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Retirement Plans Newsletter

May 17, 2022

12 New Job Opportunities 12 New Job Opportunities

 

[Guidance Overview]

2023 Mortality Tables Update and Proposed Regulation Changes to Funding Mortality Tables

"[If] the proposed regulation is passed as written, the funding tables included in IRS Notice 2022-22 would be replaced. This change would apply for both small plans and large plans.... [P]lan sponsors should monitor activity to ensure the Base Table used in funding calculations match those published in final regulations.... The Applicable Mortality Table for 417(e)(3) calculation purposes would not change since it was not explicitly mentioned in the proposed regulation."  MORE >>

ASC

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[Guidance Overview]

IRS Extends Temporary Relief from Spousal Consent Physical Presence Requirement

"The Treasury Department and the IRS are currently reviewing the stakeholder comments to determine whether to retain the physical presence requirement without modification or to propose to modify the requirement. If the Treasury Department and the IRS decide to propose to modify the physical presence requirement, they will do so only through the regulatory process, which will include the opportunity for further comment."  MORE >>

October Three Consulting

[Guidance Overview]

IRS Extends Temporary Relief from the Physical Presence Requirement for Spousal Consents Through December 2022

"Under Notice 2022-27, from July 1, 2022, through December 31, 2022, participant elections that are required to be witnessed may be witnessed remotely by a notary public or plan representative using live audio-video technology, if certain requirements are met. The IRS does not expect to extend the temporary relief beyond 2022."  MORE >>

Thomson Reuters Practical Law

[Guidance Overview]

Best Interest Standard of Care for Advisors, Part 91: Rollover Recommendations to Participants in Government Plans

"[T]he DOL's guidance in [PTE 2020-02] does not apply to rollover recommendations to participants in government plans.... [T]he SEC regulates rollover recommendations by broker-dealers and investment advisers to both private sector and government plan participants."  MORE >>

FredReish.com

[Guidance Overview]

Connecticut's New Mandatory Auto-Enrollment IRA Program

"Almost any workplace retirement plan defined in the Internal Revenue Code will satisfy the exemption requirements, including plans that do not offer the opportunity for payroll deduction employee contributions.... [T]hese plans do not qualify for the exemption for a calendar year if no contributions were made in the previous calendar year ... If an Employer currently has no Qualifying Plan in place and would like to add such a Plan for the sole and exclusive purpose of avoiding the Program, the following Plan designs would be a starting point[.]"  MORE >>

PASI

Plaintiffs Seek Recusal of Latest Judge in Home Depot ERISA Lawsuit

"The $140 million class action ERISA lawsuit was assigned to Judge Grimberg on March 4 of this year only after Judge William M. Ray II, who had previously presided over the case, recused himself because he was about to inherit Home Depot stock. This is the fourth re-assignment sought by the plaintiffs." [Pizarro v. The Home Depot, Inc., No. 18-1566 (N.D. Ga. motion for recusal filed Apr. 15, 2022)]  MORE >>

LawyersAndSettlements.com

SECURE 2.0 Surprises for Plan Sponsors and TPAs: Accelerated Long-Term, Part-Timer Savings Plan Eligibility

"Section 116 of the bill accelerates to two years (from three years) the number of years a plan sponsor must track long-term, part-time employees for eligibility to start paycheck deferrals to the employer savings plan. If this bill becomes pension law (and early handicapping suggests it could be enacted in 2022) plan sponsors and governance boards will need to assess the impact of this mandatory eligibility change for their retirement programs as they emerge from the complexities of two years of pandemic-related disruption in business operations and workforce management."  MORE >>

Milliman

Retirement Isn't Passive; Target Date Strategies Shouldn't Be Either

"Actively managed building blocks within target date portfolios provide diversification potential that may not be possible to achieve with passive components.... [S]killed active management has the potential to generate meaningful outperformance, improving investors' ability to reach retirement objectives. Fiduciary duties do not require plan sponsors to select passive vehicles. An array of options, including actively managed funds, can be appropriate offerings."  MORE >>

