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Retirement Plans Newsletter

April 18, 2022

2 New Job Opportunities 2 New Job Opportunities


[Official Guidance]

Text of EBSA Exemption for Certain Prohibited Transaction Restrictions Involving Credit Suisse Group AG

"This document is a notice of exemption issued by the [DOL] from certain of the prohibited transaction restrictions of [ERISA] and the Internal Revenue Code ... The exemption allows entities with specified relationships to Credit Suisse AG (CSAG) and Credit Suisse Securities (Europe) Limited (CSSEL) to continue to rely on the exemptive relief provided by Prohibited Transaction Class Exemption 84-14, notwithstanding the judgments of conviction against CSAG and CSSEL[.]"  MORE >>

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

[Guidance Overview]

Proposed RMD Regulations Would Give Some a Break from the 50% RMD Excise for Missed RMDs

"Of seemingly critical importance is beneficiary RMDs for 2021 and 2022, where the beneficiary is a designated beneficiary who inherited an account from a participant who died on/after the RBD, and that death occurred in 2020 or 2021.... For those who inherited accounts in 2021, annual RMDs would be required beginning for 2021. The IRS could issue a blanket waiver for these RMDs because of the confusion created by the SECURE Act language and the explanations provided in Publication 590-B."  MORE >>

Appleby Retirement Dictionary

Ninth Circuit Applies Hughes v. Northwestern Supreme Court Standard In Overturning Two Motion To Dismiss Cases

"Both cases were sent back to the lower courts for trial. These cases send the message to Federal District Courts in the Ninth Circuit ... that many excessive fee cases will have to be heard on the merits and not dismissed at the pleading stage."  MORE >>

Murphy Austin

DOL Issues New Cryptocurrency and Brokerage Window Guidance

"The DOL's stated desire to now ask plan sponsors to explain why crypto was part of a participant's self-directed account could open the door to an entirely new level of scrutiny for all self-directed investments. And could create an entirely new arena for potential plan sponsor liability from both federal regulators and plaintiff's attorneys."  MORE >>


Annuity Purchase Update, April 2022

"The average Annuity Purchase Interest rates are the highest since June 2019, with the average duration 7 rate at 3.14% and average duration 15 rate at 3.15%. The Pension Risk Transfer Market had a record first quarter and remains active with strong demands from Plan Sponsors requesting annuities.... Annuity Purchase Costs dropped significantly this month."  MORE >>

October Three Consulting

SFA Update: One Revision; One Withdrawal

"The PBGC Special Financial Assistance program for troubled multiemployer plans weekend update showed one plan withdrawing and reapplying immediately with another simply withdrawing.... [U]pdated summary of the 35 plans in the system -- 10 approvals and 25 under review."  MORE >>


Planning for Non-Recurring Expenses in Retirement

"When planning for retirement (in or near), it is important to anticipate what your expenses may be, both recurring and non-recurring. Researchers note that households may not anticipate incurring certain expenses and therefore, they may underfund their retirement goals or they may need to cut back on future discretionary expenses."  MORE >>

Ken Steiner, FSA Retired

Trends in Retirement and Retirement Income Choices by TIAA Participants: 2000–2018

"This paper documents trends over the last two decades in retirement behavior and retirement income choices by participants in TIAA, a large and mature defined contribution plan with a wide range of withdrawal options.... There is considerable variation in the elapsed time between the last contribution to and the first income draw from participants' plan accounts ... The data suggest that the RMD is becoming the de facto default distribution option for newly-retired TIAA participants."  MORE >>

National Bureau of Economic Research [NBER]; purchase required for full document

Benefits in General

OPM Targets Data and Benefits Education to Improve Equity in the Federal Workforce

"OPM said that it will focus its federal employee-focused efforts on a pair of education initiatives: improving financial literacy for young federal workers, and making it easier for feds to pick the health insurance plan that's best for them through the Federal Employee Health Benefits Program."  MORE >>

Government Executive

Employee Benefits Jobs

View job as DB/DC Consultant
          for Nova 401(k) Associates DB/DC Consultant

Nova 401(k) Associates

Remote / Houston TX / Scottsdale AZ

View job as DB/DC Consultant
          for Nova 401(k) Associates

View job as Retirement Account Analyst
          for Alerus Retirement Account Analyst


Remote / MN / ND

View job as Retirement Account Analyst
          for Alerus

Selected New Discussions

Loan Payments Stopped Due to COVID Slowdown

"A physician started his own practice, and rolled over money from his former employer's plan into a new plan. He promptly took a $40k loan. Made payments. COVID comes along and he suspended his payments. He forgot to re-start his payments so now the loan is in default. Can't we just distribute the remaining balance, issue a 1099-R and be done? Would it be an offset?"

BenefitsLink Message Boards

Company with No Pre-Existing 401(k) Acquires Company with Safe Harbor 401(k)

"We're getting ready to onboard Company X, who will be offering its employees a 401k for the first time. However, Company X acquired Company Y recently in a total stock purchase. Company Y has an existing Safe Harbor plan. Our belief is that Company X is now the sponsor of that plan. Is that correct?"

BenefitsLink Message Boards

IRA Owners Can Have Their RMDs Used as QCDs -- But Qualified Plan RMDs Cannot?

"IRA owners can have their RMDs used as Qualified Charitable Distributions -- but Qualified Plans cannot. Small business owners who continue to maintain their qualified plans are required to take RMDs but cannot use the QCD advantage. Any way around that?"

BenefitsLink Message Boards

'Rolling Over' Excess Assets to a Qualified Replacement Plan

"An overfunded DB plan covering only the 100% owner is terminating and a QRP 401(k) plan is being set up to receive the excess assets while the participant's DB benefit will be rolled over into an IRA. She will need to complete a distribution election form for the IRA rollover. Does an election for the rollover of only excess assets to the QRP also need to be made?"

BenefitsLink Message Boards

Last Issue's Most Popular Items

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

Holland & Hart LLP

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

American Benefits Council and 10 Other Employer and Industry Associations

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

Bloomberg Law

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

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