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Retirement Plans Newsletter

May 25, 2023

2 New Job Opportunities 2 New Job Opportunities

 

[Official Guidance]

Text of IRS Notice 2023-43: Guidance on Section 305 of the SECURE 2.0 Act of 2022 with Respect to Expansion of the Employee Plans Compliance Resolution System (PDF)

10 pages. "This notice provides guidance in the form of questions and answers with respect to section 305 ... the SECURE 2.0 ... [which] provides for the expansion of the Employee Plans Compliance Resolution System (EPCRS) ... This notice is intended to assist taxpayers by providing interim guidance in advance of an update to Rev. Proc. 2021-30 ...

"Among other issues addressed, this notice [1] provides that a plan sponsor may self-correct an eligible inadvertent failure ... before Rev. Proc. 2021-30 is updated if certain conditions are satisfied and certain exceptions do not apply, [2] provides that a custodian of an individual retirement account ... or an individual retirement annuity ... may not correct an eligible inadvertent failure under EPCRS before Rev. Proc. 2021-30 is updated, and [3] provides interim interpretive guidance that applies with respect to corrections of eligible inadvertent failures.

"This notice does not address section 301 of the SECURE 2.0 Act, which relates to the recovery of plan overpayments, or section 350 of the SECURE 2.0 Act, which relates to correcting automatic contribution errors in a plan described in section 401(a), 403(b), 408, or 457(b) of the Code. This notice also does not address any elements of section 305 of the SECURE 2.0 Act over which the [DOL] has authority."  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

IRS Employee Plans News, May 24, 2023: 403(b) Determination Letters, Electronic Filing

"Beginning June 1, 2023, the IRS is expanding the determination letter program to include certain 403(b) plans.... [T]axpayers who are required to file at least 10 returns of any type during the calendar year must file electronically. Generally, the final regulation applies after 2023."  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

Milestone Retirement Reform Arrives: Key Provisions of SECURE 2.0 (PDF)

15 pages. "While certain elements of SECURE 2.0 build on provisions of other recent retirement reform, many provisions are novel, expansive, complex and, often, optional. Accordingly, employers, plan sponsors and administrators should consult with their ERISA counsel and familiarize themselves with SECURE 2.0, to decide which provisions it may adopt and, where applicable, to ensure a smooth and informed transition towards expanded retirement plan eligibility, flexibility and participation enhancement."  MORE >>

Davis & Gilbert LLP, via Employee Relations Law Journal

Congress Says It Will Fix at Least Four Errors in SECURE 2.0

"Congressional leaders wrote an open letter to Secretary of the Treasury Janet Yellen and IRS Commissioner Daniel Werfel clarifying what Congress intended with certain provisions of the SECURE 2.0 Act of 2022. In the letter, a bipartisan group of Senate and House members said they intend to correct those technical errors, but they did not spell out a timetable."  MORE >>

planadviser

The Who, When and Why of Independent Fiduciaries (PDF)

"[I]ndependent fiduciaries are needed when the plan sponsor may need to transfer plan decision making to an outside party to avoid being viewed as entering a conflicted, prohibited transaction under ERISA. This article will describe what an independent fiduciary is, the types of services it provides and examples of transactions where one may be needed. It will also discuss the [DOL's] recently proposed changes to the regulations for prohibited transaction exemptions (PTEs), which may make using an independent fiduciary more attractive."  MORE >>

benefits magazine, a publication of the International Foundation of Employee Benefit Plans [IFEBP]

Key Congressional Committee Approves Bill Allowing CITs in 403(b)s

"[T]he House Financial Services Committee approved an amended version of the Retirement Fairness for Charities and Educational Institutions Act (HR 3063) ... The bill ... would amend the Exchange Act to allow 403(b) retirement plans to invest in unregistered insurance contracts and CITs that currently may be invested in by comparable retirement plans, such as 401(k) plans."  MORE >>

American Retirement Association [ARA]

Since 2020, Retirement Readiness of Millennials Fell More Than Other Age Groups

"Following the cascade of economic effects from the COVID-19 pandemic and amidst continuing market volatility, retirement readiness for Millennials' -- individuals age 27 to 42 -- declined to 72 in 2023 from 82 in 2020, the greatest decline for a generational cohort ... Baby Boomers', ages 59 to 77, retirement readiness scores stayed flat at 87 in 2023; and Gen X workers', ages 43 to 58, readiness scores dropped to 79 in 2023 from 80 in [2020.]"  MORE >>

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[Opinion]

Now More Than Ever, Fiduciaries Must Revisit ERISA Origins (PDF)

"[The DOL's] issuance of regulations on considering ESG factors, in addition to satisfying ERISA's duty of loyalty to act for the exclusive benefit of plan participants, has put plan fiduciaries in a difficult position. An examination of ERISA's foundations and historical perspective is now more important than ever."  MORE >>

Cohen & Buckmann, P.C. via Law360

Benefits in General

Construction Contractor Must Pay Subcontractors' Union Fringe Benefit Fund Contributions Due to Subcontract Language Deficiency

