logo logo

Retirement Plans Newsletter

November 1, 2022

2 New Job Opportunities 2 New Job Opportunities


[Official Guidance]

2023 Present Values of PBGC Maximum Guarantee

PBGC has posted this table showing the applicable present values for 2023 plan years. A two-column spreadsheet [XLSX] version of the table is also available.  MORE >>

Pension Benefit Guaranty Corporation [PBGC]


ERISApedia -- Remote Access at your fingertips

Tired of lugging unwieldy books around? Instantly access current information from anywhere using our state-of-the-art user interface. Work life has changed forever. Contact us to see how we can help: 612-605-2266

Sponsored by ERISApedia

[Guidance Overview]

At Long Last, PBGC Proposes Withdrawal Liability Assumption Rules

"The proposal permits the most common methods for setting the interest rate but doesn't change the rules for other actuarial assumptions. The comment deadline is Nov. 14."  MORE >>


Goldman Sachs 401(k) Fee Class Action Dismissed

"[T]he Court found that the Defendants had robust policies and procedures in place for monitoring and evaluating the Plan's investment options ... [and] reiterated that not adopting an IPS is not a per se ERISA violation.... [T]he Court found that the Plan was treated no less favorably than similarly situated plans with respect to fee rebates, and dismissed Plaintiff's prohibited transaction claim. " [Falberg v. The Goldman Sachs Group, Inc., No. 19-9910 (S.D.N.Y. Sep. 14, 2022)]  MORE >>

Jackson Lewis P.C.

Yale 403(b) Fiduciary Breach Counts Withstand Motions to Dismiss

"The judge allowed to proceed to trial plaintiffs' claims that Yale 'breached its fiduciary duty to monitor and avoid unreasonable recordkeeping fees with respect to the plaintiffs' contentions that Yale imprudently delayed consolidating to a single recordkeeper, failed to obtain competitive bids, used asset-based pricing and failed to prohibit TIAA from cross-selling' ... Plaintiffs' argument [that] Yale plans fiduciaries engaged in mismanagement and imprudent acts, which resulted in losses to the plan, will also proceed." [Vellali v. Yale Univ., No. 16-1345 (D. Conn. Oct. 21, 2022)]  MORE >>

PLANSPONSOR; free registration may be required

What Annuities Can Do for Retirees That Traditional Fixed Income Can't

"Annuities are 10% to 40% more efficient at generating retirement income than a traditional fixed income portfolio. Traditional single premium immediate annuities today make up just a fraction of all annual annuity sales. The proliferation of non-commission-based annuity products is transforming the annuity landscape for fee-based advisors."  MORE >>


State and Local Pension Funds: Market-Based Value of Unfunded Liabilities is $6 Trillion

"As of fiscal year 2021, the total reported unfunded liabilities of these plans is $1.076 trillion. In contrast, the market value of the unfunded liability is approximately $6.501 trillion. As a result, the reported funding ratio of 82.5% falls to 43.8% under a market-based valuation.... [N]ot only is the unfunded pension liability understated, but also the yearly pension cost for newly accruing liabilities. In order to achieve high returns, pension funds have accumulated large exposure to risky assets, in particular alternative investments, which results in highly uncertain investment returns."  MORE >>

Oliver Giesecke and Joshua D. Rauh, via SSRN


Avoiding Studebaker: Defined Contribution Plans Can Outlast Their Plan Sponsors, But Need Protections for Participants

"Unlike the DB benefit, the properly designed DC program does NOT require that the plan sponsor be around for the lifetime of the retiree -- portability of the DC benefit is a critical differentiator. It also means that the retiree payouts are not dependent upon the employer's design of the payout.... This 'advantage' does, however, require that the design actually be able to protect these DC retirement accumulations which are to be paid out over the lifetime of the retiree."  MORE >>

Business of Benefits


American Benefits Council Comment Letter to EBSA on Proposed Procedures for Prohibited Transaction Exemption Applications

"[If] a transaction is administratively feasible, in the interests of plans and participants, and protective of their rights, there is no need for DOL to consider whether the transaction could alternatively be structured to avoid prohibited transactions.... [T]he costs associated with preparing a quantitative cost-benefit analysis for every application do not justify the marginal benefits that they would provide to DOL.... [T]he parties who participate in exempt transactions should be able to freely negotiate how any liabilities arising from an exempt transaction may be assigned."  MORE >>

American Benefits Council

Benefits in General

[Guidance Overview]

The Annual Form 5500 Audit: DOL Broadens Criteria for Independent Qualified Public Accountants

"This matters to employers because it will open the market to new accounting firms that can issue the accountant's report for the Form 5500 annual filing. IQPAs are the auditors who issue the annual accountant's report. While not all Form 5500-filers are subject to the accountant's report requirement, ERISA-covered retirement plans (except for certain small retirement plans) and funded welfare plans must provide the accountant's report annually."  MORE >>

Faegre Drinker

Executive Compensation and Nonqualified Plans

[Guidance Overview]

SEC Adopts Final Clawback Rules

"[In] the reopening releases, the SEC stated that including only 'Big R' restatements could lead companies to make questionable materiality judgments in order to avoid recoupment of incentive compensation. By including the more commonplace 'little r' restatements in the final rules, the SEC broadened the scope of the rules considerably."  MORE >>

Wilson Sonsini Goodrich & Rosati

[Guidance Overview]

SEC Adopts Compensation Clawback Requirements

"[C]ompanies are advised to review their existing clawback policies to determine what modifications will be needed to comply with the new rules. Potential revisions include those relating to which officers are covered (including covering former officers), the types of compensation covered, the kinds of restatements that trigger compensation recovery, the lookback period, the mandatory nature of clawbacks under the new rules, and the exceptions to compensation recovery."  MORE >>

Morgan Lewis

Employee Benefits Jobs

View job as Client Service Manager
            for Maxus Plan Solutions

Client Service Manager

Maxus Plan Solutions

Remote / Charlotte NC

View job as Client Service Manager for Maxus Plan Solutions

View job as Retirement Plan Data Analyst (Seasonal)
            for ERISA Services, Inc.

Retirement Plan Data Analyst (Seasonal)

ERISA Services, Inc.


View job as Retirement Plan Data Analyst (Seasonal) for ERISA Services, Inc.

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Top DC Trends and Developments

November 17, 2022 in CA

Western Pension & Benefits Council

Ethics (2022)

December 8, 2022 WEBCAST


Last Issue's Most Popular Items

What's the Difference Between IRC Sections 404 and 415 Compliance Testing?

Blue Ridge ESOP Associates

Home Depot Court Finds for Defendants on Monitoring of Financial Engines Investment Advice Arrangement

October Three Consulting

What Are Your Employee Benefits Really Worth?


Unsubscribe  |   Change Email Address

Search Past Issues   |   Privacy Policy

Submit an Article   |   Contact Us   |   Advertise Here

Copyright 2022, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

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

Links to web sites other than and are offered as a service to our readers. We are not involved in their production and are not responsible for their content.