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Retirement Plans Newsletter

May 10, 2023

2 New Job Opportunities 2 New Job Opportunities


[Guidance Overview]

Retirement Savings for Long-Term, Part-Time Employees: What Is Changed with SECURE 2.0

"Plan sponsors should make sure they are tracking information on all employees, including part-time employees, and supplying it to their service providers.... Consider any plan design changes that may make administration easier. Will you use the plan's current eligibility age provisions, or default to the statutory age 21 for LTPTs? Should you allow all employees to make elective deferral contributions immediately, but limit employer contributions to only those with at least 1,000 hours?"  MORE >>


[Guidance Overview]

Retirement Plan Correction Solution: Missed RMDs

"The impact of the CARES Act ... Determine the missed Required Minimum Distribution ... Adjustment for earnings and multiple missed RMDS ... Excise tax and form ... Special IRS action: Notice 2022-53 ... The correction for missed RMDs."  MORE >>

Ferenczy Benefits Law Center

ERISA and Excessive Fee Litigation by the Numbers (PDF)

Infographic.  "Total damages (2010-2022): $1,110,434,468 ... 43% of cases settled or resolved at trial, 38% are still unresolved.  Only 11% have had a dismissal."  MORE >>

Sompo International

Roth 401(k) Contributions: Answers to Common Questions

"This FAQ is intended to help employers and employees in deciding whether to offer or utilize Roth contributions. It summarizes the differences between pre-tax and Roth contributions, how to avoid taxation on Roth distributions, and who may be the best candidates for Roth contributions."  MORE >>

Employee Fiduciary

Contribution Options for Small Cash Balance and Defined Benefit Plans

"[1] Minimum required contribution (CB and DB).... [2] Maximum deductible contribution (CB and DB).... [3] Contribution under an old funding method (mostly traditional DBs).... [4] Amount needed to bring assets in line with account balances (CB).... [5] The hypothetical allocations for the year (CB).... [6] Amount needed to bring funded ratio to a certain level less than 100% (CB or DB).... [7] Amount needed to bring PBGC variable-rate premium to $0 (CB or DB).... [8] Amount needed to achieve some tax goal (CB or DB)."  MORE >>

American Retirement Association [ARA]

Defined Contribution: The White Label Free Lunch (PDF)

"[R]esults suggest that even the naive diversification achieved through the 50/50 combinations dominates the stand-alone options from a distribution of outcomes perspective. Plan sponsors building white label options typically use more sophisticated approaches, combining multiple high conviction strategies with deliberate weightings to pursue desired risk levels, portfolio exposures and expected returns."  MORE >>


Aon, Astellas Pay to Settle CIT Conflict of Interest Litigation

"According to the initial class action complaint, London-based Aon allegedly replaced nine of the plan's 10 mutual fund options with its suite of collective investment trusts just two months after becoming a plan fiduciary. The CITs selected, according to the complaint, had been in place for three years, which the plaintiffs alleged was not enough time to report sufficient performance to be seen as the best option for participants."  MORE >>


CRS Report: Social Security Retirement Earnings Test -- How Earnings Affect Benefits

34 pages. "In 2022, the Social Security Administration's (SSA's) Office of the Chief Actuary (OCACT) estimated that, over the long-range projection period (the next 75 years), the elimination of the RET in 2025 for all beneficiaries would have a relatively small positive effect on the solvency of the Social Security Trust Funds. This is primarily due to the fact that the increases in permanent early retirement reductions for entitlement at age 62 are projected to outweigh the increases in benefit entitlements." [R41242 updated May 10, 2023]  MORE >>

Congressional Research Service [CRS]

CRS in Focus: Social Security Trust Fund Investment Practices

"Trust fund holdings -- about $2.83 trillion in U.S. Treasury securities in 2022 -- represent funds dedicated to pay current and future Social Security benefits. The effective interest rate earned on all obligations held by the trust funds in 2022 was 2.4%; the average interest rate on new special issues was 3.0%. The trust funds earned approximately $66.4 billion in interest in 2022, representing 5.4% of Social Security's total income."  MORE >>

Congressional Research Service [CRS]

CRS In Focus: Social Security’s Funding Shortfall

"Social Security's projected long-range funding shortfall is driven largely by demographic factors.... [T]he ratio of workers paying into the system to support each beneficiary is estimated to fall from 2.7 in 2023 to 2.4 in 2034.... Policy proposals to address Social Security's projected funding shortfall typically include a combination of revenue increases and benefit adjustments."  MORE >>

