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Retirement Plans Newsletter

January 30, 2023

2 New Job Opportunities 2 New Job Opportunities

 

[Guidance Overview]

SECURE 2.0 Brings Significant Changes for 403(b) Plans

"SECURE 2.0 provisions that specifically impact 403(b) plans include changes to: [1] amounts available for hardship distributions, [2] eligibility to participate in pooled and multiple employer plans, [3] treatment of long-term, part-time employees, and [4] potentially, investments in collective investment trusts."  MORE >>

Proskauer

[Guidance Overview]

SECURE 2.0: Expanded Pension Plan Startup Cost Credit

"Starting in 2023, for employers with 50 or fewer employees this credit is now equal to 100% of such plan start-up costs, subject to [certain] dollar limits ... For many small employers, the credit will likely cover most, if not all, of the costs of setting up and administering a plan for the first three years."  MORE >>

Holland & Hart LLP

[Guidance Overview]

SECURE 2.0: Matching Contributions Based on Student Debt Repayments and Financial Incentives

"[A]ny match must be based on student debt repayments for higher education expenses. Eligibility, match rate, and vesting also must be the same as that for the match on elective deferrals. The employee must annually certify that the loan payments have been made. Employers may rely on this self-certification. From an administrative perspective, it is significant to note that the statute anticipates possible issues for nondiscrimination testing of elective contributions."  MORE >>

Jackson Lewis P.C.

SECURE 2.0 Timeline

List of SECURE 2.0's major retirement plan provisions, organized by effective date.  MORE >>

Poyner Spruill LLP

District Court Rejects Participant's Attempt to Stop Plan's Recoupment of Overpayments

"The court distinguished Paul v. Detroit Edison Company ... in which the Sixth Circuit upheld an equitable estoppel claim because there, the plan actively invited participants to retire early by offering incentives beyond their ordinary pension benefits. By contrast, the participant in Kanefsky was fully vested and had already ceased employment, and the plan did not reach out to him to encourage early retirement." [Kanefsky v. Ford Motor Co. Gen. Ret. Plan, No. 22-10548 (E.D. Mich. Jan. 13, 2023)]  MORE >>

Proskauer

Lawsuit Aims to Derail DOL Rule on ESG Considerations for Retirement Plans

"Twenty-five states with Republican attorneys general, two oil-services companies and an oil and natural gas advocacy group filed a lawsuit ... seeking to prevent and overturn [the DOL] rule permitting environmental, social and governance considerations in retirement investing.... The lawsuit claims the rule oversteps the [DOL's] statutory authority under [ERISA] and seeks a preliminary injunction against it." [Utah v. Walsh, No. 223-00016, (N.D. Tex. complaint filed Jan. 26, 2023)]  MORE >>

planadviser

Exceptional Usefulness and Quality icon Pension Defrost: Is It Time to Reopen DB Pension Plans -- or at Least Stop Closing and Freezing Them? (PDF)

18 pages. "Many DB plans are fully funded, in aggregate, and sponsors have developed the expertise to manage pension assets to out-earn liabilities while imposing minimal financial risk.... Commonly used measures of pension risk are flawed, leading sponsors to overstate the benefits of getting rid of their pension plans through pension risk transfer (PRT) transactions, and to understate the potential benefits of maintaining prudently invested plans.... Closing, freezing and terminating plans may offer far less value than the conventional wisdom would suggest."  MORE >>

J.P. Morgan Asset Management

Retirement Plans Take Center Stage in the War for Hiring Talent

"Given the current difficult hiring environment, plan sponsors are tinkering mightily with the plans -- increasing contribution matches, customizing plan investments, and employing interactive financial wellness programs -- in order to motivate employees, hiring, and boost company loyalty.... [E]mployers and financial service firms have identified retirement plans as areas of opportunity for further growth and value-added services beyond their historical roles of simply managing retirement assets, partly due to improvements in technology over the last several decades."  MORE >>

InsuranceNewsNet.com

PBGC Approves $18 Million in Supplemented SFA for Detroit Newspaper Union Plan

"[PBGC] has approved the supplemented application submitted to the [SFA] Program by the Retirement Benefit Plan of GCIU Detroit Newspaper Union 13N with Detroit Area Newspaper Publishers. The plan, [which is] based in Warren, Michigan, [and] covers 563 participants in the printing industry ... will receive approximately $18.2 million in supplemented SFA, which is in addition to $119 million in SFA approved for the plan in April 2022 under the interim final rule."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

PBGC Approves $1.2 Million in Supplemented SFA for Painters Local 466 Plan

"[PBGC] has approved the supplemented application submitted to the [SFA] Program by the Local Union No. 466 Painters, Decorators and Paperhangers Pension Plan. The plan, [which is] based in Menands, New York, [and] covers 45 participants in the construction industry ... will receive approximately $1.2 million in supplemented SFA, which is in addition to $5.9 million in SFA approved for the plan in June 2022 under the interim final rule."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

PBGC Approves $220,000 in Supplemented SFA for GCU 2-C Plan

"[PBGC] has approved the supplemented application submitted to the [SFA] Program by the Graphic Communications Union Local 2-C Retirement Benefit Plan (GCU 2-C Plan). The plan, [which is] based in Warren, Michigan, [and] covers 535 participants in the printing industry ... will receive approximately $220,000 in supplemented SFA, which is in addition to $59.1 million in SFA approved for the plan April 2022 under the interim final rule."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

Employee Benefits Jobs

View job as Jr Retirement Plan Administrator/ Administrative Assistant
            for Hochheiser Deutsch & Co, Inc.

Jr Retirement Plan Administrator/ Administrative Assistant

Hochheiser Deutsch & Co, Inc.

Melville NY

View job as Jr Retirement Plan Administrator/ Administrative Assistant for Hochheiser Deutsch & Co, Inc.

View job as Sr. Actuary
            for Nyhart, part of FuturePlan by Ascensus

Sr. Actuary

Nyhart, part of FuturePlan by Ascensus

Remote / Atlanta GA

View job as Sr. Actuary for Nyhart, part of FuturePlan by Ascensus

Selected New Discussions

SECURE 2.0 New Distributable Events

"Based on the language of SECURE 2.0, it appears that new distributions for those terminally ill can only be made when the person is otherwise eligible for a distribution. But other new distributions (e.g., emergencies and domestic abuse) create new distributable events. In either case, however, allowing any of these new distributions is optional. Do you all agree, or do you read the law differently?"

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Press Releases

HUB International Launches People & Technology Consulting Practice

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Retirement Advisor Council

Last Issue's Most Popular Items

Spousal Consent Requirements Under a Qualified Retirement Plan (PDF)

KLB Benefits Law Group, via Bloomberg Law

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

Appleby Retirement Dictionary

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

Schneider Downs

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

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