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Retirement Plans Newsletter

June 14, 2022

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[Official Guidance]

Text of PBGC Interest Assumptions for Valuing Benefits in Single-Employer Plans, Third Quarter 2022

"The third quarter 2022 interest assumptions will be 2.81 percent for the first 20 years following the valuation date and 2.94 percent thereafter. In comparison with the interest assumptions in effect for the second quarter of 2022, these interest assumptions represent no change in the select period (the period during which the select rate (the initial rate) applies), an increase of 0.41 percent in the select rate, and an increase of 0.82 percent in the ultimate rate (the final rate)."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

[Sponsor]

ERISApedia.com – 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 ERISApedia.com

[Guidance Overview]

Required Minimum Distribution Modifications for Defined Benefit Plans

"The proposed regulations reflect that the required actuarial increase does not apply to a five-percent owner whose required beginning date is the calendar year in which he or she attains age 72.... The proposed regulations also address the relationship between the limitation on accelerated benefit distributions under Code Section 436 and the minimum distribution requirements of Code Section 401(a)(9).... The proposed regulations provide ... additional exceptions to the nonincreasing annuity requirement that apply without regard to a comparison of the total future expected payments and the total value being annuitized[.]"  MORE >>

The Wagner Law Group

[Guidance Overview]

Resources for Tracking State and City Retirement Initiatives (PDF)

14 pages. "This article summarizes state and city retirement initiatives for private-sector workers and rounds up relevant Mercer and third-party resources. This listing will be updated periodically[.]"  MORE >>

Mercer

[Guidance Overview]

Recent Updates to the Employee Plans Compliance Resolution System

"Effective July 16, 2021, the correction period for self-correction of significant operational failures is extended from two to three years.... [E]xpanded correction principles allow plan sponsors to fix operational failures when plan participants or beneficiaries receive payments that are in excess of the plan's written terms.... The IRS also extended a provision ... relating to a safe harbor correction method available for missed elective deferrals for eligible employees subject to an automatic contribution arrangement in a 401(k) or 403(b) plan by three years."  MORE >>

Belfint Lyons Shuman

Defined Contribution Plan Participants' Activities, First Quarter 2022 (PDF)

20 pages. "[DC] plan withdrawal activity in the first quarter of 2022 remained low and was slightly lower than the activity observed in the first quarter of 2021.... Most DC plan participants stayed the course with their asset allocations as stock values generally declined during the first three months of the year.... DC plan participants' loan activity remained about the same in the first quarter of 2022."  MORE >>

Investment Company Institute [ICI]

401(k) Participants Stay Focused During Recent Turmoil

"A preliminary estimate indicates that only 0.9% of DC plan participants stopped contributing during the first quarter of 2022, compared with 0.8% in the first quarter of 2021, 1.4% in the first quarter of 2020, and 2.7% in the first quarter of 2009."  MORE >>

401(k) Specialist

[Opinion]

Would SECURE 2.0 and RISE & SHINE Together Secure More Retirement Equity?

"[SECURE 2.0 (HR 2954) and the RISE & SHINE Act (S 4353)] in concert would intensify rather than diminish retirement benefit disparities, while leaving tens of millions of American families and workers with insufficient savings to retire comfortably. The article analyzes those bills' provisions and describes: [1] those bills' provisions that would secure more retirement equity and how to improve those provisions, [2] those bills' provisions that would secure less retirement equity, and [3] provisions that ... if added to the bills would secure more retirement equity."  MORE >>

Albert Feuer, via SSRN

Employee Benefits Jobs

View job as Plan Consultant
          for Sentinel Benefits & Financial Group Plan Consultant

Sentinel Benefits & Financial Group

Remote / Wakefield MA

View job as Plan Consultant
          for Sentinel Benefits & Financial Group

Selected New Discussions

Is QDIA Required for Fully Self-Directed Plan?

"All participants have self directed brokerage accounts. Plan is set up as a 404(c) plan. There is no QDIA. I thought 404(c) plans had to have a QDIA."

BenefitsLink Message Boards

Terminating a Plan without a Formal Correction Application

"Plan sponsor has finally agreed to correct a plan by depositing long overdue safe harbor contributions (with earnings). They would like to terminate the plan, but they do not want to submit a formal VCP correction or restate their plan document. I'm looking for thoughts on helping them terminate the plan under those conditions, aside from an incredibly caveated letter from us as to what their risks are going to be."

BenefitsLink Message Boards

Terminating Before July 31 to Avoid Restatement

"I understand a plan is not required to restate if it terminates prior to 7/31/22, albeit it must be fully up to date, including at this time the Hardship and SECURE amendments. That being said, if a plan does terminate but does not yet distribute assets in full by 7/31/22, would there be any qualification issue? I'm thinking it's okay but wanted to throw that out."

BenefitsLink Message Boards

Press Releases

Federal Thrift Savings Plan Opens Mutual Fund Window Which Includes Sustainable Funds

US SIF

TRA Hires Robert Dolin as New Regional Sales Consultant

The Retirement Advantage [TRA]

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Factors and Considerations for Retirement Professionals

June 22, 2022 WEBCAST

Broadridge Financial Solutions, Inc.

Benefit Issues in Company M&A

June 23, 2022 WEBCAST

PensionPro

Ethics

November 16, 2022 WEBCAST

Conference of Consulting Actuaries

Last Issue's Most Popular Items

Common 403(b) Participant Errors

403bwise

Sixth Circuit: For Multiemployer Benefit Suspension on Rehire, Job Responsibilities Matter, Not Job Titles

Bolton

Which Participants Can Sue?

October Three Consulting

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

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