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Retirement Plans Newsletter

May 2, 2023

2 New Job Opportunities 2 New Job Opportunities


[Official Guidance]

Text of IRS Draft Instructions for Form 5307: Application for Determination for Adopters of Modified Nonstandardized Pre-Approved Plans (PDF)

"The form and instructions have been updated to be completed on as of July 1, 2023. The form and the instructions have undergone major revisions in the format and information required." [Draft May 1, 2023; rev. date Jun. 2023]  MORE >>

Internal Revenue Service [IRS]


"Long Term Part Time" Rules Clarified by ASC VP of Support

ASC Executive VP Support, Sheryl Stucky, CPC, QPA, APA, clarifies the topic of Long Term Part Time Rules. Here’s why clients love ASC Support: Retirement Plan Industry Professionals, Technology Experts, Fast, and Responsive! Read on.

Sponsored by ASC

[Official Guidance]

Text of Draft IRS Instructions for Form 5316: Application for Group or Pooled Trust Ruling (PDF)

May 1, 2023. "The form and instructions have been updated so that Form 5316 can be completed on as of June 1, 2023."  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

Exceptional Usefulness and Quality icon SECURE 2.0: So, About That Employer Roth Contribution

"SECURE 2.0 [includes] a fundraiser provision that allows plan participants to elect to have any fully vested employer contributions funded to a defined contribution plan made as Roth for tax purposes.... The effective date for this new and ambitious provision was surprisingly the date of SECURE 2.0's enactment.... [N]otwithstanding the immediate effective date of this provision, it is impractical and inadvisable to consider initiating Roth employer contributions at this time."  MORE >>

Ferenczy Benefits Law Center

[Guidance Overview]

Important Alert for 401(k) and 403(b) Plans That Do Not Allow Participants to Make Roth Contributions

"Plans that do not already offer Roth should contact their recordkeeper now and request Roth to be added to the plan effective January 1, 2024, if the plan wants to allow those earning more than $145,000 to make catch-up contributions. Some recordkeepers require months of advance notice for any amendment and/or limit the number of amendment requests they can accommodate based on available staff at the recordkeeper."  MORE >>

Frost Brown Todd LLC

[Guidance Overview]

EBSA Issues Annual Funding Notice Guidance for Multiemployer Plans Receiving Special Financial Assistance

"[FAB 2023-01] states that special financial assistance is not included in a plan's funded percentage or the actuarial value of the plan's assets. Accordingly, a plan is not required to take special financial assistance amounts into account when disclosing the plan's funded percentage or the actuarial value of plan assets."  MORE >>

Thomson Reuters Practical Law

[Guidance Overview]

Annual Funding Notice: DOL on Special Financial Assistance

"[A]dministrators of plans that already prepared or distributed the 2022 notice year AFN should consider the guidance in evaluating whether the AFN disclosures relating to SFA are consistent with a reasonable, good-faith interpretation of the AFN rules. If not, [FAB 2023-01] instructs the administrator to take appropriate corrective action but does not describe what DOL would consider appropriate action."  MORE >>


Management of DB Finance 2023: A Framework

"In this article [the authors] discuss de-risking/settlement in the broader context of DB finance, considering why 2023 might be a good year for settlement (either via a lump sum window or annuitization/pension risk transfer), the relative utility of settlement vs. an ongoing LDI (liability driven investment) strategy, and the relative utility (in 2023) of a lump sum window vs. annuitization/risk transfer."  MORE >>

October Three Consulting

U.S. Corporate Pension Plans Funding Status, April 2023

"The aggregate funded ratio for U.S. corporate pension plans increased by an estimated 0.4 percentage points in April and ended the month at 99.4% ... The monthly change in funded ratio resulted from a 0.5% rise in asset value, while the liability value remained unchanged. The aggregate funded ratio is estimated to have increased by 1.9% and 1.4% year-to-date and over the trailing twelve months, respectively."  MORE >>

Wilshire Associates

Retirement Policy Proponent Sen. Ben Cardin Announces His Own Retirement

"In a statement ... Cardin, a supporter and sponsor of major retirement plan legislation in his time in the Senate, said, 'I have run my last election and will not be on the ballot in 2024, but there is still much work to be done,' before listing his priorities before leaving office."  MORE >>

American Retirement Association [ARA]

PBGC Approves $295 Million in SFA for Western States Office Pension Plan

"[T]he Western States Office and Professional Employees Pension Plan ... based in Portland, Oregon, covers 7,230 participants in the service industry. On October 1, 2018, [the plan] implemented a benefit suspension under [MPRA] ... PBGC's approval of the SFA application enables the plan to restore benefits suspended ... and to make payments to retirees to cover prior benefit suspensions."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

Benefits in General

[Official Guidance]

Text of IRS Disaster Relief Notice FL-2023-04, for Victims of Severe Storms, Tornadoes and Flooding in Florida

