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Retirement Plans Newsletter

June 2, 2022

6 New Job Opportunities 6 New Job Opportunities

 

[Guidance Overview]

IRS Provides Guidance for Late Pre-Approved Plan Restatements

"This IRS clarification -- allowing correction of these late adoptions without requiring a corresponding VCP filing -- is very helpful. Further, while the IRS did not specifically address pre-approved defined contribution plans, for which the deadline to adopt a restatement for the current cycle is July 31, 2022, it is reasonable to conclude that this guidance will apply to those plans as well."  MORE >>

Groom Law Group

401(k) Provider Sues DOL Over Handling of Crypto in Retirement Plans

"A 401(k) provider [has] sued the [DOL], seeking to invalidate recent agency guidance that says companies that offer cryptocurrencies in retirement plans should expect to be investigated.... In its guidance, the regulator cited factors including the market's volatility and the lack of broadly accepted methodologies investors can rely on to evaluate cryptocurrency prices. Since November, bitcoin has lost about 56% of its value." [ForUsAll v. DOL, No. 22-1551 (D.D.C. complaint filed Jun. 2, 2022)]  MORE >>

The Wall Street Journal; subscription may be required

Cyberattacks on Plans and Service Provider: Recent Incidents, How to Prepare, and How to Respond (PDF)

"[This article considers] four recent cyber incidents in the news and then provide some resources to prepare against cyberattacks and what to do if your plan or service provider suffers a ransomware or other cyberattack. The HIPAA cybersecurity guidance on cyberattacks provided by the Office of Civil Rights (OCR) discusses steps an entity must take when evaluating whether a ransomware attack is a 'breach' under the HIPAA Privacy Rules. While OCR guidance is aimed specifically at HIPAA-covered entities, it is instructive for pension plans as well."  MORE >>

United Actuarial Services

What's Next for QDIA?

"[T]he rise of cost-effective, flexible managed account programs has the potential to disrupt the target date oligopoly and replace a good and convenient QDIA option with something much better in the coming years."  MORE >>

CAPTRUST

2021 Defined Contribution Consultant Research Study

"T. Rowe Price data suggest that more participants are remaining in their DC plans for longer after they retire. Potentially accelerating this trend, lower cost for comparable investments versus a Rollover IRA, flexibility in drawing down assets, and investment solutions that generate income were all cited as features that may best persuade more participants to stay in plan after they retire ... [C]onsultants report simple systematic withdrawal capabilities as most appealing despite limitations."  MORE >>

T. Rowe Price

Self-Directed 401(k) Balances Down, Investors Hold Steady as S&P 500 Experiences First Correction in Two Years

"The first quarter SDBA Indicators align with the performance of volatile equity and bond markets ... Despite market turbulence, participants did not make significant changes to their investments during this period. Participant holdings remained similar to the prior quarter, with a slight increase in cash. Individual equities held the majority of participant assets (36%). Mutual funds were the second largest holding at 29%, followed by ETFs (21%), cash (13%), and fixed income (1%)."  MORE >>

Charles Schwab

Text of Enrolled Actuaries Pension Examination EA-1, Spring 2022 (PDF)

36 pages. Full text of May 12, 2022 exam with answers, published online by IRS.  MORE >>

American Society of Pension Professionals & Actuaries [ASPPA]; Joint Board for the Enrollment of Actuaries [JBEA]; Society of Actuaries

Text of Enrolled Actuaries Pension Examination EA-2, Segment L, Spring 2022 (PDF)

48 pages. Full text of May 12, 2022, exam with answers, published online by IRS.  MORE >>

American Society of Enrolled Actuaries [ASEA]; Joint Board for the Enrollment of Actuaries [JBEA]; Society of Actuaries

Pension Finance Update, May 2022

"Financial markets continued to roil in May, but the net impact on pension finance was modest. Both model plans ... were close to even on the month. Through the first five months of 2022, Plan A remains up 4%-5% while the more conservative Plan B is holding at even on the year."  MORE >>

October Three Consulting

FAS87 ASC715 Discount Rates and Moody's Rates, May 31, 2022

An unofficial monthly report of the Moody's Daily Long-term Corporate Bond Yield Averages and Moody's Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).  MORE >>

BenefitsLink Message Boards

SEC Announces Eight New Investor Advisory Committee Members

"The [SEC] announced eight new members to fill all vacancies on its Investor Advisory Committee. The new members join 15 current committee members. The committee, established under the Dodd-Frank Wall Street Reform and Consumer Protection Act, advises the Commission on regulatory priorities and various initiatives to help protect investors and promote the integrity of the U.S. securities markets."  MORE >>

