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Retirement Plans Newsletter

April 25, 2022

8 New Job Opportunities 8 New Job Opportunities

 

[Guidance Overview]

IRS Updates LRMs for 403(b) Plans

"These LRMs contain quite a few changes, from simple clarifications and explanatory notes, to more substantive revisions to plan language reflecting changes arising from the PATH, SECURE and CARES Acts. While the LRMs are intended for 403(b) plans that use 'pre-approved' plan documents, sponsors of individually designed 403(b) plans also frequently look to the LRMs for insight into what the IRS views as acceptable plan language."  MORE >>

Groom Law Group

[Guidance Overview]

Proposed Required Minimum Distribution Regulations Explain SECURE Act Changes (and More) (PDF)

"With the regulations, however, come detailed rules on how to comply with what appears to be an even more complex regulatory scheme, now with two required beginning dates (RBDs) under a single plan, which depend on when the participant was born, and different death benefit rules depending on the type of plan and when payments to the participant commenced. With plan qualification and a 50% excise tax on participants on the line, the stakes are high to get compliance with these rules right."  MORE >>

Groom Law Group, via Taxes the Tax Magazine

[Guidance Overview]

IRS Proposes Updates to RMD Rules for SECURE Act and More

"Proposed IRS regulations would implement two significant changes to the rules for required minimum distributions (RMDs) under Internal Revenue Code (IRC) Section 401(a)(9).... Those changes include an increase in the age that triggers RMDs from 70-1/2 to 72 and new limits on life expectancy distributions to defined contribution (DC) plan beneficiaries.... The proposal also reflects various other statutory changes, including updates to the regulations on rollover distributions under IRC Section 402(c)."  MORE >>

Mercer

Cybersecurity Risks: Where We Are and Steps to Take

"[A] key trend this year is that cybercriminals' focus has moved from acquiring data to compromising organizational operations.... Account takeover attacks are on the rise ... done through member and employer portals."  MORE >>

National Tax-Deferred Savings Association [NTSA]

CRS In Focus: The Retirement Savings Contribution Credit

"One provision designed to encourage retirement savings for low-income workers is the Retirement Savings Contribution Credit (Internal Revenue Code Section 25B), commonly referred to as the Saver's Credit. This In Focus provides an overview of the credit and a brief discussion of the credit's effectiveness, in the context of various policy options, including those under consideration in the 117th Congress." [IF11159, updated Apr. 22, 2022]  MORE >>

Congressional Research Service [CRS]

Improving the Process of Distributing Retirement Benefits Pursuant to a QDRO (PDF)

"Whether there is an uptick in plan audit and enforcement activity or implementation of increased fee disclosure requirements related to QDROs remains to be seen. Regardless, it would be prudent to revisit plan QDRO services, procedures, and communications, and to evaluate the reasonableness of related fees and fee allocations, to make any desired improvements, and ensure that the plan's QDRO procedures are compliant with applicable guidance and that the process serves the intended goals."  MORE >>

Mintz, via Journal of Pension Benefits

Can a Qualified Longevity Annuity Contract Aid Your Retirement Plan?

"QLACs' attractions are mixed. Wealthy retirees might appreciate the potential for RMD deferral, but they're less likely to need or value the lifetime income benefit. Meanwhile, less-affluent retirees might appreciate the lifetime income aspect of a QLAC but value the tax features less."  MORE >>

Morningstar

Optimal Consumption and Annuity Equivalent Wealth with Mortality Model Uncertainty (PDF)

33 pages. "The worst-case mortality scenario in the perturbation analysis corresponds to an improved mortality trajectory, implying that a retiree's aversion against mortality uncertainty is translated into the fear of longevity risk in retirement planning.... Even under the presence of mortality model uncertainty, annuitization can still induce a noticeable increment in utility. The optimal annuity payout pathway increases over time as mortality rate grows and more uncertainty about the future is resolved during the later stage of retirement."  MORE >>

Society of Actuaries Research Institute

Exceptional Usefulness and Quality icon Communicating Defined Benefit Risk

"The Society of Actuaries Retirement Section is pleased to make available material that addresses the challenges in communicating pension risk to stakeholders. The project was a multi-phase effort, including a literature search [report and results] and expert interviews."  MORE >>

Society of Actuaries

How Proactive Tax Planning Can Rescue Your Retirement

"Minimize the taxes on your Social Security benefits ... Consider the benefits of a Roth conversion ... Plan now for your surviving spouse ... Avoid tax risk with a plan."  MORE >>

Kiplinger

Speeding Toward Retirement? It's Time to Consult Your Financial GPS

"[W]hen you are near or in retirement, it's best to limit your risk as much as possible.... [B]uild an income plan based on such factors as the lifestyle you want and the income you need to sustain that lifestyle.... Be proactive with tax planning ... Factor in healthcare, long-term care and estate planning."  MORE >>

Kiplinger

Buck Up, Boomers. You're Still Better Off Than Your Parents.