"Victims of severe storms, tornadoes and flooding in Florida from April 12 to April 14, 2023, now have until August 15, 2023, to file various individual and business tax returns and make tax payments ... [I]ndividuals and households ... that reside or have a business in Broward County qualify for tax relief."  MORE >>

Internal Revenue Service [IRS]

Fiduciary Litigation Update, May 2023

"[1] 401(k) and 403(b) fee cases continue.... [2] No good deed goes unpunished: 1947 pension trust creates $38 million ERISA liability.... [3] Oops! Board action alone did not terminate severance plan.... [4] DOL weighs in on supplemental life insurance: evidence of insurability.... [5] Beneficiary/slayer denied retirement plan benefits."  MORE >>


Healthcare Costs for a Healthy 65-Year-Old Retiree Who Retires in 2023

"[A] healthy 65-year-old male retiree with [a Medicare Advantage plus Part D] plan will spend $134,000 for healthcare in his remaining lifetime (equating to $90,000 of savings in today's dollars), down from $137,000 in 2022. A 65-year-old female retiree with the same coverage will spend approximately $155,000 on healthcare expenses over the course of her lifetime ($100,000 in savings today), down from $158,000 in 2022."  MORE >>



Jury Trials in ERISA Cases: No Cause for Alarm

"[T]he increase in defense costs linked to the rise of jury trials in this context isn't just a question of the relative cost of conducting a jury trial relative to the cost of bench trials. Instead, it is driven by the fact that the possibility of jury trials is likely to increase the number of trials and the amount sought in settlement of these types of cases.... However, from a merits perspective, it is not entirely clear that jury trials in this context are by definition a bad thing."  MORE >>

Stephen Rosenberg, The Wagner Law Group

Executive Compensation and Nonqualified Plans

Dodd-Frank Clawbacks: A Model Policy to Prepare for a Summer Effective Date

"(the 'SEC') has now designated June 11, 2023 as the date by which it will approve or disapprove the clawback-related listing standards proposed by New York Stock Exchange ('NYSE') and Nasdaq pursuant to the SEC's Rule 10D-1.... This model policy will assist issuers when adopting a new clawback policy or revising an existing policy to comply with the rules."  MORE >>

Debevoise & Plimpton LLP

Financial Literacy With Stock Options, RSUs, And ESPPs

"[1] Set goals.... [2] Know what type of equity award(s) you have.... [3] Understand the core tax treatment.... [4] Identify the vesting schedule of stock options, restricted stock, and RSUs.... [5] Learn how your ESPP works.... [6] Study what will happen if you lose your job.... [7] Keep a stock comp checklist."  MORE >>

Equity Comp Awards Traps for the Unwary: Did I or Didn't I Just Grant an Award?

"Companies that sponsor equity compensation plans often include provisions related to future equity awards for service providers in non-plan related documents such as offer letters, employment agreements, and agreements with other service providers ... Usually, the references to these future grants are intended to memorialize the service provider's compensation and are not intended to affect the actual grant. However, whether or not the grant is intended to be made in the non-plan related document may not matter if the recipient relies on the promises made in the document."  MORE >>

Haynes and Boone, LLP

Employee Benefits Jobs

View job as Retirement Implementation Specialist
            for Alerus

Retirement Implementation Specialist


Remote / MI / MN / ND

View job as Retirement Implementation Specialist for Alerus

View job as Associate Benefits Specialist
            for Air Line Pilots Association

Associate Benefits Specialist

Air Line Pilots Association

Atlanta GA

View job as Associate Benefits Specialist for Air Line Pilots Association

Selected New Discussions

404 Deduction: Eligible Compensation with Per-Payroll Match and a Profit Share with Last Day Rule

"Plan funds a fixed match each pay period and also has last-day rule for profit share. A participant terminates before year end. [1] Are Participant wages included in eligible 404 compensation with respect to the deduction limit test? And would it matter if they actually fund the profit share? [2] If a plan does not have a last-day rule on the match in the AA, and does not fund a discretionary match, but they have a last-day rule only on profit share, would this participant compensation be in the test?"

BenefitsLink Message Boards

Press Releases

USI Consulting Group Acquires Hooker & Holcombe


RPAG joins the Retirement Advisor Council

Retirement Advisor Council

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Student Loan Repayment Benefits

May 17, 2023 WEBINAR


SECURE 2.0 Act Update

May 17, 2023 WEBINAR

Miller Johnson

Secure 2.0: How’s an Employer to Implement by 2024!?!

May 24, 2023 WEBINAR

New England Employee Benefits Council [NEEBC]

Last Issue's Most Popular Items

IRS Clarifies Timing for Reallocation of Forfeitures

Willis Towers Watson

New Rules for Form 5500 Begin with 2023 Plan Year

Boutwell Fay LLP

SECURE 2.0: Moving 529 Assets to a Roth IRA

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

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