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Retirement Plans Newsletter

April 15, 2022

5 New Job Opportunities 5 New Job Opportunities

 

[Guidance Overview]

Higher Level of Fiduciary Oversight May Be Required for 401(k) Plan Brokerage Windows

"[P]lan fiduciaries are still bound by ERISA's duty of prudence and should take into account the nature and quality of services that will be provided in connection with the brokerage window, and whether to offer the window at all. The DOL's recent commentary regarding cryptocurrency in the brokerage window may be suggesting that the fiduciaries also have duties regarding the design of the window and imposition of limits on available investments."  MORE >>

Holland & Hart LLP

[Guidance Overview]

New Crypto Guidance Rewrites Rules on 401(k) Brokerage Windows

"Brokerage windows historically have been mostly off-limits to DOL regulators -- the product of an unofficial covenant between the government and plan sponsors that keeps employers off the hook for poor investments and lets workers steer their own investments inside tax-advantaged plans. That could change with the [DOL's] new playbook for cryptocurrency in 401(k)s."  MORE >>

Bloomberg Law

Third Circuit Joins Sister Circuits in 'Employer' Definition Under Multiemployer Pension Plan Amendments Act

"[T]he U.S. Court of Appeals for the Third Circuit has held that, under [the Multiemployer Pension Plan Amendments Act of 1974 (MPPAA)], a MPPAA employer includes any entity that is obligated to contribute to a plan as either a direct employer or in the interest of one. Adopting this consensus definition of other circuit courts, the court upheld a potential withdrawal liability award in an amount more than double the amount the contractor earned for seven-plus years' work on the related project." [J. Supor & Son Trucking & Rigging Co. v. Trucking Emps. of N. Jersey Welfare Fund, No. 20-3286 (3d Cir. Apr. 5, 2022)]  MORE >>

Jackson Lewis P.C.

SECURE 2.0 Auto-Enrollment Feature Problematic for Multiemployer Plans

"One feature of the bill that should be concerning to plan sponsors of multiemployer plans is the mandatory automatic enrollment provision in 401(k) Plans. While this is a laudable provision and is much needed as it will get more Americans to save for retirement, it would create significant issues from an administration perspective for a majority of multiemployer plans."  MORE >>

Milliman

When Recordkeepers Merge (PDF)

"Businesses that provide recordkeeping services to defined contribution retirement plans are merging at a dizzying rate. What considerations should plan sponsors resolve when a competitor or aggregator acquires their recordkeeper or third-party administration firm?"  MORE >>

Roland Criss, via Journal of Compensation and Benefits

Defined Contribution Plan Participants' Activities, 2021 (PDF)

20 pages. "Defined contribution (DC) plan withdrawal activity in 2021 remained low, although it was slightly higher than the activity observed in recent years.... Only 2.2 percent of DC plan participants stopped contributing in 2021, compared with 2.3 percent in 2020 and 3.4 percent in 2009.... At the end of December 2021, 12.5 percent of DC plan participants had loans outstanding, compared with 14.8 percent at year-end 2020, and 16.1 percent at year-end 2019."  MORE >>

Investment Company Institute [ICI]

[Opinion]

U.S. Chamber of Commerce Comment Letter to DOL on Compliance Assistance Release No. 2022-01: 401(k) Plan Investments in Cryptocurrencies

"[A]ny regulation of fiduciary investment decisions should be neutral with respect to the type of investment and instead focus on a prudent process. By singling out cryptocurrency for investigation and stating that fiduciaries must be prepared to 'square their actions' of permitting cryptocurrency investments with their duties of prudence, EBSA is at best putting a chilling effect on such investments and at worst condemning them.... EBSA's warning that plan fiduciaries that 'allow' cryptocurrency in brokerage windows will need to square that with their duty of prudence not only is contrary to how brokerage windows have been treated in the past, but likely impossible to defend."  MORE >>

U.S. Chamber of Commerce

Benefits in General

[Opinion]

Letter from to DOL Industry Associations Concerned About DOL's Increasing Use of Subregulatory Guidance (PDF)

"[We] are troubled by what we perceive to be a trend at EBSA away from rulemaking based on a robust notice and comment process, including review by the Office of Information and Regulatory Affairs (OIRA). We are very aware that the line between helpful sub-regulatory guidance and indirect rulemaking is not a clear one. But we respectfully suggest that recent sub-regulatory guidance has been more in the nature of rulemaking in need of notice and comment and OIRA review, such as with respect to recent best practices guidance."  MORE >>

American Benefits Council and 10 Other Employer and Industry Associations

Employee Benefits Jobs

View job as Senior Manager, Pre Retirement
          for GuideStone Financial Resources Senior Manager, Pre Retirement

GuideStone Financial Resources

Dallas TX

View job as Senior Manager, Pre Retirement
          for GuideStone Financial Resources

View job as Senior Manager, Retirement Customer Solutions
          for GuideStone Financial Resources Senior Manager, Retirement Customer Solutions

GuideStone Financial Resources

Dallas TX

View job as Senior Manager, Retirement Customer Solutions
          for GuideStone Financial Resources

View job as Benefits Program Strategic Analyst 4
          for University of California Office of the President Benefits Program Strategic Analyst 4

University of California Office of the President

Remote / Oakland CA

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

Prime Pensions Northwest, LLC

Remote

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

View job as Plan Administration Team Leader, Production
          for The Retirement Advantage, Inc. (TRA, Inc.) Plan Administration Team Leader, Production

The Retirement Advantage, Inc. (TRA, Inc.)

Remote

View job as Plan Administration Team Leader, Production
          for The Retirement Advantage, Inc. (TRA, Inc.)

Selected New Discussions

Member Leaves Controlled Group; Results in a Partial Termination?

"One company in a controlled group got sold. The new employer does not have a plan, nor does it want one. What happens to the folks in the old employer who were in the plan? Numbers-wise, this is not a partial plan term -- 6 participants out of about 85. So, do these people have to be 100% vested? I would think not, but just want to make sure."

BenefitsLink Message Boards

Prospective Client Wants Us to Administer a ROBS Plan

"We have a prospective client that wants our help in administering their ROBS plan. Our firm has no experience in administering these types of plans. Can anyone with experience tell me what goes into the administration and 5500 for this type of plan that's beyond what is normal for a regular 401k plan?"

BenefitsLink Message Boards

Can Designated Beneficiary Waive Right to Distribution?

"Deceased participant. Spouse is the primary beneficiary. Can she waive her right as the primary thus passing the benefit onto the secondary beneficiaries (the kids)?"

BenefitsLink Message Boards

Press Releases

Kantor and Kantor, LLP Hires on Scott M. Lempert, Esq. as One of Their New Partners for 2022

Kantor & Kantor LLP

DOL Announces Leadership, New Members to Advisory Council on Employee Welfare, Pension Benefit Plans for 2022

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

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Cryptocurrency in 401(k) Plans

RECORDED

Williams Mullen

Employee Benefits in Mergers and Acquisitions National Institute 2022

May 17, 2022 WEBCAST

American Bar Association Joint Committee on Employee Benefits [JCEB]

Last Issue's Most Popular Items

IRS Plan Document Restatement Cycles Clarified

ASC

IRS Issues Proposed Regs for Required Minimum Distributions Under the SECURE Act

The Wagner Law Group

U.S. House Passes Significant Retirement Bill

Ascensus

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

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