BenefitsLink.com logo
EmployeeBenefitsJobs.com logo

Retirement Plans Newsletter

March 3, 2023

9 New Job Opportunities 9 New Job Opportunities

 

[Guidance Overview]

IRS Proposed Regulation Addresses Rules Relating to Plan Forfeitures

"Given the IRS's new position, one possible approach to protect against issues arising in the context of plan audits or an IRS audit would be for plan sponsors to work with recordkeepers to maintain separate forfeiture accounts by plan year (i.e., Forfeiture 2024, Forfeiture 2025, etc.) and appropriately monitor the accounts to ensure that the prior year forfeiture account is zeroed out prior to the end of the following plan year."  MORE >>

Groom Law Group

[Guidance Overview]

Proposed IRS Regs Make Handling Forfeitures Less Burdensome

"To comply with these proposed regulations, plan sponsors will eventually need to amend their plan documents to account for the 12-month deadline for use of forfeiture amounts.... [A] plan which only permits forfeitures to be used for administrative expenses may run into compliance trouble if the forfeitures exceed plan expenses and there is a surplus at the end of the 12-month usage deadline."  MORE >>

Graydon

[Guidance Overview]

Tax Credits for Small Employer Start-Up Plans (PDF)

"[Along with] SECURE 2.0's increase to the start-up credit, Congress also granted another tax credit in relation to the amount of employer contributions made to start-up plans ... for the benefit of employees earning less than $100,000.... [T]he SECURE Act also established a tax credit for plans that implement an 'eligible automatic enrollment arrangement' (EACA) of $500 for each of the first 3 years that the plan has such an auto enrollment feature."  MORE >>

Legacy Retirement Solutions

[Guidance Overview]

PBGC Premium Relief for Single Employer Defined Benefit Plans

"Assuming unfunded vested benefit levels remain stable from year to year, plans not subject to the per participant cap will have lower premiums than previously anticipated. Plans with considerable underfunding that received some premium relief through the application of the per participant cap will begin to see that wear away."  MORE >>

Cowden Associates, Inc.

[Guidance Overview]

California Public Education Agencies: Recent Legislation Impacts Compensation Reporting Errors

"Over the last two years, the state of California has signed two bills into law, Senate Bill (SB) 278 (CalPERS) and Assembly Bill (AB) 1667 (CalSTRS), which impact how CalPERS and CalSTRS will collect on overpayments made to retirees as a result of compensation reporting errors. While both Bills address overpayments of pension benefits, AB 1667 goes further, and includes additional transparency measures in an effort to promote collaboration between CalSTRS and public education agencies and ensure proper reporting before issues (and large invoices!) arise."  MORE >>

Liebert Cassidy Whitmore

The Plaintiff Law Firm That Cried Wolf Eleven Times: First BlackRock LifePath Case Dismissals with Prejudice

"[T]he reductio ad absurdum of investment imprudence cases was the eleven lawsuits filed in August 2022 by the Miller Shah law firm claiming that any plan fiduciary who chose Morningstar's number-one rated BlackRock LifePath target-date funds was guilty of fiduciary malpractice for chasing low fees because the investment performance was allegedly 'deplorable.' But like the shepherd boy who cried wolf too many times in the fairy tale, Miller Shah's specious claims have met their deserved fate in the rocket docket of the Eastern District of Virginia only six months after the meritless cases were filed." [Tullgren v. Booz Allen Hamilton Inc., No. 22-0856 (E.D. Va. Mar. 1, 2023; Hall v. Capital One Financial Corp., No. 22-0857 (E.D. Va. Mar. 1, 2023)]  MORE >>

Euclid Specialty Managers

Court Overturns DOL Guidance on Rollover Advice

"In one of those FAQs, DOL said a recommendation to roll over a participant's retirement plan account to an [IRA] may be fiduciary investment advice when the advisor expects to give ongoing advice after the rollover. According to the court, this guidance contradicts the agency's current regulation -- originally issued in 1975 -- which says advice does not qualify as investment advice unless given to a plan on a 'regular basis.' The court's ruling likely isn't the last word on rollover advice, since amending the 1975 regulation remains one of DOL's top priorities."  [American Securities Association v. DOL, No. 22-0330 (M.D. Fla. Feb. 13, 2023)]   MORE >>

Mercer

Retirement Income, Inflation, and Retirement Finance at 2022 Year-End

"For a DB participant with a deferred to 65 life annuity benefit of $1,000 per month, 2022 inflation has reduced the real value of that annuity to $939.... [T]he DC participant holds all risk -- asset performance, interest rate (e.g., the cost of annuitization), and inflation risk. Thus, for DC participants, ... decreases in real buying power from increased inflation were more than offset by gains from increases in interest rates."  MORE >>

October Three Consulting

2023 IRA Calendar: Time Your IRA Transaction Right to Get Benefits and Avoid IRS Penalties

"Protecting your IRA from penalties and taking advantage of tax strategies is all about timing. This ranges from your IRA custodian providing you with timely notifications about important deadlines, to you completing transactions timely to get tax benefits. Use this calendar to remind you of some of these important deadlines."  MORE >>

