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Retirement Plans Newsletter

May 24, 2022

5 New Job Opportunities 5 New Job Opportunities


[Official Guidance]

Text of FRTIB Final Regs: Transition to a New Recordkeeping System, Including Elimination of Notarization Requirement for Spousal Consent to Distributions

"The notarization requirement was implemented as a measure to prevent fraud. There was not then, and is not today, any evidence showing that a notarization requirement decreases fraudulent TSP withdrawals. Our assumption that the security-related benefits of requiring notarization were appreciable enough to justify the burdens they impose on TSP participants and their spouses was grounded in speculation and custom.... [We] are adopting the proposal to remove the notarization requirement as final. The FRTIB will continue to require written spousal consent[.]"  MORE >>

Federal Retirement Thrift Investment Board [FRTIB]


This Thursday!! Master the Rules for Short & Off-Calendar Year Plans!

Don’t be caught unawares by the administrative challenges that occur when working with short and off-calendar year plans! Learn what you need to know to administer off-calendar plans and plans with short plan years. It’s not too late! Register Now!

Sponsored by ASC

[Guidance Overview]

IRS Employee Plans News: Impact of Missed Deadline for Restatement of Pre-Approved Plans (PDF)

May 23, 2022. "The failure to qualify as a pre-approved plan is not a qualification issue. Being a pre-approved plan is one method of meeting the requirement to have an updated written plan document. If the employer who sponsors a plan does not timely adopt a current pre-approved plan, it can still meet the written document requirements as an individually designed plan. Individually designed plans that don't meet those requirements can be self- corrected[.]"  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

DOL Finalizes Several Revisions to 2022 Form 5500 Instructions to Reflect SECURE Act Changes

"[The final revisions] [1] Update the Form 5500 instructions to improve reporting on the actuarial and retirement plan schedules (Schedules MB, SB, and R) filed by defined benefit pension plans subject to Title IV of ERISA. [2] Adopt additions to the plan characteristics codes reported on line 8 of Form 5500, and on line 9 of Form 5500-SF, to implement Section 101 of the SECURE Act by improving the data reported on defined contribution MEPs, including PEPs. [3] Add clarifying additions to the instructions related to Part II of Form 5500 and Form 5500-SF that collect plan sponsor and plan administrator information."  MORE >>

Thomson Reuters Practical Law

[Guidance Overview]

Private Equity in 401(k) Plans (PDF)

"The [DOL] historically has not taken a position on what investments an ERISA-covered plan should or should not make or what investments should or should not be made available to participants. However, it has issued guidance regarding what factors a plan fiduciary should consider when deciding how to invest plan assets, including when the investments under consideration are more complex.... [T]he Supplemental Statement reminds us ... that similar principles apply when considering designated investment alternatives that invest a portion of their assets in PE."  MORE >>

Groom Law Group, via The Investment Lawyer

The Case Against ESG in Retirement Plan Investment Lineups, Part 1

"Retirement plan sponsors largely are taking a cautious approach to ESG.... Fewer than 1/3 of plans reported that they have either implemented or are planning to implement some level of ESG considerations into their investment process/ investment due diligence. Over half of respondents reported having conducted ESG education over the last two years. About 1/3 of plans noted a lack of evidence of ESG performance as impacting their willingness to consider ESG."  MORE >>

The Absentee Fiduciary

"Part of the monitoring process must include writing things down. That means that any formal reporting ... [received from a] service provider or investment professional should be retained ... This does not necessarily mean it has to be paper, but it does require ... a governance folder with this historical information to support the decisions ... The decisions themselves and the basis on which they were made need to be documented somewhere so that there is proof the proper procedures were followed."  MORE >>

Ferenczy Benefits Law Center

How 401(k) Plan Sponsors Can Help Employees Look Forward to Retirement

"Put yourself in the shoes of a new retiree without a plan. Once they step away from the corporate cocoon, they step into a world full of choice. While not obligated to, wouldn't it be nice if 401k plan sponsors had a retirement training program devised to at least point them in the right direction?"  MORE >>

Fiduciary News; free registration required

This Group of Savers Opposes Fiduciary-Only Regs for Annuity Sales

"A majority of moderate-income retirement savers say they strongly oppose new government regulations that would prohibit financial professionals from being compensated by commission for selling annuities ... Since annuities are typically sold on a commission basis, a fiduciary-only regulation would make this guaranteed lifetime income product harder to obtain for moderate-income savers who are in or near retirement."  MORE >>

401(k) Specialist

Is Your Retirement Portfolio Inflation Ready?

"While there's nothing retirees can do about economic forces ... retirees and those on the cusp of retirement can act now to insulate themselves against the effect of rising prices. Such steps include: [1] Maintain a diversified portfolio; [2] Consider annuities; [3] Pay down debt with home equity; [4] Delay Social Security."  MORE >>


Personalized Participant Investment Experience and Data Integration Are Top Priorities for Advisers

"Eighty percent of advisers and 65% of institutional consultants recommended a personalized experience to encourage retirees to stay in plan. For consultants ... the top priority is to expand custom investment solutions capability; a custom target-date fund format is the first recommendation for larger plans. For advisers, the most important adviser-managed account features include 'personalized investment experience for the participant' and 'participant data integration technology'[.]"  MORE >>


CRS In Focus: U.S. Retirement Assets -- Amount in Pensions and IRAs (PDF)

"About two-thirds of U.S. households had a financial stake in the U.S. retirement system in 2019 ... through participation in one or more pension plans and/or ownership of DC plans or IRA assets.... [A]mong all U.S. households ... in 2019, 63.3% had DC assets, participated in DB plans, or had IRA assets, 37.5% had DC assets, 30.2% participated in DB plans, and 25.4% had IRA assets." [IF12117, May 23, 2022]  MORE >>

Congressional Research Service [CRS]

Can We Predict Boomers' Drawdown Behavior from Earlier Cohorts?

