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Retirement Plans Newsletter

June 30, 2022

7 New Job Opportunities 7 New Job Opportunities

 

[Official Guidance]

Text of IRS Notice 2022-31: Changes Made by ARPA to the Election of Alternative Minimum Funding Standards for Community Newspaper Plans (PDF)

10 pages. "In light of the changes to section 430(m) made by the ARP, this notice modifies the guidance provided in Notice 2020-60.... Definition of a community newspaper plan ... Definition of eligible newspaper plan sponsor and applicability of election to controlled group members ... Renumbering of paragraphs of section 430(m) ... Manner and content of election ... Extension of time to make retroactive section 430(m) elections and associated funding balance elections ... Plan sponsors that applied the pre-ARP provisions of Section 430(m)."  MORE >>

Internal Revenue Service [IRS]

Sixth Circuit Addresses Key Issues in Excessive Fee Lawsuits

"[T]he Sixth Circuit addressed several major issues arising out of excessive fee litigation, including [1] whether it is imprudent to offer actively managed funds in a 401(k) plan; [2] whether passively managed funds are meaningful benchmarks for actively managed funds with respect to performance or fees; [3] the extent to which circumstantial allegations of fund underperformance can support an inference that a fiduciary acted imprudently; and [4] the extent to which allegations of excessive recordkeeping and investment management fees can support an inference of imprudence based on purported industry averages." [Smith v. CommonSpirit Health, No. 22-5964 (6th Cir. Jun. 21, 2022)]  MORE >>

Groom Law Group

District Court Flags NFL Player Retirement Plan for Unsportsmanlike Conduct

"The court found that the board's decision was 'legally incorrect and directly contradicts the plain meaning of the Plan language' [and] its interpretation of the Plan was 'inconsistent with a fair reading of the Plan and entirely lacks support in the administrative record' ... The court further found that the medical evidence demonstrating that Cloud suffered a disability resulting from his numerous concussions while playing in the NFL was overwhelming." [Cloud v. The Bert Bell/Pete Rozelle NFL Player Retirement Plan, No. 20-1277 (N.D. Tex. Jun. 21, 2022)]  MORE >>

Kantor & Kantor

Exceptional Usefulness and Quality icon The Large Plan Form 5500 Filing Dilemma

"[This article reviews] some of the common reasons the audit may be delayed ... to see how they can be avoided and explore the solutions.... Employers should carefully consider the decision to file the Form 5500 without the complete audit report to meet the extended Form 5500 filing deadline (typically October 15). The incomplete filing approach may result in the loss of the DFVCP option if the DOL issues the letter of deficiency before the amended return is filed."  MORE >>

Newfront

Automatic Enrollment's Long-Term Effect on Retirement Saving (PDF)

"Automatic enrollment almost doubles plan participation and successfully gets participants who might not have otherwise saved saving. However, it can also result in participants saving less than those who voluntarily opt in and set their own deferral rate. Automatic enrollment combined with automatic escalation creates better participation and savings outcomes."  MORE >>

T. Rowe Price

Public Pension Funding Index, June 2022

"The estimated funded ratio of the 100 largest U.S. public pension plans moved very slightly lower, from 78.6% at the end of April 2022 to 78.4% at the end of May 2022 ... The deficit between the estimated assets and liabilities widened by a correspondingly modest amount, from $1.243 trillion to $1.259 trillion during May."  MORE >>

Milliman

How Advisors Can Communicate Monte Carlo Results to Clients

"Though 'probability of adjustment' is an improvement over 'probability of failure', it can still greatly underestimate the probability of actual spending adjustments, especially when dynamic spending strategies are involved. In those cases, it may make sense ... to communicate in terms of the actual dollar spending adjustments that would be triggered in specific scenarios[.]"  MORE >>

Nerd's Eye View

[Opinion]

Is ERISA Better Today, in 2022, Than It Was After Its 1974 Enactment? (PDF)

10 pages. "ERISA falls short of its objectives in certain key respects, terribly so. Greater coverage and increased benefits for regular rank-and-file employees, while not exacting pain for most of our employer and employee populations, is needed. Placing wronged employees on even footing to fight the bad actors is essential. And let's stop killing us with nonstop, burdensome, expensive changes in the law that do not provide meaningful solutions to what seems to be clear important shortcomings."  MORE >>

Jeffrey Mandell, ERISA Law Group

Benefits in General

Exceptional Usefulness and Quality icon Health & Welfare Plan and 401(k) Plan Integration Issues in Strategic M&A Transactions: Important Diligence Topics and Best Practices (PDF)

