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Retirement Plans Newsletter

August 1, 2022

4 New Job Opportunities 4 New Job Opportunities

 

[Guidance Overview]

DOL Proposes Extensive Changes to QPAM Exemption (PDF)

"If the changes go forward, they would, among other things, [1] expand the scope of conduct that could disqualify a financial institution from being able to rely on the QPAM Exemption.... [2] require specific provisions in QPAM investment management agreements ... [3] require firms that rely on the QPAM Exemption to notify DOL that they are doing so; and [4] increase the assets under management and owners' equity thresholds to qualify as a QPAM[.]"  MORE >>

Morgan Lewis

[Guidance Overview]

DOL Proposes New Qualified Professional Asset Manager Requirements

"The most significant proposals relate to the following areas: [1] Requirement to provide notice.... [2] Changes in amounts of net capital and client assets under management (AUM) required for QPAM status.... [3] Significant expansion of disqualifying provisions for certain criminal convictions and prohibited misconduct.... [4] Protective [investment management agreement] provisions relating to disqualifications."  MORE >>

Sidley Austin LLP

[Guidance Overview]

Exceptional Usefulness and Quality icon FICA Tax Withholding and Reporting for Section 457(b) and 457(f) Nonqualified Deferred Compensation Plans

"[This article] provides a brief summary of the timing rules for income tax withholding applicable to 457(b) and 457(f) plans. Next, it reviews the special timing rule and exceptions for FICA tax withholding for nonqualified deferred compensation plans. Finally, it provides ideas and strategies for properly setting up and administering FICA tax withholding and reporting."  MORE >>

Trucker Huss

Record Increases Projected for 2023 Retirement Plan Limits

"All key Internal Revenue Code (IRC) limits for qualified retirement plans will rise by unprecedented amounts from 2022 to 2023, Mercer projects.... [I]nflation is projected to reach its highest level since indexing began, causing 7%-11% increases for most limits, based on their rounding levels. In addition, the non-SIMPLE plan catch-up limit -- which has a large rounding threshold -- will jump more than 15%. These record hikes come on the heels of 2021's increases, which were the second highest ever at that time."  MORE >>

Mercer

Exceptional Usefulness and Quality icon Summary and Comparison of Provisions in House and Senate Retirement Plan Legislation

"In June, the Senate committees with jurisdiction over retirement approved their versions of retirement reform legislation. The Senate bills are the Enhancing American Retirement Now Act (unnumbered, the 'EARN Act') ... and the Retirement Improvement and Savings Enhancement to Supplement Health Improvements for the Nest Egg Act (S 4353, the 'RISE & SHINE Act') ... The Senate bills are companion legislation to the House-passed Securing a Strong Retirement Act (HR 2954, colloquially referred to as 'SECURE 2.0').... [A] chart compares the House and Senate bills and identifies differences among the bills."  MORE >>

Groom Law Group

Re-Evaluating Glidepaths During Volatile Markets

"Sponsors of defined benefit pension plans have seen significant volatility in the value of their assets, liabilities and funded status through the course of 2022.... However, ... the funding level in percentage terms for many plans has not materially improved which can lead to unintended risks ... [which] are a result of the use of automatic glidepaths as part of the strategic asset allocation policy."  MORE >>

River and Mercantile

401(k) Investment Lineup Tweaks Reveal Focus on Fees

"More than 100 U.S. corporate 401(k) plans in 2021 made changes in their investment options lineups ... Those plans had assets totaling $209 billion and added 185 investment options from 54 managers in the year ended Dec. 31. Plans in that same universe removed 178 investment options from 52 managers during that same period."  MORE >>

Pensions & Investments

Pooled Employer Plans: Investment Lineups and Offerings

"[E]each PEP will have investment option variations in their offering. These variations will center around a few key areas: [1] The Qualified Default Investment Alternative (QDIA); [2] Use of proprietary funds vs. external fund managers; [3] Fund vehicles used -- namely mutual funds vs. collective investment trusts (CIT); [4] Availability of managed accounts and/or a brokerage window; [5] Fees."  MORE >>

