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Retirement Plans Newsletter

October 28, 2022

4 New Job Opportunities 4 New Job Opportunities


Half of Americans Say They're Reducing or Stopping Retirement Savings Due to Inflation

"Managing rising inflation is causing 54% of Americans to reduce or stop socking away retirement savings, according to a new survey by Allianz Life.... A separate survey ... found that about 18% of workers enrolled in employer-sponsored defined contribution plans have either decreased or stopped deferrals into the plan. That lower figure suggests workers enrolled through their employer -- whether part or full-time -- are more likely to stay at their set level of retirement saving, at least in their plans."  MORE >>


Advisers Turn to Managed Accounts as Demand Grows for Customized Plan Design Options

"More than a quarter of plan sponsors queried by Fidelity Investments said they were planning to introduce more managed account options into their fund lineup this year. Some plan sponsors are ... making managed accounts the qualified default investment alternative (QDIA) for some or all participants. Fully 87% of recordkeepers had managed accounts available on their platform, and another 7% planned to offer them in the next two years[.]"  MORE >>


District Court Orders Design Firm and CEO to Pay $540k to Employee Benefit Plan After DOL Investigation Finds Overpayment for Shares

"The court found in its order that the valuations establishing the sale price for the company stock purchased by the ESOP in 2006 and 2008 were based on a misrepresentation by TPP and Preston that control of TPP Holdings had been ceded to the ESOP, which improperly increased the stock's valuations. The court found the stock prices exceeded fair market value at the time of both the 2006 and 2008 transactions." [Walsh v. Preston, No. 14-4122 (N.D. Ga. Sep. 20, 2022)]  MORE >>

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

Public DB Plan Returns in 2022

"[M]ost plans saw sharp losses for the year ended 6/30/22. However, ... the public DB plan returns for fiscal year 2021 were the strongest we'd seen for three decades.... 2022 will be remembered as one of the most painful years that public plans have witnessed, with the median plan's loss of 9.4% in the neighborhood of 2009's return ... Pairing 2021 and 2022 together brings the two-year annualized median gain to 7.1%."  MORE >>


Finding Financial Peace of Mind in Retirement

"[1] Plan your spending in retirement.... [2] Check the spending plan ... for feasibility ... [3] Cover the present value of your planned essential expense spending with the present value of your non-risky investments.... [4] Maintain your Rainy-Day Fund at a comfortable level.... [5] Revisit [these] steps at least annually."  MORE >>

Ken Steiner, FSA Retired

Executive Compensation and Nonqualified Plans

[Official Guidance]

Text of SEC Final Rule: Listing Standards for Recovery of Erroneously Awarded Compensation (PDF)

230 pages. "[These] final rules direct the national securities exchanges and associations that list securities to establish listing standards that require each issuer to develop and implement a policy providing for the recovery, in the event of a required accounting restatement, of incentive-based compensation received by current or former executive officers where that compensation is based on the erroneously reported financial information. The listing standards must also require the disclosure of the policy."  MORE >>

U.S. Securities and Exchange Commission [SEC]

[Guidance Overview]

SEC Adopts New Executive Compensation Clawback Rules

"[T]he clawback policy that will be required by the new rules and listing standards will require recovery of incentive compensation regardless of the culpability of the executive officer. In addition, the new rules and listing standards will mandate the clawback of incentive compensation received during the three-year period preceding the date the company is required to prepare an accounting restatement."  MORE >>


[Guidance Overview]

SEC Adopts Rules on Clawback of Executive Compensation

"Recovery of erroneously awarded compensation is required under the new rule regardless of any misconduct by an executive officer in connection with the error that triggers the restatement. In addition, the new rule prohibits issuers from indemnifying their current or former executive officers against the loss of erroneously awarded compensation. A listed issuer will be required to file its clawback policy as an exhibit to its annual report and to disclose certain information about compliance with its policy,"  MORE >>

Ropes & Gray LLP

409A: Everything You Need to Know for Your Business

"An important part of complying with IRC Section 409A is obtaining an independent business valuation to estimate the fair market value (FMV) of the company's common stock prior to the issuance of equity compensation.... [T]he failure to support the company's FMV can lead to significant tax consequences for the employee receiving the options."  MORE >>

Withum Smith+Brown, PC

Employee Benefits Jobs

View job as Retirement Plan Administrator
            for Compass Retirement Consulting Group

Retirement Plan Administrator

Compass Retirement Consulting Group

Remote / Stratham NH

View job as Retirement Plan Administrator for Compass Retirement Consulting Group

View job as Client Support Specialist
            for 401k Generation

Client Support Specialist

401k Generation

Altamonte Springs FL

View job as Client Support Specialist for 401k Generation

View job as Plan Administrator
            for Thomas F. Barrett, Inc.

Plan Administrator

Thomas F. Barrett, Inc.

Remote / Bethesda MD

View job as Plan Administrator for Thomas F. Barrett, Inc.

View job as Distribution Administrator
            for PPG Retirement Plan Services, Ltd.

Distribution Administrator

PPG Retirement Plan Services, Ltd.

Kenosha WI

Selected New Discussions

Discretionary Matching Contribution Notice?

"Fidelity provided a client with a discretionary matching contribution notice and this was surprising to me as I had never seen or heard of such a thing. After looking around, it appears the IRS never formally announced that this new notice is required. Instead, they may have forced document providers to incorporate this notice into the actual plan document. Has anyone else come across this? Is there a formal regulation that I'm missing or was this a way for the IRS to backdoor regulate plans? Thanks!"

BenefitsLink Message Boards

Forfeiture Accounts in MEPs

"I have a plan that is a MEP and the assets are all in one big account at the recordkeeper. From time to time there are forfeitures from participant accounts due to distributions. Those forfs go to the forfeiture account. But it is also just one account for the plan, not broken out by company. How can/must those forfeitures be used? That is, can the forfs from one company be used to cover the contribution or fees of another? From my limited research on the issue, people suggest the forfeitures from each of the companies be used only for the respective entities. However, the regs are silent on the issue. It seems the IRS did not contemplate this situation."

BenefitsLink Message Boards

Press Releases

Navvisa Names Gary Yeamans as Chief Growth Officer


Newfront Taps Greg Kaplan, CFA to Lead Award-Winning Retirement Team


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Annual Conference 2023

May 21, 2022 in AZ

Broadridge fi360 Solutions

Demystifying ESG: Help for Plan Sponsors Considering ESG Investments for Their Plan

November 9, 2022 WEBCAST

Multnomah Group

Plan Terminations: Effectively Guiding Plan Sponsors Through the Process

November 29, 2022 WEBCAST

ASPPA [American Society of Pension Professionals & Actuaries]

Last Issue's Most Popular Items

IRS Issues Important Guidance with Respect to Required Minimum Distribution Regs

The Wagner Law Group

Recent Successful Challenges to IRS Actions and Positions (PDF)

The Wagner Law Group, via New York University 2022 Review of Employee Benefits and Executive Compensation

Imagining a World Without QPAM

Fried Frank

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

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