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Retirement Plans Newsletter

September 23, 2022

3 New Job Opportunities 3 New Job Opportunities


[Guidance Overview]

Exceptional Usefulness and Quality icon Amend Your Retirement Plans This Year for SECURE Act and CARES Act Changes

"[P]lan sponsors will be best served by amending their plans this year ... [M]ost retirement plans have been operated in accordance with some or all of the required and optional provisions of these laws since 2020. Further delay in the adoption of formal plan amendments will simply compound the opportunity for errors ... [C]onfusion and uncertainty may result if a plan sponsor maintains a retirement plan in misalignment with disclosure materials for an extended period."  MORE >>

Verrill Dana LLP

Preliminary Settlement Reached in Long-Running Actuarial Equivalence Lawsuit

"Plaintiffs agree to settle for $267 million in a class action suit that alleged that PricewaterhouseCoopers LLP undercalculated lump-sum payments made to pension participants.... PwC used a 30-year Treasury return as the interest rate, and calculated the normal retirement age as either 65 years old or 5 years of service, whichever came sooner. Both of these methods were found to be in violation of ERISA in previous hearings[.]" [Laurent v. PricewaterhouseCoopers LLP, No. 06-2280 (S.D.N.Y. motion for approval of proposed settlement filed Sep. 19, 2022)]  MORE >>


Seventh Circuit Affirms Dismissal of Excessive Fee Claims Where Quality and Extent of Services Relating to Fees Were Ignored

"This case gives plan sponsors and fiduciaries some breathing room, as it makes it clear that participants will not automatically prevail in a claim for fiduciary breach based on fees that are higher than those under comparable plans -- the participant must also determine the quality and types of services provided in those plans. This effectively limits participants' ability to cherry-pick scenarios where similarly named fees are lower in other plans to prove that the fiduciary violated the duty of prudence." [Albert v. Oshkosh Corp., No. 21-2789 (7th Cir. Aug. 29, 2022)]  MORE >>

Thomson Reuters / EBIA

Retirement Planning: How Much Money Will You Need to Cover Your Healthcare Expenses?

"[C]osts under the two most common pathways taken by Medicare-eligible retirees: ... [1] Original Medicare plus Medigap (Plan G) plus Part D (standard benefit): A healthy 65-year-old male retiring in 2022 is projected to spend approximately $264,000 on healthcare expenses during his retirement.... [2] Medicare Advantage plus Part D: A healthy 65-year-old male retiring in 2022 is projected to spend approximately $137,000 on healthcare expenses during his retirement."  MORE >>


Public Pension Funded Ratio Dips to 75% as August Market Losses Erode July's Gains

"During August, the Milliman 100 PPFI funded ratio declined from 77.3% at the end of July to 75.0% as of August 31. Public plans saw, in aggregate, investment losses of 2.6% for the month, which erased much of the short-term recovery experienced in July. Individual plans' estimated returns ranged from -4.1% to -0.9% for the period. The combined plans lost market value of approximately $118 billion, on top of a net negative cash flow of approximately $8 billion."  MORE >>



Debate: Is Defaulting 401(k) Participants Into Annuities in Their Best Interest?

"One provision in the [SECURE Act] provides extra assurance and protection to retirement plan sponsors that follow certain rules to select annuities as in-plan offerings.... [ThinkAdvisor] asked two professors and authors of ALM's Tax Facts with opposing political viewpoints to share their opinions about whether retirement plans should default 401(k) participants into annuity options."  MORE >>



Conditions for Social Security Reform Are Perfect -- Except for One Thing

"The economic climate today mirrors many conditions of the 1980s when Social Security had its last sweeping changes, experts say, and while that could help to spark a new round of reform, the current political climate may make change difficult any time soon."  MORE >>


Executive Compensation and Nonqualified Plans

Exceptional Usefulness and Quality icon Practical Considerations for New Pay vs. Performance Disclosure Requirement

"It is important to address the disclosure earlier in the 2023 proxy process ... Focus on an Integrated Presentation in the Proxy Statement ... Consider using graphs and tables to make it easy.... Plan ahead, and work with consultants and accountants."  MORE >>


Employee Benefits Jobs

View job as Client Service Specialist
            for EPIC Retirement Plan Services

Client Service Specialist

EPIC Retirement Plan Services

Remote / AL / AZ / CO / CT / FL / GA / IA / IL / IN / MA / MD / ME / MI / MN / MO / NC / NE / NH / NV / NY / PA / SC / TN / TX / UT / VA / VT / WI / WY

View job as Client Service Specialist for EPIC Retirement Plan Services

View job as Compliance Specialist II
            for EPIC Retirement Plan Services

Compliance Specialist II

EPIC Retirement Plan Services

Remote / AL / AZ / CO / CT / FL / GA / IA / IL / IN / MA / MD / ME / MI / MN / MO / NC / NE / NH / NV / NY / PA / SC / TN / TX / UT / VA / VT / WI / WY

View job as Compliance Specialist II for EPIC Retirement Plan Services

View job as Retirement Account Administrator, Senior
            for Alerus

Retirement Account Administrator, Senior



View job as Retirement Account Administrator, Senior for Alerus

Selected New Discussions

Participant Fee Disclosures in SPD

"How do others handle disclosure of fees for distributions and such in the SPD? In great detail, not at all, or with an addendum?"

BenefitsLink Message Boards

Active Employees Not Contributing to 401(k) -- Mandatory Cash-Out While Participants?

"Is there any way to force out small balances of active employees who have never contributed to the plan? We have a plan where a number of employees have balances of less than $1,000 resulting from a one-time profit sharing contribution. The employer would like to cover recordkeeping expenses for participants with less than $1,000 as a perk to newer employees who are just starting to save in the plan, but doesn't want to cover recordkeeping expenses for those who are not contributing and have just profit sharing money. The recordkeeper is unable to do this systematically. Is there any creative way the employer can get these small balances out of the plan altogether if these participants are still active employees?"

BenefitsLink Message Boards

State Unemployment Agency Wants to Know If Past Employee Received a Distribution -- Privacy Issues?

"Has anyone had a state unemployment agency ask whether a past employee has taken a distribution? Are we required to disclose?"

BenefitsLink Message Boards

Can File Form 5500-EZ If Sole Non-Owner-Employee's Account Is Distributed During Plan Year?

"PS plan has owner and one employee. During the plan year, the employee was paid out. At year end the only participant is the owner. I recall that because at the beginning of the plan year there was an non-owner employee in the plan, the Form 5500-EZ cannot be used. Correct?"

BenefitsLink Message Boards

Press Releases

OneDigital Investment Advisors Named Retirement Plan Advisor of the Year by RIA Intel


Transamerica, Smart, and Finhabits Team Up to Help Expand Retirement Plan Coverage for Underserved Businesses and Their Employees


Last Issue's Most Popular Items

Protecting Against 401(k) Cybersecurity Leakage

Holland & Hart LLP

The Interplay Between ESG Investing and ERISA's Fiduciary Duties

Morgan Lewis

Text of PBGC Technical Amendments: Change of Address

Pension Benefit Guaranty Corporation [PBGC]

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

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