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Retirement Plans Newsletter

May 4, 2022

6 New Job Opportunities 6 New Job Opportunities

 

[Official Guidance]

Text of IRS Proposed Regs: Use of Actuarial Tables in Valuing Annuities, Interests for Life or a Term of Years, and Remainder or Reversionary Interests

116 pages. "This document contains proposed regulations relating to the use of actuarial tables in valuing annuities, interests for life or a term of years, and remainder or reversionary interests. These regulations will affect the valuation of inter vivos and testamentary transfers of interests dependent on one or more measuring lives. These regulations are necessary because applicable law requires the actuarial tables to be updated to reflect the most recent mortality experience available."  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

Exceptional Usefulness and Quality icon IRS Serves Up a Mortality Triple Shot

"Notice 2022-22 provides the mortality tables for minimum funding calculations under Internal Revenue Code Section (IRC) Section 430 and lump sums under IRC Section 417(e), reflecting a new mortality projection scale but making no changes to current methodology. However, a set of proposed regulations would make more substantive changes by updating the base mortality rates, modifying the calculation of the mandated mortality tables, and restricting the use of static mortality tables to plans with 500 or fewer participants. Finally, informal guidance released in the April 28 issue of Employee Plans News clarifies the interaction between the notice and the regulations, if finalized."  MORE >>

Mercer

Second Circuit to Decide Whether 401(k) Plans Can Be Garnished to Enforce Criminal Restitution Order

"Last week, the Second Circuit heard oral argument ... about whether the government can garnish two retirement accounts held by the defendant to aid in the execution of an over $10 million criminal restitution award against the defendant.... This case will be an interesting one to watch, to see how much protection -- even in the criminal context -- qualified retirement plans receive from the courts and whether private victims will have the same powers to enforce." [U.S. v. Greebel, No. 15-637 (E.D.N.Y. Apr. 16, 2021; on appeal to 2d Cir. No. 21-993)]  MORE >>

Steptoe & Johnson LLP

SEC Greenlights Climate Review of 401(k) Options

"As You Sow, a group that describes itself as the nation's non-profit leader in shareholder advocacy, recently received backing from the SEC in its bid to include a proposal for shareholder vote that, if approved, would require Amazon ... to 'at reasonable expense and excluding proprietary information, prepare a report reviewing the Company's retirement plan options with the board's assessment of how the Company's current retirement plan options align with its climate action goals.' "  MORE >>

American Retirement Association [ARA]

Prescription for Retirement Plans in the Health Care Sector (PDF)

"88%of organizations believe their defined contribution retirement plan helps attract and retain high quality staff.... 93% of plan sponsors believe more can be done to help employees make more well-informed decisions to optimize dollars across health and wealth benefits (e.g., retirement savings, HSA, etc.)"  MORE >>

VOYA Financial

WTW Pension 100: Year-End 2021 Disclosures

"The financial health of the nation's largest corporate defined benefit pension plans improved significantly in 2021 as strong investment returns and rising interest rates helped to drive aggregate funded status to its best level since before the 2008 financial crisis. The aggregate funded status of defined benefit plans in the WTW Pension 100, managed to rise, from 87.9% in 2020 to 95.8% in 2021."  MORE >>

Willis Towers Watson

Record Sales in March Propel First Quarter 2022 Annuity Sales

"Total fixed annuity sales were $35.2 billion, up 14% over first quarter 2021. Double-digit growth for fixed indexed annuities and fixed-rate deferred annuities drove the overall fixed annuity sales to pre-pandemic levels. Fixed indexed annuity sales were $16.3 billion, 21% higher than prior year. Fixed-rate deferred annuity sales increased 10% in the first quarter, year-over-year to $16 billion."  MORE >>

LIMRA Secure Retirement Institute

PBGC Approves Special Financial Assistance Application for Carpenters Pension Plan

"[PBGC] has approved the application submitted to the [SFA] Program by the Carpenters Industrial Council of Eastern Pennsylvania Pension Plan. The plan, based in Ashland, Pennsylvania, covers 242 participants in the construction industry. The Carpenters Pension Plan became insolvent in October 2017.... The plan will receive $11.3 million in SFA, including interest to the expected date of payment to the plan."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

