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Retirement Plans Newsletter

October 24, 2022

3 New Job Opportunities 3 New Job Opportunities


[Guidance Overview]

PBGC Addresses Withdrawal Liability Assumptions for First Time in New Proposed Rule

"For the first time, the Proposed Rule explicitly permits a multiemployer plan actuary to use any of the three approaches ... to calculate withdrawal liability under ERISA Section 4213(a)(2), without regard to the requirements of ERISA Section 4213(a)(1). It is also important to note that the Proposed Rule does not mandate the use of any particular interest rate assumption, and a plan actuary can still use his or her best estimate under ERISA Section 4213(a)(2)."  MORE >>

Seyfarth Shaw LLP


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[Guidance Overview]

IRS Announces 2023 Cost of Living Adjustments to Various Retirement Plan Limits

"The current rate of inflation has served to increase most of the rates substantially. The limits that increased for 2023 are [indicated in this chart], and include, for the first time in several years, the catch-up contribution limit."  MORE >>

Ferenczy Benefits Law Center

A New and Thoughtful District Court ERISA Decision Awarding Attorney Fees to a Prevailing Party

"The hourly fee awarded to plaintiff's counsel is reasonably commensurate with the hourly rates of much of the ERISA defense and compliance bar.... The Court unequivocally recognizes remand to the plan administrator as sufficient relief to warrant a substantial fee award.... [This decision] reflects a reasoned and conservative approach to reduction of the hours claimed by plaintiff's counsel." [Holt v. Raytheon, No. 20-11244 (D. Mass. Oct. 11, 2022)]  MORE >>

Stephen Rosenberg, The Wagner Law Group

Eighth Circuit Finds Financial Conflict of Interest Not Always Sufficient to Constitute Breach of ERISA Fiduciary Duty of Loyalty

"[T]his decision is a reminder to plan sponsors who offer such products in their menu of investment options to make sure at the outset that all direct and indirect compensation paid to fund managers is reasonable and in the best interests of participants." [Rozo v. Principal Life Ins. Co., No. 21-2026 (8th Cir. Sep. 2, 2022)]  MORE >>

Lewis Brisbois Bisgaard & Smith LLP

Exceptional Usefulness and Quality icon 2023 IRS Cost of Living Adjustments

Page includes a link to a printable card listing limits for 2021-2023.  MORE >>


Annuities as Part of Target-Date Funds Grow in Popularity

"For plan sponsors considering an in-plan retirement income option, defined contribution plan consultants are most likely (68%) to recommend target-date funds with a guaranteed income component ... 82% of asset managers agree that annuity products have a negative stigma because of cost, complexity, and/or limits on liquidity."  MORE >>


The End of the Road: Terminating a Defined Contribution Plan

"Terminating a defined contribution plan is not difficult, but it does require certain specific steps and considerations.... Step 1: Officially terminating the plan ... Step 2: Plan operation following termination of the plan ... Step 3: Distributing the plan assets."  MORE >>

KLB Benefits Law Group

401(k)ology: A Primer on Design of Small Employer Plans

"[W]hat is the employer's objective? ... How do I determine the right retirement program for my small business? ... How do I select the retirement services team? ... What should we expect regarding costs to offer a retirement program? ... Are there any start-up tax credits available? ... Who can help meet the fiduciary obligations? ... What compliance issues impact small employer plans? ... Is there a way to avoid the compliance testing?'

   MORE >>


Public Pension Funding Index, October 2022

"Very poor market performance during September 2022 lowered the estimated funded status of the 100 largest U.S. public pension plans from 75.0% as of August 31, 2022, to 69.3% as of September 30, 2022 ... The deficit between the estimated assets and liabilities rose during September, from $1.467 trillion at the beginning of the month to $1.808 trillion at the end of the month."  MORE >>


Benefits in General

[Guidance Overview]

2023 IRS Limits (PDF)

Charts detail 2023 limits for retirement and health & welfare plans.  MORE >>

Kushner & Company

Employee Benefits Jobs

View job as Compliance Consultant IV, Benefits Advocacy & Communications
            for Kaiser Permanente

Compliance Consultant IV, Benefits Advocacy & Communications

Kaiser Permanente

Remote / Pasadena CA / Santa Ana CA / Oakland CA

View job as Senior Actuarial Analyst
            for Newport, an Ascensus Company

Senior Actuarial Analyst

Newport, an Ascensus Company

Remote / Chicago IL

View job as Senior Actuarial Analyst for Newport, an Ascensus Company

View job as Retirement Plan Consultant
            for FuturePlan, by Ascensus

Retirement Plan Consultant

FuturePlan, by Ascensus


View job as Retirement Plan Consultant for FuturePlan, by Ascensus

Selected New Discussions

Question on VFCP Eligibility -- Funds Moved Out of Trust by Dishonest Employee

"I am seeking guidance on whether the Plan Sponsor can submit an application to VFCP for funds that were moved back and forth from the plan to the corporation over the course of 3 years. Turns out one of the owner/trustee was mishandling funds unbeknownst to the other owner/trustees. This is a family business and they trusted him. All funds have been restored and lost interest deposited and excise taxes paid with 5330 forms. The company recently sold and the buyer's attorney is requiring they apply for relief through VFCP."

BenefitsLink Message Boards

2021 RMD Calculations -- Is a Receivable Included if Made in 2022?

"I believe I know the answer, but I wanted to confirm: For a Profit Sharing Plan for the RMD to be taken in 2022, we obviously use the 12/31/21 Balance. If a receivable is made in 2022 for the 2021 Plan Year, is that included in the balance used for the calculation?"

BenefitsLink Message Boards

How to Handle Unpaid Auto-Enrollment Contribution Amounts for Employee Who Hasn't Returned Required Information?

"In the case (due to employees not filling out required information) that a plan sponsor is unable to create an account for an eligible employee entitled to auto-enrollment contributions, what should the 401(k) plan do with the money that is not being contributed? Should the cash be returned to the employer, held in trust, etc.?"

BenefitsLink Message Boards

Failure to Name Beneficiary Despite Promise in Divorce Property Settlement

"Profit sharing plan states that, in the absence of a designated beneficiary, the spouse becomes the beneficiary, and, if no surviving spouse, then the children. In this case, a divorce settlement agreement stated that the participant was to name his former spouse as beneficiary. The participant has died but there is no such designation on file. There is no surviving spouse, but there are surviving children. What to do?"

BenefitsLink Message Boards

RMDs for Off-Calendar Plan Years

"Plan year end is 9/30/2022. Are RMDs done based on 12/31/2021 balance, or on the 9/30/2021 balance?"

BenefitsLink Message Boards

Press Releases

401(k) Champion Competition Deadline Extended to Thursday, Nov. 17, 2022

401(k) Champion® Award

ASPPA Welcomes Justin Bonestroo as President

ASPPA [American Society of Pension Professionals & Actuaries]

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Getting Together and Getting It Right: Testing Related Employer Plans

November 3, 2022 WEBCAST

Last Issue's Most Popular Items

Text of IRS Notice 2022-55: 2023 Limitations Adjusted as Provided in Section 415(d), etc. (PDF)

Internal Revenue Service [IRS]

U.S. Pension Risk Transfer: Growing and Evolving

Willis Towers Watson

Managed Accounts Fraught with Issues for Employers

Pensions & Investments

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

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