"Studies show that retirees have tended to draw down their financial wealth very slowly. But these retirees generally had defined benefit (DB) pension plans, which pay benefits for life. Hence, this slow drawdown pattern may not hold for new retirees, who rely on 401(k)s.... The analysis suggests that many new retirees could deplete their 401(k) assets by age 85, meaning that they face a greater risk of outliving their savings."  MORE >>

Center for Retirement Research at Boston College

Benefits in General

Proposed Legislation Would Amend ERISA to Prohibit Arbitration, Modify Standard of Review

"Plan sponsors could be making more trips to court for retirement plan fiduciary breach claims instead of settling through arbitration, under ... the Employee and Retiree Access to Justice Act [HR 7740], which seeks to prohibit arbitration of claims challenging the administration and fiduciary management of benefit plans regulated under [ERISA]. If passed, the bill would modify the standard of review held by courts when a plan participant or beneficiary is refused retirement, health or other benefits under an ERISA plan."  MORE >>

PLANSPONSOR; free registration may be required

What Job-Hopping Young Professionals Want from Their Next Career Move

"While salary is typically the most important factor when a person is assessing a job offer, it may come as no surprise that the other top three financial considerations reported by young professionals include: medical benefits (54%); retirement savings (49%); and bonus (34%). When it comes to non-financial benefits that young professionals would prioritize in a job offer, they include paid time off (59%), schedule flexibility/remote work (65%) and professional development (28%)."  MORE >>

National Tax-Deferred Savings Association [NTSA]

Employee Benefits Jobs

View job as Senior Compliance Manager
          for Guideline, Inc. Senior Compliance Manager

Guideline, Inc.

Remote / CA / CO / FL / GA / IL / IN / MA / ME / MI / NC / NY / OH / OR / PA / SC / TX / WA

View job as Senior Compliance Manager
          for Guideline, Inc.

View job as Implementation Specialist
          for Capital Group Implementation Specialist

Capital Group

Irvine CA

View job as Implementation Specialist
          for Capital Group

View job as Pension Benefits Specialist - P02
          for Organization of American States Pension Benefits Specialist - P02

Organization of American States

Washington DC

View job as Pension Benefits Specialist - P02
          for Organization of American States

View job as Research Associate or Paralegal
          for United Actuarial Services, Inc. Research Associate or Paralegal

United Actuarial Services, Inc.

Remote / Carmel IN

View job as Research Associate or Paralegal
          for United Actuarial Services, Inc.

View job as Retirement Plan Administrator
          for KB Pension Services Retirement Plan Administrator

KB Pension Services

Remote / Bradenton FL

View job as Retirement Plan Administrator
          for KB Pension Services

Selected New Discussions

Retroactive Amendment to Loosen Eligibility

"A plan sponsor wants to make profit-sharing contributions for the 2021 plan year to employees who did not meet the plan's eligibility criteria in 2021. There is no testing failure if they remain excluded. Is it possible to amend the plan now to make the eligibility terms less restrictive?"

BenefitsLink Message Boards

Re-Hire Prohibition -- How Long?

"I'm trying to get a sense of how long employers are prohibiting the re-hire of employees who have a 401k account and are under age 59-1/2, to support there have been a true termination of employment versus a sham termination. I've seen time periods that range from 3 months to 6 months, and less often 12 months. For this purpose, assume there is no pre-termination agreement between the employer and employee to re-hire."

BenefitsLink Message Boards

Press Releases

DOL Obtains Consent Judgment Directing Baltimore Company, Owner to Restore $148k to 401(k) Plan

Employee Benefits Security Administration [EBSA], U.S. Department of Labor

Karen Ferguson to Receive Honor from International Foundation of Employee Benefit Plans

Pension Rights Center

Empower and Rockefeller Capital Management to Offer Personalized, Simplified Retirement Program

Empower Retirement

DOL Recovers $11k for Worker Fired Illegally for Using Federally Protected Medical Leave by Los Angeles Meat, Poultry Provider

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

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

DOL and IRS Health and Welfare Plan Audits: Latest Examination Initiatives, Key Legal Provisions, Avoiding Triggers

July 27, 2022 WEBCAST


Last Issue's Most Popular Items

Agencies Finalize Revisions to Form 5500 Series for 2022 Reporting

American Retirement Association [ARA]

Between a Rock and a Hard Place: ESG Investments as 401(k) Investment Options

Seyfarth Shaw LLP

Small Employers in Illinois, California and New York Prepare for State-Mandated Automatic IRA Programs in 2022 (PDF)

Willkie Farr & Gallagher LLP

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

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