PBGC Approves Special Financial Assistance Application for Local 365 UAW Plan

"[PBGC] has approved the application submitted to the [SFA] Program by the Local 365 UAW Pension Fund Pension Plan. The plan, based in Englewood Cliffs, New Jersey, covers 3,736 participants in the manufacturing industry. The Local 365 UAW Plan became insolvent in December 2020.... The plan will receive $210.4 million in SFA, including interest to the expected date of payment to the plan."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

PBGC Approves Special Financial Assistance Application for Local 805 Plan

"[PBGC] has approved the application submitted to the [SFA] Program by the Local 805 Pension and Retirement Plan. The plan, based in New York City, New York, covers 2,003 participants in the transportation industry.... The plan will receive $118.3 million in SFA, including interest to the expected date of payment to the plan."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

Retirement Spending: Calm Your Financial Fears with the Actuarial Financial Planner

"In the current economic environment, we are looking at the distinct possibilities of higher-than-expected levels of inflation, rising interest rates, negative returns on investments and reductions in future Social Security benefits.... [W]hat is a retiree to do today to mitigate financial risks and sleep better at night? [1] Periodically adjust spending budget to reflect actual experience ... [2] Use a floor portfolio to fund essential expenses ... [3] Use conservative assumptions ... [4] Spend less."  MORE >>

Ken Steiner, FSA Retired

Employee Benefits Jobs

View job as Senior Compliance Analyst - Retirement Plans
          for Newport Senior Compliance Analyst - Retirement Plans

Newport

Remote

View job as Senior Compliance Analyst - Retirement Plans
          for Newport

View job as Compliance Specialist (Entry Level)
          for Newport Compliance Specialist (Entry Level)

Newport

Remote

View job as Compliance Specialist (Entry Level)
          for Newport

View job as H&W Sales Consultant
          for Alerus H&W Sales Consultant

Alerus

Remote / CO / MA / NH / NJ / PA

View job as H&W Sales Consultant
          for Alerus

View job as Transaction Coordinator
          for The Retirement Advantage, Inc. (TRA) Transaction Coordinator

The Retirement Advantage, Inc. (TRA)

Remote

View job as Transaction Coordinator
          for The Retirement Advantage, Inc. (TRA)

View job as ESOP Retirement Plan Manager
          for OneAmerica ESOP Retirement Plan Manager

OneAmerica

Remote / Indianapolis IN

View job as ESOP Retirement Plan Manager
          for OneAmerica

View job as Associate Retirement Plan Administrator
          for Nicholas Pension Consultant Associate Retirement Plan Administrator

Nicholas Pension Consultant

Rancho Cordova CA / Corona CA

View job as Associate Retirement Plan Administrator
          for Nicholas Pension Consultant

Selected New Discussions

Reporting of Management Fees on Form 5500

"Curious how everyone handles management fees on the investments and reporting it on the Form 5500. I've seen a few different things, most notably: [1] Include them as part of the Investment Gain/Loss - Line 8(b); [2] Include them as "Other Expense" - Line 8(g)."

BenefitsLink Message Boards

Trouble Getting Funds from 403(b) Insurance Company -- So Start a Second 403(b)?

"NFP has a 403(b) with a large insurance company and is tired of bad service, high fees, etc., so it's looking into a new recordkeeper and wants to move the plan. Snag: the insurance company says the accounts are individual annuities (though they're the only provider and there's a company contribution, so this should be an ERISA plan), such that the plan sponsor doesn't have the right to pick up all the accounts and move them -- each participant would have to agree to do so. Is there anything legally preventing the opening of a new 403(b) plan and saying that, effective 7/1/22, all deferrals go to New Plan at New Recordkeeper, and all participants have to complete a new deferral election form?"

BenefitsLink Message Boards

Press Releases

Colorado and New Mexico Select Vestwell to Power Historic State Savings Program

Vestwell

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

PTE 2020-02 Obituaries: Mistakes and Misunderstandings, Part 2: Common Questions (And Our Answers) About Compliance with PTE 2020-02

May 24, 2022 WEBCAST

Faegre Drinker

IRA University

July 6, 2022 WEBCAST

Ascensus

Last Issue's Most Popular Items

2022 Compensation Committee Handbook (PDF)

Skadden

The History of Your Social Security Payments

U.S. News & World Report

The State of State-Run Retirement Savings Programs (PDF)

Cohen & Buckmann, P.C., via Practical Guidance

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

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