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Retirement Plans Newsletter

May 9, 2023

2 New Job Opportunities 2 New Job Opportunities


[Guidance Overview]

Guidance Sorely Needed on SECURE 2.0 Self-Correction of Inadvertent Failures

"[T]he language of the statute uses many terms that need to be better defined through guidance. What action is sufficient to show a specific commitment to implement self-correction? ... How specific do practices and procedures need to be? ... What is a reasonable period to complete the correction? ... Will the significant/insignificant dichotomy go away? What is an egregious inadvertent failure?"  MORE >>

Trucker Huss

[Guidance Overview]

Inherited Retirement Plan? How to Understand Payout Rules

"Depending on when the original retirement plan owner dies, [some] beneficiaries have to pull the money out in five years, some have to pull the money out in 10 years while taking required minimum distributions (RMDs) for the first nine years, some get to pull the money out in 10 years without RMDs over the first nine years, some get to pull the money out over their life expectancy, and there's even a beneficiary group that gets to stretch it over their life expectancy until they reach age 21, at which time they have to switch and follow the 10-year rule."  MORE >>


Managing 401(k) Plans in Light of an Evolving Definition of Retirement

"In some ways, retirement plan practices have lagged behind the growing longevity concerns facing workers.... The industry has been pushing annuities as one solution, although the market has been slow to adopt this approach.... [Employers] may want to encourage employees to seek more understanding of their own personal goals. This is most acutely important in the years immediately before retirement when the benefits of 'save early and often' no longer apply."  MORE >>

Fiduciary News; free registration required

Excessive Litigation Over Excessive Plan Fees in 2023 (PDF)

Infographic. "The pace of filings industry-wide remains elevated with no end in sight.... All types of plan sponsors are at risk.... It's not just large plans or plans with high fees getting sued.... Settlement activity continues to climb.... Defense costs mount regardless of merits.... A majority of claims filed since 2016 are still in active litigation, creating significant uncertainty."  MORE >>


Variable Annuity Plans (PDF)

"In this type of plan, the accrued benefit will increase or decrease based on the investment performance of the plan. This paper will discuss the mechanics of how this plan works as well as the pros and cons of the plan design. [The authors] also discuss a variety of plan options that can be used to tweak the performance of the plan as well as control the level of risk and who is primarily responsible for the underlying risks."  MORE >>

First Actuarial Consulting Team [FACT]


Our 401(k) audits improve client experience and reduce costs.

At PriceKubecka, we import, analyze, and validate plan data to reduce auditor hours to a fraction of traditional workflows. We’re done sooner and at a cost starting at $9,000. Let’s talk about your next audit.

Sponsored by PriceKubecka

Retirement Contributions, Hardship Distributions Both Increased in Q1

"Workers’ average contributions to workplace retirement plans to start the year increased 24% year-over-year to $1,880, and deferrals rose to an average of $820 from $660 last year. The average account balance in March dropped to $78,000 from $86,000 from one year ago. Hardship distributions were up a whopping 33% year-over-year in the first quarter."  MORE >>

PLANSPONSOR; free registration may be required

Pension Funded Status Worsens for the Second Consecutive Month Despite Investment Gains

"The funded status of the nation's 100 largest corporate defined benefit pension plans decreased by $7 billion during April ... As of April 30, the funded ratio fell to 99.5%, from 100.1% at the end of March. April saw the funding surplus from the beginning of the month change to a funding deficit of $7 billion by the end of the month."  MORE >>


U.S. Public Sector Pension Plans Intend to Build on Inflation Hedging Success

"The study with senior US public sector pension plan professionals who collectively help manage over $1.315 trillion, found 86% say their plan is well hedged against inflation -- more than a quarter (26%) believe their plan is 'very well' hedged.... Around two in three (66%) think they will increase allocations to commodities ... while 50% will boost allocation to infrastructure investing."  MORE >>

