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Retirement Plans Newsletter

May 31, 2022

3 New Job Opportunities 3 New Job Opportunities


[Guidance Overview]

Universal Availability Rules for 403(b) Plans

"Because of the universal availability rule, the elective deferral contributions in 403(b) plans are not subject to any nondiscrimination or coverage testing, unlike elective deferral contributions in 401(k) plans. Conversely, employer contributions to 403(b) plans are not subject to the universal availability rules, so discrimination testing applies."  MORE >>

Belfint Lyons Shuman

Exceptional Usefulness and Quality icon Cycle 3 Restatements Include Requirement for Participant Notice Describing Discretionary Match

"In addition to the formula, the allocation of a matching contribution is also dependent on the compensation period used to determine the match, any plan-imposed limits, and the timing of the contributions.  ... The IRS has recognized this discretionary matching contribution information gap and voila, a new required participant notice is born.... The timing of the notice depends on whether your discretionary match is determined and funded annually, or whether you fund the match on a periodic basis (per pay period, monthly or quarterly). ... The first plan year the new requirement impacts your 401(k) plan depends on the date the Cycle 3 restatement was adopted."  MORE >>


What's the Difference Between a 3(16), 3(21), and 3(38) Fiduciary?

"Depending on which type of fiduciary you hire, they can make a difference in how much money and time you spend by assisting with plan design, investment decisions, fund monitoring, or administration. Here are some of the key differences between 3(16), 3(21), and 3(38) fiduciaries, plus information on how each type could help your business."  MORE >>


How Are Advisors Coping with the New DOL Rollover Rules?

"Here are a dozen observations.... [along with] a composite disclosure document that the profession can rally around. At the very least, it shows you the thinking of people who have put a lot of thought into this issue."  MORE >>

Advisor Perspectives

Sources of Retirement Income

"No longer do we have the old 'three-legged stool' of retirement income, which consisted of Social Security, private pensions and personal savings. A 2021 study by the Social Security Administration revealed that the average retiree's income comes from workplace retirement plans (primarily defined contribution plans) and IRAs (36%), followed by Social Security benefits (30%) and earnings from work (25%)."  MORE >>

Retirement Learning Center, LLC


ARA Comment Letter to IRS on Proposed Relief from Unified Plan Rule for Multiple Employer Plans (PDF)

"[Among other items,] ARA recommends that the Service: ... [1] Shorten the time for the unresponsive participating employer's response to the second and third notices from 60 days to 30 days, with an optional extension, and Provide a special rule for consolidation of notices in clearly futile situations.... [2] Permit MEP administrators to maintain detailed procedures for complying with the Exception outside of the MEP plan document.... [3] Extend the 180-day safe harbor period for completion of a plan spinoff to 12 months"  MORE >>

American Retirement Association [ARA]


SPARK Comment Letter to IRS on Proposed Relief from Unified Plan Rule (PDF)

"[SPARK recommends that] ... [1] a MEP will qualify for the SECURE Act's relief from the unified plan rule if ... the MEP administrator initiates a spinoff of the assets attributable to the employees of unresponsive employers to a separate single-employer plan, followed by a termination and distribution of the assets of such plan.... [2] the final regulations allow a MEP administrator to place mandatory cash-out amounts of $1,000 or less in an IRA (if the participant does not elect otherwise)."  MORE >>

The SPARK Institute


Presenting the 403(b) Honor Roll; Many Large School Systems Missing

"[T]here are currently 116 districts in [the 403bwise] database of more than 3,300 school districts who have earned an 'A' rating. More than half of these are in Wisconsin.... California, Texas and Florida have ZERO A-rated plans."  MORE >>


Benefits in General

Arbitration of ERISA Claims: Where Are the Courts and Congress Headed?

"Due to lack of Supreme Court guidance on these issues, it is still not clear the extent to which particular arbitration provisions may apply to ERISA fiduciary breach claims. However, several Circuit Courts of Appeal have now weighed in and a bill called the Employee and Retiree Access to Justice Act has been introduced in the House and Senate (HR 7740 and S 4219) with the express purpose of making predispute and nonconsensual post-dispute arbitration clauses unenforceable. What is a plan sponsor favoring arbitration to do?"  MORE >>

Cohen & Buckmann, P.C.

Executive Compensation and Nonqualified Plans

Delaware Chancery Court Refuses to Dismiss Shareholder Claims Related to Equity Grants

"A company's shareholder asserted claims against the company, its chief executive officer (CEO), and its board of directors alleging breach of contract, breach of fiduciary duty, and unjust enrichment based on the company's equity awards to its CEO, which the shareholder alleged violated the company's equity compensation plan. The Delaware Chancery Court rejected the defendants' motion to dismiss." [Garfield v. Allen, No. 2021-0420 (Del. Ch. May 24, 2022)]  MORE >>

Thomson Reuters Practical Law

Employee Benefits Jobs

View job as Retirement Plan Analyst - Defined Contribution
          for Compensation Strategies Group, Ltd Retirement Plan Analyst - Defined Contribution

Compensation Strategies Group, Ltd

Remote / Beaumont TX

View job as Retirement Plan Analyst - Defined Contribution
          for Compensation Strategies Group, Ltd

View job as Sr Advisor New Business - Insurance & Financial Services
          for National Rural Electric Cooperative Association (NRECA) Sr Advisor New Business - Insurance & Financial Services

National Rural Electric Cooperative Association (NRECA)

Arlington VA / Lincoln NE

View job as Sr Advisor New Business - Insurance & Financial Services
          for National Rural Electric Cooperative Association (NRECA)

View job as Relationship Manager
          for HORAN Relationship Manager


Cincinnati OH

View job as Relationship Manager
          for HORAN

Selected New Discussions

Good Faith Amendment for Fidelity Preapproved Adopter That Is Terminating Its Plan

"I have a situation where client wants to terminate its 401(k) before a stock sale. Client uses a Fidelity preapproved document and has already adopted its restatement but is being told by its Fidelity rep that it needs to come up with its own good faith amendment for SECURE Act and CARES Act because Fidelity does not have yet and will roll those out only later this year. I have a form of good faith amendment that I can use for this client, but I am a little incredulous that Fidelity does not have its own by now. Can anyone confirm or deny what the client’s Fidelity rep is saying? This must have affected a lot of terminating plans over the last couple of years."

BenefitsLink Message Boards

Press Releases

Pension Rights Center’s Founder Karen Ferguson Receives Posthumous Award Recognizing Her Importance to Employee Benefits Field

Pension Rights Center

Ameritas Announces Newly Elected Officers


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Social Security and You

June 22, 2022 WEBCAST

The Retirement Advantage [TRA]

Last Issue's Most Popular Items

Can We Self-Correct a Missed Restatement? You Bet! Well, Maybe...

Ferenczy Benefits Law Center

Crypto in Retirement Plans: 401(k) vs. IRA


Did You Review Your Restatement Before Signing It?


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

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