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Retirement Plans Newsletter

October 13, 2022

3 New Job Opportunities 3 New Job Opportunities


[Official Guidance]

Social Security Announces 8.7 Percent Benefit Increase for 2023

"Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 8.7 percent in 2023 ... On average, Social Security benefits will increase by more than $140 per month starting in January. The 8.7 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023."  MORE >>

U.S. Social Security Administration [SSA]

[Official Guidance]

Text of PBGC Proposed Regs: Actuarial Assumptions for Determining an Employer's Withdrawal Liability

"This rule is being proposed under section 4213(a)(2) to make clear that use of 4044 rates, either as a standalone assumption or combined with funding interest assumptions represents a valid approach to selecting an interest rate assumption to determine withdrawal liability in all circumstances.... The proposed rule would specifically permit the use of an interest rate anywhere in the spectrum from 4044 rates alone to funding rates alone.... PBGC requests comments on whether the final rule should specify assumptions or methods other than interest assumptions ... The changes in this proposed rule would apply to the determination of withdrawal liability for employer withdrawals from multiemployer plans that occur on or after the effective date of the final rule. The proposed rule does not preclude the use of an interest rate assumption described in proposed Section 4213.11(b) to determine unfunded vested benefits before the effective date of the final rule."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

[Guidance Overview]

2023 Social Security Wage Base Increase, and Projected Increases in IRS Limits

"The Social Security Administration today announced that the wage base for 2023 will increase to $160,200 from $147,000. In addition, the [DOL] issued the CPI-U for September, which enables the calculation of several of the 2023 limits the IRS will shortly be announcing. The limits for 1996 through 2023 (including the actual Social Security limit and the projected IRS limits) are shown at this link."  MORE >>

Venable LLP

[Guidance Overview]

PBGC Proposes Rule for Multiemployer Plans to Clarify Assumptions for Determining an Employer's Withdrawal Liability

"The proposed rule clarifies that it is reasonable to base the interest assumption used to calculate an employer's withdrawal liability on the market price of purchasing annuities from private insurers, such as by use of settlement interest rates prescribed by PBGC under Section 4044 of ERISA (4044 rates). The proposed rule would specifically permit the use of 4044 rates either as a standalone assumption or combined with funding interest rate assumptions, to determine withdrawal liability."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

[Guidance Overview]

IRS Provides Relief for Some RMDs for 2021 and 2022

"We are still waiting for the IRS to finalize the RMD regulations.... In the meantime, plans can be administered safely for 2022, knowing that, if the plan does not distribute 'specified RMDs', neither the plan nor the beneficiary will be penalized. We don't know yet whether the final regulations will require a 'make-up' distribution of the 2021 and 2022 specified RMDs as part of the 2023 RMD. We don't know if final regulations will follow the proposed regulations on this or other issues."  MORE >>

Ferenczy Benefits Law Center

Booz Allen Seeks to Dismiss ERISA Complaint Attacking BlackRock Target-Date Funds

"Ten weeks after a law firm began filing ERISA lawsuits against multiple sponsors for offering a BlackRock target-date series, one of those sponsors is fighting back.... The Booz Allen Hamilton response assailed the plaintiff's arguments as 'shaped from the vantage of hindsight.' " [Tullgren v. Booz Allen Hamilton Inc., No. 22-0856 (E.D. Va. complaint filed Aug. 1, 2022; motion to dismiss filed Oct. 10, 2022)]  MORE >>

Pensions & Investments

Emerging from the COVID-19 Pandemic: Four Generations Prepare for Retirement (PDF)

135 pages. "[This report] examines the retirement outlook of Baby Boomers, Generation X, Millennials, and Generation Z. It focuses on the experiences of employed workers of for-profit companies and the impacts of the pandemic on their health and happiness, employment, financial well-being, and preparations for retirement."  MORE >>

Transamerica Center for Retirement Studies

2022 Pension Risk Transfer Poll: How Companies Are Protecting Pension Benefits Amid a Challenging Economic Environment (PDF)

10 pages. "Nine in 10 (92%) say rising interest rates are making it more likely that they would move forward with a PRT ... 95% say that higher inflation is very or somewhat impactful on their PRT decision.... 57% say they will use an annuity buyout (including a combination of an annuity buyout and a lump sum), up significantly from 34% in 2020.... Nearly nine in 10 plan sponsors (89%) say they are likely to consider a pension risk transfer option from an insurance company in the next five years, including 35% who say it will be within two years."  MORE >>


Pension Funding Index, October 2022

"An increase in the benchmark corporate bond interest rates used to value pension liabilities led to a decrease in plan liabilities, representing a gain of $31 billion for the month. As of September 30, the funded ratio shot upward to 109.2%, from 106.3% at the end of August, and the funded status surplus increased to $122 billion."  MORE >>



Common Myths of Cyber Insurance for Employee Benefit Plans

"[N]early every single-employer plan sponsor is relying on cyber coverage issued to the corporate entity to protect their employee benefit plan. The cyber coverage for the corporate entity is not designed to cover employee benefit plan risks cost effectively because the plan sponsor has many extraneous corporate risks.... [T]he best fiduciary practice is to purchase dedicated cyber and crime coverage for sponsored plans."  MORE >>