Ortec Finance

Public DB Plan Returns: Q1 2023 Update and Analysis

"[S]mall public plans outperformed larger public plans as the poorer returns of 2022 continue to work their way through alternative assets. Private equity returns report on a one-quarter lag, while private real estate utilizes an appraisal process that results in a smoothing of gains and losses over multiple quarters."  MORE >>


The National Retirement Risk Index: Version 2.0

"The National Retirement Risk Index captures the share of working-age households that could fall short in retirement. Recent upgrades to the Index allow for more accurate measurement and analysis. The retooled Index confirms earlier findings: half of households will not be able to maintain their standard of living when they retire."  MORE >>

Center for Retirement Research at Boston College

Retirement Plan Reforms in the Absence of a Retirement Policy

"[W]hile retirement savings in the United States remain largely tethered to employment -- with individual employers still serving as critical intermediaries -- the last decade has witnessed the rise of retirement plans that limit the role of employers.... The experience of participants in such plans is likely to shape retirement policy in the coming years."  MORE >>

Natalya Shnitser, via SSRN


A Time-Tested Way to Reduce Excessive Fee Litigation Against Plan Sponsors

"[M]ore and more plaintiffs' firms have moved into this area as settlement values have gone up, and more and more cases, against smaller and smaller plans, have been filed as a result.... Is there a solution to this dynamic? Yes, there is ... don't settle and instead try all cases to conclusion.... It will take awhile and, during that time period, require accepting a substantial increase in defense costs across the industry, but in the long run, it will reduce the number of suits, the amount of defense costs incurred and the amounts paid out in settlement,"  MORE >>

Stephen Rosenberg, The Wagner Law Group

Employee Benefits Jobs

View job as Regional Sales Director - Midwest
            for July Business Services

Regional Sales Director - Midwest

July Business Services

IL / IN / MN / MO / OH / WI

View job as Regional Sales Director - Midwest for July Business Services

View job as Retirement Plan Consultant
            for Definiti

Retirement Plan Consultant



View job as Retirement Plan Consultant for Definiti

Selected New Discussions

Participating Employer Wants to Start Separate 401(k) Plan

"I have a plan that has multiple Participating Employers in it. One of those PE's terminated with the original Employer 401(k) plan. They are wanting to start their own 401(k) plan. Would this cause any issues?"

BenefitsLink Message Boards

Testing When Plan Sponsor Becomes Part of Controlled Group Mid-Year

"Existing calendar 401(k) plan with Corp A. Becomes CG in November with Corp B Corp A has a 401(k) plan with eligibility of age 21/1 year of service with 1000 hour requirement Corp B has a 401(k) plan with eligibility of age 21/3 months of service. When will the 2 plans need to be tested together? How about if each plan passes the 410(b) and also 401(a)(4) on their own, can they be tested separately? Top heavy issues aside. What else am I not thinking of or not asking? May be something related to 410(b)(6)?"

BenefitsLink Message Boards

Press Releases

October Three Consulting Acquires Retirement Learning Center

October Three, LLC

HSA Bank Expands Offerings to Help Benefit Participants Cover Education Costs

HSA Bank

MultiPlan Acquires Leading Healthcare Data and Analytics Firm Benefits Science LLC


Heffernan Insurance Brokers Entity Acquires Stitz & Associates

Heffernan Insurance Brokers

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Restricted Stock & RSU Financial Planning: Insights From Leading Advisors

May 18, 2023 WEBINAR

Covering Coverage: You Need to Know This Stuff! (Repeat)

May 24, 2023 WEBINAR


IRA University

July 5, 2023 WEBINAR


Cash Balance Plans for Advisors

July 13, 2023 WEBINAR

Nova 401(k) Associates

ERISA 2023: The Evolving World

July 31, 2023 WEBINAR

PLI [Practising Law Institute]

Last Issue's Most Popular Items

SECURE 2.0: Plan Sponsor Considerations to Avoid a Long-Term Part-Time Mess

Hall Benefits Law

401(k) Diversification Is Not Working


IRS 2022-2023 Priority Guidance Plan: Third Quarter Update (PDF)

Internal Revenue Service [IRS]

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

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