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Retirement Plans Newsletter

June 3, 2022

7 New Job Opportunities 7 New Job Opportunities

 

[Guidance Overview]

Proposed Regs for Inherited IRAs Bring Unwelcome Surprises

"The proposed regs cover numerous topics, but one of the most noteworthy is an unexpected interpretation of the so-called '10-year rule' for inherited IRAs and other defined contribution plans. If finalized, this interpretation -- which contradicts earlier IRS guidance -- could lead to larger tax bills for certain beneficiaries."  MORE >>

Meaden & Moore

Third Circuit Affirms Class Certification: Named Plaintiffs Have Standing to Bring Claims for Plan Funds in Which They Did Not Personally Invest

"The Named Plaintiffs' interests are sufficiently aligned with those of the class because the common allegation for each class member -- Universal's alleged imprudence in managing the Plan's funds -- is central to the claims of the Named Plaintiffs and absent class members. The court declined to adopt a per se rule as to whether a class representative must have invested in each of the challenged funds." [Boley v. Universal Health Serv. Inc., No. 21-2014 (3d Cir. Jun. 1, 2022)]  MORE >>

Roberts Disability Law

IRS Employee Plans News: New 90-day Pre-Examination Compliance Pilot (PDF)

"The IRS Employee Plans function is piloting a pre-examination retirement plan compliance program beginning in June 2022. This program will notify a plan sponsor by letter that their retirement plan was selected for an upcoming examination."  MORE >>

Internal Revenue Service [IRS]

Sponsors of Traditional Defined Benefit Plans with Lump Sum Distribution Option Should Prepare for Challenging Year-End

"With interest rates increasing rapidly, upcoming changes to the applicable interest rate may cause lump sum payments to decrease. In some cases, the decrease may be significant.... This will result in increased liquidity needs for the plan in order to fund the distributions, and may also give rise to an accounting charge for a settlement, which can occur when lump sum distributions for a given year exceed a threshold."  MORE >>

Morgan Lewis

Latest Form 5500 Updates Address DB Reporting But Defer Other Changes

"A slim update to Form 5500 ... makes a handful of changes to reporting for defined benefit plans and defined contribution multiple-employer plans (MEPs). However, the update defers the bulk of last year's broader package of proposed revisions ... The final changes -- including a new 50-year benefit projection for single-employer DB plans -- are effective for 2022 plan-year reporting."  MORE >>

Mercer

Managed Accounts in 401(k) Plans: Their Value and Their Dangers

"[M]anaged account services look at additional factors -- such as outside assets, other pensions, personal savings rates, income and a personalized risk tolerance -- to determinate an appropriate asset allocation.... Hence, the need for a personal representative to engage with the participant (frequently) in one-on-one communication to construct an optimal, personalized asset allocation strategy."  MORE >>

Dorsey ERISA

2022 Annual Report of the Social Security Board of Trustees (PDF)

275 pages. "The reserves of the combined OASI and DI Trust Funds along with projected program income are sufficient to cover projected program cost over the next 10 years ...  However, the ratio of reserves to annual cost is projected to decline from 230 percent at the beginning of 2022 to 74 percent at the beginning of 2031.... OASDI cost is projected to exceed total income in 2022, and the dollar level of the hypothetical combined trust fund reserves declines until reserves become depleted in 2035.... Considered separately, the OASI Trust Fund reserves become depleted in 2034, and, for the first time since the 1983 Trustees Report, the DI Trust Fund reserves do not become depleted within the 75-year long-range projection period."  MORE >>

The Board of Trustees, Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds

Yet Another State IRA Program Set to Debut Mid-2023

"Virginia's new state-facilitated private retirement program, called RetirePath Virginia, will open by July 1, 2023 ... As in other state-based IRA programs, RetirePath Virginia is intended to provide residents who don't otherwise have access to a workplace retirement savings plan the option to save a portion of their pay in a professionally managed IRA account."  MORE >>

401(k) Specialist

M&A Update for the Second Quarter

"The 76 reported transactions in 2021 represented a leap over the 28 and 32 transactions reported in 2019 and 2020, respectively ... In the decade since 2012, 187 retirement advisory firms have been acquired.... Based on announced M&A transactions through the end of April 2022, deal levels are down compared to early 2021."  MORE >>

planadviser

[Opinion]

