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Retirement Plans Newsletter

July 25, 2022

10 New Job Opportunities 10 New Job Opportunities

 

[Official Guidance]

Text of IRS Notice 2022-32: Weighted Average Interest Rates, Yield Curves, and Segment Rates for July 2022 (PDF)

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"  MORE >>

Internal Revenue Service [IRS]

[Sponsor]

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“I still experience the same wonderful customer service whenever I need it”. View our 1-min ASC Support Video and learn why Jennifer Hill of Bell Bank, Fargo, ND feels this way!

Sponsored by ASC

[Guidance Overview]

Upcoming Deadline icon Restatement Window for IRS Pre-Approved DC Plans Closes This Month (PDF)

"The DC Cycle 3 restatement will only cover document changes required prior to February 1, 2017, which are listed in Notice 2017-37. Thus, it will not cover, for example, the final hardship withdrawal rules nor the voluntary or mandatory provisions of the SECURE Act or the CARES Act.... The trust under the plan will now have to be 'unbundled' into a separate document that is no longer part of the approved plan itself."  MORE >>

Skapars & Associates, P.C.

Alert (High Risk Issue) icon D.C. Circuit Holds Withdrawal Liability Interest Rate Must Reflect Plan's Investment Policy

"This [ruling] calls into question the continued viability of a popular practice among some funds -- that of using an interest rate assumption for purposes of determining withdrawal liability that is much lower than the interest rate assumption used to determine a plan's minimum funding requirements." [United Mine Workers of America 1974 Pension Plan v. Energy West Mining Co., No. 20-7054 (D.C. Cir. Jul. 8, 2022)]  MORE >>

Littler

Sixth Circuit Upholds Dismissal of Plaintiff's Claim Based on Use of Actively Managed TDF

"[T]he Sixth Circuit upheld a lower court decision dismissing plaintiff's claim on these issues, finding that: [1] There is nothing imprudent about actively managed funds per se ... [2] Simply pointing (retrospectively) to underperformance is not enough to state a claim ... [3] It is generally not appropriate (in attempting to show imprudence) to compare the performance of actively managed funds to index funds because they have different goals and strategies[.]" [Smith v. CommonSpirit Health, No. 22-5964 (6th Cir. Jun. 21, 2022)]  MORE >>

October Three Consulting

Equitable Settles with SEC for $50 Million Over Allegedly Misleading Fee Statements

"Equitable agreed to pay $50 million for providing account statements to about 1.4 million variable annuity investors that included [what the SEC called] 'materially misleading statements and omissions' concerning investor fees. Most of the investors who received the account statements are teachers or other employees of public-school districts who invested in Equitable's proprietary 'EQUI-VEST' variable annuities within a 403(b) or 457(b) defined contribution plan."  MORE >>

American Retirement Association [ARA]

EIN Confusion: Employer, Trust, Payor -- When to Use Which

"The trusts maintained to hold assets of ERISA plans are separate tax entities from the employers sponsoring the plans. Therefore, each is required to have its own federal tax ID number. Knowing when and where to use whose EIN can be confusing. Here are a few tidbits ... [for] single employer plans."  MORE >>

Holland & Hart LLP

401(k)ology: Participant Loans, Part 1

"[S]econd-order questions [surround] what parameters should be in the loan program (e.g., only one loan outstanding, interest rate is prime plus 1% and minimum loan of $1,000). These are significant compliance and fiduciary related matters that employers should consider when deciding whether to include a participant loan program in the company 401(k) plan."  MORE >>

Newfront

CRS in Focus: Benefit Reductions to Participants in Delphi Pension Plans

Topics include: [1] Defined benefit pensions and PBGC ... [2] Background on Delphi pension plans ... [3] Termination of Delphi pension plans ... [4] Lawsuit by Delphi Salaried Employee Association ... [5] Recent executive and legislative actions. [IF12171 Jul. 22, 2022]  MORE >>

Congressional Research Service [CRS]

New Evidence on Retirement Plan Participants' Demand for Investment Advice

"[D]emand for advice ... increases with age, account balance, annual contribution level, web access, and changes in marital status.... [P]articipants who invest solely through target date funds -- the dominant default investment option -- are significantly less likely to seek any form of advice throughout the age distribution ... Advice seeking increases significantly following the introduction of online tools[.]"  MORE >>

