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Retirement Plans Newsletter

November 14, 2022

4 New Job Opportunities 4 New Job Opportunities

 

[Guidance Overview]

Maryland Small Business Retirement Savings Program

"The law requires that most Maryland employers offer employees some form of retirement savings ... or the newly established WorkLife Savings Account (an employee-funded Roth IRA) through MarylandSaves. The legislation applies to all Maryland employers who have been in business for at least two years, have at least one W-2 employee, and use a payroll system. The MarylandSaves program launched state-wide on September 15, 2022."  MORE >>

EisnerAmper

Second Circuit Rules for Cigna Corporation in Class Action Dispute Over Reformed Pension Benefits

"[T]he district court issued four decisions resolving disputes between the parties about the methodology Cigna would use to calculate the reformed pension benefits. A year later, Plaintiffs moved for sanctions and other relief against Cigna, which the district court denied. The Plaintiffs appealed ... The [Second Circuit] dismissed Plaintiffs' appeal from the Methodology Orders due to untimeliness. It affirmed the Sanctions Order on the merits and affirmed the district court's order denying Plaintiffs' motion for an equitable accounting." [Amara v. Cigna Corp., No. 20-202 (2d Cir. Nov. 10, 2022)]  MORE >>

Roberts Disability Law

The New Wave of 401(k) Excessive Fee Lawsuits (PDF)

"[S]ince it is more likely now than ever your plan (or your client's plan) will be sued, this column aims to take a fresh look by: [1] Reviewing a recent case and its key arguments; and [2] Advising plan sponsors how they can be less attractive targets."  MORE >>

Fisher Phillips

Research Shows Many ERISA Complaints Avoid Dismissal

"When defined contribution plans seek to dismiss ERISA complaints, 45% of the motions to dismiss are denied in full or in part by federal court judges, according to research by Callan LLC. The consulting firm examined 165 ERISA complaints against DC plans filed between 2019 and mid-August 2022, covering plans with assets of $175 million or more."  MORE >>

Pensions & Investments

Impact on Plan Sponsors of Higher IRS Retirement Plan Limits

"[T]he ability to recognize higher compensation, benefits and contribution amounts in qualified DB and DC plans could increase the cash cost and/or accounting expense for these plans.... For DB plans, the increase in limits may have an impact on the plan's funded status.... Plan sponsors should also consider the potential impact of the 2023 limit increases on their plan's ability to pass nondiscrimination testing requirements."  MORE >>

Segal

Surprises in the Senate's Proposed EARN Act and RISE & SHINE Act: Technical Amendments for Single-Employer DB Pension Plans

"[T]hese changes are proposed to be retroactively effective, so you may have a statutory requirement to restate your DB plan valuations after December 31, 2021 ... [1] Cash balance ('hybrid') plans interest crediting rate cap (RISE & SHINE Act [S 4353]).... [2] Statutory mortality improvement rates (EARN Act [S 4808]) ... [3] PBGC variable rate premium percentage freeze (RISE & SHINE Act)."  MORE >>

Milliman

FTX Bankruptcy May Chill Crypto Use in Retirement Plans

"The fast fall of FTX, which caused a related drop in mainstay cryptocurrencies such as bitcoin, came to a head [November 11] with Bahamas-based FTX filing for Chapter 11 bankruptcy. No matter the outcome of the proceedings, ... financial and retirement advisers may be chilled on recommending the asset[.]"  MORE >>

planadviser

Best Practices for Retirement Income Planning Resources

"Income projection tools can generate a specific retirement balance based on participants' current situations, allowing them to better understand any changes they need to make -- but only a handful of firms offer tools that integrate detailed decumulation analysis.... [A]lmost half of firms fall short of the mark by failing to offer standalone calculators covering income planning topics."  MORE >>

Corporate Insight

Benefits in General

[Guidance Overview]

Is My Severance Plan Subject to ERISA or Section 409A? (PDF)

