logo logo

Retirement Plans Newsletter

April 28, 2023

New Job Opportunity Today New Job Opportunity Today


[Official Guidance]

Text of IRS Memo Clarifying 2022 Form 5500 Instructions for Certain DB Plans

"If you are required to submit [Schedule SB] for a plan that uses the annuity substitution rule provided in Section 1.430(d)-1(f)(4)(iii)(B) to determine the funding target instead of assuming benefits are paid in the form assumed for valuation purposes, you may assume benefits are paid as an annuity (i.e., you may report the projected benefits that are used to determine the funding target)."  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

Beyond ESG: Proxy Voting Provisions to Know in DOL's ESG Rule

"While these provisions do not necessarily represent a major departure from current law or DOL position, they do provide some additional emphasis on the fiduciary review process for proxy voting and shareholder rights. As such, unlike the rest of the DOL Rule which became effective in January 2023, the DOL extended the effective date for the proxy rules until December 1, 2023 to allow both managers and plan sponsor fiduciaries to assess the contractual provisions currently in place regarding proxy voting."  MORE >>

Morgan Lewis

[Guidance Overview]

SECURE 2.0 Includes Several Changes to Encourage the Use of Retirement Annuities

"Historically, the RMD rules have presented significant impediments to the use of retirement annuities ... While some technical guidance is still needed, these changes from SECURE 2.0 clearly reflect congressional intent to dissolve these technical barriers where possible, and therefore encourage the use of annuities in defined contribution plans and IRAs[.]"  MORE >>

Faegre Drinker

[Guidance Overview]

New Florida Restrictions on ESG Create Challenges and Additional Requirements for Asset Managers and Other Financial Institutions

"HB 3 is one of the strictest and most restrictive anti-ESG laws adopted to date, imposing significant new compliance obligations that are distinct from those required by ERISA and other state laws.... [T]he Florida legislation includes some novel provisions that will require asset managers' special attention. "  MORE >>

Ropes & Gray LLP

Third Circuit Finds State Transit Authority Plan Is Not Subject to ERISA

"The Third Circuit ruled that the employee did not raise any arguments to refute the conclusion that the employer was a political subdivision exempt from ERISA. The court noted that the employer was 'allocated within the Department of Transportation, [and] constituted as an instrumentality of the State exercising public and essential governmental functions.' " [Pue v. New Jersey Transit Corp., No. 22-2616 (3d Cir. Apr. 13, 2023)]  MORE >>

The Wagner Law Group

Are BlackRock's Target Date Funds the New Fiduciary Battlefield? (PDF)

"Where the 'excessive fee' litigation cases alleged that plan sponsors' processes were deficient due to a lack of benchmarking to find lower fee investment options, these latest cases do not even allege any concerns with the plans' selection processes. Essentially, the plaintiffs target plan sponsors responsible for overseeing company retirement plans as having retained the BlackRock TDFs when better performing investments were available and could have been selected."  MORE >>

Ice Miller LLP, via Employee Benefit Plan Review

Stress, Finances, and Well-Being: Driving Behaviors That Matter (PDF)

28 pages. "Retirement savings took a big step backward in 2022, with 56% of workers saying they've fallen behind compared with 43% who said the same in 2021.... 38% think they'll now retire later than planned.... 78% say it's important for employers to offer financial wellness resources.... The average contribution rate is 20% higher for those who opened six or more emails about retirement planning."   MORE >>

John Hancock

Competitive Pension Risk Transfer Buyout Rate Drops During March

"During March, the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process decreased from 99.7% of a plan's total liabilities to 99.3% of those liabilities. ... [T]he estimated retiree PRT cost is now 99.3% of the plans' retiree accumulated benefit obligation. During the same time period, the average annuity purchase cost across all insurers in our index also decreased, from 102.8% to 102.6%."  MORE >>


Federal Employees: Determining the Best Age to Retire

"Under the old single-benefit Civil Service Retirement System, most employees planned to retire around their 55th birthday ... Under FERS, things are more complicated, because it includes three different benefits that come into play at different ages."  MORE >>

Government Executive

PBGC Approves $296 Million in SFA for UIU-NPG Pension Plan

"[PBGC] has approved the application [for special financial assistance] submitted ... by the United Independent Union -- Newspaper Guild of Greater Philadelphia Pension Plan. The plan, based in Philadelphia, Pennsylvania, covers 2,566 participants in the printing industry. The UIU-NPG Pension Plan will receive approximately $296.2 million ... The plan was projected to run out of money in 2025."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

PBGC Approves $111 Million in SFA for Bakery Drivers Local 194 Plan

"[PBGC] has approved the application [for special financial assistance] submitted ... by the Pension Plan of the Bakery Drivers and Salesmen Local 194 and Industry Pension Fund. The plan, based in North Brunswick, New Jersey, covers 1,155 participants in the transportation industry. The Bakery Drivers Local 194 Plan will receive approximately $110.9 million ... The plan was projected to run out of money in 2024."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

Employee Benefits Jobs

View job as Retirement Plan Administrator
            for Estate and Pension Advisory Board (EPAB)

Retirement Plan Administrator

Estate and Pension Advisory Board (EPAB)

Remote / Cherry Hill NJ

View job as Retirement Plan Administrator for Estate and Pension Advisory Board (EPAB)

Selected New Discussions

Would a Halt to Rulemaking and Guidance Matter for Retirement Plans?

"2023's autumn might bring at least two possibilities for disruptions and delays in some activities of some Federal agencies, including the U.S. Labor and Treasury departments. Not increasing the debt Congress authorizes the United States to incur might indirectly disrupt or delay the Labor and Treasury departments' rulemaking and other guidance activities. Not continuing appropriations after September 30 and a resulting government shutdown would make it unlawful for the Labor and Treasury departments' employees to work on rulemaking and other guidance activities. (If history is some guide about what could happen next: After November 1995, US government shutdowns have averaged about 19 days. The most recent was 35 days.) If 2023's autumn brings a slowdown or shutdown, would a delay in rulemaking and other guidance activities matter for retirement plans and service providers?"

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Hot Issues in Executive Compensation 2023

September 8, 2023 WEBINAR

PLI [Practising Law Institute]

Last Issue's Most Popular Items

Alternatives for Sponsors of Defined Benefit Pension Plans

Verrill Dana LLP

Does Our Pension Plan Really Need an Experience Study?


SPARK Institute Letter to EBSA: SECURE 2.0 Guidance Requests (PDF)

The SPARK Institute

Unsubscribe  |   Change Email Address

Search Past Issues   |   Privacy Policy

Submit an Article   |   Contact Us   |   Advertise Here

Copyright 2023, 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, 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 and are offered as a service to our readers. We are not involved in their production and are not responsible for their content.