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Retirement Plans Newsletter

September 18, 2023

4 New Job Opportunities 4 New Job Opportunities


[Guidance Overview]

Exceptional Usefulness and Quality icon ERISA Section 408(b)(2): Is That Still a Thing? (PDF)

"[In a 2020] DOL investigation ... [it] became quickly apparent that the investigators had no idea what most recordkeepers provide to the TPAs regarding both formulaic and ad hoc revenue sharing. They were also surprised that the TPA being reviewed did not assiduously account for every dollar due and received from the recordkeepers. While they knew they wanted to make sure that the fee disclosure was comprehensive and accurate, they really didn't know what was in the realm of possibility nor what they desired within that realm."  MORE >>

Ferenczy Benefits Law Center

[Guidance Overview]

Upcoming Deadline icon October 16: Deadline for Correcting 2022 IRA Contributions

"A 6% penalty applies to excess contributions if not timely corrected. This penalty is not a one-and-done thing. It will apply every year that an excess contribution remains in the IRA. The only way to avoid the 6% penalty when an excess contribution occurs is to correct it by the October deadline. Also, if you are just changing your mind about a contribution that you are actually eligible to make, your ability to correct the IRA contribution will end with the October 16 deadline."  MORE >>

Slott Report

District Court Dismisses Lawsuit Challenging DOL's Crypto 'Guidance'

"We've known for some time that DOL was uncomfortable with the 'no holds barred' element of brokerage windows ... [Compliance Assistance Release 2022-01] can be seen as an expression by DOL of frustration with that situation, in the context of a particularly controversial asset class, crypto investments, and of its intention to continue look for ways to do something about it.... A similar dynamic is at work in ongoing litigation over DOL's fiduciary advice project -- with respect to which (again) DOL's attempt to change a rule it believes is out of date has been consistently frustrated by the courts but has nevertheless had an effect on the industry." [ForUsAll Inc. v. DOL, No. 22-1551 (D.D.C. Aug. 29, 2023)]  MORE >>

October Three Consulting

When Attorney-Client Privilege Applies Under ERISA

"A fiduciary acts as a settlor when taking actions such as starting or terminating a plan or when modifying features ... These discussions are privileged because the attorney is representing the company's interest. But when a fiduciary acts in a fiduciary capacity, once a plan is up and running, ... [a]ctions such as investment decisions and determining claims are for the benefit of the participants, and at those times, 'the plan beneficiaries are the attorney's clients,' technically speaking."  MORE >>


Is Now a Good Time to Buy That Single Premium Immediate Life Annuity?

"[The authors] examine the implied interest rate assumptions built into quotes from as of September 17, 2023 and compare the quotes and the implied interest rates with the results of the similar exercise ...[in January]. [They] also discuss a few other considerations that may affect your decision to buy a SPIA at this time."  MORE >>

Ken Steiner, FSA Retired

Most Americans Plan to Spend Less Than $2,000 a Month in Retirement -- Are They Being Realistic?

"Living on a monthly budget of around $1,500 might involve relocating to a more affordable city, gardening or growing your own food and embracing a minimalist lifestyle centered around community-driven experiences while cutting back on dining out and personal expenditures. While the idea of living on $2,000 per month might seem daunting to some, for others, it can lead to a comfortable and content, albeit simpler, retirement."  MORE >>

Associated Press via AOL


AI Is Coming for Our Jobs, But There’s One Thing It Can’t Replace

"AI can analyze data, detect patterns, and even make predictions. But can it truly understand a client's needs and wants? Can it empathize with a client who's anxious about retiring or celebrate with a client who's just reached a financial milestone? Can it build trust and create a lasting relationship? The answer is a resounding no."  MORE >>

Spencer X. Smith, via American Retirement Association [ARA]

Benefits in General

AI Is Radically Transforming Benefit Plan Management (PDF)

"Many plan committees are still digesting the cybersecurity guidelines issued by [EBSA] in 2021, only to be confronted by an explosion of concerns over the proliferation of AI apps in the hands of plan participants and AI-enabled systems coming into service with recordkeepers, payroll providers, health systems, and other vendors. Few fiduciary committees have fully realized AI's impact.... This article discusses initiatives that can help fiduciaries and suggests a course of action to benefit from them."  MORE >>

Roland Criss, via Journal of Compensation and Benefits

Supreme Court Asked to Weigh in on Arbitration, Again

"The justices have scheduled a Sept. 26 conference to determine if they will take the case ... The Supreme Court declined without comment to review petitions about arbitration in ERISA disputes in February 2019 ... and in January 2023 ... In both instances, employers sought to overturn pro-plaintiff rulings by federal appeals courts that said arbitration provisions in individual employment contracts didn't apply to class-action complaints under ERISA.... The Argent case is different because the arbitration agreement is inserted in Envision's employee stock ownership plan, an ERISA-protected defined contribution plan. Argent is the trustee." [Harrison v. Envision Mgmt. Holding, Inc. Bd. of Directors, No. 22-1098 (10th Cir. Feb. 9, 2023; cert. pet. filed Jul. 7, 2023)]  MORE >>

Pensions & Investments

Employee Benefits Jobs

View job as Team Leader - Compliance & Relationship Management
            for Compass Retirement Consulting Group, Inc.

