logo logo

Retirement Plans Newsletter

September 12, 2022

4 New Job Opportunities 4 New Job Opportunities


[Guidance Overview]

Retirement Plan RMD Updates Bring New Challenges for Employers

"[E]mployer-sponsored retirement plans have significant latitude in how they handle the more complicated SECURE Act RMD provisions -- for example, they can choose to allow only lump-sum distributions to employees, meaning a former employee would need to withdraw their entire plan balance before or when they start taking RMDs, or they can require all beneficiaries to withdraw the entire remaining account balance immediately following the employee's death."  MORE >>

Kaufman & Canoles, P.C.

PBGC FY 2021 Projections Report (PDF)

63 pages. "PBGC's Multiemployer Program is likely to remain solvent to a point more than 40 years out. This is an improvement over last year's report, in which half of projected scenarios resulted in insolvency by the end of FY 2055. However, both reports show a high degree of uncertainty, with the most pessimistic downside scenarios continuing to show a risk of insolvency in the mid-2030s.... The Single-Employer Program's financial status has evolved from recent deficits to a positive net financial position projected to grow over the next 10 years. None of the projected scenarios result in PBGC's Single-Employer Program running out of money within the next 10 years."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

Seventh Circuit Given First Opportunity to Analyze the Duty of Prudence Post Hughes

"Neither Hughes, the Sixth Circuit, nor the Seventh Circuit have stated what must be pled for a breach of fiduciary duty of prudence claim to survive a motion to dismiss. However, the Seventh Circuit, in essence, raised the pleading standard for excessive fees claims by holding that allegations of failing to consider one set of investment options for another will not suffice." [Albert v. Oshkosh Corp., No. 21-2789 (7th Cir. Aug. 29, 2022)]  MORE >>

Snell & Wilmer L.L.P.

For the First Time in Years, BlackRock Survey Finds Drop in Retirement Confidence

"[I]nflation was a top concern among both plan sponsors and participants, and interest is high in exploring other solutions to generate income. About 63% of those surveyed said they were on track with retirement savings but that was a substantial dip from previous years when confidence was higher.... [A]lmost a quarter of the savers said they were not earning enough to save adequately for retirement."  MORE >>

NEPC Pension Monitor, August 2022

"Corporate pension plans saw mixed results in funded status in August amid rising discount rates and falling equities.... Total-return plans outpaced LDI allocated plans due to a lower hedge of rising discount rates as Treasury rates rose and credit spreads were little changed."  MORE >>


How Much Can You Spend in Retirement? Small Adjustments Can Make a Big Difference

"[T]he assumptions of the typical retirement-income calculator -- people are in good health, don't want to make a bequest and will claim Social Security as soon as they retire, among others -- fit only 4% of people. That means it's mostly up to individuals to factor in their own preferences and needs as they think about their income stream from retirement savings.... [Here] are some questions to help them through that process."  MORE >>

The Wall Street Journal; subscription may be required

Benefits in General

[Guidance Overview]

Exceptional Usefulness and Quality icon DOL (Somewhat) Unshackles Auditors from Stringent Independence Requirements

"The relief, while limited, is a step toward closing the gap between the American Institute of Certified Public Accountants (AICPA) auditor independence standards and those standards imposed by the Department. Additionally, IB 2022-01 should reduce the number of auditors that are inadvertently disqualified from initial engagements, thereby allowing plan sponsors more latitude in their auditor selection process."  MORE >>

Groom Law Group

Executive Compensation and Nonqualified Plans

[Guidance Overview]

The How and When of Separations from Service Under Section 409A

"[T]he Treasury Regulations under Section 409A explain that an employee or other service provider may be treated as having separated from service even if he or she continues to provide some services. The Treasury Regulations also contain a special rule that deserves careful attention when an employee or other service provider ceases employment with one member of a controlled group of companies but continues to provide services to another member of the controlled group."  MORE >>

Verrill Dana LLP

Employee Benefits Jobs

View job as Retirement Plan Consultant
          for The MandMarblestone Group, llc Retirement Plan Consultant

The MandMarblestone Group, llc

Remote / Philadelphia PA

View job as Retirement Plan Consultant
          for The MandMarblestone Group, llc

View job as Retirement Plan Adminstrator
          for NC Staffing Retirement Plan Adminstrator

NC Staffing


View job as Retirement Plan Adminstrator
          for NC Staffing

View job as Manager, Compliance
          for FuturePlan, by Ascensus Manager, Compliance

FuturePlan, by Ascensus

Remote / Atlanta GA

View job as Manager, Compliance
          for FuturePlan, by Ascensus

View job as Actuarial Analyst
          for Definiti LLC Actuarial Analyst

Definiti LLC


View job as Actuarial Analyst
          for Definiti LLC

Selected New Discussions

Lump Sum Then Rolled Over Within 60 Days -- How to Complete the Form 1099-R?

"Lump sum distribution is taken, then rolled over. Just curious about the 1099-R for the distribution. I'm thinking that it's marked as nontaxable (i.e., nontaxable amount equals zero). Or, alternatively, is there a second 1099-R issued where it's rolled over (which doesn't make sense to me but I'm just trying to cover all the bases)?"

BenefitsLink Message Boards

Solo 401(k) Mess -- Was a Plan Established for 2020 or Not?

"A self-employed person ('Owner') with no employees uses a payroll company to handle payroll. Owner intended to set up a Solo(k), and the payroll company took $20,500 as a pre-tax deferral for $20,500. Owner never drafted documents to get a plan set up. The $20,500 is setting in a business savings account commingled with other monies. Owner has already filed 2021 taxes. How would you handle?"

BenefitsLink Message Boards

The $600,000 Question: Is It Common for a Plan to Require a Beneficiary Designation in Whole Percentages?

"A recent court decision treated as proper an individual-account retirement plan's provision, which stated (on the plan's beneficiary designation form), that: 'The Allocation % [between or among a class of beneficiaries] must be whole percentages.' The participant submitted a form that asked for '33 1/3%' for each of her three siblings [in an effort to replace the earlier designation of her now-ex husband as the sole beneficiary]. The court found that -- even if the plan's administrator might have had discretion to accept the not-in-good-order designation (Honeywell argued it did not) -- rejecting the participant's attempted designation [and permitting the plan to pay the entire $600,000 to the ex-husband] was not a breach because a fiduciary administers a plan 'in accordance with the documents and instruments governing the plan[.]' Wow! Is this a common requirement in plans "

BenefitsLink Message Boards

Press Releases

Woman-Advised PEP Brings Small Town Charm to All of America

Castle Rock Investment Company

DOL Recovers $131.8M for Wells Fargo 401(k) Participants After Investigation Finds Plan Overpaid for Company Stock

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

Vestwell Launches Two Products for 401(k) Third Party Administrators


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Annual Pension Nondiscrimination Testing: What You Need to Know – Have a Strategy in Place!

September 20, 2022 WEBCAST


IRA Distributions

October 18, 2022 WEBCAST


Last Issue's Most Popular Items

Senate Finance Leaders Formally Introduce EARN Act

American Retirement Association [ARA]

401(k)ology: Related Employers


Are You Saving Too Much for Retirement? Signs You're Going Overboard


Unsubscribe  |   Change Email Address

Search Past Issues   |   Privacy Policy

Submit an Article   |   Contact Us   |   Advertise Here

Copyright 2021, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

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

Links to web sites other than and are offered as a service to our readers. We are not involved in their production and are not responsible for their content.