"The [PBGC] is extending the comment period for a proposed rule that would provide interest rate assumptions that may be used by a plan actuary in determining a withdrawing employer's liability under a multiemployer plan. PBGC published the proposed rule ... on October 14, 2022, with a comment period that was scheduled to end on November 14, 2022.... PBGC is extending the comment period through December 13, 2022."  MORE >>

Nov. 8, 2022. "What's New ... Form 5330 has been updated to add a new Schedule L for a cooperative and small employer charity (CSEC) plan sponsor to report tax on failure to adopt a funding restoration plan if the plan is in funding restoration status for a plan year (section 4971(h))."  MORE >>

"Under Revenue Procedure 2022-40 the determination letter process will now become available to 403(b) plans.... It will streamline the process of plan adoption and make it more similar to the process for qualified retirement plans, like 401(k) plans.... [T]hough this is 'good news for many,' those sponsors of long-standing 403(b) plans that seek determination letters may have long-standing flaws revealed as part of the process."  MORE >>

"Starting June 1, 2023, determination letter applications may be submitted for: [1] Initial plan determination. [2] Determination upon plan termination. [3] Other circumstances specified by the IRS. The application date for initial plan determinations, however, will be staggered over a three-year period (June 1, 2023, June 1, 2024, and June 1, 2025) and will be determined by the last digit of the plan sponsor's employer identification number (EIN)."  MORE >>

"[T]he PBGC made several changes to the Final Rule issued on July 6, 2022. Two of these changes will affect most of the retirement plans seeking assistance and go a long way to keep them solvent well past 2051: [1] A new two-rate method of determining SFA amounts. [2] The ability to invest up to 33% of SFA funds in return-seeking investments."  MORE >>

"[C]an a hardship request to cover costs directly related to the purchase of a principal residence for the employee include payoff of outstanding debts if that is what is required for the participant to qualify for the mortgage loan? ... Presuming that your 401(k) plan is satisfying the safe harbor method of determining what constitutes an 'immediate and heavy financial need' for hardship distributions ... probably not[.]"  MORE >>

"The TSP's index funds deliver market returns for low fees, while the TDIFs make it easy for participants to maintain an appropriate asset allocation throughout their working years. Except for the G Fund, employers can pick comparable funds for their 401(k) plan.... While the TSP's administration fees are unbeatably low, they're still paid from plan assets. That means employers can help their 401(k) participants pay lower administration fees by paying them from a corporate account."  MORE >>

"White label funds are more prevalent in larger defined contribution plans, consistent with the hypothesis that implementation costs deter smaller plans. Two thirds of participant accounts are in plans that offer white label funds.... Compared to branded menus, white label and mixed menus generally offer fewer fund options and fund family choices but a similar selection of asset classes. Preliminary evidence suggests white label funds could slightly alter participants' allocations towards discount brokerage windows."  MORE >>

"This In Focus provides an overview of the computation of Social Security benefits. The examples used throughout are for those of a hypothetical medium earner -- a worker who consistently earned at a medium level -- born in 1953. From 2016 through 2021, roughly 30% of workers retiring had career-average earnings at about the medium level." [IF11747 updated Nov. 8, 2022]  MORE >>

"[It] is a common pay practice to have incentive bonuses paid to a terminated executive only to the extent the performance goal underling such bonus would have been achieved. One way to avoid having such payment be subject to any future clawback is to have the payment be a flat dollar amount[.]"  MORE >>