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Retirement Plans Newsletter

October 17, 2022

7 New Job Opportunities 7 New Job Opportunities


[Official Guidance]

PBGC Posts 2023 Premium Rates

PBGC has determined the premium rates applicable for the 2023 plan year in accordance with the indexing rules provided in section 4006 of ERISA, and updated the Premium Rates web page accordingly.  MORE >>

Pension Benefit Guaranty Corporation [PBGC]


Pension Rights Center's Celebration of Karen Ferguson

Please join us on October 26 in celebrating the life and legacy of Karen Ferguson - and the vibrant future of the Pension Rights Center. Come share a night of food, fun, friends – music and memories.

Sponsored by Pension Rights Center

[Guidance Overview]

PBGC Issues Proposed Regulation on Interest Rate for Withdrawal Liability

"The proposed regulation would appear to resolve some of the issues that have arisen in recent years with respect to the interest rate used to determine withdrawal liability. However, the wording of the regulation raises a number of questions. If the interest rate can be within a specified range, who decides what rate will be used? Can the interest rate be decided after a plan year is over?"  MORE >>


[Guidance Overview]

PBGC Issues Proposed Rule on Withdrawal Liability Actuarial Interest Rate Assumptions

"The PBGC predicts the proposed rule, if enacted, would, among other things: ... [1] [R]esult in in increased withdrawal liability payments by employers of between $804 million and $2.98 billion over the next 20 years. [2] Provide more certainty resulting in reduced arbitration and litigation costs ... [providing] between $500,000 and $1 million in savings annually."  MORE >>


[Guidance Overview]

42 Years in the Making: PBGC Proposes Regulation on Interest Rate for Withdrawal Liability Calculations

"The proposed regulations, if finalized in their current form, would allow pension plans to use any rate within the permitted spectrum ... without any specific methodology or constraints on how the rate is selected.... [T]he proposed regulations do not (and likely could not) modify how an employer's withdrawal liability payment schedule is calculated or the 20-year cap that applies even if the employer will not fully pay its nominal liability in 20 years under the payment schedule.... The impact of these proposed regulations is, therefore, plan and employer-specific."  MORE >>


[Guidance Overview]

IRS Delays Final RMD Regulation, Gives Relief for New 10-Year Payment Rule

"The notice's relief applies only for the 2020 and 2021 distribution calendar years.... [P]resumably IRS expects plans and taxpayers to comply with the proposed regulations' interpretation of the 10-year rule for 2022 and later years. This could also signal that IRS doesn't intend to revise its interpretation of the 10-year rule in response to comments received on the proposed regulations."  MORE >>


2023 Increases for Retirement Plans, Social Security

"The Social Security Administration just announced ... the maximum amount of earnings subject to Social Security tax will increase in 2023 from $147,000 to $160,200 ... Employers who sponsor retirement plans that are 'coordinated' with Social Security in some fashion [will] see an impact on benefits earned and payable under such plans.... IRS will soon release limits applicable to retirement plans for various purposes in 2023, based on an 8.33% increase in CPI-U ... [A table] summarizes [estimated] calculations for 2023[.]"  MORE >>

October Three Consulting

Reducing Your 401(k) Litigation Risks

"The decision to establish a 401(k) plan is a business decision.... [O]nce the plan is established, decisions regarding the operation of the plan are governed by the fiduciary obligation to act in the best interests of the plan participants.... [H]ere are 10 critical questions you need to ask to confirm compliance with these standards:"  MORE >>

Fisher Phillips

Bill Seeks Fiduciary Safeguards for Crypto, Other Alternative Assets

"[The Retirement Savings Modernization Act (S 4973, HR 9066)] would amend ERISA to let plan fiduciaries offer investments from a list of specific asset classes -- including digital assets, private equity (PE) and annuities -- without any presumption of imprudence."  MORE >>


Actuarial Considerations When Using Augmented Mortality Models (PDF)

12 pages. "The purpose of this discussion brief is to provide a source of information to actuaries seeking to better understand the considerations and complexities when using augmented pension mortality assumptions ... [defined as] a valuation assumption that uses additional predictive information taken from nontraditional data elements (beyond age, sex, collar, etc.) from a source external to that data set ... Examples and discussion ... further illustrate the concept."  MORE >>

American Academy of Actuaries

Getting Money Out of a 403(b)

"This post briefly describes occasions when plan participants (or designated beneficiaries) take money out of 403(b) accounts. Process steps and tax implications for each type of withdrawal method are described. Research results, three 'need to know' facts, and six take-away action steps conclude this discussion."  MORE >>


The Most Important Retirement Planning Decision for Baby Boomers

"The most important decision you will make in retirement planning is how much of your resources to allocate to the upside and floor portfolios ... The correct balance [between the upside and floor portfolios] will depend on how willing you are to risk losing your standard of living for the chance of having an even higher one."  MORE >>

Ken Steiner, FSA Retired


Target Date Funds Have Now Become the Targets of 401(k) Litigation, Part 2

"Plan sponsors often agree to ... fiduciary disclaimer clauses in exchange for revenue sharing payments from the broker's/adviser's broker-dealer. The plan sponsor then uses such revenue sharing payments to reduce the plan's administration costs. The legal issue with such fiduciary disclaimer clause/revenue sharing arrangements is that reducing administrative costs does not change the cost-inefficiency of imprudent investment options within the plan or otherwise reduce the ongoing financial impact of such imprudent investments."  MORE >>

The Prudent Investment Fiduciary Rules


Fact Check: Do U.S. Public Pensions Invest in Cryptocurrency?