T. Rowe Price

Study Shows ESOP Participants Fare Much Better Than 401(k) Plan Participants

"The average cumulative return per participant in S corporation ESOPs from 2002 through 2019 was over $300,000, for a compound annual growth rate of 12.1%, which is approximately one-third higher than returns from the S&P 500 over this time period.... The average S corporation ESOP account balance was over $100,000 in 2019. The average increased 100% from 2002, and the average S corporation ESOP account balance was higher than any previous point in the last 15 years."  MORE >>

National Center for Employee Ownership [NCEO]

Annuity Purchase Update, May 2022

"The average Annuity Purchase Interest rates are the highest [the authors] have observed, with the average duration 7 rate at 3.75% and average duration 15 rate at 3.76%.... As interest rates continue to climb, strong demands from Plan Sponsors requesting annuities continue to increase as well. Annuity Purchase Costs dropped significantly since the beginning of the year. The cost for Annuity Plan 1 and Annuity Plan 2 dipped roughly 15% and 24% respectively."  MORE >>

October Three Consulting

PBGC Approves Special Financial Assistance Application for Longshoremen Local 1730 Plan

"[PBGC] has approved the application submitted to the Special Financial Assistance (SFA) Program by the Management-Labor Pension Plan Local 1730 ILA (Longshoremen Local 1730 Plan). The plan, based in Mastic, New York, covers 478 participants in the transportation industry. The Longshoremen Local 1730 Plan became insolvent in November 2020.... The plan will receive $59.1 million in SFA, including interest to the expected date of payment to the plan."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

[Opinion]

ERIC Comment Letter to EBSA on Possible Agency Actions to Protect Life Savings and Pensions from Threats of Climate-Related Financial Risks (PDF)

"[T]he RFI asks for information in response to questions about whether the [DOL] should take actions or impose requirements on private-sector retirement plans in the context of climate-related financial risk.... [N]ew requirements are simply not warranted in this context.... ERISA's general fiduciary duties already protect participants, and new requirements emphasizing climate-related risks have the potential to confuse plan fiduciaries. Finally, imposing specific new obligations in this context could spiral in the future, presenting costly new burdens."  MORE >>

The ERISA Industry Committee [ERIC]

[Opinion]

American Benefits Council Comment Letter to EBSA: Request for Information on Possible Agency Actions on Climate-Related Financial Risk

"[T]he Council has a number of concerns regarding the potential agency actions ... and questions raised in the RFI that could lead to substantially increased burdens and uncertainty for plan sponsors, adversely affect markets in a way that is harmful to participants, and impose requirements and limitations that are not consistent with ERISA[.]"  MORE >>

American Benefits Council

[Opinion]

ARA Comment Letter to EBSA on Possible Agency Actions to Protect Life Savings and Pensions from Threats of Climate-Related Financial Risk (PDF)

"The Department's efforts to comply with the Executive Order should focus on ensuring that ERISA plan fiduciaries have prudent processes in place for analyzing all financial risks, including climate-related financial risk, if relevant. The Department should not require ERISA plans to report information relating to climate-related financial risk because it has not explained its rationale or expectations for how doing so would support its mandate to supervise and enforce ERISA, and it will increase administrative burdens on plans and service providers."  MORE >>

American Retirement Association [ARA]

Benefits in General

65-Year-Old Couple Retiring Today Will Need an Average of $315,000 for Medical Expenses

"[A] 65-year-old couple retiring this year can expect to spend an average of $315,000 in health care and medical expenses throughout retirement. The 2022 estimate for single retirees is $150,000 for men and $165,000 for women.... This year's estimate is up 5% from 2021 ($300,000) and has nearly doubled from its original $160,000 in 2002."  MORE >>

Fidelity

Americans Dangerously Out of Touch with Retirement Healthcare Costs

"Nearly six-in-10 (57%) Baby Boomer (ages 58-76 years old) respondents incorrectly think a person can elect to enroll in Medicare at age 62 and receive reduced benefits.... More than four-in-10 Baby Boomer respondents (41%) ... incorrectly ... assume there are out-of-pocket limits for Medicare Coverage.... Among Baby Boomer respondents, 40% ... incorrectly ... think Medicare will pay for them to stay in a nursing home when they can no longer take of themselves (e.g. feed/dress/bathe)."  MORE >>

401(k) Specialist

Executive Compensation and Nonqualified Plans

Time to Consider Stock Option Repricings?

