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Retirement Plans Newsletter

April 12, 2023

2 New Job Opportunities 2 New Job Opportunities


[Guidance Overview]

SECURE 2.0: Mandatory Automatic Enrollment Coupled with Corrective Contribution Relief

"Effective for plan years beginning after December 31, 2024, SECURE 2.0, Section 101 requires 401(k) and 403(b) plans to automatically enroll participants upon becoming eligible to an employer-sponsored plan.... SECURE 2.0 formalizes the favorable corrective contribution calculations for missed deferrals and allows the favorable correction terms to apply to terminated employees and to be used even if the IRS discovers the error first."  MORE >>

Belfint Lyons Shuman

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Corporate DB Plans Still Hard to Beat

"U.S. corporate defined benefit plans are healthier than they've been in decades, and companies should think about keeping them so they can take advantage of surplus assets ... [A pension surplus] could provide capital to pay for retiree healthcare benefits, for establishing follow-on pension funds, and to provide capital for M&A activity, although not all possibilities apply for all companies."  MORE >>

Pensions & Investments

A (Really) Surprising Reason for High Retirement Plan Leakage

"[R]esearchers found that behavioral rather than economic factors account for high withdrawal rates at job separation, and the employer match might be to blame.... [A] 50% increase in employer/employee match rate increases leakage probability by 6.3% at job termination.... With the Bureau of Labor Statistics estimating that the average worker will have 12.4 jobs in a career, the findings make a strong case for auto portability within the retirement plan system, something SECURE 2.0 addressed."  MORE >>

American Retirement Association [ARA]

Retirement Benefits That Suit a Diverse Workforce

"As the American workforce grows increasingly diverse, plan sponsors are revising their retirement benefits and financial wellness programs to meet the needs of all employees.... Here [are] some of the ways that sponsors can help improve outcomes among diverse demographic groups."  MORE >>


Nevada Next State to (Possibly) Offer an Auto IRA

"Nevada lawmakers are again proposing a state-supported retirement plan for private-sector workers who lack coverage.... [The bill] would require employers to automatically enroll all covered employees and withhold their payroll-deducted contributions. It would also require employers to distribute informational materials, disclosure statements, forms, and instructions concerning the program to covered employers."  MORE >>

American Retirement Association [ARA]

Assessing Performance Predictiveness of Monte Carlo Models

"Ultimately, although Historical and Regime-Based Monte Carlo models seemed to perform better than the Traditional and Reduced-CMA models, advisors are generally limited to whichever methods are used by their financial planning software (most of which currently use the Traditional model)."  MORE >>

Nerd's Eye View

Systematic Comparison of Assets and Liabilities: It’s How We Actuaries Roll

"Recently, the American Academy of Actuaries released a practice note on considerations involved in consulting on fixed rate plans.... [T]he Social Security system is essentially a fixed rate pension plan."  MORE >>

Ken Steiner, FSA Retired

Executive Compensation and Nonqualified Plans

Your Stock Compensation in Volatile Markets

"If you have vested incentive stock options or non-qualified stock options, you are able to choose when to exercise the right to purchase them.... If the exercise prices are close to what you see in the open market, you don't have much leverage. In addition to evaluating the leverage, what is the trajectory of the company? ... What happens if the company sells or if you are laid off? Are there certain windows of time the options need to be exercised and/or sold? Make sure to review what will happen to your stock and when."  MORE >>


Employee Benefits Jobs

View job as Benefits Specialist
            for Bertelsmann, Inc.

Benefits Specialist

Bertelsmann, Inc.

Remote / New York NY / NJ / Hybrid

View job as Junior Compliance Analyst
            for Ubiquity Retirement + Savings

Junior Compliance Analyst

Ubiquity Retirement + Savings


View job as Junior Compliance Analyst for Ubiquity Retirement + Savings

Selected New Discussions

Participant Died, No Beneficiary Form on File

"A NHCE participant has passed, never returned a Beneficiary Designation form. The CB is < $1,000. What paperwork the client should have in place in additional to a 'normal' distribution package? What should be the process to disburse the funds? I am thinking: [1] Some kind of documentation regarding the estate trust; [2] Documentation regarding who the trust administrator is; [3] Money should be payable directly to estate with the estate administrator being signatory after the paperwork is on file. Anything else?"

BenefitsLink Message Boards

Terminated Plan: Residual Amount Remains After Final Year End; When Is Final 5500 Due?

"Client told me all assets were distributed by 6/30/2022. Filed an extension on 1/31/2023 till 4/17/2023 Now found out that still 0.02 is in the account and they will close it this week. When is the final 5500 due?"

BenefitsLink Message Boards

Will an 11-g Amendment Work for this Situation?

"Plan has three allocation groups, with pro-rata allocations within each: Owners (2 participants) Other HCE (3 participants) Staff (6 participants) Passes testing at gateway (4.25) Right now HCE group gets 5% of pay. They want to give ONE of those HCE 8%. Can they do an 11(g) amendment giving the HCE 8% and 2 NHCE also 8%?"

BenefitsLink Message Boards

Press Releases

OneDigital and The Huntington National Bank Form Strategic Relationship For 401(K) Advisory and Retirement Plan Servicing Business


RetireOne Partners with Pension & Wealth Management Advisors on a Program to Help Clients Protect Income in Retirement


Last Issue's Most Popular Items

SECURE 2.0: Roth Treatment for Catch-up Contributions for Higher Compensated Employees

Generational Changes in 401(k) Behaviors (PDF)


J. Mark Iwry to District Court: Lawsuit Challenging DOL ESG Rule Should Be Tossed

Pensions & Investments

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

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