"This article provides an overview of common integration-related issues that arise with respect to 401(k) and health and welfare plans in strategic mergers and acquisitions (M&A) transactions, and [discusses]: [1] The areas on which buyers their advisors should focus during diligence in order to best integrate a target's health and welfare plans; [2] Similar issues that arise with respect to 401(k) plans; and [3] Some of the unique concerns surrounding health and welfare and 401(k) plans sponsored by professional employer organizations (PEOs)."  MORE >>

White & Case LLP, via Benefits Law Journal

Employee Benefits Jobs

View job as Senior Defined Contribution Account Manager
          for Nova 401(k) Associates Senior Defined Contribution Account Manager

Nova 401(k) Associates

Remote

View job as Senior Defined Contribution Account Manager
          for Nova 401(k) Associates

View job as Retirement Plan Consultant/Relationship Manager
          for Associated Pension Consultants Retirement Plan Consultant/Relationship Manager

Associated Pension Consultants

Remote / Chico CA / Sacramento CA

View job as Retirement Plan Consultant/Relationship Manager
          for Associated Pension Consultants

View job as Enrolled Actuary
          for Loren D. Stark Company Enrolled Actuary

Loren D. Stark Company

Remote

View job as Enrolled Actuary
          for Loren D. Stark Company

View job as Compliance Specialist II
          for EPIC RPS Compliance Specialist II

EPIC RPS

Remote

View job as Compliance Specialist II
          for EPIC RPS

View job as Defined Contributions Retirement Plan Consultant
          for Economic Group Pension Services (EGPS) Defined Contributions Retirement Plan Consultant

Economic Group Pension Services (EGPS)

Remote

View job as Defined Contributions Retirement Plan Consultant
          for Economic Group Pension Services (EGPS)

View job as Defined Contribution Analyst
          for Economic Group Pension Services (EGPS) Defined Contribution Analyst

Economic Group Pension Services (EGPS)

Remote

View job as Defined Contribution Analyst
          for Economic Group Pension Services (EGPS)

View job as Sr Principal, Actuarial Services, Post Retirement Welfare Benefits
          for National Rural Electric Cooperative Association (NRECA) Sr Principal, Actuarial Services, Post Retirement Welfare Benefits

National Rural Electric Cooperative Association (NRECA)

Arlington VA

View job as Sr Principal, Actuarial Services, Post Retirement Welfare Benefits
          for National Rural Electric Cooperative Association (NRECA)

Selected New Discussions

Board Resolution Is Sufficient to Formally Terminate a Plan?

"I have a client who is bundled with a daily vendor. The company is being sold as part of a stock purchase. The daily vendor is saying it will take 6-8 weeks before they can even look at preparing an amendment to terminate the 401k plan. We need to get the plan terminated ASAP because the buyer is requiring the plan to be terminated prior to the transaction. If the client's attorney types up a board resolution to terminate the plan with an effective date prior to the acquisition, will this be sufficient to legally terminate the plan?"

BenefitsLink Message Boards

Missed Opportunity to Defer with Safe Harbor Match

"An employee eligible 1/1/2022 was discovered to have not been given opportunity to defer until 6/1/2022. If they elect to not defer at all, is the only correction for the missed deferral opportunity the greater of 3% of comp or the maximum deferral percentage for the safe harbor match that is 100% or more? For example, if SH match is 100% of 1st 3%, and 50%, would they just contribute a 3% of comp QNEC?"

BenefitsLink Message Boards

Effective Date of Design Change Can Follow Deadline for Cycle 3 Restatement?

"I have a client that wants to introduce significant design changes effective August 1, 2022. This is one day after the deadline to 'adopt' Cycle 3 (Post PPA) restatements. If the document is signed prior to 8/1/22, but the change is effective one day after the adoption deadline, would you have any concern that the restatement is not timely? The question of restatement effective dates comes up all the time. For example, most of us are drafting Cycle 3 restatements with effective dates that are later than the earliest effective date of changes made in the document."

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Cryptocurrency in Employee Benefits and Executive Compensation

RECORDED

Mintz

Pension Plan Investments 2022: Advanced Perspectives

November 15, 2022 WEBCAST

PLI [Practising Law Institute]

Retirement Research Center (RRC) Summit

November 16, 2022 in NY

Defined Contribution Institutional Investment Association [DCIIA]

Last Issue's Most Popular Items

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

Groom Law Group

What Is a 'Missed Deferral Opportunity'?

KLB Benefits Law Group

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

Krieg DeVault

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

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