"While they are rare and while we might be too early in the economic cycle for them, stock option repricings remain a possible [talent retention] tool in the toolkit for both public and private company issuers. [This article summarizes] a few key repricing and exchange concepts for both public company and private company repricings or exchanges[.]"  MORE >>

Snell & Wilmer L.L.P.

Employee Benefits Jobs

View job as Fund Reconciliation and Reorg Analyst
          for Ubiquity Retirement + Savings Fund Reconciliation and Reorg Analyst

Ubiquity Retirement + Savings

Remote / San Francisco CA

View job as Fund Reconciliation and Reorg Analyst
          for Ubiquity Retirement + Savings

View job as Retirement Plan Administrator
          for Retirement Solutions Specialists, LLC Retirement Plan Administrator

Retirement Solutions Specialists, LLC

Remote / Jacksonville FL

View job as Retirement Plan Administrator
          for Retirement Solutions Specialists, LLC

View job as Director, Retirement Plan Services
          for Definiti LLC Director, Retirement Plan Services

Definiti LLC

Remote

View job as Director, Retirement Plan Services
          for Definiti LLC

View job as Consulting Actuary - Mid-size Plan Market
          for Definiti LLC Consulting Actuary - Mid-size Plan Market

Definiti LLC

Remote

View job as Consulting Actuary - Mid-size Plan Market
          for Definiti LLC

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 Defined Contribution Plan Administrator
          for MGKS Defined Contribution Plan Administrator

MGKS

Remote / Phoenix AZ

View job as Defined Contribution Plan Administrator
          for MGKS

View job as Recordkeeping Processor
          for Definiti LLC Recordkeeping Processor

Definiti LLC

Remote

View job as Recordkeeping Processor
          for Definiti LLC

View job as Recordkeeping Specialist
          for Definiti LLC Recordkeeping Specialist

Definiti LLC

Remote

View job as Recordkeeping Specialist
          for Definiti LLC

View job as Billing and Accounts Receivable Specialist
          for ERISA Services, Inc. Billing and Accounts Receivable Specialist

ERISA Services, Inc.

Knoxville TN

View job as Billing and Accounts Receivable Specialist
          for ERISA Services, Inc.

View job as Quality Assurance Specialist
          for ERISA Services, Inc. Quality Assurance Specialist

ERISA Services, Inc.

Knoxville TN

View job as Quality Assurance Specialist
          for ERISA Services, Inc.

View job as Sales Consultant
          for Leading Retirement Solutions LLC Sales Consultant

Leading Retirement Solutions LLC

Remote / Seattle WA

View job as Sales Consultant
          for Leading Retirement Solutions LLC

View job as Plan Compliance & Benefits Specialist
          for UNITE HERE HEALTH Plan Compliance & Benefits Specialist

UNITE HERE HEALTH

Aurora IL

Selected New Discussions

Sources of 'Related' Rollovers

"We're moving a 401(k) from another provider to our platform. The plan has both related and regular rollovers. I'm being told that I need to find out the prior sources that the related rollover came from, like deferral, match, etc. I've never heard anything like this before. Is that correct?"

BenefitsLink Message Boards

Press Releases

Neal Gerber Eisenberg Adds Employee Benefits Partner Andrew Douglass

Neal Gerber Eisenberg

Jeff Liter Promoted to Director of Actuarial Services at The Angell Pension Group

The Angell Pension Group

401GO Welcomes New Executives as Demand for Accessible 401(k) Programs Sparks Momentum

401GO

GoodRx and RxVantage Announce Strategic Relationship to Streamline Communications Between Providers and Manufacturers

GoodRx

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

ARPA: Special Financial Assistance for Multiemployer Plans

August 17, 2022 WEBCAST

Conference of Consulting Actuaries

Last Issue's Most Popular Items

SECURE 2.0 Means Change May Be Coming for Retirement Plans (PDF)

King & Spalding, via Law360

Complexities Abound with SECURE 2.0

Milliman

Should You Consider a Roth Conversion While the Market Is Down?

Kiplinger

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

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