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Retirement Plans Newsletter

October 25, 2022

2 New Job Opportunities 2 New Job Opportunities


[Official Guidance]

Text of Draft IRS Instructions for 2022 Form 8955-SSA: Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefit (PDF)

"Use Form 8955-SSA to report information relating to each participant who separated from service covered by the plan and is entitled to a deferred vested ... The information reported on Forms 8955-SSA is generally given to the Social Security Administration (SSA).... The SSA no longer processes nonstandard pages 2.... A Form 8955-SSA need not be filed for a year if no information is required to be provided for that year by these instructions. Form 8955-SSA may be filed electronically through the FIRE system or on paper." [Also available: Draft 2022 Form 8955-SSA]  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

PBGC Issues Proposed Regulation for Multiemployer Plan Withdrawal Liability Assumptions

"[A]ctuaries would be permitted to select a withdrawal liability interest rate that is equal to [1] the interest rate used for minimum funding purposes, [2] the interest rate prescribed by PBGC for valuing terminated pension plans, or [3] any interest rate that falls between these rates.... [it] is likely that the range of interest rates specified in the proposed regulation will encompass substantially all interest rates that multiemployer pension actuaries currently use."  MORE >>

Groom Law Group

[Guidance Overview]

PBGC Special Financial Assistance Final Rule: Permissible Investments

"SFA assets and earnings are segregated from non-SFA assets and may be used any time. SFA assets may be used to make benefit payments and pay plan expenses. The final rule allows for allocation to return-seeking assets (RSA) up to 33%. The remainder of SFA assets -- at least 67% -- must be allocated to investment grade fixed income (IGFI). These allocations are applicable on the date that an application is filed with PBGC under provisions of final rule.... The 33% limit must be met every time RSA are purchased."  MORE >>

International Foundation of Employee Benefit Plans [IFEBP]

[Guidance Overview]

Company Stock in Employee Benefit Plans May Reduce New Excise Tax on Buybacks

"[E]ven if a company's buy back is considered a repurchase under Section 4501(c), the new tax does not apply to stock (or an amount equal to the value of such stock) contributed to 'an employer-sponsored retirement plan, employee stock ownership plan, or a similar plan.' ... [T]he new tax applies to buybacks of stock after December 31, 2022."  MORE >>

Groom Law Group

[Guidance Overview]

IRS Chart: Cost-of-Living Adjustments for Retirement Items (PDF)

8-page detailed chart of retirement plan limits from 1989-2023.  MORE >>

Internal Revenue Service [IRS]


Please take EI’s Retirement Plan Compliance survey today!

Help the Enterprise Iron team understand how recent legislative changes surrounding Plan Documents have impacted our industry. The data will be used during our upcoming session at The SPARK Forum on November 7th. Take the survey now. Thank you!

Sponsored by Enterprise Iron

Arizona Electric Company Sued for Using Actuarial Tables from the 1960s

"Former employees of Pinnacle West ... allege that the company used outdated and unreasonable actuarial tables to undervalue their defined benefit pension benefits by underestimating the participants' life expectancy." [Skrtich v. Pinnacle West Capital Corp., No. 22-1753 (D. Ariz. complaint filed Oct. 13, 2022)]  MORE >>

PLANSPONSOR; free registration may be required

DC Plan Lawsuits 2019-2022: What Sponsors Need to Know

"Callan reviewed 165 lawsuits filed against mid- to mega-sized defined contribution (DC) plans ($175 million to $10 billion-plus) between January 2019 and August 2022, to provide an analysis of trends in litigation centered on the fiduciary duties outlined in [ERISA].... The complaints span industries, plan sizes, plaintiffs' counsel, and allegations.... The ongoing pace of new litigation reinforces the need to continue managing and reviewing fees, funds, and services."  MORE >>


2022 401(k) Participant Study: Gen Z/Millennial Focus (PDF)

"401(k) plans are the primary way most participants started investing, but fewer Gen Z workers first got involved in investing via their 401(k) ... Almost one in five employees changed employers in the past 12 months ... Younger workers say they want a wider range of investments in their 401(k)s ... Almost eight in ten participants are offered an HSA and about half take advantage of it ... Younger generations are more open to financial wellness tools, including online tools to help save for retirement, build an emergency savings fund, and manage debt ... Participants are looking for help on how to invest their 401(k) and setting specific savings targets for retirement with differences by generation."  MORE >>

Charles Schwab

Inflation Causing Majority of Americans to Stop or Reduce Retirement Savings

"54% of Americans say they have stopped or reduced retirement savings due to inflation. 62% worry that a major recession is right around the corner. 67% say they are nervous about investing, but don't want to miss out on a recovery."  MORE >>

Allianz Life Insurance Company of North America

Americans Now Believe They Will Need $1.25 Million for Comfortable Retirement

"U.S. adults aged 18+ anticipate they will need $1.25 million to retire comfortably, a 20% rise since 2021. At the same time, Americans' average retirement savings has dropped 11% -- from $98,800 last year to $86,869 now -- while their expected retirement age has risen -- now 64, which is up from 62.6 last year.... More than four in ten (43%) people say they do not expect to be financially ready for retirement when the time comes. And 45% say they can imagine a time when Social Security no longer exists."  MORE >>