"The language in the Contractor's collective bargaining agreement with the union required the Contractor to assure that contributions for the Sub's employees be paid, but the language in the subcontractor agreement between the Contractor and Sub did not require the Sub to pay such contributions. The fringe benefit funds included pension/retirement and welfare funds." [Trustees of the Operating Engineers' Local 324 Pension Fund, v. Tri-City Groundbreakers, Inc., and Edw. C. Levy Co., No. 21-11080(E.D. Mich. Feb., 2023)]  MORE >>

Frost Brown Todd LLC

Top Employee Benefits to Boost Satisfaction, Retention and Recruitment

"Flexible work hours were called out by 34% of employees and 40% of employers as a top benefit for remote workers. ... 26% of employees and 34% of employers named [work-provided equipment] a top remote-work benefit.... 17% of employees and 20% of employers named a home office stipend as a valuable perk for remote workers."  MORE >>

bswift

[Opinion]

What ChatGPT Could Mean for Benefits Communications

"Generative AI has the potential to transform the benefits communications landscape in a number of ways.... [1] Simplifying the complex and cumbersome ... [2] Creating content ... [3] Improving customer service ... [4] Generating ideas and brainstorming ... [5] Creating images."  MORE >>

Segal Benz

Executive Compensation and Nonqualified Plans

[Guidance Overview]

Framework of Dodd-Frank Act 'Clawback' Policy (Finally) Coming Into Focus

"[T]he NYSE and Nasdaq have issued proposed listing standards related to the recovery of erroneously awarded executive compensation, commonly referred to as the 'clawback' rules. The proposed listing standards closely follow the SEC's Rule 10D-1 issued under the Securities Exchange Act of 1934 (the 'Exchange Act') in October 2022."  MORE >>

Dickinson Wright PLLC

Employee Benefits Jobs

View job as Retirement Plan Specialist
            for Benefit Plans Plus, LLC

Retirement Plan Specialist

Benefit Plans Plus, LLC

Saint Louis MO / IL / Hybrid

View job as Retirement Plan Specialist for Benefit Plans Plus, LLC

View job as ERISA Desk Consultant
            for Retirement Learning Center

ERISA Desk Consultant

Retirement Learning Center

Remote

View job as ERISA Desk Consultant for Retirement Learning Center

Selected New Discussions

Can Anyone Locate CWM Retirement Plan Services?

"We are trying to provide TPA services to a plan that had, until 2019, been serviced by a TPA called CWM Retirement Plan Services, LLC, in Massachusetts. They have not responded to our communications in any form. I now understand that they were shut down quite suddenly and dramatically. It seems clear the owner is not available to provide any information. Is anyone aware of how we might be able to obtain records that had been held by CWM Retirement Plan Services? For example, did another TPA take over their files? Any help or information will be much appreciated."

BenefitsLink Message Boards

Form 5500 Rejection Due to Incomplete IQPA Report

"My client is undergoing an IRS audit. They filed a Form 5500 that requires and IQPA auditor's report, which was missing since the IRS is auditing the plan for issues in compensation utilized to determine benefits. My client received a rejection letter from the DOL. Any ideas on how to respond if the IRS has not completed its audit within the 45 day timeframe? I'm thinking that they should send the rejection letter to the IRS agent working on the audit and alert them of the ramifications of not correcting the Form 5500 in time."

BenefitsLink Message Boards

Is Startup Auto Enroll Tax Credit Available for Owner- and Spouse-Only Plan?

"Would they be able to receive $500 tax credit for adding auto enroll in Plan? It is only Owner and spouse in Plan. I know this isn't the spirit of the tax credit but if it is in Plan Document would it be able to be used? If anyone would be hired they'd be auto enrolled. I'm of the understanding that they wouldn't qualify for any of the other tax credits since there are no HCEs."

BenefitsLink Message Boards

Press Releases

Ophelia Expands Access to Opioid Addiction Treatment Across New York State, Now In-Network with MVP Healthcare

Ophelia

Court Orders Harvey Medical Practice, Owner to Restore $90k to Company's 401(k) Plan Due to Failure to Remit Plan Contributions

Employee Benefits Security Administration [EBSA], U.S. Department of Labor

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Millennials and Retirement

RECORDED

CAPTRUST Financial Advisors

Aggregation Aggravation: Identifying Controlled and Affiliated Service Groups

May 25, 2023 WEBINAR

ASPPA [American Society of Pension Professionals & Actuaries]

2023 ASPPA Annual

October 22, 2023 in MD

ASPPA [American Society of Pension Professionals & Actuaries]

Last Issue's Most Popular Items

Congress Tells Treasury SECURE 2.0 Corrections Are Coming

American Retirement Association [ARA]

SECURE 2.0 Provides New Options for Retirement Plan Distributions

Verrill Dana LLP

Participant Data Breach Hits Retirement Clearinghouse

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

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