sponsors with well-funded plans are happy to hang on to their plans. Reasons vary ... Yet to be seen is the success of retirees who spent their careers gathering assets under only defined contribution (DC) plans and their ability to turn those savings into a secure retirement.... Defined benefit plans are arguably more efficient at focusing retirement dollars to long-term employees.... there are defined benefit designs that can address employers' concerns."  MORE >>


Asset Allocation Explained

"This post describes a six-step asset allocation process, asset class components, factors to consider when developing an asset allocation strategy, portfolio rebalancing, 'need to knows' and research findings about asset allocation, and six take-away action steps."  MORE >>


Improving Retirement Readiness for Underrepresented Groups (PDF)

"[E]ight out of 10 companies say they are very likely or moderately likely to expand inclusion and diversity efforts in their retirement and financial wellbeing plans in 2022.... [T]his paper outlines specific plan features and strategies that can help bolster savings for underserved workers."  MORE >>

Alight Solutions

Retiring at 65 'Doesn't Make Sense Anymore'

"The Bureau of Labor Statistics released figures last year saying that number of people in the workforce over the age of 75 will double by the end of the decade. Meanwhile, the BLS predicts the number of people ages 16-to-24 will contract by about 7%. As a result, ... there will be a need to reframe conversations about retirement and Social Security."  MORE >>

Executive Compensation and Nonqualified Plans

[Guidance Overview]

Changes in IRS Form 1040 Affect Tax Returns Involving Stock Options, RSUs, ESPPs

"If you had income in 2021 from equity compensation, whether from stock option exercises, restricted stock/RSU vesting, or sales of company stock, this article explains what you need to know about IRS tax returns in the 2022 tax season."  MORE >>

Employee Benefits Jobs

View job as Plan Administrator
for BlueStar Retirement Services Inc. Plan Administrator

BlueStar Retirement Services Inc.


View job as Plan Administrator
for BlueStar Retirement Services Inc.

View job as 401(k) Plan Conversion Specialist
for Sentinel Benefits & Financial Group 401(k) Plan Conversion Specialist

Sentinel Benefits & Financial Group

Remote / Wakefield MA / MI

View job as 401(k) Plan Conversion Specialist
for Sentinel Benefits & Financial Group

View job as Employee Benefits Manager
for County of Sacramento Employee Benefits Manager

County of Sacramento

Sacramento CA

View job as Retirement Plan Consultant (RPC)
for Qualified Plan Consultants, LLC (QPC) Retirement Plan Consultant (RPC)

Qualified Plan Consultants, LLC (QPC)


View job as 401(k) Account Manager, Client Success
for Slavic401k 401(k) Account Manager, Client Success


Remote / Boca Raton FL

Selected New Discussions

Form 5500 -- Which Version to Use for Prior Filing?

"We have a strange situation. We prepared a 2018 delinquent Form 5500 for a large plan in December 2021 and the auditors assured us the opinion would be finalized and sent by 12/31/21 but they only sent in February 2022. The issue is the version of Form 5500. We had prepared it on the 2020 version which was the latest version available at the time. Now the 2021 version is available. Do we need to reenter data onto the 2021 version and submit, or is it fine to file on the 2020 version?"

BenefitsLink Message Boards

Accelerating Vesting of Early-Exercised Stock? (No Responses Yet; Can You Help?)

"Imagine that an employee at a startup is granted a number of ISOs, which are early-exercised with an 83(b). A few years later, with those partially vested, and the fair market value of the shares substantially higher, he comes to a shared agreement with the CEO of the company to increase his stock compensation. Is it possible to increase the rate at which the fully-exercised stock grant is vested, or would there need to be an additional grant issued at a different price to run concurrently? It's unclear to me how the early exercise would interact with 424(h)(3)(c). Were the ISOs 'options not immediately exercisable in full'?"

BenefitsLink Message Boards

Press Releases

Mutual of Omaha Launches Retirement Right Blueprint

Mutual of Omaha

NFP Acquires AFS Advisors, LLC, Expanding its Retirement Business

NFP Corp.

DCIIA Announces Retirement Research Center Executive Committee

Defined Contribution Institutional Investment Association [DCIIA]

Mike Stewart Joins OneAmerica as Employee Benefits Regional VP


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Introduction to 401(k) Plans for Plan Sponsors


Nova 401(k) Associates

Preparing for Long-Term Care Expenses in Retirement

May 17, 2022 WEBCAST


Last Issue's Most Popular Items

What's New in 2022 for 401(k)s: Disclosures for Participants About Lifetime Income


Is That 'Missing Form 5500' Email Legit?

American Retirement Association [ARA]

Don't Pay Twice: Monitor Payment of Cancelled, Reissued Qualified Plan Distributions

Morgan Lewis

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

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