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Retirement Plans Newsletter

June 27, 2022

5 New Job Opportunities 5 New Job Opportunities


[Guidance Overview]

IRS No Longer Issuing Rulings on Spin-Term DB Plan Reversions

"[Rev. Proc. 2022-28] doesn't explain exactly why it will no longer issue letter rulings under these circumstances. The agency may hope to discourage transactions specifically designed to circumvent restrictions on DB and DC plans, and instead limit rulings to reversions after complete termination of a DB plan. However, employers undertaking a spin-term don't need IRS approval[.]"  MORE >>


Exceptional Usefulness and Quality icon Notes from Meeting of Actuaries 'Intersector Group' with Treasury and IRS, May 2022 (PDF)

12 pages. Topics include: [1] Guidance on new closed plan rules and clarification on what plans are eligible for relief, [2] Statutory and substitute mortality tables, [3] Issues with plans terminating in surplus position, [4] Cash balance plans that use actual investment return, [5] Applicability of excise taxes on multiemployer plans remaining in critical status after their rehabilitation period ends, and [6] Annual certification under IRC Section 432 for plans receiving SFA.  MORE >>

American Academy of Actuaries, Conference of Consulting Actuaries, Society of Actuaries, and ASPPA College of Pension Actuaries [ACOPA]

Women More Likely Than Men to Say They Face Headwinds in the Retirement Industry

"When asked about specific barriers, like company culture or the availability of opportunities, men and women often gave similar answers.... 38% of men said they do not face any barriers to success in the workplace, but only 25% of white women and 22% of women of color said the same."  MORE >>

American Retirement Association [ARA]

SEC Files First Enforcement Action Alleging Violations of Best Interest Rule's Care and Compliance Standards

"The complaint marks the SEC's first case pursuing violations of Reg BI's best interest standard and previews how regulators might conceptualize Reg BI violations going forward." [SEC v. Western International Securities, Inc., No. 22-4119 (C.D. Cal. complaint filed June 15, 2022)]  MORE >>

Ropes & Gray LLP

New Jersey Bill Would Require Multiple 403(b) Providers for Teachers

"The legislation provides that certain school districts -- those with at least 1,000 students that offer a 403(b) retirement plan to school district employees -- select at minimum three providers or vendors for the plan."  MORE >>

PLANSPONSOR; free registration may be required

No Longer in Play This Year: California Bills Requiring Divestment by CalPERS and CalSTRS

"Two California divestment bills, one that would have required CalPERS and CalSTRS to divest from fossil fuels and another from companies with business operations in Russia or Belarus are dead for this session after an Assembly committee chairman declined to schedule the bills for hearings."  MORE >>

Pensions & Investments


Sixth Circuit Confirms That ERISA Is a Law of Process, and Does Not Allow Hindsight Second-Guessing of Fiduciary Decisions

"[A recent Sixth Circuit decision] refutes the entire genre of lawsuits claiming that active fund management is per se proof of fiduciary malpractice. It effectively disposes of the persistent and repetitive claims of fiduciary imprudence asserted in most excessive fee lawsuits in which plaintiffs are asking the court to infer fiduciary malpractice based on circumstantial evidence of what participants consider an undesirable outcome." [Smith v. CommonSpirit Health, No. 22-5964 (6th Cir. Jun. 21, 2022)]  MORE >>

Euclid Specialty Managers

Executive Compensation and Nonqualified Plans

Your Equity Compensation Plan Is a Contract: Follow It, or Else

"A recent Delaware Chancery court opinion serves as a reminder to companies and their boards that shareholder-approved equity compensation plans are contracts, and failing to follow the terms of such contract could result in costly shareholder litigation." [Garfield v. Allen, No 2021-0420-JTL (Del. Ch. May 24, 2022)]  MORE >>

Foley & Lardner LLP

Employee Benefits Jobs

View job as DC Administrator
          for United Benefit Pensions Inc. DC Administrator

United Benefit Pensions Inc.

Remote / Melville NY

View job as DC Administrator
          for United Benefit Pensions Inc.

View job as Site Manager / Senior Administrator
          for Nicholas Pension Consultants Site Manager / Senior Administrator

Nicholas Pension Consultants

Remote / AZ / ID / NM / NV / UT

View job as Site Manager / Senior Administrator
          for Nicholas Pension Consultants

View job as Retirement Plan Compliance Assistant
          for Trust Point Inc Retirement Plan Compliance Assistant

Trust Point Inc

Onalaska WI / Minneapolis MN / Eau Claire WI

View job as Retirement Plan Compliance Assistant
          for Trust Point Inc

View job as SVP, Retirement Service and Operations
          for Ascensus SVP, Retirement Service and Operations



View job as SVP, Retirement Service and Operations
          for Ascensus

View job as Client Service Manager
          for July Business Services Client Service Manager

July Business Services


View job as Client Service Manager
          for July Business Services

Selected New Discussions

Terminate DC Plan Prior to Cycle 3 Restatement Deadline Without a Restatement?

"Client has not yet restated DC plan for Cycle 3. Client is willing to sign interim amendment for a plan terminating in 2022. What are the issues if he terminates the plan prior to 7/31/2022, the Cycle 3 restatement deadline, without actually restating the plan for Cycle 3?"

BenefitsLink Message Boards

OK to Retroactively Amend Plan to Bump Up Contributions for NHCEs?

"A plan client wants to make a retroactive amendment going back to the beginning of the 2021 plan year that is not corrective of a plan document failure, operational error or discrimination violation. This is a voluntary retroactive amendment to add additional accrued benefits to NHCE plan participants. Thus there are no anti-cutback or discrimination concerns. Shouldn't this retroactive amendment be permissible with no need to rely on SCP or 1.401(a)(4)-11(g) because this is not a correction of a plan or operational violation?"

BenefitsLink Message Boards

Last Issue's Most Popular Items

DOL and Recordkeeper Square Off in Confidentiality Disputes

Jackson Lewis P.C.

Due Dates Approaching for DC Plan Lifetime Illustrations


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

Sidley Austin LLP

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

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