401(k)s with Bitcoin Should Expect Lawsuits (PDF)

"Even if Fidelity finds a way to appease the DOL, ... the plaintiffs bar will be waiting. 'Any employer who would follow the Fidelity lead by offering cryptocurrency and 401(k) plan is exposing itself to very serious risk of a fiduciary breach,' said Jerry Schlichter, whose firm, Schlichter Bogard & Denton, has won more than $1.5 billion for clients in retirement plan litigation."  MORE >>

Money-Media, via Wagner Law Group

[Opinion]

The Cost of Miscalculating Investment Risk-Taking

"[T]he typical state of California government worker aged 25 to 34 has more than a third of their defined contribution assets in short-term fixed income and stable-value funds.... [S]tocks outperformed short-term bonds in almost 90 percent of the 10-year periods since [the author] started investing, and the average annual outperformance of stocks over short-term fixed income for that full time period was nearly 10 percentage points."  MORE >>

Employee Benefits Research Institute [EBRI]

[Opinion]

American Benefits Council Comment Letter to EBSA on Proposed Procedures for Prohibited Transaction Exemption Application

"The proposal would ... [discourage] retirement plan sponsors and service providers from requesting exemptions and approaching DOL with questions about the prohibited transaction rules. The proposal would also unnecessarily narrow the universe of parties and transactions that are eligible for an exemption.... [T]he proposal would ... express DOL's views on broader fiduciary and prohibited transaction issues that are unrelated to the filing of an exemption application and which should be the subject of a separate rulemaking."  MORE >>

American Benefits Council

Employee Benefits Jobs

View job as Relationship Manager
          for PCS Retirement Relationship Manager

PCS Retirement

Remote / Lafayette Hill PA

View job as Relationship Manager
          for PCS Retirement

View job as Implementation Analyst II
          for PCS Retirement, LLC Implementation Analyst II

PCS Retirement, LLC

Remote / Lafayette Hill PA

View job as Implementation Analyst II
          for PCS Retirement, LLC

View job as Manager, Plan Services - Cash, Payments and Reporting
          for The Standard Manager, Plan Services - Cash, Payments and Reporting

The Standard

Remote / Portland OR

View job as Manager, Plan Services - Cash, Payments and Reporting
          for The Standard

View job as Compliance Specialist (Entry Level)
          for Newport Compliance Specialist (Entry Level)

Newport

Remote

View job as Compliance Specialist (Entry Level)
          for Newport

View job as Defined Benefit Plan Consultant
          for Planned Retirement Consultants & Administrators, LLC Defined Benefit Plan Consultant

Planned Retirement Consultants & Administrators, LLC

Remote / Ridgewood NJ

View job as Defined Benefit Plan Consultant
          for Planned Retirement Consultants & Administrators, LLC

View job as 401k & Defined Contribution Plan Consultant
          for Planned Retirement Consultant & Administrators, LLC 401k & Defined Contribution Plan Consultant

Planned Retirement Consultant & Administrators, LLC

Remote / Ridgewood NJ

View job as 401k & Defined Contribution Plan Consultant
          for Planned Retirement Consultant & Administrators, LLC

View job as Internal Sales Consultant
          for Definiti LLC Internal Sales Consultant

Definiti LLC

Remote

View job as Internal Sales Consultant
          for Definiti LLC

Press Releases

Virginia’s State-Facilitated Private Retirement Program Scheduled to Launch in 2023

Virginia529

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

One Bad Apple Rule Guidance for MEPs

June 1, 2022 WEBCAST

ASPPA [American Society of Pension Professionals & Actuaries]

Plan Document Issues - What You Need To Know

June 30, 2022 WEBCAST

ASPPA [American Society of Pension Professionals & Actuaries]

Last Issue's Most Popular Items

IRS Provides Guidance for Late Pre-Approved Plan Restatements

Groom Law Group

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

The Wall Street Journal; subscription may be required

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

United Actuarial Services

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

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