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Retirement Plans Newsletter

March 13, 2023

4 New Job Opportunities 4 New Job Opportunities


Long-Standing 403(b) Excessive Fee Suit Settles for $13 Million -- and Change(s)

"The suit ... involved two plans sponsored by the University of Southern California ... The plans' investments options were offered by four separate recordkeepers ... With the exception of approximately 14 investment options, all investments were proprietary investments of these four recordkeepers.... [T]he cash aspect of the settlement is $13,050,000 which, once certain fees and expenses are deducted, will be allocated to participant (including eligible former participant) accounts." [Munro v. Univ. of Southern Calif., No.16-6191 (C.D.Calif. settlement agreement filed Feb. 23, 2023)]  MORE >>

National Tax-Deferred Savings Association [NTSA]

Judge Rejects Mitre's Efforts to Dismiss ERISA Lawsuit

"[The judge] also ruled against the defendants' motion to dismiss the allegations that the plan improperly used higher-cost share classes of funds when lower-fee, identical investments were available for the plans." [Brown v. The Mitre Corp., No. 22-10976 (D. Mass. Mar. 6, 2023)]  MORE >>

PLANSPONSOR; free registration may be required

Form 5500 Rules Will Simplify Process for Plan Sponsors, But More Changes Are Ahead

"[In] the final rules' preamble, the agencies noted that they deferred implementation of other provisions outlined in a September 2021 proposal, including one to revise the content requirements for the 'Schedule of Assets Held for Investment' and the 'Schedule of Assets Held and Disposed of within the Plan Year' sections of Form 5500's Schedule H."  MORE >>

Pensions & Investments

Which Expenses Can Be Paid with Plan Assets?

"[If] the expense relates to a required administration duty, then the expense is probably fiduciary and may be chargeable to the plan. In contrast, if the expense relates to plan design or a plan sponsor decision, or anything else that is not required but relates to a plan sponsor decision and is for the benefit of the plan sponsor, then the fiduciary probably should not charge it to the plan."  MORE >>

Holland & Hart LLP

Do Older Adults Accurately Forecast Their Social Security Benefits?

22 pages. "[W]hile older adults generally have accurate expectations about their claiming age, they underestimate their annual Social Security income by approximately $1,896 (11.5 percent) on average. However, both accuracy and precision increase with age, and the forecast error for people in their early 60s is not statistically different from zero."  MORE >>

National Bureau of Economic Research [NBER]; purchase may be required for full document

Tips to Maximize Your Savings Near Retirement

"The years preceding and following the moment you retire can dictate not only the quality of your golden years but also the likelihood you'll have enough to last throughout retirement.... [H]ere are some key risks -- and potential solutions -- to be mindful of as you navigate the so-called dangerous decade."  MORE >>

Charles Schwab

Focus on Your Spending Budget and Your Funded Status, Not on Withdrawals from Your Accumulated Savings

"If assumptions, future income streams and future expense streams inputted into the AFP are exactly realized in the future and household spending exactly follows the AFP spending budget each year, your current household assets are expected to be sufficient to cover X% [Funded Status] of your projected spending liabilities in retirement.... If your Funded Status falls below 95% now or in the future, you should consider reducing your spending budget (or increasing your assets) ... If your Funded Status is or becomes more than 120%, you may consider increasing your spending budget. "  MORE >>

Ken Steiner, FSA Retired


ARA Expresses Support for New Rules on Remote Notarization of Spousal Consent

"The ARA and the other signatories note that plans have been using the relief from the physical presence requirements for nearly three years, and that systems are now in place to allow participants or spouses to use either in-person or remote witnessing."  MORE >>

National Tax-Deferred Savings Association [NTSA]

Employee Benefits Jobs

View job as Member Services Representative
            for DC Retirement Board

Member Services Representative

DC Retirement Board

Washington DC

View job as Member Services Representative for DC Retirement Board

View job as Retirement Analyst
            for DC Retirement Board

Retirement Analyst

DC Retirement Board

Washington DC

View job as Retirement Analyst for DC Retirement Board

View job as Senior Defined Contribution Account Manager
            for Nova 401(k) Associates

Senior Defined Contribution Account Manager

Nova 401(k) Associates


View job as Senior Defined Contribution Account Manager for Nova 401(k) Associates

View job as PSC (Participant Services Center) Manager
            for Definiti

PSC (Participant Services Center) Manager



View job as PSC (Participant Services Center) Manager for Definiti

Selected New Discussions

Automatically Enrolled in 401(k) After I Opted Out

"I was automatically enrolled in a 401k by my employer without my consent, and after I filed a form to opt-out of their automatic enrollment program. What can I do to get the money they deducted from paychecks returned?"

BenefitsLink Message Boards

Credited Service for 415 Purposes

"Self-employed person/1099 contractor has a DB plan. The person contracted with one employer which no longer needed the services. The person provided no services and received no income for the year. The plan document defines credited service as elapsed time. Does this person get credited service or not? Compensation was zero so we aren't concerned for benefit accruals but need to know if service can be credited for 415 service and participation. My thought is that because the person did not provide any services that no service should be credited. I think this is different than if services were performed but expenses exceeded revenue resulted in zero net income/compensation, in which case I think you could/should credit service. I looked in the regulations but could not discern an answer, nor could I locate guidance elsewhere. Is my thinking correct/reasonable or flawed. Also, this is more than a one-year situation."

BenefitsLink Message Boards

Spin Off & Safe Harbor / ADP Test Question

"An Employer is in the process of establishing a new single employer plan (401(k)) effective in 2023. They will spin off (not terminate) from a PEP that they are currently in and transfer the assets from the PEP into the new plan. They do not have a safe harbor provision in place in the PEP, but they would like to add a safe harbor provision to the new plan for 2023. Is this permissible? How would the ADP testing work for 2023, would they need to test separately in the PEP for the short period and correct via refunds / QNEC (assuming the test fails for the short period), or are we permitted to test the entire year under the new plan (and the safe harbor provisions, assuming this can be added to the new plan in 2023)? Any input would be greatly appreciated."

BenefitsLink Message Boards

Correcting W-2s: Former Employee Died But Spouse Continued to Cash NQDC Checks

"A former employee had been receiving annual payments from her NQDC plan, and we were issuing her W-2s. We just learned the former employee died a couple years ago. The spouse has continued to cash her checks. How do we correct the tax reporting from W-2 to the deceased former employee to 1099-MISC to her spouse?"

BenefitsLink Message Boards

Press Releases

Transamerica and Cetera Financial Group Debut New Group Retirement Plan Solution


Transamerica Bolsters Group Term Life Insurance Policies with Employee Assistance, Travel, and Identity Theft Services


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Defined Contribution Plan Trends and Fee Survey Overview



Edification on 'Rothification' Under SECURE 2.0


Seyfarth Shaw LLP

SECURE Act 2.0. Key IRA Provisions


Appleby Retirement Consulting Inc.

2023 Annual Workshop

April 20, 2023 in FL

Florida West Coast Employee Benefits Council

Employee Benefits in Mergers and Acquisitions National Institute 2023

May 16, 2023 WEBINAR

American Bar Association Joint Committee on Employee Benefits [JCEB]

Last Issue's Most Popular Items

Budget Proposal Resurrects 'Build Back Better' Retirement Plan Revenue Raisers

American Retirement Association [ARA]

2022 ESOP Valuation Expectations and 2023 Transaction Pricing Considerations

The ESOP Association

NYSE and Nasdaq Propose Clawback Listing Standards: Considerations for Public Companies

Morgan Lewis

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

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