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Retirement Plans Newsletter

June 1, 2022

5 New Job Opportunities 5 New Job Opportunities


[Guidance Overview]

IRS Simplifies Form 5300 with Electronic Filing

"The electronic version of Form 5300 and its instructions were also revised in format; as was the information requested in the form.... including: [1] Eliminating five-year remedial amendment cycles, [2] Generally limiting determination letter requests to initial plan qualification and qualification on plan termination, [3] Requesting new information for defined benefit plans in connection with Notice 2015-49 ... and [4] Requiring applicants for a multiple employer plan to request a letter for the plan in the name of the controlling member."  MORE >>


[Sponsor] – New RMD Chapters

Between CARES, SECURE, and new proposed regulations, a lot has changed with RMDs. Derrin Watson, JD has authored a completely new RMD chapter for the Qualified Plan and 403(b) Plan eSources. Use ERISApedia to make sure you keep up-to-date.

Sponsored by

Why You Need to Know and Understand Pooled Employer Plans

"[S]ome PEPs are designed with very limited flexibility in their offering (e.g., no loans, standard payroll feed, required safe harbor design), while others allow for more flexibility.... Some PEPs have a flat fee, some add an expense load to the assets invested, others charge a participant fee, and many use a combination ... PEPs will vary in terms of how much fiduciary responsibility they will assume."  MORE >>

River and Mercantile

CRS Report: Pensions and Individual Retirement Accounts (IRAs) -- An Overview

26 pages. "This report provides an overview of employer-sponsored pensions: both DB and DC plans sponsored by the federal, state, and local governments and employers in the private sector; IRAs (including IRA-based retirement plans); and state-facilitated retirement savings programs. The report provides context for understanding current legislative efforts to improve retirement security." [R47119, Jun. 1, 2022]  MORE >>

Congressional Research Service [CRS]

Communicating with Plan Participants in a Time of Economic Turmoil

"[U]sing in-person and virtual one-on-one consultations and communicating across different media, including text messaging and email, can reach the broadest swath of participants. Messaging should use plain language that even those without a financial background can easily understand. Here's a look at how communications might vary, depending on a participant's age and time until retirement."  MORE >>

PLANSPONSOR; free registration may be required

Crypto in a 401(k) Can Provide Benefits to Employees

"Cryptocurrency held or traded in a Roth 401(k) account would accrue zero capital gains taxes, no matter how much the balance increases by the time an investor retires.... Because cryptocurrency behaves differently in markets than traditional assets do means it can be a strong potential portfolio diversifier."  MORE >>


When a 'Reverse Rollover' Makes Sense

"[S]ometimes it makes sense to instead do a 'reverse rollover' -- from an IRA to a 401(k).... The main reason is to avoid getting hit by the pro-rata rule if you're converting traditional after-tax IRA funds to a Roth IRA -- a 'backdoor' Roth IRA conversion.... There are other good reasons to move your IRA to your plan: ... But, like with most retirement decisions, there's another side of the coin."  MORE >>

Slott Report

How Retirement Is Changing as We Live Longer

"[D]espite Americans' worries about health care and long-term care costs in retirement, they still desire to live longer, and nearly seven in 10 Americans (69%) want to live to age 100.... [R]etirees now see the ideal length of retirement as 29 years.... [O]nly 27% [of pre-retirees] see today's retirement as 'a time for rest and relaxation,' while 55% define it as 'a new chapter in life.' "  MORE >>


Competitive Pension Risk Transfer Buyout Rate Drops to New Low in April

"During April, the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process decreased from 98.3% of a plan's total liabilities to 97.7% of those liabilities.... During the same time period, the average annuity purchase costs across all insurers inched upward, from 102.5% to 102.8%. This means that the competitive bidding process is estimated to save plan sponsors on average around 5.1% of PRT costs as of April 30."  MORE >>


PBGC Approves $142 Million in Special Financial Assistance for Teamsters 701 Plan

"[PBGC] has approved the application submitted to the Special Financial Assistance (SFA) Program by the Mid-Jersey Trucking Industry and Teamsters Local 701 Pension Plan. The plan, which is based in North Brunswick, New Jersey, covers 1,623 participants in the transportation industry.... The plan will receive $142.2 million in SFA, including interest to the expected date of payment to the plan."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

Proposed in Pennsylvania: Mandatory Cost-of-Living Adjustment for Certain Police (and Firefighter?) Retirees

"[T]hose municipalities currently engaged in a renewal of their collective bargaining agreements may wish to hold off or modify discussions around a voluntary 2022 COLA as this legislation is ... likely to pass before the end of summer. In the meantime, municipalities may want to assemble the information needed to calculate the mandated COLA."  MORE >>

Cowden Associates, Inc.

