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Retirement Plans Newsletter

February 28, 2023


[Guidance Overview]

IRS Proposes Rules on Permitted Uses of Forfeitures in Qualified Retirement Plans

"The proposed regulations would clarify that all defined contribution plans may use forfeitures to increase benefits, provide a transition rule for defined contribution plans, and remove a requirement that conflicts with the minimum funding rules for defined benefit plans."  MORE >>

Thomson Reuters Practical Law

[Guidance Overview]

Departments Finalize Revisions to 2023 Form 5500 and Instructions to Reflect SECURE Act Changes

"The Form 5500 revisions and accompanying regulations are the third in a series of guidance issued following the SECURE Act. The final revisions make some notable changes from the proposal issued in September 2021, including the removal of a requirement that a DCG reporting arrangement and participating plans use a single trust and obtain an audit of that trust."  MORE >>

Thomson Reuters Practical Law

[Guidance Overview]

PBGC Proposes Interest Rate Assumptions for Determining Employer Withdrawal Liability

"For the first time since [ERISA] introduced the concept of withdrawal liability, the [PBGC] has announced a proposed rule addressing the permissible interest rate assumptions for actuarial determinations of a withdrawing employer's liability.... PBGC has proposed permitting the use of an interest rate anywhere in the spectrum from settlement rates alone to funding rates alone to determine withdrawal liability."  MORE >>

International Foundation of Employee Benefit Plans [IFEBP]

When Identical Investments and Fees Yield Different Judicial Results

"Two federal courts faced with identical investment and fee arrangements reach different results as to whether an excess fee share class claim is plausible. The difference is that the Utah court allowed the plan sponsor to rebut false fee claims with the recordkeeping contract and participant account statements showing revenue sharing rebates, whereas the Minnesota court allowed the same false claims to proceed to discovery." [Matney v. Barrick Gold of N. Am., Inc., No. 20-275 (D. Utah Apr. 21, 2022; recon. denied Jun. 21, 2022; on appeal to 10th Cir. No. 22-4045); Schave v. CentraCare Health System, No. 22-1555 (D. Minn. Jan. 27, 2023)]  MORE >>

Euclid Specialty Managers

401(k) Plan Fees Continue Decline on CITs, Lower-Cost Funds

"Participants enjoyed lower fees within retirement investments in 2022, due largely to shifts by defined contribution vehicles, rather than from the trend toward fee-only advisement."  MORE >>


Corporate DB Plan Funded Status 2022: What You Need to Know

"[M]any plans were able to reduce their liability obligations by doing nothing more than continuing in an underhedged position. As a result, funded status improved for many plans. In fact, for plans less than 100% hedged, from an interest rate perspective, it is likely that their funded ratio got better in 2022."  MORE >>


2020 Pension Insurance Data Tables (PDF)

85 pages. "The information shown in the Pension Data Tables provides current and historical information that allows the reader to identify trends in PBGC-insured defined benefit plans and is commonly used for research and to inform policy makers involved with new retirement legislation. The data tables are used by policy makers, academia, plan sponsors, and professionals"  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

Milliman Pension Buyout Index, February 2023

"Estimated competitive retiree buyout cost, as a percentage of accounting liability, decreased by 90 bps from 100.2% to 99.3% during January."  MORE >>


International Pension Plan Survey 2023

"The main objective of many IPPs/ISPs is to provide a 'top-up' or replacement retirement benefit for international or expatriate employees who are no longer eligible for their home country plans and who have no reliable host country plan option. Various other eligible populations are developing with IPPs/ISPs now being offered to various local populations, e.g., locals in countries at risk of default, or where there are other economic challenges such as rising inflation, as well as foreigners on local contracts excluded from domestic plans[.]"  MORE >>

Willis Towers Watson

Balancing the Risks and Rewards of an In-Plan Roth Conversion of ROBS Stock

"Imagine selling your company at a profit and not owing any tax on that gain when you withdraw your plan funds in retirement. That could happen if you do an in-plan Roth conversion of your ROBS shares, provided you hold the converted stock in the plan for at least five years. However, a Roth conversion of a ROBS investment is not to be undertaken lightly, because it involves transaction costs, and it comes with financial risk."  MORE >>

KLB Benefits Law Group


IRI 2023 Federal Retirement Security Blueprint (PDF)

10 pages. "IRI's 2023 Federal Blueprint 2ill: [1] Expand opportunities to save for retirement; [2] Facilitate greater use of protected, guaranteed lifetime income solutions; [3] Foster innovation, modernization, education, and advice; [4] Boost protections to safeguard consumers, diverse representation, and participation; [5] Maintain and augment the current tax treatment of retirement savings."  MORE >>

Insured Retirement Institute [IRI]

Executive Compensation and Nonqualified Plans

[Guidance Overview]

NYSE and Nasdaq Release Their Proposed Clawback Rule for Listed Companies

"Each listed company must adopt the recovery policy required by the proposed rule within 60 days after approval of the final rule by the SEC. Each listed company must comply with its Recovery Policy for all incentive-based compensation received by executive officers on or after the Effective Date that results from attainment of a financial reporting measure based on or derived from financial information for any fiscal period ending on or after the Effective Date."  MORE >>

Bryan Cave Leighton Paisner LLP

[Guidance Overview]

NYSE and Nasdaq Propose Clawback Rule Listing Standards: What Public Companies Need to Know

"The proposed listing standards for both NYSE and Nasdaq: model the requirements of the Clawback Rules, with no additional standards or disclosure obligations; and will become effective on the date the SEC approves them, which will occur no later than November 28, 2023."  MORE >>


Selected New Discussions

Shifting Question: 403b for HCEs and 401k for NHCEs

"HCE's participate in the 403b plan to avoid the ADP test. All employees are eligible for a match and we're failing ACP Testing. Someone in the office asked 'can we shift deferrals to the ACP Test'. Any Seinfeld fans out there -- 'You just blew my mind.' Because of course the only deferrals in the ADP test for this plan are for NHCEs so I can shift 100% of the deferrals to the ACP test which will basically exempt this plan from ACP testing. Aside from the sheer obnoxiousness of this really cool idea (I might be terrified to do it in practice), what is to stop me?"

BenefitsLink Message Boards

IRS Notice CP216F

"From the IRS, for year end: 12/31/2020 Letter dated 2/13/2023 Re: 5500/8955 filing. Letter states that the 5500 must be filed by 10/15/2021 (you are not reading wrong). The 5500-EZ was filed on 10/7/2021 with an ACK. What am I missing here?"

BenefitsLink Message Boards

Press Releases

Pension Rights Center Receives $560,000 Cy Pres Award

Pension Rights Center

EdgeCo Holdings Announces Agreement with Touchstone Retirement Group to Join its AmericanTCS Business Unit

EdgeCo Holdings

He Cerrado Group Celebrates Its Second Anniversary and Looks Toward Future

The Cerrado Group

Webcasts and Conferences
(Retirement Plans / Executive Compensation)


April 23, 2023 in TN

NIPA [National Institute of Pension Administrators]

Last Issue's Most Popular Items

Text of DOL Fact Sheet: Changes for the 2023 Form 5500 and Form 5500-SF Annual Return/Reports

Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL]

Simply the Vest: IRS Streamlines Rules for Retirement Plan Forfeitures

Eversheds Sutherland

Proposed Changes in IRA Distribution Rules for '10-Year Payout' Beneficiaries

Frost Brown Todd LLC

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

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