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Retirement Plans Newsletter

April 8, 2022

11 New Job Opportunities 11 New Job Opportunities

 

[Official Guidance]

Text of DOL Extension of Comment Period on Proposed Regs for Procedures Governing the Filing and Processing of Prohibited Transaction Exemption Applications (PDF)

"The [DOL] is extending the comment period for a proposed rule that would update, clarify, and supersede the Department's current regulation governing the filing and processing of applications for administrative exemptions from the prohibited transaction provisions of [ERISA], the Internal Revenue Code ... and the Federal Employees' Retirement System Act of 1986 (FERSA).... [The DOL] is extending the comment period for an additional 45 days, through May 29, 2022."  MORE >>

Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL]

[Guidance Overview]

IRS Rights the Apple Cart for Multiple-Employer Plans

"New IRS proposed regulations would implement the statutory exception to the 'one bad apple' rule for defined contribution (DC) multiple-employer plans (MEPs), as provided in the [SECURE] Act ... The proposal sets conditions for MEPs to use the exception and provides a framework to address a participating employer's failures, including detailed notice requirements. The proposal also explains the administrative duties of a pooled plan provider[.]"  MORE >>

Mercer

[Guidance Overview]

IRS Issues Proposed Regs to Give SECURE Act MEPs 'Bad Apple' Relief

"The preamble to the proposed regulation cautions participating employers that the 413(e) plan is required to pursue and implement the spinoff option, or its alternatives, with an unresponsive employer. It also reminds the unresponsive employer that it, and not the plan or any other employer in the plan, will be liable for any liabilities with respect to the plan attributable to employees of that employer and their beneficiaries."  MORE >>

The Wagner Law Group

Third Circuit Follows Other Circuits in Defining 'Employer' Under MPPAA

"The Third Circuit noted that the MPPAA does not define employer and that the dictionary meaning of 'employer' as 'one who employs servants, workmen, etc. for wages' does not necessarily apply to J. Supor who may have employed the drivers only indirectly.... The court decided to follow seven of its sister circuits in adopting a more technical definition of employer, which draws on the definition of employer from Title I of ERISA[.]" [J. Supor & Son Trucking & Rigging Co. v. Trucking Emps. of N. Jersey Welfare Fund, No. 20-3286 (3d Cir. Apr. 5, 2022)]  MORE >>

Roberts Disability Law

Plan Sponsors Might Want to Restrict Service Provider Use of Participant Data for Purposes Unrelated to the Plan

"There is no definitive case law or other legal guidance prohibiting or restricting service providers from using plan participants' personal information to cross-sell financial products.... [1] Excessive fee litigation ... [2] Fiduciary duty and personal data ... [3] DOL audits ... [4] DOL fiduciary rule ... [5] State privacy laws ... [6] Risk mitigation."  MORE >>

Ogletree Deakins

The Role of White Label Funds in Today's Defined Contribution Plans

"Using multi-manager white label investment funds in a defined contribution (DC) plan's core lineup can potentially bring significant diversification and return advantages over conventional single-manager funds."  MORE >>

Willis Towers Watson

Corporate Pension Funded Ratio Hits 15-Year High

"Between the end of February and March, the funded ratio for the Milliman 100 PFI climbed from 102.5% to 105.2% and the funded status surplus grew from $43 billion to $86 billion. March caps off the fourth consecutive month of discount rate increases; the rise in discount rates are driving the funding improvements both in March and for the quarter."  MORE >>

Milliman

Americans' Views on Defined Contribution Plan Saving, 2021

"Survey responses indicated that Americans value the discipline and investment opportunity that 401(k) plans represent and that individuals were largely opposed to changing the tax preferences or investment control in those accounts. A majority of respondents also affirmed a preference for control of their retirement accounts and opposed proposals to require a portion of retirement accounts to be converted into a fair contract promising them income for life from either the government or an insurance company."  MORE >>

Sarah Holden, Daniel Schrass, Michael Bogdan and Jason S. Seligman, via SSRN

Employees Need Your Help to Achieve Retirement Readiness

"According to research conducted by Prudential in 2019, for each year an employee delays retirement, the cost to an employer can be more than $50,000 per employee. Additional costs can come through: Increased health care costs; Lower productivity; Higher salaries. For a company with 500 employees, the cost is estimated at $2.25 million if only 15 workers delay retirement for three years."  MORE >>

USI Consulting Group

Differences Between Individual Custodial Agreements and a Group Custodial Agreement

"If an employer chooses to allow individual custodial agreements in their plan, each approved investment provider would have their own individual agreement that would govern the participants account under the plan.... [If] an employer [then] chooses to eliminate an investment provider ... [t]he employer cannot force the participant to move their existing assets from the deselected provider to an approved provider.... Group custodial agreements name the employer (plan sponsor) as the agreement holder.... The employer has the right to choose and control who the investment provider is for the plan and the participant can choose what investments under the custodial agreement they want to invest."  MORE >>

National Tax-Deferred Savings Association [NTSA]

401(k), 403(b), 457(b): Why Are the Rules Different?