Using Economic Context in Retirement Income Decision-Making

"While current inflation data is likely to be on clients' minds, longer-term inflation trends tend to be better predictors for sustainable retirement spending, particularly for bond-heavy portfolios. And because inflation tends to be mean-reverting, long periods of low inflation are usually followed by higher inflation (which depresses real sustainable withdrawal rates).... [W]hile no single economic indicator can reliably determine future market returns, considering multiple factors together can give advisors a better idea of how sustainable portfolio withdrawals might change going forward."  MORE >>

Nerd's Eye View


The Problems with Lifetime Income Disclosures

"A voluntary estimate of lifetime income based on accumulated savings has merit ... but only if the estimate: [1] Is accurate, [2] Is understandable to everyday workers who often suffer from financial innumeracy, [3] Incorporates all retirement-related assets, or can be applied to all retirement-related assets, and [4] Can be relied upon for retirement planning purposes. This mandated disclosure is none of the above."  MORE >>

401(k) Specialist

Employee Benefits Jobs

View job as Retirement Plan Consultant/Relationship Manager
          for Associated Pension Consultants Retirement Plan Consultant/Relationship Manager

Associated Pension Consultants

Remote / Chico CA / Sacramento CA

View job as Retirement Plan Consultant/Relationship Manager
          for Associated Pension Consultants

View job as Client Service Specialist
          for EPIC RPS Client Service Specialist


Remote / CT / IL / MA / MD / ME / MO / NC / NH / NY / PA / VT

View job as Client Service Specialist
          for EPIC RPS

View job as Principal Benefits Expert
          for Mineral Principal Benefits Expert



View job as Retirement Account Administrator
          for Alerus Retirement Account Administrator



View job as Retirement Account Administrator
          for Alerus

View job as ESOP Retirement Account Administrator, Senior
          for Alerus ESOP Retirement Account Administrator, Senior



View job as ESOP Retirement Account Administrator, Senior
          for Alerus

Selected New Discussions

Participant Was Paid Out Twice

"We have a 401k participant who was accidentally paid out twice, in separate calendar years (the assets were pooled). These were cash distributions, taxes were withheld and remitted to the IRS for both distributions. 1099Rs were prepared for both distributions (2 different years). The participant has agreed to pay the excess back to the plan. How would the plan administrator go about getting the money paid in taxes back from the IRS? Does the participant pay the entire amount (including taxes) back to the plan and recoups the taxes when he files his amended tax return?"

BenefitsLink Message Boards

Life Insurance in a 401(k) Plan

"I have not dealt with insurance in DC plans for many years and need a refresher. Plan had 401k, 3% NESH and PS provisions. Assume whole life, thus up 49.99 percent cumulative limit of the contributions. They want to use all 3 provisions to maximize insurance. Which provisions have seasoned money for future? PS definitely."

BenefitsLink Message Boards

Press Releases

The PensionInspector™ Announces New 'Inflation Eraser' App

The PensionInspector

Milliman Wins Two International Employee Communication Awards Recognizing Outstanding Achievement in Benefits Communication


Envestnet Strengthens its Retirement Solutions Ecosystem with Acquisition of the Marketplace


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Challenges and Opportunities in ARPA’s Multiemployer Relief

June 23, 2022 WEBCAST

Society of Actuaries

Global Compensation and Benefits: Working Across Jurisdictions

June 23, 2022 WEBCAST

Eversheds Sutherland

How Should Long-Term Pension Assets be Invested? A Debate Webcast

June 30, 2022 WEBCAST

Society of Actuaries

IRA Legal Issues

July 14, 2022 WEBCAST


Last Issue's Most Popular Items

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


Cycle 3 Restatements Include Requirement for Participant Notice Describing Discretionary Match


How Are Advisors Coping with the New DOL Rollover Rules?

Advisor Perspectives

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

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