"In his recent Forbes column, Edward Siedle cited a study claiming that 94 percent of America's state and local government pensions are gambling on cryptocurrencies ... Of the 50 state/government pension plans around the world that responded to the survey, only 16 percent were in the US -- meaning only 8 ... of the more than 5,000 US-based public pension plans are part of the figure Siedle references. The study is hardly representative of US public pensions and their investment strategies."  MORE >>

National Conference on Public Employee Retirement Systems [NCPERS]

Benefits in General


Congress Must Ban Discretionary Clauses in ERISA Plans

"[D]iscretionary clauses are contrary to ERISA's purpose and intent. Legislation that would prohibit discretionary clauses in benefit plans other than multi-employer plans ... was recently passed by the U.S. House of Representatives [HR 7780], and it must be passed by the U.S. Senate as well, and signed into law by President Joe Biden."  MORE >>

DeBofsky Law

Employee Benefits Jobs

View job as Institutional Client Management Consultant
            for CAPTRUST

Institutional Client Management Consultant


Remote / Greenwood Village CO / Tampa FL / Atlanta GA / West Des Moines IA / Minneapolis MN / Allentown PA / Raleigh NC / Charlotte NC / IL / NJ

View job as Institutional Client Management Consultant for CAPTRUST

View job as DC Retirement Plan Administrator
            for Heritage Administrative Services, LLC

DC Retirement Plan Administrator

Heritage Administrative Services, LLC

Remote / Woodbury NY

View job as DC Retirement Plan Administrator for Heritage Administrative Services, LLC

View job as Retirement Implementation Coordinator
            for Alerus

Retirement Implementation Coordinator


Remote / AZ / MI / MN / ND / NH

View job as Retirement Implementation Coordinator for Alerus

View job as Defined Contribution Plan Consultant
            for FuturePlan, by Ascensus

Defined Contribution Plan Consultant

FuturePlan, by Ascensus


View job as Defined Contribution Plan Consultant for FuturePlan, by Ascensus

View job as Healthcare Actuarial Consultant
            for Ascensus

Healthcare Actuarial Consultant


Remote / Indianapolis IN

View job as Healthcare Actuarial Consultant for Ascensus

View job as Retirement Plan Consultant
            for Independent Retirement

Retirement Plan Consultant

Independent Retirement

Remote / ID / OR / WA

View job as Retirement Plan Consultant for Independent Retirement

View job as Senior Retirement Analyst
            for Dunbar, Bender & Zapf, Inc.

Senior Retirement Analyst

Dunbar, Bender & Zapf, Inc.

Remote / Pittsburgh PA

View job as Senior Retirement Analyst for Dunbar, Bender & Zapf, Inc.

Selected New Discussions

5500 Schedule of Delinquent Contributions -- Include Lost Earnings in the Reported Amount?

"Question about preparing the attachment Schedule H/I Line 4a Schedule of Delinquent Participant Contributions. Do you include the calculated lost earnings in the amount or is it just the late contribution amount? The 5500 instructions only discuss the contribution. I have someone telling me to include the earnings."

BenefitsLink Message Boards

Summary of Material Modifications Required When Ambiguous Document Provision Is Amended to Align with Operational Practice?

"A group of several large 403(b) plans (not a controlled group or affiliated service group) that were set up with intentionally identical provisions. However, no election was made in the adoption agreement as to whether subsequent eligibility periods switch to plan year, or remain on anniversary years. The plans have been ADMINISTERED with subsequent eligibility periods changing to plan year. I don't believe this is a 'document failure' in the technical sense for purposes of RP 2021-30. It doesn't, 'on its face' violate a requirement of 403(b), I don't think. Thoughts on this?"

BenefitsLink Message Boards

Prevailing Wage Contributions to a 401(k) Plan In Lieu of Wages

"A client asked about making prevailing wage contributions to a 401(k) instead of paying wages. It makes sense to save the FICA tax. So there is no eligibility requirement, no allocation conditions, 100% vested and can be used to offset the employer profit sharing allocation if there is one. Of course this feature must be added in the Adoption Agreement. Can this be done?"

BenefitsLink Message Boards

Press Releases

Bitwage Partners with ForUsAll to Offer One-Stop-Shop for Crypto 401(k) and Crypto Payroll


Employee Benefit Research Institute Releases Re-Envisioned Ballpark E$timate® Online Retirement Calculator Allowing Users To See Their Retirement Future Today

EBRI [Employee Benefit Research Institute]

Dentons Expands Employee Benefits Practice with Addition of Erin Shick


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Phantom Equity: Its Advantages and Disadvantages for Incentivizing Employees


Lowenstein Sandler

How HSAs Can Help Participants Tackle Retirement Healthcare Costs


CAPTRUST Financial Advisors

Double-Trigger RSUs and Stock Options in Private Companies: Key Provisions, Tax Implications, Risks, and More

November 30, 2022 WEBCAST


Last Issue's Most Popular Items

IRS Guidance Signals RMD Rules Are Here to Stay


Two More District Courts Reject ERISA Fee and Performance Claims as Insufficient


IRS Announces 'RMD-elay' for New Rules

Eversheds Sutherland

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

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