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Retirement Plans Newsletter

May 12, 2023

4 New Job Opportunities 4 New Job Opportunities


[Guidance Overview]

Final Changes Announced to Forms 5500 and 5500-SF

"Although Phase III has been described as the final round of revisions to Forms 5500 and 5500-SF, certain elements of the September 2021 proposal are being deferred for further consideration and could be implemented at a later date."  MORE >>

Faegre Drinker

[Guidance Overview]

DOL Offers Some Good News for Annual Reporting by Smaller 401(k) Plans

"[F]or plan years beginning on or after January 1, 2023, an employer need only count people who have account balances. The DOL estimates that this change will reduce the number of plans that must prepare audited financial statements by 19,400. ... [E]mployers whose 401(k) plans are near the 100-participant large plan limit will want to be sure to avail themselves of [SECURE 2.0's] cash-out dollar increase to aid in keeping the plan under the limit."  MORE >>

Blank Rome LLP

[Guidance Overview]

Important Deadlines and Updates for Defined Benefit Plan Sponsors and Pre-Approved Plan Providers

"The adoption period for plan sponsors to restate their plans using a 3rd cycle document began on April 1, 2023 and ends on March 31, 2025.... [T]he submission window for the 4th RAC has not yet been opened. [The authors] anticipate an announcement later this year, setting the on-cycle submission window for plan providers from February 1, 2024, through January 31, 2025."  MORE >>

Boutwell Fay LLP

[Guidance Overview]

DOL Issues Field Assistance Bulletin on Annual Funding Notices for Multiemployer Plans That Receive Special Financial Assistance

"The preamble to [FAB 2023-01] acknowledges that the guidance does not address all questions that may arise, and states that absent further guidance, plans complying with the FAB will be considered to have followed a reasonable, good faith interpretation of the AFN requirements of ERISA section 101(f). It also recognizes that plans receiving SFA may have already issued AFNs prior to the release of the FAB, and such plans should consider whether it is appropriate to provide participants with additional information in light of the FAB."  MORE >>

Groom Law Group

[Guidance Overview]

How SECURE 2.0 Will Impact Your Retirement Plan Starting in 2025 and Beyond

"While most provisions will take affect within the next two years, it is important for plan sponsors and service providers to become familiar with the 2025 and later provisions so potential operational roadblocks can be addressed and changes can be quickly implemented when the deadline approaches."  MORE >>

Spectrum Consultants

[Guidance Overview]

SECURE 2.0 Encourages Employers to Expand Employee Benefits (PDF)

"401(k) plans are moving away from serving as voluntary retirement savings vehicles and towards a future where plans are mandatory and serve as a financial backstop to more than just retirement."  MORE >>

Groom Law Group, via Benefits PRO

[Guidance Overview]

SBA Adopts New Guidance Making Loans to ESOPs Much Easier

"In prior rulings, the SBA had required an equity infusion of at least 10% when an ESOP bought a company. That is an impractical requirement in most ESOP transactions. The SBA eliminated this requirement on May 9 in Procedural Notice 5000-846607. In the new May 9 guidance, the SBA also said that personal loan guarantees in ESOPs will apply only if the ESOP is buying less than a controlling interest, easing some prior ambiguity."  MORE >>

National Center for Employee Ownership [NCEO]

Unqualified Expert Tanks 401(k) Fee Class Action

"[T]he court concluded that the plaintiffs' expert was not qualified to testify competently regarding the 2015 RFP because he admitted he had never conducted an RFP, had not responded to an RFP in nearly 40 years, and acknowledged that he would have to rely on the expertise of a consultant to determine how the defendants should have conducted the RFP process." [Huang v. TriNet HR III, Inc., No. 20-cv-2293 (M.D. Fla. Apr. 26, 2023)]  MORE >>