"This is a hard time to retire. The market is down 7% from last year and the rate of inflation has risen to 8.5%. Both are brutal to your bottom line when you're on a fixed income.... As bad as things seem, odds are you are in better shape than your parents or grandparents were. And if they got through retirement comfortably, so will you.... Greater access to retirement accounts means people are retiring with more money than before.... More money translates to more income in retirement."  MORE >>

Financial Advisor

[Opinion]

Heuristics, Cognitive Biases and 401(k)/403(b) Fiduciary Decision-Making

"[H]euristics can often result in errors due to the influence of cognitive biases that may influence a decision-maker's judgment. Common cognitive biases that influence decisions include Confirmation bias ... Anchoring bias ... 'Halo effect' ... [T]hese three cognitive biases often come into play in the fiduciary decision-making process. The most notable example of this is the refusal of plan sponsors to listen to anyone other than their existing plan advisers and their refusal to consider alternative options."  MORE >>

The Prudent Investment Fiduciary Rules

Benefits in General

Best Practices to Help Perfect Your Hybrid Work Model

"Prioritize consistent and clear communication ... Keep working for human connection ... Hire hybrid talent with purpose ... Set productivity and workflow expectations ... Don't compromise culture."  MORE >>

Ceridian

Employee Benefits Jobs

View job as Cash Balance Plan Actuarial Associate
          for Cash Balance Actuaries, LLC Cash Balance Plan Actuarial Associate

Cash Balance Actuaries, LLC

Remote

View job as Cash Balance Plan Actuarial Associate
          for Cash Balance Actuaries, LLC

View job as Client Success Director
          for Ubiquity Retirement + Savings Client Success Director

Ubiquity Retirement + Savings

Remote / San Francisco CA

View job as Client Success Director
          for Ubiquity Retirement + Savings

View job as Consultant
          for Spectrum Pension Consultants, Inc. Consultant

Spectrum Pension Consultants, Inc.

Remote / Tacoma WA

View job as Consultant
          for Spectrum Pension Consultants, Inc.

View job as Manager Compensation - North America
          for Air Products and Chemicals, Inc Manager Compensation - North America

Air Products and Chemicals, Inc

Remote / Allentown PA / Houston TX

View job as Manager Compensation - North America
          for Air Products and Chemicals, Inc

View job as Defined Contribution Plan Administrator (Entry Level)
          for MGKS Defined Contribution Plan Administrator (Entry Level)

MGKS

Remote / Phoenix AZ

View job as Defined Contribution Plan Administrator (Entry Level)
          for MGKS

View job as ESOP Consultant
          for FuturePlan, by Ascensus ESOP Consultant

FuturePlan, by Ascensus

Remote

View job as ESOP Consultant
          for FuturePlan, by Ascensus

View job as Benefits Advisor (Student Intern)
          for Employee Benefits Security Administration [EBSA] Benefits Advisor (Student Intern)

Employee Benefits Security Administration [EBSA]

Remote / San Francisco CA / Seattle WA

View job as Benefits Advisor (Student Intern)
          for Employee Benefits Security Administration [EBSA]

View job as Employee Benefits Investigator (Student Intern)
          for Employee Benefits Security Administration [EBSA] Employee Benefits Investigator (Student Intern)

Employee Benefits Security Administration [EBSA]

Remote / San Francisco CA

View job as Employee Benefits Investigator (Student Intern)
          for Employee Benefits Security Administration [EBSA]

Selected New Discussions

Alternate Payee Died Before Divorce Settlement

"Marriage was bifurcated (due to age and health of both parties both in their 80s and respondent has Alzheimer's). Court hearing set to address community property but continually postponed by petitioners and respondent's lawyers. 18 months pass; the petitioner's attorney never files a DRO. Petitioner's health declines and has a guardian ad litem. Petitioner subsequently dies but the retirement benefits has not been addressed by the courts. 2-1/2 years later a court date is set to address retirement benefits. Petitioner's estate is now filing a DRO. Will petitioner's alternate payee status flow to her estate in a defined benefit plan? Will there be any ramifications if petitioner's counsel didn't file the DRO while his client was alive?"

BenefitsLink Message Boards

Press Releases

Congruent Solutions Elevates Lucas Soucy as COO - North America

Congruent

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Impact of Proposed MRD Regulations on IRAs

April 27, 2022 WEBCAST

Groom Law Group

A Comprehensive Retirement Plans Legal Compliance Update

May 12, 2022 WEBCAST

Lexology

State-Facilitated Retirement Programs: Legal Implications and Policy Developments

May 18, 2022 WEBCAST

New York City Bar Association

Pooled Employer Plans: What You Need to Know

May 19, 2022 WEBCAST

Nixon Peabody LLP

Last Issue's Most Popular Items

The New Pace of Pension Risk Transfers

CAPTRUST

Pathways to Retirement Among Dual Earning Couples

RAND Corporation

District Court Dismisses ERISA Excessive Fee Lawsuit Against Service-Provider

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

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