Team Leader - Compliance & Relationship Management

Compass Retirement Consulting Group, Inc.


View job as Team Leader - Compliance & Relationship Management for Compass Retirement Consulting Group, Inc.

View job as Defined Benefit Software Support Specialist / Senior Actuarial Analyst
            for ASC - Actuarial Systems Corporation

Defined Benefit Software Support Specialist / Senior Actuarial Analyst

ASC - Actuarial Systems Corporation

Remote / Sylmar CA

View job as Defined Benefit Software Support Specialist / Senior Actuarial Analyst for ASC - Actuarial Systems Corporation

View job as Manager, Retirement Services Compliance
            for Insperity

Manager, Retirement Services Compliance


Kingwood TX / Hybrid

View job as Manager, Retirement Services Compliance for Insperity

View job as Product Support Specialist - DC Compliance
            for Wolters Kluwer -

Product Support Specialist - DC Compliance

Wolters Kluwer -


View job as Product Support Specialist - DC Compliance for Wolters Kluwer -

Selected New Discussions

Moving a 401(k) Plan to a Pooled Employer Plan

"A new client who has engaged my office to provide Consulting Services, has a 401(k) plan since 2001, and now wants to move to a Pooled Employer Plan. Where can I find detailed information regarding the transfer, along with the applicable Notices, potential Black-out period, etc. As one knows if a 401(k) plan is terminated a new one cannot be started immediately as a 12 month waiting period is in play. How does the preceding impact the transfer to a Pooled Employer Plan. There does not appear to be enough information to properly advise one's client on how to proceed."

BenefitsLink Message Boards

Effects of Cash Basis vs. Accrual in Compliance Testing

"Someone recently asked me what effect cash basis vs accrual reporting would have on compliance testing, and I drew a blank because all our plans are accrual. Now I'm thinking depending on timing of deposits limits could be exceeded (402g, 404c, 415). Maybe issues with 410b? Anyone have any thoughts here."

BenefitsLink Message Boards

Automatic Approval to Move to the Full Yield Curve for FT Purposes

"There has been a lot of talk recently about some plans switching to use the full yield curve for funding purposes to save PBGC premiums, and enjoying an automatic IRS approval to do so. Is this really automatically approved for all plans/circumstances? Section 1.430(h)(2)-1(b) indicates to use segment rates for the month containing the valuation date. Alternately, under Section 1.430(h)(2)-1(e)(1) & [2] you can elect to use segment rates with up to a 4 month lookback. Most plan I've seen use segment rates with a lookback. Section 1.430(h)(2)-1(e)(1) further indicates 'Any election in this paragraph (e) may be adopted for a plan year without obtaining the consent of the Commissioner, but, once adopted, that election will apply for that plan year and all future plan years and may be changed only with the consent of the Commissioner.' So, it appears a plan that elected to use segment rates with a lookback does not get automatic approval to switch to the full yield curve under Section 1.430(h)(2)-1(e)(4). What am I missing here? Initially, I was always under the impression that you can have automatic approval to switch the full yield curve, but the analysis above seems to contradict that."

BenefitsLink Message Boards

Press Releases

New Digital Benchmarking Research Identifies Fidelity, Empower, TIAA and T. Rowe Price as Top for Retirement Plan Participant Digital Experience

Corporate Insight

HUB International Launches HUB Retirement Select 100+ Pooled Employer Plan

HUB International

Kantor & Kantor, LLP Attorneys Named Among 2024 Best Lawyers in America® and Best Lawyers: Ones to Watch® in America

Kantor & Kantor LLP

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Navigating the Latest Form 5500 Updates for Employee Benefit Plans



Certificate Program for Non-Professional ESOP Fiduciaries

October 2, 2023 in OH

Ohio Employee Ownership Center

Last Issue's Most Popular Items

A Condensed History of the DOL's Fiduciary Rule

PLANSPONSOR; free registration may be required

CRS in Focus: Conflict of Interest in Investment Advice Within Retirement Plans -- an Overview

Congressional Research Service [CRS]

Text of IRS Notice 2023-66: Weighted Average Interest Rates, Yield Curves, and Segment Rates for September 2023 (PDF)

Internal Revenue Service [IRS]

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

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