National Bureau of Economic Research [NBER]; purchase required for full document

[Opinion]

The Retirement Plan Data Privacy Dilemma

"[We] need a much more nuanced way of thinking of plan data than we might expect from class action plaintiff lawyers.... As an industry, we need a legal framework that respects the duties fiduciaries owe participants, respects the privacy needs of participants, allows participants to use their own information without derailing plan administration, and allows data to be used to improve outcomes through better financial wellness solutions."  MORE >>

WealthManagement.com

Employee Benefits Jobs

View job as Client Services Specialist
          for CuraFin Advisors Client Services Specialist

CuraFin Advisors

Scottsdale AZ

View job as Client Services Specialist
          for CuraFin Advisors

View job as Consultant
          for Spectrum Pension Consultants, Inc. Consultant

Spectrum Pension Consultants, Inc.

Remote / Tacoma WA

View job as Consultant
          for Spectrum Pension Consultants, Inc.

View job as Retirement Plans Specialist
          for MissionSquare Retirement Retirement Plans Specialist

MissionSquare Retirement

CA / DC / FL / IL

View job as Retirement Plans Specialist
          for MissionSquare Retirement

View job as Director, Retirement Plan Services
          for Definiti LLC Director, Retirement Plan Services

Definiti LLC

Remote

View job as Director, Retirement Plan Services
          for Definiti LLC

View job as Consulting Actuary - Mid-size Plan Market
          for Definiti LLC Consulting Actuary - Mid-size Plan Market

Definiti LLC

Remote

View job as Consulting Actuary - Mid-size Plan Market
          for Definiti LLC

View job as Retirement Plan Consultant
          for Definiti LLC Retirement Plan Consultant

Definiti LLC

Remote

View job as Retirement Plan Consultant
          for Definiti LLC

View job as Regional Sales Consultant
          for Definiti LLC Regional Sales Consultant

Definiti LLC

Remote

View job as Regional Sales Consultant
          for Definiti LLC

View job as Actuarial Analyst
          for Definiti LLC Actuarial Analyst

Definiti LLC

Remote

View job as Actuarial Analyst
          for Definiti LLC

View job as Implementation Specialist
          for Definiti LLC Implementation Specialist

Definiti LLC

Remote

View job as Implementation Specialist
          for Definiti LLC

View job as ESOP Administrator
          for Blue Ridge ESOP Associates ESOP Administrator

Blue Ridge ESOP Associates

Remote

View job as ESOP Administrator
          for Blue Ridge ESOP Associates

Selected New Discussions

Mid-Year Termination of a Cash Balance Plan -- Contribution Required for the Partial Year?

"If a client opts to terminate a Cash Balance Plan prior to the end of 2022 due to selling the business, is there any contribution obligation for 2022?"

BenefitsLink Message Boards

Lifetime Income Illustrations for Pooled Plans When Supplied Data Is Last-Minute

"Suppose you have a pooled plan, annual valuation only, and the client (on extension) doesn't get you data until the last minute. (Naturally, no one else has any such clients...) I guess you just have to send them late. Only other alternative is to send them out with duplicate of 12/31/2020 statements, with some sort of disclaimer, but I don't much like that option. Other alternatives/thoughts?"

BenefitsLink Message Boards

'Solo 401(k)' Must Be Terminated When Another Employee Becomes Eligible?

"I know they don't really exist, but I have a client that has a 'Solo 401(k)' with Schwab. He's hired an employee who has become eligible to participate, but Schwab won't allow us to open an account for the employee under the current plan. They say we can open a company retirement account (CRA), though. When I asked how to transfer the 'solo 401k' account over to a CRA, I was given a distribution form. Well, there's no distributable event here. And they say it would generate a Form 1099, etc. Has anyone else run into this situation?"

BenefitsLink Message Boards

Press Releases

BPAS Launches Dynamic Financial Planning Tool for Participants

BPAS

Last Issue's Most Popular Items

Sixth Circuit Upholds Dismissal of Some Investment Fee and Performance Claims But Allows Mutual Fund Share Class Claim to Proceed to Discovery

Proskauer

How to Find an Old 401(k) Account

U.S. News & World Report

Older Workers, Retirement, and Macroeconomic Shocks

Pension Research Council, The Wharton School of The University of Pennsylvania

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

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