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Retirement Plans Newsletter

April 21, 2023

2 New Job Opportunities 2 New Job Opportunities


[Official Guidance]

Text of SEC Staff Bulletin: Standards of Conduct for Broker-Dealers and Investment Advisers Care Obligations

"[T]his bulletin is focused primarily on the Care Obligation of Regulation Best Interest (Reg BI) for broker-dealers and the duty of care enforced under the Investment Advisers Act of 1940 for investment advisers ... Whether a recommendation or advice satisfies the care obligations is an objective evaluation, turning on the facts and circumstances of the particular recommendation or advice and the investment profile of the particular retail investor at the time the recommendation is made or when the advice is provided. When adopting and implementing reasonably designed policies and procedures regarding their care obligations, broker-dealers and investment advisers should tailor those policies and procedures, taking into consideration their particular business models and relationships with retail investors." [20 Q&As, with 79 footnotes  MORE >>

U.S. Securities and Exchange Commission [SEC]

[Guidance Overview]

Top Takeaways from SECURE Act 2.0

"[1] Roth matching and nonelective contributions ... [2] Hardship self-certification ... [3] Employers can treat student loan payments as elective deferrals for matching purposes ... [4] Catch-up contributions must be Roth contributions ... [5] Part-time employee eligibility."  MORE >>


Seventh Circuit Writes the Next Chapter in Hughes v. Northwestern University

"The Court articulated the pleading standard for an excess fee claim to prevail on a motion to dismiss. Under this standard, a plaintiff must allege enough facts to show that a prudent fiduciary would have taken steps to reduce fees and remove imprudent investments.... Northwestern argued that the institutional class shares were 'not necessarily available'. But the Court said that the plaintiffs were only required to plead that the cheaper institutional fund shares were 'plausibly available'." [Hughes v. Northwestern Univ., No. 18-2569 (7th Cir. Mar. 23, 2023)]   MORE >>

Boutwell Fay LLP

Acting Labor Secretary Su Says SECURE 2.0 Guidance Coming in 'Timely Manner'

"At Thursday's hearing, Su briefly discussed the implementation of SECURE 2.0 ... Su said she looks forward to providing guidance in a 'timely manner' and specifically highlighted the lost-and-found provision of the legislation, which requires the [DOL] to create a database in which participants can be matched with old plans they may have lost or forgotten."  MORE >>


Leveraging Secure 2.0 into Greater Employee Financial Wellness

"[J]ust offering a program designed to help employees manage their financial lives better is not enough. Employers must be prepared for employee skepticism about participating.... By intentionally focusing on underserved populations, employers might see a 30 percent initial enrollment grow to 50 percent after a few months as more people become aware of the program."  MORE >>

Society for Human Resource Management [SHRM]; membership may be required to view article

CRS Data in Brief: Funding Status of Multiemployer Defined Benefit Pension Plans

13 pages. "his report provides participant and funding data from the [DOL's] 2020 Form 5500 dataset for [1] all multiemployer DB plans and [2] those not meeting eligibility criteria to apply for SFA." [R47512 Apr. 20, 2023]  MORE >>

Congressional Research Service [CRS]


Mandatory Retirement Is Not Serving the Economy

"Ageism is driving older individuals out of the workforce just when the current economy needs people to work longer ... In a panel discussion led by Arianna Huffington ... experts said there is a disconnect between firms forcing workers out in a time when there may not be the talent to replace them, and they may need to income to support longer lives. Huffington told an audience at the Founders Summit that companies should evaluate the age limits set on their employees’ work lifespan."  MORE >>



Committee on Education and the Workforce Letter to PBGC Following OIG Risk Advisory on Administration of SFA Program (PDF)

"It appears PBGC is ignoring the serious nature of the risk advisory by continuing to approve supplemented SFA applications without a contingency plan if the agency is found to be making improper payments."  MORE >>

Committee on Education and the Workforce, U.S. House of Representatives

Benefits in General

How to Help Retiring Clients Pick a Medicare Plan

"[C]hoosing among the various options is akin to navigating a confusing, shifting maze. There are cross-cutting considerations regarding out-of-pocket costs, the level of monthly premiums, the level of access to preferred doctors offices and hospitals, the coverage of regular prescription drug costs and various other factors to throw in the mix."  MORE >>


Employee Benefits Jobs

View job as Retirement Plan Administrator
            for Jordan & Associates Retirement Services

Retirement Plan Administrator

Jordan & Associates Retirement Services

Remote / Santa Rosa CA

View job as Retirement Plan Administrator for Jordan & Associates Retirement Services

View job as Retirement Plan Assistant Administrator
            for Gateway Pension Services, Ltd.

Retirement Plan Assistant Administrator

Gateway Pension Services, Ltd.

Saint Louis MO / Hybrid

View job as Retirement Plan Assistant Administrator for Gateway Pension Services, Ltd.

Selected New Discussions

Contribution Funding and Tax Return Extensions

"If a corporate taxpayer and plan sponsor files for an extension of time to file its tax return, extending the filing deadline from March 15th to September 15th, but then files their tax return on March 13th, should they have funded the profit-sharing contribution deducted on the tax return by March 15th or is the extension to September 15th still recognized? Something in the back of my mind tells me the IRS can invalidate the extension if the return is filed by the original due date."

BenefitsLink Message Boards

Profit Sharing Plan Wants to 'Prefund' 2023 Contribution Based on 2022 Wages

"Plan document has 1000 hours/last day rule for the PS contribution. In addition, they have an appendix in the plan document that says you must be employed on the 'determination' date which is usually in February after the plan year ends. We have told them this is not possible. For 2022, they got mad and decided not to fund for the 2022 plan year. However, they have now decided to fund a contribution for the 2023 plan year as of February 2023 based on 2022 wages. We have told them this is creates issues. They have been told that they will need to true up the calculation at the end of the year based on 2023 wages. In addition, they will need to forfeit any contribution that went to a terminated participant. If the terminate participant took a distribution, they would likely need to recovery that money. What other problems will the plan face with 'prefunding' this contribution?"

BenefitsLink Message Boards

2019 Deferral Election Never Implemented - How to Correct?

"Participant submitted a 5% pre-tax deferral election in 2019. It was never implemented. They don't have a balance in the plan. Participant is now terminated and is requesting a distribution. The plan does have a safe harbor match provision, and the sponsor has no problem correcting the missed match. They are arguing that the participant has some culpability in the missed deferral and for not catching it sooner and the sponsor does not want to make the appropriate QNEC for that part of the failure. Any thoughts on a failure to implement that is 4 years old?"

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Proposed Changes to the Department of Labor’s Voluntary Fiduciary Correction Program


Miller Johnson

Last Issue's Most Popular Items

SECURE 2.0 Changes to Retirement Plan Corrections

Frost Brown Todd LLC

SECURE 2.0: Student Loans and 401(k) Plan Matching Contributions

Foley & Lardner LLP

Text of IRS Notice 2023-33: Weighted Average Interest Rates, Yield Curves, and Segment Rates for April 2023 (PDF)

Internal Revenue Service [IRS]

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

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