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Retirement Plans Newsletter

July 14, 2022

3 New Job Opportunities 3 New Job Opportunities


[Guidance Overview]

Plan Documents Are 'Lifeblood of Compliance' Says ASC's John Griffin

"For 401(a) pre-approved plans ... July 31, 2022 is when the Cycle 3 restatement period ends, and also is the deadline for Form 5307 filings.... The Cycle 4 submission date may be in mid-2024, with a possible restatement period of Aug. 1, 2026-July 31, 2028.... [Rev. Proc. 2021-37] set pre-approved 403(b) plan procedures, ... modeled after the defined contribution pre-approved plan procedures."  MORE >>

American Retirement Association [ARA]

[Guidance Overview]

Retirement Plan Sponsors Should Prepare for the New IRS Pre-Examination Pilot Program

"Before the IRS implemented this pilot program, self-correction was only available to plans under audit in limited circumstances. Plans under audit were not eligible to correct under the VCP program. Thus, the program gives employers an additional chance to identify operational errors and self-correct them after the plan has been targeted for audit."  MORE >>

Spencer Fane

Nextep Settles Case Alleging 401(k) Plan Mismanagement for $1.1 Million

"The plaintiffs filed a class-action suit in March 2021 alleging that the defendants failed to reduce plan expenses and failed to assess the prudence of each investment option in the plan's lineup. They also maintained that the defendants didn't control administrative and record-keeping expenses." [Loomis v. Nextep, No. 21-0199 (W.D. Okla. motion for approval of settlement agreement filed Jul. 8, 2022)]  MORE >>

Pensions & Investments

The State of the Fiduciary Liability Insurance Market and Excessive Fee Cases Halfway Through 2022

"[G]iven the heightened risk environment ... the fiduciary insurance market remains robust, with a broad scope of coverage available for most plans, except ESOPs and multiple employer plans, and some healthcare- and university-sponsored plans. And contrary to market perceptions, fiduciary insurance premiums for large plan sponsors remain very reasonable relative to the continued heightened risk environment."  MORE >>

Euclid Specialty Managers

ERISA World Awaits Next EBSA Move on Proposed Restrictions on the PTE Process

"The proposal would also add new terms and conditions on an exemption applicant concerning the necessary 'independence' of an independent fiduciary or an independent appraiser hired to support the application, and would require the applicant to apply those terms for the first time to accountants, and to service providers not directly involved in the transaction for which an exemption is sought.... Another proposal would also impose the impartial conduct standards ... as a requirement on every applicant for an exemption."  MORE >>

The Wagner Law Group

2022 Marks a Return to Pension Funding Woes for States

"[U]nfunded liabilities of the 118 state public pension plans are expected to again exceed $1 trillion in 2022. After a record-breaking year of investment returns in 2021, which helped reduce a lot of longstanding pension debt, the experience of public pension assets has swung drastically in the other direction over the last 12 months. Early indicators point to investment returns averaging around -6% for the 2022 fiscal year, which ended on June 30, 2022, for many public pension systems."  MORE >>

Reason Foundation

House Passes Bill to Enhance Retirement Benefits for Federal First Responders

"The First Responder Fair RETIRE Act (HR 521) ... would allow federal first responders who, due to a workplace injury, are forced to pursue employment elsewhere in the federal government to continue paying into the accelerated retirement system and retire after they have served 20 years and reached age 50."  MORE >>

Government Executive


Senate Retirement Saving Bill Makes Small Improvements But Retains Basic Flaws of House Version

"Like the House bill, the EARN Act would primarily benefit people with higher incomes whose retirements are already financially secure, rely on timing gimmicks to offset the bill's cost, and provide only modest help to households with low and moderate incomes."  MORE >>

Center on Budget and Policy Priorities

Benefits in General

Alert (High Risk Issue) icon District Court Finds Plan-Imposed Limitations Period Unenforceable When Not Disclosed in Benefit Denial Notice

"The court reasoned that the deadlines were inapplicable to the cases at issue because the entity's final denial letters to the participants did not contain notice of the deadlines.... Since the court determined that the plan-imposed filing deadlines did not apply in these cases, the court looked to the most closely related statute of limitations under state law, which was six years." [E.F. v. United Healthcare Ins. Co., No. 21-190 (D. Utah Mar. 30, 2022); Anne A. v. United Healthcare Ins. Co., No. 20-814 (D. Utah Mar. 30, 2022)]  MORE >>

Hall Benefits Law

Employee Benefits Jobs

View job as Retirement Plan Consultant
          for Great Lakes Pension Associates, Inc. Retirement Plan Consultant

Great Lakes Pension Associates, Inc.


View job as Retirement Plan Consultant
          for Great Lakes Pension Associates, Inc.

View job as Division Legal Director
          for CT Office of the State Comptroller Division Legal Director

CT Office of the State Comptroller

Hartford CT

View job as Retirement Plan Administrator - Part-Time or Full-Time
          for Compass Retirement Consulting Group, Inc. Retirement Plan Administrator - Part-Time or Full-Time

Compass Retirement Consulting Group, Inc.

Remote / Stratham NH

View job as Retirement Plan Administrator - Part-Time or Full-Time
          for Compass Retirement Consulting Group, Inc.

Selected New Discussions

DB/DC Combo Is Terminating Mid-Year

"DB/DC combo plan. Termination of DB is a possibility (PBGC covered). Assume freeze date 7/31/2022 (small enough for 15 day rule) and assume termination date 9/30/2022. Distribution for the DB may or may not happen by 12/31/2022; possibly spills into 2023 because the rates seem to be getting better for 417(e). DC has 401k/SH/PS options. What salaries should be used to determine the DC SH and PS portions as well as combo testing?"

BenefitsLink Message Boards

Roll Over Assets from Terminating 401(k) Plan Into a SIMPLE Account?

"Participants from a terminating 401k plan can transfer the funds to a SIMPLE account?"

BenefitsLink Message Boards

Should You Always Get a Tax Identification Number for a New Retirement Plan?

"Should you always get a tax identification number when you are setting up a new retirement plan? Often I haven't been getting a TIN and have just been using the EIN of the business. I know this is technically not accurate because the assets are not the employer's assets but from what I have seen I think this is quite common. Most recordkeepers I work with have never asked me for a plan TIN for a plan and have just used the EIN of the business. Is it recommended to always get a plan TIN no matter what? Or instead, from a practical standpoint, can you just get one when you know you will use it on Form 1099's, etc.?"

BenefitsLink Message Boards

Non-Elective Contribution Only for the Sole HCE

"I'm working on a small 401(k) plan. This plan has a 3% SHNEC. The PS allocation is integrated. In reviewing the contributions, I see that 3% SHNEC was made for everyone but I'm also seeing a non-elective contribution made only to the HCE Owner. I am not sure why she would get a non-elective and no one else. What am I missing or not seeing?"

BenefitsLink Message Boards

Press Releases

PBGC Rated Number One in 'Best Places to Work' Among Small Federal Agencies

PBGC [Pension Benefit Guaranty Corporation]

Bruce Ashton, Nationally Acclaimed ERISA Attorney, Joins Alta Trust Company

Alta Trust Company

Ascensus Announces FuturePlan Leadership Change


Last Issue's Most Popular Items

More Bad News for Employers in the PBGC Final Rule for Special Financial Assistance

Jackson Lewis P.C.

Understanding the Missing Participant Problem

401(k) Specialist

Employers Expect to Shift Workplace Benefits Strategies to Lure Top Talent


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

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