Congressional Research Service [CRS]


U.S. Chamber of Commerce Letter to EBSA: SECURE 2.0 Guidance Priorities (PDF)

12 pages. "[1] Overpayments ... [2] Exemption for certain automatic portability transactions ... [3] Eliminating unnecessary plan requirements related to unenrolled participants ... [4] Pension-linked emergency savings account ... [5] Retirement savings lost and found ... [6] Information needed for financial options risk mitigation ... [7] Employee ownership."  MORE >>

U.S. Chamber of Commerce

Benefits in General

Some Companies Offering Great Employee Benefits, Despite the 'Perkcession'

"With more and more workers expecting remote work opportunities, in-office perks are less in demand than employer flexibility on hybrid working.... [T]he apparent 'perkcession' appears more like a correction, cutting back the excess and keeping those benefits that are most valuable."  MORE >>


Looking to Attract and Retain Younger Workers? Offer Non-Traditional Benefits

"While a majority of younger workers consider traditional benefits (such as paid time off, medical, and retirement savings plans) very important, they also prioritize non-traditional benefits, including flexible work schedules, emergency savings benefits, tuition reimbursement, and financial, mental and health wellness programs."  MORE >>


Employee Benefits Jobs

View job as Plan Consultant (Relationship Manager)
            for Security Administrators, Inc

Plan Consultant (Relationship Manager)

Security Administrators, Inc

Remote / Binghamton NY / AL / AZ / CT / FL / IA / IL / IN / MA / MN / NC / NJ / OH / PA / TX

View job as Plan Consultant (Relationship Manager) for Security Administrators, Inc

View job as Actuary
            for Nyhart, part of FuturePlan by Ascensus


Nyhart, part of FuturePlan by Ascensus

Remote / Atlanta GA

View job as Actuary for Nyhart, part of FuturePlan by Ascensus

Selected New Discussions

Qualified Compensation for a 401(k) and After Tax Contributions

"I have a client who has 8 employees, 6 of which whom earn a salary and 2 of which who get distributions from the fund each month as their compensation. The distributions are not W-2 compensation. Is there any way that these 2 employees can contribute to a 401k sponsored by the employer? Is there anything on the plan design that would allow for this compensation to be considered qualified compensation for their 401k? If that is not the case is there anyway that they can contribute on an after tax basis or since they technically are not earning any income and since a person cannot contribute more to their 401k then they earn in a year are they unable to add to this 401k?"

BenefitsLink Message Boards

Is a Post-Retirement Commission Plan an ERISA Plan?

"The employer has a plan that provides all sales employees (having worked a specific number of years) will continue to receive commissions on the book of business they created as employees for several years past retirement. This is an actual plan, not individually designed agreements with the individual sales employees. Is this an ERISA plan? It clearly has an ongoing administrative scheme, it provides for a deferral of income past retirement, and provides for retirement income. Our concern is that the plan is broad-based. If it were limited to a 'top-hat' group, I don't think we have an issue (because we can take some relief from the 'top-hat' rules). This appears to be a pretty common type of plan, but I can't find any guidance on the topic."

BenefitsLink Message Boards

Press Releases

Richter-Gordon, Chamberlain Launch Firm to Vet Lifetime Income Options in 401(k)s

Annuity Research & Consulting

IRALOGIX Adds Two Senior Industry Experts to Leadership Team as It Continues to Revolutionize the IRA Landscape


PlanSource Product Release Springs into Personalization to Further Innovate Benefits Engagement with New Product Enhancement


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

SECURE Act 2.0: Reshaping The Retirement Landscape

May 23, 2023 WEBINAR

TRA [The Retirement Advantage]

Plan Documents: Obscure Qualification Provisions

June 15, 2023 WEBINAR


What You Need to Know About Autoportability

June 15, 2023 WEBINAR

American Bar Association Joint Committee on Employee Benefits [JCEB]

You Don’t Know What You’ve Got ‘til it’s Gone: Missing Participants

June 22, 2023 WEBINAR

Frost Brown Todd LLC

2023 Public Pension Funding Forum

August 20, 2023 in IL

National Conference on Public Employee Retirement Systems [NCPERS]

Last Issue's Most Popular Items

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

Trucker Huss

Excessive Litigation Over Excessive Plan Fees in 2023 (PDF)


Inherited Retirement Plan? How to Understand Payout Rules


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

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