Northwestern Mutual

PBGC Approves SFA Application for Bricklayers Local 7 Plan

"[PBGC] has approved the application submitted to the Special Financial Assistance (SFA) Program by the Bricklayers and Allied Craftsmen Local 7 Pension Plan.... The plan, based in Akron, Ohio, covers 397 participants in the construction industry. On October 1, 2020, the Bricklayers Local 7 Plan implemented a benefit suspension under [MPRA] and was partitioned into two plans.... The plan will receive $32.7 million in SFA, including interest to the expected date of payment to the plan."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

TSP's Recordkeeper Transition Created an Opportunity for Hackers to Steal Accounts, a Victim Says

"In June, the TSP moved to the new recordkeeper vendor Accenture Federal Services, boasting of better security and functionality for users. But since then, participants have reported a cavalcade of problems, from difficulty proving their identity to set up new accounts and having to resubmit beneficiary designations to the loss of historical account data and other issues. Many of the issues were exacerbated by Accenture's vast underestimate of the amount of calls seeking assistance at the TSP's customer service hotline, and subsequent call center understaffing."  MORE >>

Government Executive


Are TDFs a Ticking Time Bomb for the 401(k) Fiduciary?

"It could be that TDFs have an Achilles' Heel that leaves them vulnerable. 'We're seeing a spike in TDF lawsuits because fiduciaries are starting to see what many of us have known all along; TDFs generally exist to drive growth in proprietary assets, not create optimal allocation strategies for savers,' [said one consultant] ... This has left 401k plan sponsors wondering if they're holding a ticking time bomb."  MORE >>

Fiduciary News; free registration required

Benefits in General

[Guidance Overview]

Exceptional Usefulness and Quality icon Implications of Higher 2023 Benefit Limits

"[E]mployer contributions tied to employee deferrals or nonelective contributions may significantly increase the employer's DC plan contribution for 2023.... In defined benefit plans that include highly paid individuals, demographic losses may be generated due to the increase in the compensation limit.... For plans that require coverage or nondiscrimination testing, the increased HCE limits and the compensation and benefit limits could change testing results.... Employees could be encouraged to begin or increase their contribution rate or employers may begin or increase contributions to employees' HSA accounts."  MORE >>


Employee Benefits Jobs

View job as Retirement Plan Administrator
            for The Benefits Consulting Group

Retirement Plan Administrator

The Benefits Consulting Group


View job as Retirement Plan Administrator for The Benefits Consulting Group

View job as 3(16) Administrator
            for SetAway LLC

3(16) Administrator

SetAway LLC

Remote / Bedford NH

View job as 3(16) Administrator for SetAway LLC

Selected New Discussions

Implementation of the 2022 W-4P in DB Plan Systems

"Does anyone have any feedback or concerns implementing the 2022 W-4P in their DB systems? I am being told that the IRS didn't rule on implementing, but from what I can find, the W-4P is required to be in place for 2023, whereas a W-4 was required in 2022. I found IRS Publication 15-T that specifically addresses this, so I'm unsure why some don't think this is law."

BenefitsLink Message Boards

Distribution to Terminated Employee Who Says a QDRO Is Coming But Wants Distribution Now

"I have a terminated participant that we sent distribution instructions. Back in June he called with questions. During the phone call he indicated that he was divorced and his former spouse was entitled to part of his 401(k) account. He stated the former spouse was supposedly having her attorney prepare the QDRO. As of today we have not received a QDRO. However the terminated participant has requested his distribution (online). The plan does not require spousal consent. Do we hold off on processing the distribution since the participant did indicate his former spouse was entitled to a benefit? Or do we process the distribution?"

BenefitsLink Message Boards

When Is Participant Catch-Up Eligible?

"I feel this is a very basic question, but still want a more professional explanation: To become catch up eligible, does the participants need to max out the 402g limit? My understand is: to be eligible for catch up contribution, the participants need to meet the age requirement and max out the 402g limit. However, SPD indicated if you reach age 50 during the year, you can contribute catch up contribution anytime (people interpret this as no requirement for max out 402g because if the contribution is by paycheck, most employee won't max out at the 1st paycheck). This caused a lot of employees able to select a% for both contribution at 1st day of the calendar year they become age 50, and they may not max out the 402g limit at the year end. Plan is a calendar plan and catch up is not matched."

BenefitsLink Message Boards

Press Releases

Retirement Industry Leader Nevin Adams to ‘Retire’

American Retirement Association [ARA]

Federal Court Orders Illinois Home Healthcare Company, President, Owner, to Restore More Than $85k to Employee Retirement Plan

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

July Fuels Its Growth Strategy with Investments by Platform Partners

July Business Services

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Special Financial Assistance Final Rule


PBGC [Pension Benefit Guaranty Corporation]

Special Financial Assistance Final Rule: Special Considerations for Plans that Applied Under the Interim Final Rule


PBGC [Pension Benefit Guaranty Corporation]

Special Financial Assistance Final Rule: SFA Applications under the Final Rule


PBGC [Pension Benefit Guaranty Corporation]

Special Financial Assistance Final Rule: Permissible Investments


PBGC [Pension Benefit Guaranty Corporation]

Stock Comp Financial Planning for Private Company Employees: From Startup to IPO or Acquisition

November 3, 2022 WEBCAST

Financial Matters

December 8, 2022 in OH

Worldwide Employee Benefits Network [WEB] - Northeast Ohio Chapter

Last Issue's Most Popular Items

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

Ferenczy Benefits Law Center

2023 IRS Limits (PDF)

Kushner & Company

2023 IRS Cost of Living Adjustments


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

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