"How do severance plans comply with ERISA? ... Does ERISA apply to my severance plan? ... What are the benefits of an ERISA severance plan? ... What are the risks of not complying with ERISA? ... Watch out for the 'accidental' retirement plan ... Internal Revenue Code Section 409A may also apply to severance plans ... Where do plan fiduciaries go from here?"  MORE >>

Ice Miller LLP, via Employee Benefit Plan Review

Executive Compensation and Nonqualified Plans

[Guidance Overview]

SEC Adopts Final Dodd-Frank Act Clawback Rules: An A-To-Z Explanation

"[T]he SEC's final rules do not permit listed issuers to condition clawback in any way on the fault or culpability of an affected executive officer regarding the accounting restatement, to implement de minimis thresholds for clawbacks or recoverable amounts of erroneously awarded incentive compensation, or allow for boards of directors to exercise broad discretion in connection with determining whether certain compensation should be clawed back in light of the circumstances."  MORE >>

Jones Day

Employee Benefits Jobs

View job as Retirement Plan Administrator
            for Excellent TPA

Retirement Plan Administrator

Excellent TPA

Remote

View job as Client Service Specialist
            for EPIC Retirement Plan Services

Client Service Specialist

EPIC Retirement Plan Services

Remote / Norwich NY

View job as Client Service Specialist for EPIC Retirement Plan Services

View job as Associate Financial Planner
            for Krane Financial Solutions

Associate Financial Planner

Krane Financial Solutions

Calabasas CA

View job as Associate Financial Planner for Krane Financial Solutions

View job as Retirement Plan Administrator
            for The Finway Group

Retirement Plan Administrator

The Finway Group

Remote / West Des Moines IA / IL / KS / MN / MO / ND / NE / SD / WV

View job as Retirement Plan Administrator for The Finway Group

Selected New Discussions

Rash of Inaccurate Assessments of IRS Penalties for 'Late' 5500 Filings

"Over the last two years we have experienced a spike in the IRS assessing late filing penalties on 5500s which were filed on a timely basis. The penalties have always been in the $1,000s. For example, a few days ago a client received a late fee letter on a plan that was never installed and has never filed a 5500 on a tax ID that was obtained 15 years ago. The penalty is $25,000. We usually get the IRS to correct these and eliminate the penalty with our first letter to the IRS, but sometimes it takes two and three letters to get the IRS to relent. Is anyone else experiencing this problem?"

BenefitsLink Message Boards

Small Plan Deferrals Deposited in a Timely Manner But Unable to Allocate Due to Payroll Breakdowns Not Being Submitted

"We are a TPA and have a small client that deposits its payroll in a timely manner (within 7 business day). However, they are always late in providing the payroll file/breakdown.

There has to be some type of ramification for not being able to invest the participant's deferral in a timely manner. We've researched and can't find anything to send to the client to let them know about penalties they would incur for not providing the payroll files timely."

BenefitsLink Message Boards

Press Releases

Alvarez and Marsal Appoints Third Managing Director to Its Executive Compensation Team

Alvarez & Marsal

Ascensus Announces Two New Regional Vice Presidents on Their Retirement Sales Team

Ascensus

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Time for Action: De-Risking Opportunities for (Frozen) DB Plans

RECORDED

Buck

What Is New About the DOL's Proposed 'New' Independent Contractor Test?

RECORDED

Akerman

Integrating ESG Metrics in Executive Compensation and Incentive Plan Design: Recent Trends and Pitfalls to Avoid

January 11, 2023 WEBCAST

Strafford

Last Issue's Most Popular Items

What Retirement Plan Sponsors Need to Know About SECURE 2.0

T. Rowe Price

IRS Expands and Modifies Determination Letter and Remedial Amendment Guidance for Individually Designed Retirement Plans

Thomson Reuters / EBIA

When Is Spousal Consent Required Under a Qualified Retirement Plan?

KLB Benefits Law Group

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

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