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Retirement Plans Newsletter

September 29, 2022

4 New Job Opportunities 4 New Job Opportunities


[Guidance Overview]

Exceptional Usefulness and Quality icon IRS Employee Plans News: Follow-Up from IRS Tax Forum Retirement Plan Presentation

"IRS Employee Plans presented the seminar, Retirement Plans: Avoid These Pitfalls When Managing Your Small Employer Plan.... Part of [the] presentation focused on a series of plan checklists that may help small business owners keep their plans in compliance. [1] 401(k) Plan Checklist; [2] SEP Plan Checklist; [3] SIMPLE IRA Plan Checklist; [4] SARSEP IRA Plan Checklist.... [A]nswers to some of the most common questions [submitted after the presentation are included in this document]."  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

Year-End Amendment Deadlines Extended: CARES and 2020 Relief Act

"While perhaps unexpected, these additional extensions allow the adoption of SECURE Act, Miners Act, CARES Act, and 2020 Relief Act changes with a single amendment. As a result, most plans will not be required to adopt IRS required changes this year. But, of course, plan sponsors who want to amend their plans now to reflect the CARES Act and 2020 Relief Act provisions, while still somewhat fresh in their mind, can proceed with little concern."  MORE >>

Groom Law Group

A Light in the Dark: Seventh Circuit Helps Clarify New Pleading Standards for 401(k) Fee Cases

"[To] survive a motion to dismiss in the Seventh Circuit, the recent ruling in Albert v. Oshkosh Corp. reiterated that plaintiffs must allege both high fees and substandard services or performance in comparison to other similar 401(k) plans." [Albert v. Oshkosh Corp., No. 21-2789 (7th Cir. Aug. 29, 2022)]  MORE >>

McDermott Will & Emery

Is the Crypto Winter Finally Starting to Thaw? (PDF)

"Fidelity's decision to plunge into the choppy waters and invest in blockchain and cryptocurrency clearly reflects the bullish excitement and potential for many investors who are eager to participate in this emerging opportunity. These and other recent developments in the financial services industry may actually be a sign that the crypto winter is experiencing the first signs of a major thaw."  MORE >>

Ice Miller LLP, via Employee Benefit Plan Review

Number of Workers Delaying Retirement Has Doubled Since Last Year

"40% of workers age 45 and older are delaying their retirement because of rising living costs -- double those who said they delayed retirement last year because of the COVID-19 pandemic."  MORE >>

PLANSPONSOR; free registration may be required

Target Date Retirement Funds in 4 Charts

"While the typical target-date retirement fund devotes about 30% of assets to equity, the highest is about one-and-a-half times that level at 44%, while the lowest is about one third that level, at roughly 10%.... From 2018 to 2021, funds with higher equity weightings posted higher total returns on average. Those with 33% to 43% equity averaged 7.7% annualized; funds with 30% to 33% equity averaged 6.5%; funds with 25% to 30% equity averaged 6.3%; and funds with 11% to 21% averaged 4.9%."  MORE >>


More Save More, Sooner in 403(b) Plans

"While not yet back to pre-COVID levels, average deferral rates are up, more participants are contributing, more plans are permitting immediate eligibility, and employer contribution rates to 403(b) plans rose almost 24% year-over-year[.]"  MORE >>

American Retirement Association [ARA]

Deterministic vs. Stochastic Models: A Guide to Forecasting for Pension Plan Sponsors

"While both techniques allow a plan sponsor to get a sense of the risk -- that is, the volatility of outputs -- that is otherwise opaque in the traditional single deterministic model, stochastic modeling provides some advantage in that the individual economic scenarios are not manually selected.... Stochastic models are particularly useful in forecasting ... The output of the model will show not only the underlying riskiness of an output variable -- for example, funded status or contribution requirements -- but also how the risks may change over time."  MORE >>


How Defined Benefit Plans Have Changed for Municipal Employees (PDF)

"[In] the 2000s, ... plan features began changing. Some plans, more in tune with the financial risks than most, started cutting back in the 1990s already, or even sooner.... Public plans are now within shouting distance of solvency, if not already there.... This report looks at some of the common ways in which this outcome was achieved, and which were most commonly used, by whom."  MORE >>

Still River Retirement Planning Software, Inc.

