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Retirement Plans Newsletter

January 27, 2023

2 New Job Opportunities 2 New Job Opportunities


[Guidance Overview]

Exceptional Usefulness and Quality icon Spousal Consent Requirements Under a Qualified Retirement Plan (PDF)

"Spousal consent is not a big deal, until it is. And it becomes a big deal at the worst possible time -- when the participant dies and is no longer available to make corrections, or when the participant divorces and many issues cannot be agreed upon. Plans that follow best practices and pay attention to the issue will dodge the worst outcomes."  MORE >>

KLB Benefits Law Group, via Bloomberg Law

[Guidance Overview]

SECURE 2.0: Modification of Credit for Small Employer Pension Start-Up Costs

"SECURE 2.0 makes several changes to these credits. First, the employer plan start-up credit is increased from 50 percent to 100 percent for employers with up to 50 employees.... [An] additional credit is also provided based upon employer contributions made."  MORE >>

Schneider Downs

[Guidance Overview]

SECURE 2.0: Credit for Small Employer Pension Plan Startup Costs When Employer Joins an Existing MEP/PEP

"Prior to SECURE 2.0, the startup tax credit only applied for the first 3 years that a MEP was in existence ... Section 111 of SECURE 2.0 aims to fix this issue ... Section 111 is effective retroactively for taxable years beginning after December 31, 2019. This enables taxpayers who formed or joined new MEPs/PEPs in 2019, 2020, and 2021 to file amended returns and retroactively claim a credit for those earlier years applying the rules of Section 45E."  MORE >>

Schneider Downs

[Guidance Overview]

Tricky Revelations in the Proposed RMD Regs, and Planning Tips to Address Them

"[1] The 'ALAR' rule means annual RMDs under the 10-year rule for some ... [2] 'Not more than 10 years younger' is not counted by calendar year ... [3] The shorter of rule limits distribution periods for older eligible designated beneficiaries ... [4] Documentation requirements for disabled or chronically ill status."  MORE >>

Appleby Retirement Dictionary

[Guidance Overview]

SECURE Act 2.0 Allows QCDs of $50,000 to Split-Interest Entity

"SECURE Act 2.0 expands the [qualified charitable deduction (QCD)] provision, by allowing an IRA owner to make a one-time election to make a a QCD to a split-interest entity. This provision is effective for tax years beginning 2023 and [is] adjusted for inflation."  MORE >>

Appleby Retirement Dictionary

[Guidance Overview]

Final Rule Provides Exception Process for Underfunded Multiemployer Plans Seeking Special Financial Assistance from PBGC

"In response to public comments, the final rule creates a process under which plan sponsors may request an exception from the interest rate assumptions and phase-in conditions when determining the plan's unfunded vested benefits (UVBs) for purposes of calculating withdrawal liability."  MORE >>

Thomson Reuters Practical Law

Coalition Sues to Stop ESG Rule

"In addition to the 24 states[, other plaintiffs include ... Liberty Oilfield Services LLC [which] sponsors a defined contribution 401(k) plan for its employees ... [The plaintiffs[ argue that the '2022 Investment Duties Rule contravenes ERISA's clear command that fiduciaries act with the sole motive of promoting the financial interests of plan participants and their beneficiaries'[.]" [Utah v. Walsh, No. 223-00016, (N.D. Tex. complaint filed Jan. 26, 2023)]  MORE >>

American Retirement Association [ARA]

How to Make Retirement Plans' ESG Investments a Success

"[1] There is no perfect fund that meets everyone's needs.... [2] ESG investment options require due diligence.... [3] An ESG investment has to be considered on its investment merits.... [4] Determine the most important factors for your participants.... [5] Educate plan participants on ESG options."  MORE >>

HUB International

Fiduciary Considerations for an Expanding U.S. Pension Risk Transfer Market (PDF)

"The key is managing the natural conflict between a company's settlor role and the plan fiduciary's role. The business goal is for a cost-effective and swiftly executed annuity purchase, and the fiduciary's goal is to select a safe and secure annuity. To resolve the competing goals, the plan fiduciary must have a carefully crafted fiduciary process."  MORE >>

Ivins, Phillips & Barker

Milliman Pension Buyout Index, January 2023

"Estimated competitive retiree buyout cost, as a percentage of accounting liability, decreased by 70 bps from 101.0% to 100.3% during December ... [T]he competitive bidding process is estimated to save plan sponsors on average around 2.5% as of December 31.... [R]etirees can be annuitized for an estimated 100.3% of accounting liabilities (accumulated benefit obligation)."  MORE >>


PBGC Approves $20.5 Million in Special Financial Assistance for Plasterers Local 82 Pension Fund

"The plan, based in Portland, Oregon, covers 317 participants in the construction industry.... The plan will receive $20.5 million in SFA, including interest to the expected date of payment to the plan."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

PBGC Approves $53.5 Million in Special Financial Assistance for Alaska Ironworkers Pension Plan

"The plan, based in Anchorage, Alaska, covers 744 participants in the construction industry.... The plan will receive $53.5 million in SFA, including interest to the expected date of payment to the plan."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

Benefits in General

Which Benefits Are Valued Most Depends on Age of Workers (PDF)

"[M]iddle-aged employees reported being more likely than younger or older workers to be concerned about various aspects of their well-being. Older workers were, unsurprisingly, focused on retirement benefits. And younger workers highly valued help with day-to-day bills, student loan debt assistance, and career advancement opportunities."  MORE >>

Employee Benefit Research Institute [EBRI]

Executive Compensation and Nonqualified Plans

Upcoming Deadline icon Start the New Year on the Right Foot: File Your ISO and ESPP Returns and Statements on Time

"Deadlines for these annual reporting requirements are quickly approaching: 31 January 2023 or corporations to furnish annual information statements to employees. 28 February 2023 (if filing by paper) or 31 March 2023 (if filing electronically) for corporations to file information returns with the IRS."  MORE >>

K&L Gates

Employee Benefits Jobs

View job as Distribution \ Loan Clerk
            for Retirement, LLC

Distribution \ Loan Clerk

Retirement, LLC

Remote / Oklahoma City OK

View job as Distribution \ Loan Clerk for Retirement, LLC

View job as Financial Processor (Distributions Specialist)
            for Retirement Solutions Specialists, LLC

Financial Processor (Distributions Specialist)

Retirement Solutions Specialists, LLC

Remote / Jacksonville FL

View job as Financial Processor (Distributions Specialist) for Retirement Solutions Specialists, LLC

Selected New Discussions

SECURE 2.0 Deduction for Roth Employer Contributions

"For 401(k) plans that decide to allow Roth employer contributions, how, if at all, will the deduction rules change for those contributions? I'm thinking that traditional employers will still get a deduction, but what about self-employed plan sponsors? Will it depend on the way the self-employed business is structured?"

BenefitsLink Message Boards

Press Releases

PBGC’s John Hanley Named Chief of Negotiations and Restructuring

PBGC [Pension Benefit Guaranty Corporation]

Last Issue's Most Popular Items

SECURE 2.0 Drafting Error Threatens Catch-Up Contributions, But Meaning Is Clear


SECURE 2.0: Changes to Retirement Plan Notice Requirements

Jackson Lewis P.C.

What Surviving Spouses Need to Know About Social Security


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

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