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Retirement Plans Newsletter

June 29, 2022

2 New Job Opportunities 2 New Job Opportunities


[Official Guidance]

Text of IRS Instructions for Form 5300: Application for Determination for Employee Benefit Plan (PDF)

10 pages, rev. Jun. 2022. "What's New: The form and instructions have been updated to be completed on as of June 1, 2022.... Rev. Proc. 2022-4 contains the guidance under which the Determination Letter (DL) program is administered. The Rev. Proc. is updated annually[.]" [See also IRS Form 8717: User Fee for Employee Plan Determination Letter Request, rev. Jun. 2022]  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

IRS Announces Launch of Pre-Examination Compliance Program for Qualified Retirement Plans

"If plan sponsors take advantage of self-correcting plan errors during the 90-day review period, they will likely reduce their IRS fees and administrative costs well below what they would have been sanctioned under Audit CAP."  MORE >>

Krieg DeVault

[Guidance Overview]

What Is a 'Missed Deferral Opportunity'?

"The current correction method for these types of deferral failures requires that the employer make a corrective contribution equal to 50% of the missed deferrals. Note however, that any missed employer contributions have to be made as though 100% of the elected amounts were deferred."  MORE >>

KLB Benefits Law Group

[Guidance Overview]

Delaware EARNS Act Awaits Governor's Nod

"EARNS is intended to be a public-private partnership that will encourage -- but not replace or compete with -- employer-sponsored retirement plans.... Covered employers would be required to ... [o]ffer, or assist EARNS in offering, all covered employees the choice to either participate in EARNS by voluntarily contributing to an IRA through the program or opt out of it."  MORE >>

American Retirement Association [ARA]

Surplus DB Plan Assets Continue to Puzzle IRS and Frustrate Plan Sponsors

"[Rev. Proc. 2022-28] announced another 'no rule' position -- this time to apparently discourage the use of pension plan surplus in transactions that may otherwise be permitted under Code section 4980(d)(2).... Once an issue is added to the 'no rule' list, it can stay there for many years. In the meantime, surplus plan assets continue to accumulate tax-free, exacerbating the issues associated with surplus plan assets, and plan sponsors are left with few alternatives[.]"  MORE >>

Groom Law Group

Profit-Sharing Plans: A Missed Opportunity in Your Retirement Plan Lineup?

"A well-designed profit-sharing plan is often coupled with a 401(k). This gives employees two tax-favored plans and potentially helps them build up even more retirement funds for their future. And a profit-sharing plan can be a stand-alone retirement benefit, nicely filling the gap if you don't offer a 401(k) plan today."  MORE >>


Why Asset Managers Form Real Estate Operating Companies for ERISA Plan Assets (PDF)

"Real estate asset managers will often pool capital for purposes of investing in real estate. One substantial source of such capital is investment by employee benefits plans subject to [ERISA]. Yet, if a manager intends to invest ERISA plan assets, it should understand whether and how ERISA's fiduciary duty and prohibited transaction provisions apply to the management of the capital pool and the underlying real estate assets. A way to avoid applying ERISA is to establish a real estate operating company."  MORE >>

Groom Law Group

Exceptional Usefulness and Quality icon CRS Report: Social Security: The Trust Funds (PDF)

22 pages. "This report covers how the Social Security program is financed and how the Social Security trust funds work. The report also covers the projected financial operations of the trust funds using data from the 2022 Annual Report of the Board of Trustees. The 2022 annual report reflects the trustees' understanding of the OASDI program at the start of 2022 and presents projected program and financial information for a 75-year period (2022-2096)." [RL33028, updated Jun. 29, 2022]  MORE >>

Congressional Research Service [CRS]

Benefits in General

Alert (High Risk Issue) icon In Matter of First Impression, Eleventh Circuit Holds ERISA Beneficiary Can Recover Monetary Benefits Lost Due to a Breach of Fiduciary Duty

"In following the Supreme Court and its sister circuits which have recognized that courts in equity could traditionally order an 'equitable surcharge' to be paid by a breaching fiduciary to remedy a loss to a beneficiary, the court held that a beneficiary of an ERISA plan can bring a lawsuit under Section 1132(a)(3) against a fiduciary to recover benefits that were lost due to the fiduciary's breach of its duties." [Gimeno v. NCHMD, Inc., No. 21-11833 (11th Cir. Jun. 28, 2022)]  MORE >>

Roberts Disability Law

2022 ERISA Advisory Council Issue Statement: Cybersecurity Insurance and Employee Benefit Plans (PDF)

"The 2022 Advisory Council intends to examine the role that cybersecurity insurance plays in addressing cybersecurity risks for employee benefit plans. The Council intends to build on prior Council reports focused on privacy and security issues (2011) and cybersecurity for retirement plans (2016).... [T]he Council intends to look at the insurance topic as it relates to all types of benefit plans-- not only defined contribution and defined benefit pension plans but also group health and other welfare benefit plans."  MORE >>

Advisory Council on Employee Welfare and Pension Benefit Plans, Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL]

Is Your Plan Adequately Covered by an ERISA Fidelity Bond?

"Section 412 of [ERISA] requires every person who handles funds or other property of a plan to be bonded ... Such persons include plan fiduciaries but may also include any director, officer or employee of the fiduciary.... Based on [an] analysis of 2020 plan year 5500s, nearly 10% of plans were inadequately covered by their fidelity bonds.... [T]here are several risks associated with not meeting the requirements,"  MORE >>


Employee Benefits Jobs

View job as Plan Administrator
          for Aimpoint Pension Plan Administrator

Aimpoint Pension

Remote / Pompano Beach FL

View job as Plan Administrator
          for Aimpoint Pension

View job as Retirement Specialist, Senior
          for Alerus Retirement Specialist, Senior



View job as Retirement Specialist, Senior
          for Alerus

Selected New Discussions

5500 Filed Late, Got IRS Penalty Letter; Any Options?

"Employer filed 2020 Form 5500 in February, 2022. No DFVC (still looking into why). Got a letter from IRS looking for $22,000. Any options, other than pleading for a reduction?"

BenefitsLink Message Boards

Code C for Box 12 on Form W-2?

"Reviewing my client's W-2s, I noticed Box 12, Code 'C'. I have not seen this before. Looking at the instructions, it's the cost of employee portion over $50K of coverage, I guess. Would this be considered a 'fringe' benefit, to be added back to W-2, similarly to employee contribution to 401(k)?"

BenefitsLink Message Boards

Press Releases

James Watt Joins Retirement Research Center

Defined Contribution Institutional Investment Association [DCIIA]

Lockton Announces Beth Latchana as Director of Compliance Services


Wellbeats and Launch My Health Partner to Improve Health and Wellbeing Using Food as Medicine Approach


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Regulation Best Interest and Form CRS: Two Years In

June 29, 2022 WEBCAST

Financial Industry Regulatory Authority [FINRA]

ESG-Related Trends in Executive Compensation

July 13, 2022 WEBCAST

Vinson & Elkins

What's New? Late Restatements and Pre-Audit Opportunities

July 21, 2022 WEBCAST

401(K) Loan and Distribution Basics

August 18, 2022 WEBCAST

Nova 401(k) Associates

Last Issue's Most Popular Items

Relief from the One Bad Apple Rule Is Coming, But Not Without a Price (PDF)

Groom Law Group, via Taxes the Tax Magazine

Senate Panel Approves SECURE 2.0 Bill, Spurs Talks on Final Package


The Economics of Providing 401(k) Plans: Services, Fees, and Expenses, 2021 (PDF)

Investment Company Institute [ICI]

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

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