U.S. Securities and Exchange Commission [SEC]

[Opinion]

SPARK Institute Comment Letter to EBSA on Proposed Procedures Governing the Filing and Processing of Prohibited Transaction Exemption Applications (PDF)

"The proposal will create greater uncertainty for the regulated community.... The proposal will discourage applications.... The proposal will unnecessarily limit transactions eligible for relief.... Reliance is critical and must be clearly defined.... The SPARK Institute is also concerned about the proposal's new 2% presumption for qualified independent fiduciaries."  MORE >>

The SPARK Institute

Benefits in General

District Court Dismisses Section 510 Benefits Interference Claim Made by Law Firm Associate

"A federal district court rejected a law firm associate's claim for interference with benefits under Section 510 of [ERISA]. According to the court, the associate did not provide sufficient evidence that his firm's stated reasons for terminating the associate's employment were pretextual." [Joffe v. King & Spalding LLP, No. 17-3392 (S.D.N.Y. May 26, 2022)]  MORE >>

Thomson Reuters Practical Law

Employee Benefits Jobs

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

Hicks Pension Services

Remote

View job as Retirement Plan Administrator
          for Hicks Pension Services

View job as Senior Actuarial Analyst
          for FuturePlan, by Ascensus Senior Actuarial Analyst

FuturePlan, by Ascensus

Remote

View job as Senior Actuarial Analyst
          for FuturePlan, by Ascensus

View job as Client Relationship Manager (Retirement)
          for Ascensus Client Relationship Manager (Retirement)

Ascensus

Remote

View job as Client Relationship Manager (Retirement)
          for Ascensus

View job as Retirement Plans Compliance Analyst II
          for The Standard Retirement Plans Compliance Analyst II

The Standard

Remote / Howell MI / TX

View job as Retirement Plans Compliance Analyst II
          for The Standard

View job as Retirement Plans Compliance Analyst III
          for The Standard Retirement Plans Compliance Analyst III

The Standard

Remote / FL / IA / MD / OH / PA / TX

View job as Retirement Plans Compliance Analyst III
          for The Standard

View job as Implementation Manager - Retirement Plans
          for The Standard Implementation Manager - Retirement Plans

The Standard

Remote / FL / IA / MD / OH / PA / TX

View job as Implementation Manager - Retirement Plans
          for The Standard

Selected New Discussions

Controlled Group -- Plans Have Different Eligibility Requirements

"Let's say there are two plans in a Controlled Group:

Plan A - 3 months of service required for eligibility

Plan B - 6 months of service required for eligibility

Questions:

[1] How would the coverage testing be done to determine if the plans can be tested separately? Would you use the appropriate eligibility for each plan (3 months for Plan A and 6 months for Plan B) for coverage testing purposes, or would you use the more lenient eligibility (3 months) to determine who is eligible and benefiting for coverage purposes? This question only relates to coverage testing done to determine if the plans can be tested separately.

[2] Let's say the plans pass coverage testing on their own and can be tested separately for non-discrimination purposes. In this case, it's my understanding that the eligibility requirements can stay as is and don't have to be the same for both plans. So, Plan A can still have the 3 month eligibility requirement and Plan B can still have the 6 month eligibility requirement. Because they pass coverage testing separately, the eligibility requirements don't have to be consistent. Is that correct?

[3] Let's say the plans fail coverage testing on their own and must be aggregated. Would Plan B be required to change its eligibility to 3 months (the more lenient eligibility requirement between the 2 plans)?"

BenefitsLink Message Boards

Press Releases

Millennium Trust Company Completes Acquisition of PayFlex®

Millennium Trust Company, LLC

Flume Health Names Healthcare Leader Richard Fu as Chief Growth Officer

Flume Health

401GO Offers Insights as Deadline to Comply with California Retirement Savings Law 'CalSavers' Looms

401GO

Chambers USA 2022 Recognizes Groom as Top Firm for Employee Benefits & Executive Compensation and ERISA Litigation

Groom Law Group

UAS Actuarial and Consulting Services to Go PII/PHI Free

United Actuarial Services, Inc.

Vontobel Expands Retirement Plan Offerings With Quality Growth Collective Investment Trusts

Vontobel

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Stock Option Exercise Strategies: Advanced Bootcamp

June 15, 2022 WEBCAST

myStockOptions.com

Last Issue's Most Popular Items

When a 'Reverse Rollover' Makes Sense

Slott Report

Why You Need to Know and Understand Pooled Employer Plans

River and Mercantile

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

Congressional Research Service [CRS]

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

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