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Retirement Plans Newsletter

August 18, 2022


401(k) Compliance Check: Amending Your 401(k) Plan Document on Time

"Plan sponsors should be aware of the timing requirements for 401(k) plan amendments and have processes in place to ensure that the 401(k) written plan document is properly maintained and timely amended to comply with law."  MORE >>

Foley & Lardner LLP

Policies Each 401(k) Plan Should Have in Place

"[1] [A] cyber security policy that sets out clear rules on the acceptable use of company computers and devices to keep information secure.... [2] [C]lear procedures for selecting plan investment alternatives and monitoring those choices (including fees) ... [3] [A] separate loan policy ... [4] [A] policy and procedure ... for locating missing participants and handling uncashed checks.... [5] QDRO procedures."  MORE >>

Retirement Management Services, LLC

State Anti-ESG Bills May Complicate Public Retirement Plan Investing

"[S]ome states are passing legislation that would prohibit the states from doing business with managers who invest based on ESG criteria. These anti-ESG state legislative efforts could complicate the use of ESG by public retirement plans and put retirement plan fiduciaries and providers of retirement plan investment products in a tricky spot, looking to bridge their fiduciary obligations with these new limitations. These legislative activities could also create challenges for investment providers seeking to simultaneously serve both public and private retirement plans."  MORE >>

Morgan Lewis

Multiemployer Pension Plan Funding Status Has Improved

"The percentage of calendar-year plans in the green zone increased to 77 percent in 2022, up from 72 percent in 2021. The average Pension Protection Act of 2006 funded percentage for all calendar-year plans increased to 92 percent in 2022, up from 89 percent in 2021.... Twenty-six calendar-year plans in the survey have already applied or are expected to apply for special financial assistance ... available under [ARPA.]"  MORE >>


Exceptional Usefulness and Quality icon Enrolled Actuaries Pension Examination Program Booklet (PDF)

35 pages. Syllabus for November 2022 Pension EA-2 (Segment F); May 2023 Basic (EA-1); and May 2023 Pension EA-2 (Segment L) examinations. Rev. July 25, 2022.  MORE >>

American Society of Pension Professionals & Actuaries [ASPPA]; Joint Board for the Enrollment of Actuaries [JBEA]; Society of Actuaries

Emergency Savings Features That Work for Employees Earning Low to Moderate Incomes (PDF)

"[1] Workers, including those earning [low to moderate incomes], prefer no fees, no minimum balance requirements, and fast access to funds. [2] Incentives are valued by employees and can be leveraged by employers to encourage uptake. [3] A lack of emergency savings hinders workers' retirement plan participation. [4] Employers need to continuously and dynamically engage employees regarding their workplace financial benefits."  MORE >>

Defined Contribution Institutional Investment Association [DCIIA] and Commonwealth


Myths About Variable Annuities

"Myth #1: A variable annuity is a suitable investment for a retiree ... Myth #2: Your money is safe ... Myth #3: Your fees are low ... Myth #4: Your income rider value is your cash value ... Myth #5: Your income rider is an efficient way to receive income for life ... Myth #6: Your lifetime income will go up after you turn it on ... Myth #7 Your family will always get the death benefit."  MORE >>


Benefits in General

[Official Guidance]

Text of EBSA Request for Nominations: Advisory Council on Employee Welfare and Pension Benefit Plans

"The terms of five Council members expire at the end of this year. The groups or fields they represent are as follows: [1] Employee organizations; [2] employers; [3] the general public; [4] insurance; and [5] accounting.... Nominations must be received on or before [45 days after publication in the Federal Register, currently scheduled for August 19, 2022]."  MORE >>

Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL]

Selected New Discussions

Orphan Plan: How to Appoint a New Trustee

"We have an orphan plan (doctor died in 2014, he was the only participant in the profit sharing plan). He did not designate a beneficiary and according to the document, the assets are payable to his estate. Daughter is the executor of the estate (doctor's wife predeceased him). The assets are with Morgan Stanley (approx. 1.1 mil) -- MS will not take instructions from daughter, as executor of the estate, but instead requires a court order appointing a successor trustee of the plan The plan document has not been updated and no form 5500s have been filed so we want to terminate the plan via EPCRS and file the delinquent returns. Do we need to file a court proceeding to appoint a successor trustee? How do you do that for a profit sharing plan? I can't find any instructions on how to appoint a new trustee for a retirement plan."

BenefitsLink Message Boards

Are These Permissible Conditions for 401(k) Match Contributions?

"Would a plan sponsor of a 401k with a match (non-safe harbor) be able to require exclude certain groups of employees from sharing in the match (regardless of hours worked)? And then could they specifically say that employees with less than 30 hours/week will not share in the match? (I don't think this would be permitted)."

BenefitsLink Message Boards

Deferrals Based on Clawed-Back Bonus

"A participant made an elective deferral election of 25% of his bonus. The bonus was $4,000, so $1,000 was deferred under the 401(k). However, the bonus was subject to the participant remaining employed with our company for at least one year. The participant has chosen to leave the company after 6 months, and is required to pay back $2,000 of the bonus. How does this affect the $1,000 deferred under the 401(k)? Since half the bonus was forfeited, does that mean we have to remove half the deferral that was based on the bonus before forfeiture? In other words, do we kick $500 out of the plan? *Please note: The numbers are made up, so to the extent some de minimis rule applies to the figures above, it is probably not applicable in this situation."

BenefitsLink Message Boards

Press Releases

Nine Attorneys from the Wagner Law Group to Be Recognized in 2023 Edition of the Best Lawyers in America©

The Wagner Law Group P.C.

Aflac Enhances Individual Short-Term Disability Insurance to Include Mental Health Coverage


Arlington Chamber Launches 401(k) Program for Members

Arlington Chamber of Commerce

Last Issue's Most Popular Items

IRS Provides a Partial Extension of the 2022 Plan Amendment Deadlines (PDF)


Sixth Circuit Provides Tutorial on Context-Specific Pleading in ERISA Fee-and-Expense Cases After Northwestern v. Hughes

Greenberg Traurig

Managed Account Fees Challenged in Latest ERISA Lawsuit

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

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