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Retirement Plans Newsletter

June 24, 2022

3 New Job Opportunities 3 New Job Opportunities


Upcoming Deadline icon Due Dates Approaching for DC Plan Lifetime Illustrations

"For DC plans with participant direction of investments, the benefit statements with illustrations must be provided for the second calendar quarter of 2022, which ends June 30, 2022.... The due date is the same regardless of the plan's plan year.... For DC plans without participant direction of investments, the benefit statement with illustrations must be provided at the same time the Form 5500 annual report is due (including extensions)."  MORE >>


Sixth Circuit: 401(k) Plan Fiduciaries Did Not Breach Duties by Offering Actively Managed Mutual Funds

"The court explained that merely offering actively managed funds in its mix of investment options is not by itself an imprudent act.... [The plaintiff] pointed to another investment that performed better in a five-year snapshot of the lifespan of the fund but this does not suffice to plead an imprudent decision. If so, it would mean that every actively managed fund with below-average results over the most recent five-year period would create an ERISA violation." [Smith v. CommonSpirit Health, No. 22-5964 (6th Cir. Jun. 21, 2022)]  MORE >>

Roberts Disability Law

Sixth Circuit Issues First Published Appellate Opinion Applying Supreme Court's ERISA Ruling in Hughes

"The court recognized that actively managed funds cost more than passively managed funds, but that fact alone does not make active funds imprudent.... The court rejected the recordkeeping claims, too. Plausibly pleading an excessive fee claim, the court explained, requires 'context,' including allegations that 'the services that [the plan]'s fee covers are equivalent to those provided by' comparator plans and 'excessive relative to the services rendered.' " [Smith v. CommonSpirit Health, No. 22-5964 (6th Cir. Jun. 21, 2022)]  MORE >>

Sidley Austin LLP

Retirement Goals Being Reset by Many U.S. Workers Amid Recent Market Drop and Inflation

"[A] considerable percentage of workers (71%) said their key goal in retirement is 'maintaining my standard of living,' while less than half (44%) cited splurging periodically in retirement as a priority. The biggest concerns workers say they have in retirement, in order, are maintaining a healthy lifestyle, enduring market losses, outliving savings, and meeting daily expenses."  MORE >>

Principal Financial Group

PBGC Approves $5.4 Million in Special Financial Assistance for Painters Local 466 Pension Plan

"[PBGC] has approved the application submitted to the Special Financial Assistance (SFA) Program by the Local Union No. 466 Painters, Decorators and Paperhangers Pension Plan. The plan, based in Menands, New York, covers 45 participants in the construction industry. The Painters Local 466 Plan became insolvent in November 2020.... The plan will receive $5.4 million in SFA, including interest to the expected date of payment to the plan."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

Milliman Pension Buyout Index, June 2022

"[T]he competitive bidding process is estimated to save plan sponsors on average around 3.9% as of May 31.... During May 2022, average accounting discount rates increased by one basis point (bps), while competitive annuity purchase rates decreased by 11 bps. This caused the estimated competitive retiree buyout cost as a percentage of accounting liability to increase from 97.7% to 98.6%."  MORE >>



What Would Shakespeare Say About Offering Bitcoin in 401(k) Plans?

"[T]he ongoing kerfuffle over offering crypto in the investment menus of 401(k) plans is seeming more and more to be simply 'sound and fury, signifying nothing.'... Certainly, there are always going to be people who want to be able to make big, bold bets in their 401(k) plans, but just like most employees learned not to overweight their holdings towards their employer's stock, so too is it likely that most [participants] will not want to incur the risk of this type of investment.... So who will be liable for imprudent crypto investment options?"  MORE >>

Stephen Rosenberg, The Wagner Law Group

Benefits in General

DOL and Recordkeeper Square Off in Confidentiality Disputes

"The DOL's cybersecurity investigation into Alight Solutions, LLC, a retirement plan recordkeeper, has queued up court rulings on the reach of the DOL's subpoena power that may have important implications for ERISA plan sponsors and their respective recordkeepers and service providers moving forward." [Walsh v. Alight Solutions, LLC, No. 20-2138 (N.D. Ill. Oct. 28, 2021; on appeal to 7th Cir.)]  MORE >>

Jackson Lewis P.C.

Employee Benefits Jobs

View job as Manager - Defined Contribution Plans
          for M2B Retirement Consulting LLC Manager - Defined Contribution Plans

M2B Retirement Consulting LLC

Remote / Wexford PA

View job as Manager - Defined Contribution Plans
          for M2B Retirement Consulting LLC

View job as Relationship Manager for Non-Qualified Retirement Plans
          for Newport Relationship Manager for Non-Qualified Retirement Plans


Remote / AZ / CA / CO / FL / GA / IA / IL / KS / MA / MD / MI / MN / MO / NC / NJ / NY / OH / SC / TX / VA / WI

View job as Relationship Manager for Non-Qualified Retirement Plans
          for Newport

View job as Client Service Manager for Non-Qualified Plans
          for Newport Client Service Manager for Non-Qualified Plans


Remote / AZ / CA / CO / FL / GA / IA / IL / KS / MA / MD / MI / MN / MO / NC / NJ / NY / OH / SC / TX / VA / WI

View job as Client Service Manager for Non-Qualified Plans
          for Newport

Selected New Discussions

Irrevocable Election by NHCE to Opt Out of Plan Participation -- Minimum Coverage Test Fails

"I believe that a person who 'opts out' (via an irrevocable election) is not an excludable employee for purposes of the coverage test, and is treated as not benefiting. There is only one NHCE in this particular plan, who signed an irrevocable election. (The individual would have been eligible otherwise.) Coverage fails. Plan document allows us to bring in enough NHCEs to pass coverage. Can we give the opt-out person an allocation to pass coverage, despite the election?"

BenefitsLink Message Boards

Excel Spreadsheet for Affiliated Service Group Testing?

"Does anyone know of an Excel spreadsheet for ASG determination?"

BenefitsLink Message Boards

Cash Outs of Accumulated Vacation Pay Cause 457(f) Issue?

"A tax-exempt employer allows all employees to accumulate unused vacation pay. Employees may cash out up to 25% of unused days in any calendar year. When the employer has extra staffing needs, it allows them to cash out the entire bank. When employees retire, they are cashed out. The obvious 457(f) issue is the cash-out. At what point is this vested deferred compensation?"

BenefitsLink Message Boards

Press Releases

Ubiquity Retirement + Savings Partners with Paycor as a Preferred Provider of Retirement Solutions for Small Businesses and Startups

Ubiquity Retirement + Savings

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Making the Move: A Plan Sponsor’s Guide to a Pension Risk Transfer

July 26, 2022 WEBCAST

Aon Hewitt

Last Issue's Most Popular Items

It's Unanimous! EARN Act Passed by Senate Committee 28-0

American Retirement Association [ARA]

Senate Finance Committee Unanimously Advances EARN Act

The Wall Street Journal; subscription may be required

Is Your Employer's Retirement Plan Imposing a Marriage Penalty?

Cohen Milstein

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

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