Miller & Chevalier


Working Longer and Population Aging in the U.S.: Why Delayed Retirement

"[P]recarious working conditions, family caregiving responsibilities, poor health, and age discrimination make it difficult or impossible for many to work into their late 60s and beyond.... [The authors'] findings suggest that working longer is set in motion long before one's 60s; it is structured by a life course history of working steadily through one's 50s.... [P]olicies affecting work and policies affecting retirement are two sides of the same coin and must be considered together."  MORE >>

Upjohn Institute


Fiduciary Principles Need to Be Reaffirmed and Strengthened in Public Pension Plans

"Getting on track will likely require a combination of ensuring the qualifications of plan fiduciaries responsible for investing, holding fiduciaries accountable for acting in accordance with fiduciary principles, limiting the ability of nonfiduciaries to undermine and interfere with fiduciaries, and separating the fiduciary function of investment management from settlor functions like setting funding policy and determining benefit levels."  MORE >>

Reason Foundation

Employee Benefits Jobs

View job as Plan Health Consultant
            for Vestwell

Plan Health Consultant


Remote / NY

View job as Plan Health Consultant for Vestwell

View job as Relationship Manager
            for Executive Search - CPS Inc

Relationship Manager

Executive Search - CPS Inc

Remote / Irvine CA / New Orleans LA / Chicago IL / Lake Oswego OR / Aurora CO

View job as Enrolled Actuary
            for FuturePlan, by Ascensus

Enrolled Actuary

FuturePlan, by Ascensus

Remote / Chicago IL

View job as Enrolled Actuary for FuturePlan, by Ascensus

View job as Senior Retirement Benefits Analyst
            for Maryland-National Capital Park & Planning Commission Employees' Retirement System

Senior Retirement Benefits Analyst

Maryland-National Capital Park & Planning Commission Employees' Retirement System

Riverdale MD

View job as Senior Retirement Benefits Analyst for Maryland-National Capital Park & Planning Commission Employees' Retirement System

Selected New Discussions

Plan Amendment for Employee Incorrectly Included

"EE who was under eligible age (21) was given a PS allocation last year (by small plan owner who thought they understood the plan). This has just been discovered upon annual TPA review. They have already filed their taxes and do not want to 'take money away' from that ee. Must it be an 11g amendment, or possible to change eligibility age from 21 to 20 retroactively for prior plan year?"

BenefitsLink Message Boards

Are Lawsuits Against Retirement Plan Fiduciaries Few in Proportion to the Number of Plans?

"Many practitioners recognize the wave of lawsuits asserting a retirement plan's fiduciary's breach in allowing unreasonable expenses began with the Schlichter firm's first few in 2006. An insurance business's infographic BenefitsLink helpfully points to shows an average of 83 fiduciary-breach lawsuits a year for 2019-2022. And it shows 625 lawsuits for 2010-2022. For 2009-2021, the Labor department's EFAST database shows an average of 833,722.4 Form 5500 reports a year. Year by year, some plans enter that count, some plans exit that count, and many plans continue over many years (and decades). Further, not all plans are pension or retirement plans, and of those not all are individual-account (defined-contribution) plans.... But extrapolating from these numbers and filling-in or assuming other facts, what's our guesstimate of the percentage of individual-account retirement plans' fiduciaries not sued? Is it 99%?"

BenefitsLink Message Boards

Late Deferral Contribution: Correction and Reporting

"Client had a late deposit for the 12/23/2022 pay date. The total deferral was $1,400 It was discovered, deposited and the lost earning were calculated and deposited into the plan in Feb 2023. Since the payroll was 12/23/2022 , is it considered late for 2022? Do we need to put on the 2022 5500 and complete the 5330 for 2022? Could this be corrected with self-correction and no need to report?"

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Fiduciary Best Practices – Let’s Talk About it!

July 11, 2023 WEBINAR

American Bar Association Joint Committee on Employee Benefits [JCEB]

Last Issue's Most Popular Items

401(k) Plans in Stock Purchase M&A Transactions: A Buyer's Guide to Choosing Termination or Merger

Morgan Lewis

SECURE 2.0 for Defined Benefit Plans

Watkins Ross

Clarifying the 'Reasonable Fee' Rule

Roland Criss

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

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