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Retirement Plans Newsletter

April 28, 2022

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[Guidance Overview]

ASB Updates ASOP 4, Actuarial Standards Affecting Pension Plan Valuations

"Plans must disclose and explain the significance of a determination of pension liabilities made using a discount rate based on low risk fixed income securities. The interpretation and usefulness of the new liability measurement will vary from plan to plan and employer to employer. Plan sponsors will need to work with their consultants to arrive at the appropriate understanding under their own circumstances."  MORE >>

Bolton

Risks of Cryptocurrencies in 401(k) Plans, from the Plan Auditor Perspective

"Based on the concerns noted from the DOL, a plan that has crypto as an investment option will most likely be a bright red flag waiving in the face of the DOL, saying 'audit me!'.... Giving participants an investment option for their retirement account which has no tangible valuation metrics, and does not have trained managers to monitor the values is a significant risk which plan fiduciaries should avoid."  MORE >>

Bradley Bartells, CPA, via LinkedIn

Crypto 401(k) Warning Casts Shadow Over T. Rowe Price Settlement

"Pressure is mounting on the [DOL] to back off its guidance against cryptocurrency investing ... The potential consequences of the anti-crypto guidance ... have already prompted global money manager T. Rowe Price Group Inc. to pump the brakes on an $18 million class action settlement agreed to in January.... [T]he $18 million value the company agreed to in that deal doesn't take into account the added costs the [DOL's] new brokerage window interpretation could add to the company, said [T. Rowe Price attorney Brian Boyle]." [[Feinberg v. T. Rowe Price Group, Inc., No. 17-0427, (D. Md. brief in support of settlement agreement Apr. 9, 2022; response of defendant Apr. 25, 2022)]  MORE >>

Bloomberg Law

Cryptocurrencies in 401(k) Plans

"Cryptocurrencies can present serious risks to retirement savings, including: [1] Valuation concerns.... [2] Obstacles to making informed decisions.... [3] Prices can change quickly and dramatically.... [5] Evolving regulatory landscape."  MORE >>

Bolton

Exceptional Usefulness and Quality icon Summary of House-Passed SECURE 2.0 Legislation (PDF)

23-page chart presents provisions of SECURE 2.0 [HR 2954], as passed by the House on March 29, side-by-side with current law.  MORE >>

Wage and Hour Division [WHD], U.S. Department of Labor [DOL]

PBGC Approves Special Financial Assistance Application for Graphic Communications Conference of the Intl. Brotherhood of Teamsters National Pension Plan

"[PBGC] has approved the application submitted to the Special Financial Assistance (SFA) Program by the Graphic Communications Conference of the International Brotherhood of Teamsters National Pension Plan (GCC-IBT Plan). The GCC-IBT Plan, based in Carol Stream, Illinois, covers 31,715 participants in the printing industry. The plan will receive approximately $1.29 billion in special financial assistance, including interest to the expected date of payment to the plan. The plan was projected to run out of money in 2022."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

PBGC Approves Special Financial Assistance Application for Graphic Arts Industry Joint Pension Plan

"[PBGC] has approved the application submitted to the Special Financial Assistance (SFA) Program by the Graphic Arts Industry Joint Pension Plan (Graphic Arts Plan). The Graphic Arts Plan, based in Washington, D.C., covers 9,854 participants in the printing industry. The plan will receive approximately $440 million in special financial assistance, including interest to the expected date of payment to the plan. The plan was projected to run out of money in 2022."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

Health and Wealth Drive Retirees' Spending

"Previous research has shown that spending drops immediately at the moment the paychecks stop, and a few studies have found that households, once retired, reduce their consumption over time. But a new study that also takes the long view suggests that the spending decline is not what retirees want to do but what is necessitated by their financial and health constraints."  MORE >>

Squared Away Blog, by the Center for Retirement Research at Boston College

Are Employer-Paid Retirement Planning Services Taxable?

"Retirement planning benefits are not taxable to employees if they meet the requirements of the exclusion for 'qualified retirement planning services' in Code Section 132(a)(7). The federal tax exclusion applies to the fair market value of any employer-provided retirement planning services -- regardless of any amount employees contribute to the cost. The value of the services is also excluded from each employee's wage base for employment tax purposes (e.g., income tax withholding and FICA)."  MORE >>

Thomson Reuters / EBIA

Americans Remain Optimistic About Living a Comfortable Retirement (PDF)

"Over 7 in 10 workers are at least somewhat confident ... Retirees also remain confident, with nearly 8 in 10 confident they will have enough money to live comfortably throughout retirement, including 1 in 3 who are very confident.... Almost 4 in 10 workers and 2 in 10 retirees say they don't know who to go to for financial and retirement planning advice.... More than 4 in 5 workers who are offered a workplace retirement savings plan are satisfied with the benefit."  MORE >>

Employee Benefit Research Institute [EBRI]

Employee Benefits Jobs

View job as Administrator - TPA
          for Cetera Retirement Plan Specialists Administrator - TPA

Cetera Retirement Plan Specialists

Remote / Roseville CA

View job as Administrator - TPA
          for Cetera Retirement Plan Specialists

Selected New Discussions

Fee Paid from Owner's Account Only

"The owner would like us to take the Cycle 3 restatement fee from the plan. The plan document allows us to take this type of fee from the plan. However she (the owner) has indicated that she wants the whole fee to come out of her account only and not across the board from the participants accounts. Is this permissible? The document doesn't address this unfortunately."

BenefitsLink Message Boards

Trustee Being Removed -- Can Plan Be Amended Without Their Express Approval?

"Plan has two trustees. One of them has retired and is simply no longer involved or around. There is no board for this small company. Can plan be amended to only the one remaining trustee by this one remaining trustee and not involve the outgoing one?"

BenefitsLink Message Boards

Plan's Bank Account Labeled in Company's Name Only

"An owner-only DB Plan (100% owner; no partners, etc.) opened an account with Bank. Bank did not want to open a pension account so owner opened the account in the corporate name only -- i.e., it does not say anything like "Defined Benefit Pension Plan" on the account name. It's a checking account with no interest, so there are no issues as to the bank issuing a Form 1099 for interest earnings. Is this a big issue?"

BenefitsLink Message Boards

Press Releases

Honoring Retirement Plan Education Superstars

PSCA [Plan Sponsor Council of America]

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

5 Retirement Plan Trends Affecting DC Plan Sponsors Today

RECORDED

Multnomah Group

Practical Perspective on the DOL Cybersecurity Rules

RECORDED

McDonald Hopkins

Last Issue's Most Popular Items

Text of IRS Proposed Regs: Mortality Tables for Determining Present Value under Defined Benefit Pension Plans

Internal Revenue Service [IRS]

Text of IRS Notice 2022-22: Updated Mortality Improvement Rates and Static Mortality Tables for Defined Benefit Pension Plans for 2023 (PDF)

Internal Revenue Service [IRS]

Analysis of DOL's Proposed Changes to Prohibited Transaction Exemption Procedures

The Wagner Law Group

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

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