Public Employee Pensions Are Portable

"[1] All plans will refund public employees if they leave public service before retirement, and a majority will refund their contributions with interest.... [2] Most pension systems allow employees to purchase service credits for different types of government service (including out-of-state government service).... [3] In most systems, workers can leave their contributions in their accounts, even if they leave public employment."  MORE >>

National Public Pension Coalition [NPPC]

Market Setbacks Don't Need to Set Back Retirement Plans (PDF)

"[T]he current volatility in securities markets and lower expected returns in the midterm do not warrant a change in ... suggested retirement saving strategies.... Plan sponsors can help participants navigate market volatility by increasing adoption of target date funds in their plan lineup and providing emergency savings vehicles."  MORE >>

T. Rowe Price

Executive Compensation and Nonqualified Plans

Public Companies: Time to Consider Repricing Underwater Stock Options?

"In determining whether to proceed with a stock option repricing, and determine which method is most suitable, publicly-traded companies should evaluate [certain] key considerations ... There are multiple methods that companies may employ when implementing a stock option repricing program. The key features and considerations of each stock option repricing method are summarized [in this article]."  MORE >>

Goodwin Procter

Employee Benefits Jobs

View job as Retirement Plan Administrator
            for Midwest Independent TPA Firm

Retirement Plan Administrator

Midwest Independent TPA Firm

Remote / Kenosha WI

View job as Distribution & Loan Processor
            for Carnow & Associates, Ltd.

Distribution & Loan Processor

Carnow & Associates, Ltd.

Remote / Deerfield IL

View job as Distribution & Loan Processor for Carnow & Associates, Ltd.

View job as Accountant
            for City of Austin Employees Retirement System


City of Austin Employees Retirement System

Remote / Austin TX

View job as Accountant for City of Austin Employees Retirement System

View job as Senior Defined Benefits Consultant
            for Loren D. Stark Company

Senior Defined Benefits Consultant

Loren D. Stark Company


View job as Senior Defined Benefits Consultant for Loren D. Stark Company

Selected New Discussions

'Ad Hoc' Distributions -- Protected Benefit?

"ERISA 403(b) plan allows 'ad hoc' distributions -- i.e., partial withdrawals for terminated participants. Is it allowable to eliminate this option for current accrued benefits? (Plan provides for lump sum distributions.) Note that this is not an 'in service' distribution question."

BenefitsLink Message Boards

Is an IRA's Sale to a Not-Yet Spouse a Prohibited Transaction?

"Is an IRA's sale to a not-yet spouse a prohibited transaction? Imagine this not-so-hypothetical situation: Two people who have contemplated marriage decide to wait. Why? One's IRA owns real property, which the couple intend as their new residence. The IRA holder believes that living in the property while the IRA owns it would result in an improper personal benefit and prohibited transaction. Instead, the IRA sells the property to the holder's not-yet spouse. (Assume the IRA's sale is for an amount an appraiser says is fair market value.) The couple delay their marriage, and the IRA holder's move, until the year after the year in which the IRA sold the property."

BenefitsLink Message Boards

Top Paid Group Question -- Applies to Health Savings Accounts, Too?

"As I understand it, if an employer chooses to utilize the Top Paid Group (TPG) for its benefit plans, it must be used on all benefit plans, retirement and non-retirement plans. So, this would include 401(k) and an HSA, right? If an employer wants to use TPG for HSA, they have to use it for the 401(k) right? But what happens if you have conflicting choices? The HSA says TPG and the 401(k) plan says standard?"

BenefitsLink Message Boards

Press Releases

The Difference Card Appoints Joseph Donovan as Chief Executive Officer

The Difference Card

David Thomas Inducted as a Fellow of the American College of Employee Benefits Counsel

Wilson Sonsoni

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Is Your Plan Ready for a DOL Audit?

October 27, 2022 WEBCAST

The Wagner Law Group P.C.

Last Issue's Most Popular Items

SECURE and CARES Amendments Deadline Postponed But Plans Should Still Review Year-End Needs

Davis Wright Tremaine LLP

2022 Means New Tables for RMDs: Provisions You Must Know

Appleby Retirement Dictionary

How to Determine Most Tax-Friendly States for Retirees

Nerd's Eye View

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

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