Appleby Retirement Dictionary

Multiemployer Pension Funding Study: Year-End 2022

"Significant investment losses during 2022 resulted in an aggregate funded percentage for all multiemployer plans of 79% as of December 31, 2022, down from 91% at the end of 2021.... As of December 31, 2022, 35 plans have received $9 billion in special financial assistance (SFA) ... which added 1% to the aggregate funded percentage. An additional $37 billion of SFA was paid in January 2023. If those amounts had been paid by December 31, 2022, the aggregate funded percentage would have been 84%."  MORE >>

Milliman

[Opinion]

Before Slashing Social Security, Cut 401(k)s

"According to the [JCT], the tax advantages for DBs, DCs and IRAs will cost the federal government $371 billion this year. There is no similar tally for state tax breaks, but including those would likely bring the total bill close to half a trillion dollars. Given these tremendous expenses, it is initially hard to understand why people who seem so worried about the costs of old-age benefits choose to focus solely on Social Security. But it becomes easier to understand once you realize who benefits the most from the various parts of the old-age system."  MORE >>

Politico

Employee Benefits Jobs

View job as Senior Benefits Administrator
            for First Hill Trust Company

Senior Benefits Administrator

First Hill Trust Company

Seattle WA / Hybrid

View job as Senior Benefits Administrator for First Hill Trust Company

View job as Director, Enforcement
            for Employee Benefits Security Administration [EBSA]

Director, Enforcement

Employee Benefits Security Administration [EBSA]

Washington DC

View job as Director, Enforcement for Employee Benefits Security Administration [EBSA]

View job as Regional Director
            for Employee Benefits Security Administration [EBSA]

Regional Director

Employee Benefits Security Administration [EBSA]

Philadelphia PA

View job as Regional Director for Employee Benefits Security Administration [EBSA]

View job as Retirement Plan Documents Specialist
            for Loren D. Stark Company

Retirement Plan Documents Specialist

Loren D. Stark Company

Remote

View job as Retirement Plan Documents Specialist for Loren D. Stark Company

View job as Compliance Consultant
            for Newport, an Ascensus Company

Compliance Consultant

Newport, an Ascensus Company

Remote / IA

View job as Compliance Consultant for Newport, an Ascensus Company

View job as Compliance Analyst - Retirement Plans
            for Newport, an Ascensus Company

Compliance Analyst - Retirement Plans

Newport, an Ascensus Company

Remote / MS

View job as Compliance Analyst - Retirement Plans for Newport, an Ascensus Company

View job as Senior Relationship Manager 2-4, ERISA, Retirement
            for National Benefit Services

Senior Relationship Manager 2-4, ERISA, Retirement

National Benefit Services

Remote

View job as Senior Relationship Manager 2-4, ERISA, Retirement for National Benefit Services

View job as Client Service Manager
            for Newport, an Ascensus Company

Client Service Manager

Newport, an Ascensus Company

Remote / FL / MD / PA / TX / WI

View job as Client Service Manager for Newport, an Ascensus Company

View job as ESOP Consultant
            for FuturePlan, by Ascensus

ESOP Consultant

FuturePlan, by Ascensus

Remote / Chicago IL / NJ

View job as ESOP Consultant for FuturePlan, by Ascensus

Selected New Discussions

Determining Date plan is Established for Auto Enroll Requirement

"I set up 2 plans in early December 2022 that became effective 1-1-23. Are these plans subject to the new auto enroll rules? They were signed and 'established' prior to 12-29-22, but not effective until 1-1-23."

BenefitsLink Message Boards

Missed Deferral Opportunity in Safe Harbor Plan

"Client has a plan with a standard safe harbor match. Participant went on the system and changed her deferral percentage. She also increased her catch-up amount by $10. The recordkeeping system does not recognize both a deferral percentage and a catch-up so only the catch-up portion was picked up by payroll. Hence, since July 2021, only the catch-up amount has been taken out of her check. She just noticed this a year and a half later. Since this is a safe harbor plan, what would the missed deferral calc be based on? In other words, would it be based on the 8% that she wanted or just on the maximum match of 4%?"

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Navigating Benefit Plans Through Mergers and Acquisitions

March 15, 2023 WEBINAR

International Foundation of Employee Benefit Plans [IFEBP]

SECURE 2.0: A Closer Look at Long-term Part Time Employees, Matching Student Loans, and Related Employer Attribution

March 28, 2023 WEBINAR

Boutwell Fay LLP

Last Issue's Most Popular Items

IRS Updates Operational Compliance List for Retirement Plans

Sidley Austin LLP

Accountant's Opinion Selection on Form 5500

Belfint Lyons Shuman

SECURE 2.0: Catch-Up Changes and After-Tax Employer Contributions

Kilpatrick Townsend

Unsubscribe  |   Change Email Address

Search Past Issues   |   Privacy Policy

Submit an Article   |   Contact Us   |   Advertise Here

Copyright 2023 BenefitsLink.com, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

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

Links to web sites other than BenefitsLink.com and EmployeeBenefitsJobs.com are offered as a service to our readers. We are not involved in their production and are not responsible for their content.