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Retirement Plans Newsletter

April 26, 2022

6 New Job Opportunities 6 New Job Opportunities


[Guidance Overview]

Best Interest Standard of Care for Advisors, Part 88: Specific Reasons for Rollover Recommendations That Won't Work

"[T]he fact that an IRA offered more investment options than a participant's plan was not, in and of itself, a reason that would justify a rollover recommendation. But, if the investment professional determined that some of the investments offered by the IRA, but that were not available in the plan, would improve the outcomes for the participant, then the additional investment options could be part of the justification of a rollover recommendation."  MORE >>


Learn & Earn Your CE Credit from a Leading Industry Expert

ASC’s ERISA experts led by John Griffin, J.D., LL.M. offer popular CE webcasts to keep you current with trends and ever-changing IRS regulations. Join live webcasts or view recorded webcasts anytime, anywhere. View Webcasts Here

Sponsored by ASC

'Cryptocurrency' Offerings in the 401(k): Potential Growth and Diversification Strategy, or Potential Breach of Fiduciary Duty Suit?

"[P]lan fiduciaries should assess whether any appropriate 'guardrails' can be established to allay the concerns of the DOL. This may involve squaring all governing plan instruments like the plan document and investment policy statement, ensuring that participant disclosures are thorough, setting investment limits if possible, and confirming their fiduciary liability insurance covers crypto investment claims."  MORE >>

Michael Best

Fidelity to Allow Retirement Savers to Put Bitcoin in 401(k) Accounts

"Employees won't be able to start adding cryptocurrencies to their nest eggs right away, but later this year, the 23,000 companies that use Fidelity to administer their retirement plans will have the option to put bitcoin on the menu.... [It] remains to be seen whether employers will embrace it for their workers. Fidelity's move comes a month after the [DOL] expressed concerns about including cryptocurrencies in retirement plans."  MORE >>

The Wall Street Journal; subscription may be required

401(k)ology: Correcting the Missed Deferral Opportunity

"In most situations, [ECPRS] allows the plan sponsor to self correct ... In more egregious situations, or if the operational failure occurred over many plan years and affected a large number of participants, the correction may need to be submitted to the IRS for formal approval. The key is to follow the IRS' correction methods ... [D]oubling up on deferrals is not permitted unless the employee elects to do so prospectively."  MORE >>


What the Great Resignation Means for 401(k) Accounts

"Abandoned accounts are not just a potential issue for employees -- they can lead to penalties and administrative challenges for employers, too.... Existing rules can help employers resolve smaller accounts that are abandoned.... Currently, there is no specific guidance for account balances larger than $5,000.... [S]ome employers are adopting auto-portability benefits."  MORE >>


DOL: 'How We Are Empowering Workers to Retire with Security'

"The simple fact is: We need a retirement system where no one has to worry about outliving their money, and where plans are easy to access from the beginning of your career; and easy to stick with, even as you change jobs and employers. To boil it down, we need to make retirement simple, easy and secure. And we're committed to making this happen by elevating the public conversation, collaborating across sectors and galvanizing everyone invested in this issue."  MORE >>

U.S. Department of Labor [DOL]

Retirement Plan Portability a Key Issue, DOL Roundtable Speakers Say

"The need to make workplace retirement plans portable and more accessible emerged as one of the top themes in a spirited roundtable discussion the [DOL] hosted [on April 25] with legislators, labor leaders, investment fund managers, educators and other industry stakeholders."  MORE >>

Pensions & Investments

Forensic Analysis of Public Employee Pension Funding: A Tool for Policymakers

"State and local policymakers face a growing pension cost burden, but often lack understanding of the root causes. One underappreciated cause is 'legacy debt' -- unfunded liabilities accumulated long ago, before plans adopted modern funding practices.... In a sample of plans with particularly low funded ratios, legacy debt averaged more than 40 percent of unfunded liabilities. A failure to recognize the legacy debt has provided misleading information about benefit generosity, hindering progress toward effective solutions."  MORE >>

Center for Retirement Research at Boston College

Retirement Learning Center’s John Carl Dies Suddenly

"In addition to several teaching and volunteer positions, Carl served on the Government Affairs Committee for the National Association of Plan Advisors (NAPA)."  MORE >>

401(k) Specialist


Ninth Circuit Reverses Two Excessive Fee Cases: Plan Fiduciaries Not Permitted to Defend Revenue Sharing at the Pleadings Stage

"The pleading standard continues to be diluted, as courts are subjecting quality plan fiduciaries to unwarranted liability risk and litigation expense. Legitimate and illegitimate cases are being allowed to proceed to discovery without any way to distinguish low-cost quality plans from higher-cost plans.... In the Trader Joe's and Salesforce cases, fiduciaries have significant potential liability if they use revenue sharing to pay recordkeeping fees, as the appellate court stripped any ability to defend the practice at the pleadings stage -- even though Trader Joe's had demonstrated on the record that all revenue sharing not used for plan expenses was returned to participants." [Davis v., Inc., No. 21-15867 (9th Cir. Apr. 8, 2022; unpub.); Kong v. Trader Joe's Co., No. 20-56415 (9th Cir. Apr. 15, 2022; unpub.)]  MORE >>

Euclid Specialty Managers

Employee Benefits Jobs

View job as DC Administrator
          for United Benefit Pensions Inc. DC Administrator

United Benefit Pensions Inc.