Euclid Specialty Managers


American Benefits Council Comment Letter to EBSA on Proposed Amendments to the QPAM Exemption

13 pages. "The Council does not believe that DOL should be adding any new categories of QPAM conditions that would make it more difficult for plan sponsors to retain their investment managers.... [T]he Council is concerned about how the proposal would effectively prohibit QPAMs from accessing key investment options that plan sponsors need to manage the risk in their plans."  MORE >>

American Benefits Council


American Retirement Association Comment Letter to EBSA on Proposed Amendment to the QPAM Exemption (PDF)

"[ARA recommends] that the Department: [1] Modify the exclusive authority condition of the proposed amendment to Section I(c) of the QPAM Exemption so as not to preclude routine business interactions. [2] Modify the conditions of the one-year winding down period of proposed new Section I(j) so as not to preclude new transactions in existing accounts which are required for a prudent winding down process. [3] Provide at least 18 months for QPAMs, plan sponsors, and other parties-in-interest to come into compliance with the conditions of an amended QPAM Exemption."  MORE >>

American Retirement Association [ARA]

Benefits in General

[Guidance Overview]

New DOL Independent Contractor Proposed Rule

"The new rule focuses the analysis of worker classification on whether workers are in business for themselves to determine whether they are independent contractors.... [T]he DOL will look at whether workers can meaningfully negotiate their pay for the work, whether they accept a particular consulting job, whether they control when they work on the job, whether they engage in activities like marketing to expand their business, and whether the workers are the ones purchasing materials or equipment."  MORE >>

Williams Mullen

Employee Benefits Jobs

View job as 401k & Defined Contribution Plan Consultant
            for Planned Retirement Consultant & Administrators, LLC

401k & Defined Contribution Plan Consultant

Planned Retirement Consultant & Administrators, LLC

Remote / Ridgewood NJ

View job as 401k & Defined Contribution Plan Consultant for Planned Retirement Consultant & Administrators, LLC

View job as Defined Benefit Plan Consultant
            for Planned Retirement Consultants & Administrators, LLC

Defined Benefit Plan Consultant

Planned Retirement Consultants & Administrators, LLC

Remote / Ridgewood NJ

View job as Defined Benefit Plan Consultant for Planned Retirement Consultants & Administrators, LLC

View job as Benefits Specialist
            for New York Blood Center

Benefits Specialist

New York Blood Center


Selected New Discussions

Automatic Revocation of Now Ex-Spouse as Designated Beneficiary

"Is it normal for a plan to automatically revoke beneficiary designations of a spouse upon legal divorce of a participant and the spouse? If this is not automatic, would the participant have to manually update their elections or is there be some sort of default treatment of such assets?"

BenefitsLink Message Boards

Amending a Large Plan Form 5500 to Show a New Participating Plan -- Refile Everything, or Just Schedule D?

"I have to amend a Schedule D attached to a large plan 5500 that was just filed for 2021. The employer neglected to give me a new participating plan. Do I just attach the updated Schedule D to the 5500 for filing or do all the Schedules and original documents get refiled as well? The 5500 Instructions are not clear."

BenefitsLink Message Boards

Effect of the Mandatory Victims Restitution Act on ERISA's Anti-Alienation Provision

"Background: ERISA provides anti-alienation protection to qualified retirement plans; early Supreme Court cases deferred exemptions back to Congress, 1984 Congress allows QDRO's, 1997 Congress allows reimbursement for fiduciary breaches or criminal activity involving the Plan. Mandatory Victims Restitution Act ('notwithstanding' any other Federal law) has otherwise been used as end-around of anti-alienation for variety of other restitution-based claims against 401(k) accounts. Has a MVRA-based appeal been heard by the Supreme Court and what was the result if so?"

BenefitsLink Message Boards

CARES Act Amendments -- Deadline Has Been Extended, or Not?

"So I keep getting all of these email blasts about CARES Act amendments being extended. But apparently that only applies to the RMD waivers and not all the loan/distriubtion rules. Why in the world would anyone do half of a CARES Act Amendment? This must be an oversight. Has anyone confirmed that this was intentional? This is really not an extension at all!"

BenefitsLink Message Boards

Press Releases

New Transamerica Program Aids Small Businesses in Employee Retirement and Health Savings


Federal Court Orders Defunct Michigan Company, CEO, President to Restore More Than $25,000 to Two Employee Benefit Plans

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

iJoin Encourages Action with 'It's Go Time' Campaign


OneDigital Strengthens Benefits Capabilities With Acquisition of GHC Associates, Inc. In Virginia


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Nothing Is Certain Except Death and Taxes, But Stranger Things Have Occurred

October 20, 2022 in CA

Western Pension & Benefits Council

Last Issue's Most Popular Items

IRS Provides Relief for 2021 and 2022 Required Minimum Distributions for Beneficiaries and Plans

Groom Law Group

IRS Waives the 50% Excise Tax for 2021 and 2022 RMDs for Some Beneficiaries

Appleby Retirement Dictionary

Cybersecurity Breach Suits Raise Questions About Liability for Benefits Plans

Hall Benefits Law

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

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