"Like Neapolitan ice cream, 401(k), 403(b), and 457(b) are just three flavors of the same product. [A] chart summarizes some of the main differences between the three."  MORE >>

Belfint Lyons Shuman

What Share of Noncovered Public Employees Will Earn Benefits That Fall Short of Social Security?

"Medium-tenure workers who spend the early part of their career in noncovered government employment are at most risk. These workers represent only a fraction of the noncovered workforce so that, ultimately, about 16 percent of noncovered workers -- representing between 750 thousand to 1 million employees annually -- could be at risk."  MORE >>

Center for Retirement Research at Boston College

Executive Compensation and Nonqualified Plans

Second Circuit Highlights Key Definitional Aspects of Involuntary Termination Under 409A

"The court, quoting the Plan's Section 409A interpretive language, concluded that, '… the Plan Administrator is directed to interpret Plan terms in conformance with Section 409A and its exemptions from taxation.' As such, the court ruled that the Plan administrator was not arbitrary and capricious in determining that Soto [1] had not experienced a qualifying layoff since she was not 'willing and able' to return to work due to her disability and [2] had not experienced a termination entitling her to Plan benefits." [Soto v. Disney Severance Pay Plan, No. 20-4081 (2d Cir. Feb. 16, 2022)]  MORE >>

Williams Mullen

Employee Benefits Jobs

View job as Pension Analyst
          for Dynamic Pension Services, Inc. Pension Analyst

Dynamic Pension Services, Inc.

Remote / Dayton OH

View job as Pension Analyst
          for Dynamic Pension Services, Inc.

View job as Inquisitive DC Account Manager
          for Nova 401(k) Associates Inquisitive DC Account Manager

Nova 401(k) Associates

Remote / Houston TX / Scottsdale AZ

View job as Inquisitive DC Account Manager
          for Nova 401(k) Associates

View job as Relationship Manager
          for Pentegra Relationship Manager

Pentegra

Remote

View job as Relationship Manager
          for Pentegra

View job as Pension Compliance Administrator
          for Associated Pension Consultants Pension Compliance Administrator

Associated Pension Consultants

Remote

View job as Pension Compliance Administrator
          for Associated Pension Consultants

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

California Benefit Planners

Pasadena CA

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

Blue Ridge ESOP Associates

Remote

View job as ESOP Administrator
          for Blue Ridge ESOP Associates

View job as Retirement Account Administrator, Senior
          for Alerus Retirement Account Administrator, Senior

Alerus

Remote

View job as Retirement Account Administrator, Senior
          for Alerus

View job as Cash Balance Retirement Account Administrator
          for Alerus Cash Balance Retirement Account Administrator

Alerus

Remote / MI / MN / ND / NH

View job as Cash Balance Retirement Account Administrator
          for Alerus

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

Employee Benefits Security Administration [EBSA]

Remote / Fort Lauderdale FL / Atlanta GA

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

View job as Implementation Specialist
          for Nova 401(k) Associates Implementation Specialist

Nova 401(k) Associates

Remote / Houston TX / Scottsdale AZ

View job as Implementation Specialist
          for Nova 401(k) Associates

View job as Client Transition Supervisor
          for Alerus Client Transition Supervisor

Alerus

Remote

View job as Client Transition Supervisor
          for Alerus

Selected New Discussions

Small Employer Failed to File a 2019 5500 and Received an IRS Letter

"The IRS letter suggested DFVC is an option if the DFVC requirements are met. The only requirement I could find is that the plan has not been contacted by the DOL about the late filing, which they have not, but the IRS has contacted them. Can they use the DFVC then in this instance?"

BenefitsLink Message Boards

Adding Union Employees to a 401(k) Plan -- Avoiding Plan Audit Requirement

"One of my clients is adding union employees to the company. It will take them over the 120 count. Is there a way to set a separate plan to avoid this. Although the same owner will own the company although he doesn't participate, still a controlled group because of it, so I'm thinking no, but am I missing a way to avoid this? BTW, it's a plain vanilla 401(k) plan."

BenefitsLink Message Boards

Press Releases

OneDigital Expands Senior Leadership Team with Appointment of Two New VPs

OneDigital

Ascensus Closes Newport Merger Agreement

Ascensus

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Managing Cybersecurity Risks in the Retirement Industry

April 13, 2022 WEBCAST

National Institute on Retirement Security [NIRS]

Last Issue's Most Popular Items

The Potential Impact of 401(k) Loan Default Protection

planadviser

The Dream 401(k) Plan Recordkeeper

ThinkAdvisor

DOL Issues 2022 Adjusted Penalty Amounts

Sapers & Wallack

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

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