Remote / Melville NY

View job as DC Administrator
          for United Benefit Pensions Inc.

View job as Employee Benefits & Executive Compensation Associate
          for Polsinelli Employee Benefits & Executive Compensation Associate


Chicago IL / Dallas TX

View job as Employee Benefits & Executive Compensation Associate
          for Polsinelli

View job as DC/DB Administrator
          for Heritage Pension Advisors, Inc. DC/DB Administrator

Heritage Pension Advisors, Inc.

Remote / Commack NY

View job as DC/DB Administrator
          for Heritage Pension Advisors, Inc.

View job as Compensation & Benefits Specialist
          for Troutman Pepper Compensation & Benefits Specialist

Troutman Pepper

Atlanta GA

View job as Compensation & Benefits Specialist
          for Troutman Pepper

View job as Relationship Manager for Non-Qualified Retirement Plans
          for Newport Relationship Manager for Non-Qualified Retirement Plans


Remote / AZ / CA / CO / FL / GA / IA / IL / KS / MA / MD / MI / MN / MO / NC / NJ / NY / OH / SC / TX / VA / WI

View job as Relationship Manager for Non-Qualified Retirement Plans
          for Newport

View job as Client Service Manager for Non-Qualified Plans
          for Newport Client Service Manager for Non-Qualified Plans


Remote / AZ / CA / CO / FL / GA / IA / IL / KS / MA / MD / MI / MN / MO / NC / NJ / NY / OH / SC / TX / VA / WI

View job as Client Service Manager for Non-Qualified Plans
          for Newport

Selected New Discussions

What Percentage of Fiduciary Breach Lawsuits Are Settled?

"For the fiduciary breach lawsuits that been in the news for the past 15-1/2 years, has anyone done a scorecard on how many, or what percentage, were completely dismissed? Were won by the plaintiffs? Were won by the defendants? Were settled?"

BenefitsLink Message Boards

ERISA Aspects of Sam Zell's ESOP-Leveraged Purchase of the Chicago Tribune

"In researching ESOP loans and potential prohibited transaction violations under ERISA section 406(a), I'm curious as to whether Sam Zell was assessed for violating 406 because that transaction seems to have been a direct transaction with a potential for conflict of interest. Did his bankruptcy discharge any potential prohibited transaction violations? Did the ESOP loan meet ERISA 408 exemption? Is ERISA prohibited transaction rule 406(a) intended for ESOP loans?"

BenefitsLink Message Boards

On July 1, 2022, Must Spousal Consents Resume Physical Presence Before a Notary?

"For a spouse's consent to an election against a survivor annuity or naming a beneficiary other than the participant's spouse, the IRS has relaxed the physical-presence condition and allows -- from January 1, 2020 through June 30, 2022 -- a remote witnessing that uses live audio-video technology and meets all requirements and conditions under the State law that applies to the notary or, for a plan representative, meets controls specified in the IRS's notice. IRS Notice 2021-40; 2021-28 I.R.B. 15 (July 12, 2021); Notice 2021-3, 2021-2 I.R.B 316 (Jan. 11, 2021); Notice 2020-42, 2020-26 I.R.B. 986 (June 3, 2020).

Do we guess the IRS will let this relief expire with June 30? Or does anyone predict another extension?"

BenefitsLink Message Boards

Press Releases

WTW Selects Capital Rx as an Innovative New PBM Partner to Join its Rx Collaborative


OneAmerica, OneDigital Unite on Morningstar Investment Management LLC’s Advisor Managed Accounts Service


Fidelity Investments Advances Leading Position as Digital Assets Provider With Launch of Industry’s First-of-Its-Kind Bitcoin Offering for 401(k) Core Investment Lineup

Fidelity Investments

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Non-Qualified Plans and Deferred Compensation: Getting it Right

May 12, 2022 WEBCAST

Worldwide Employee Benefits Network [WEB] - Northeast Ohio Chapter

5500 Highlights for All Plans & 408(b)(2) Disclosure Rules for Health and Welfare Plans

May 19, 2022 WEBCAST

Worldwide Employee Benefits Network [WEB] - New York Chapter

IRAs: Building and Maintaining a Compliant IRA Program

May 19, 2022 WEBCAST


Last Issue's Most Popular Items

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

Groom Law Group, via Taxes the Tax Magazine

IRS Proposes Updates to RMD Rules for SECURE Act and More


IRS Updates LRMs for 403(b) Plans

Groom Law Group

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

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