River and Mercantile

Fidelity's 'Bitcoin-In-401(k)s' Plan Moving Forward Despite Questions from Senators

"Fidelity [said] it is working directly with policymakers and regulators in an ongoing dialogue, but plans to launch its new Digital Assets Account this fall remain on track."  MORE >>

401(k) Specialist

401(k) Plans Souring on Northern Trust Target Date Funds — Including Its Own

"The three publicly traded companies that listed the Northern Trust Focus Funds in their investment options lineup in their 11-K filings in 2020 all removed them ... A participant in Northern Trust Co.'s 401(k) plan had filed a class-action lawsuit in November 2020 against the bank and its benefit administrative committee, alleging a breach of fiduciary duties related to its target-date fund lineup."  MORE >>

Pensions & Investments

FAS87 ASC715 Discount Rates and Moody's Rates, July 29, 2022

An unofficial monthly report of the Moody's Daily Long-term Corporate Bond Yield Averages and Moody's Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).  MORE >>

BenefitsLink Message Boards

[Opinion]

Does the SEC 'Best Interest' Regulation Go Far Enough?

"What constitutes putting the 'best interests' of customers above the financial and personal interests of the broker is a potentially malleable concept. Further, it does not reach far enough to protect vulnerable customers in markets that are altogether less regulated or, for that matter, non-retail customers who are less sophisticated in understanding financial products or can ill afford truly independent financial and legal help."  MORE >>

ArentFox Schiff LLP

Employee Benefits Jobs

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 Retirement and Executive Compensation Consultant
          for Retirement Learning Center Retirement and Executive Compensation Consultant

Retirement Learning Center

Remote / Brainerd MN

View job as Retirement and Executive Compensation Consultant
          for Retirement Learning Center

View job as Client Success Specialist
          for Ubiquity Retirement + Savings Client Success Specialist

Ubiquity Retirement + Savings

Remote

View job as Client Success Specialist
          for Ubiquity Retirement + Savings

View job as Relationship Manager
          for USI Consulting Group Relationship Manager

USI Consulting Group

AK / CA / IA / KS / MN / NE / NV / OK / TX / UT

View job as Relationship Manager
          for USI Consulting Group

Selected New Discussions

Share a Sample 204(h) Notice for Terminating CB Plan?

"Does anyone have a sample 204(h) notice? I have a Cash Balance Plan terminating, so it is required to be sent 15 days prior to termination correct?"

BenefitsLink Message Boards

2022 Deadline for Form 5500/5558 -- Sunday July 31, or Monday Aug. 1?

"Is the deadline for calendar year plans Monday, August 1, because July 31 falls on a Sunday?"

BenefitsLink Message Boards

Who Becomes 100% Vested At Plan Termination?

"I have a Cash Balance Plan that is about to terminate. Which participants become 100% vested at termination? Obviously anyone who is currently active in the plan becomes 100%. What about terminated, non-vested participants who have had less than a 5-year break in service? There are former employees who have anywhere from a 1-4 year break, but are not actively working."

BenefitsLink Message Boards

Post-Severance Compensation: '75 Days' Works as Well as '2-1/2 Months'?

"The law says that post-severance compensation can be included if paid within 2-1/2 months of severance. Our TPA wants to put it in their system that post-severance compensation is included if paid within 75 days of severance. They says 2-1/2 months is vague and potentially variable (given leap years), so their system would work better if they use a set number of days. Is this allowed? Is '75 days' a good faith interpretation of the meaning of 2 1/2 months? Or should we insist on '2-1/2 months' as the appropriate time period?"

BenefitsLink Message Boards

Press Releases

Murphy, Hesse, Toomey & Lehane, LLP Attorney Elected President to the Massachusetts Association of Public Pension Attorneys

Murphy, Hesse, Toomey & Lehane, LLP

Last Issue's Most Popular Items

Who Should Be Trustee of Your 401(k) Plan?

E is for ERISA

DOL Issues Proposed Amendment to the QPAM Exemption

Akin Gump

Managing Contribution Volatility in a Well-Funded Pension Plan

Milliman

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

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