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Retirement Plans Newsletter

October 4, 2023

3 New Job Opportunities 3 New Job Opportunities


[Guidance Overview]

SECURE 2.0: IRS Provides Interim Guidance on Self-Correction Expansion

"This article lays out the particulars of IRS interim guidance on using SCP under SECURE 2.0, conditions that must be met to permit correction under SCP, which failures still are uncorrectable through SCP, and other topics addressed in the guidance."  MORE >>

KLB Benefits Law Group, via Bloomberg Law


ERISApedia -- Announcing: The Plan Distribution eSource

The Plan Distribution eSource, written by S. Derrin Watson, J.D addresses distributions extensively. An entire chapter explains the maze of 1099-R reporting. Numerous practical examples. For more information, please contact

Sponsored by ERISApedia

[Guidance Overview]

SECURE 2.0: Permissive Plan Design Changes and Corrections Effective in 2024

"[1] Treatment of student loan repayments as elective deferrals for purposes of matching contributions ... [2] Employers allowed to replace SIMPLE retirement accounts with safe harbor 401(k) plans during a plan year ... [3] Exemption for certain automatic portability transactions occurring 12 months after the SECURE 2.0 enactment date ... [4] Safe harbor for plan corrections of employee elective deferral failures."  MORE >>

Haynes and Boone, LLP

Plaintiffs Target Use of 401(k) Plan Forfeitures

"In both cases, the plans permitted the use of forfeitures for multiple purposes ... The plaintiffs allege that the plan fiduciaries violated their duties under ERISA by using the forfeitures to offset the employers' contribution obligation rather than some other purpose. They claim this decision amounts to a decision to use the forfeitures for the benefit of the employer rather than solely in the interest of the participants and beneficiaries." [Dimou v. Thermo Fisher Scientific, No. 23-1732 (S.D. Calif. complaint filed Sep. 19, 2023); Rodriguez v. Intuit, Inc., No. 23-5053 (N.D. Calif. complaint filed Oct. 2, 2023)]  MORE >>

Groom Law Group

Fedex Sued Over Formula Used to Calculate Some Pension Benefits

"The lawsuit said FedEx uses a mortality table containing data that is more than 50 years old 'resulting in monthly payments that are materially lower than they would be if defendants used conversion factors based on up-to-date, reasonable actuarial assumptions' ... Plaintiffs pointed out that FedEx uses more recent mortality table data when filing reports with the [SEC] to identify 'the present value of its benefit obligations under the plan for financial reporting purposes'[.]" [Watt vs. FedEx Corp., No. 23-2593 (W.D. Tenn. complaint filed Sep. 19, 2023)]  MORE >>

Pensions & Investments

ERISA Section 3(21)(A) and Discretion (PDF)

13 pages. "[F]iduciary status under ERISA does not hinge on the exercise of discretion in some cases because, under ERISA Section 3(21)(A), an entity that exercises any authority or control over the disposition of plan assets becomes a fiduciary."  MORE >>

The Wagner Law Group, via Benefits Law Journal

U.S. Corporate Pension Plans Funding Status, September 2023

"The aggregate funded ratio for U.S. corporate pension plans increased by an estimated 0.7 percentage points in September, ending the month at 105.3% ... This month's change in funded ratio can be attributed to a 5.4% decrease in liability value, partially offset by a 4.8% decrease in asset value."  MORE >>

Wilshire Associates

How Long Will Your Money Last in Retirement?

"This retirement readiness calculator is intended to provide a rough idea of how long your retirement savings and income will last. The estimate is based on your inputs and ... assumptions [including] an average inflation rate of 4%, a tax rate of 24% on income and the presumption that retirement withdrawals will be taxable events."  MORE >>

U.S. News & World Report


How the Genworth-BlackRock Lifepath Investment Imprudence Case Survived a Motion to Dismiss

"After striking out eight previous times ... Miller Shah finally succeeded in getting past the pleading stage by adding two types of 'evidence' of what it claims was a flawed fiduciary process: [1] that the 'sparse minutes' of the Genworth fiduciary committee did not mention monitoring the performance of the BlackRock investments and thus the committee did not monitor the investments; and [2] the Genworth IPS instructed plan fiduciaries to compare S&P 500 investments to the BlackRock investment results." [Trauernicht v. Genworth Financial Inc., No. 22-0532 (E.D. Va. Sep. 13, 2023)]  MORE >>

Euclid Specialty Managers


Pension Rights Center Statement to ERISA Advisory Council on Recordkeeping in the Electronic Age (PDF)

13 pages. "[W]hile [electronic recordkeeping] has made many of the quotidian aspects of ERISA plan administration quicker and less expensive, it has created new issues and sometimes compounded old unresolved ones.... [This] statement will [1] explore and make recommendations for record retention and participant record access; [2] discuss the potential fiduciary status of recordkeepers under Title I of ERISA and the responsibilities of a plan's named fiduciary where the recordkeeper is providing only ministerial services; and [3] and suggest the need to revisit the Department's notice and access regulations to increase the number of participants likely to create their own permanent benefits archive."  MORE >>

Pension Rights Center


Employee Ownership Could Be the Key to Solving Our Retirement Security Crisis

"We know for a fact that ESOPs boost people's savings. That is because ESOPs provide an opportunity for everyday Americans to own a piece of their employer.... [E]mployees at private, ESOP-owned companies have more than twice the average total retirement savings than Americans who work at non-ESOP companies."  MORE >>

Former Congressmen Ron Kind and Erik Paulsen, via The Hill

Employee Benefits Jobs

View job as Actuary
            for TWG Benefits


TWG Benefits


View job as Actuary for TWG Benefits

View job as Sales Support Manager
            for Alerus

Sales Support Manager



View job as Sales Support Manager for Alerus

View job as Retirement Plan Consultant
            for Definiti

Retirement Plan Consultant



View job as Retirement Plan Consultant for Definiti

Selected New Discussions

Applying the Proposed Rule on Use of Forfeitures

"Proposed rule published 2/27/2023. It did not receive many comments (ERIC, ARA, ABA, and ABC among the few that submitted comments). The proposed rule would establish a requirement to use forfeitures no later than 12 months following the close of the plan year in which the forfeitures were incurred. There is also a transition period for forfeitures incurred during plan years beginning before 1/1/24. These forfeitures will be treated as having been incurred in the first plan year that begins on or after 1/1/24, and have to be used no later than 12 months following the close of the PY. Proposed applicability date of 1/1/24, no final rule yet, but plan sponsors can rely on the regulation now. How are you handling this? Fire drill to use up forfeitures from past years to get in compliance? Plan document/amendment issues? Absent clarification, would you consider the use of forfeiture for the 2025 PY but allocated in 2026 as being used no later than 12 months following close of the PY?"

BenefitsLink Message Boards

Failure to Follow Participant Direction for Investment Choices

"A somewhat simplistic example: Plan has a default investment -- investment (A). Participant chooses to invest funds in (B) and (C). There is a failure on the part of the Employer/Plan Administrator to implement these investment choices, so for some period of time, Employer continues to deposit the Participant's funds into (A). What is the proper remedy here, IF the default investment underperforms the investment returns under (B) and (C)? I can't find that this falls under one of the fiduciary breach correction options under VFC. It does appear that the Participant can perhaps seek relief under IRC 502, as per the LaRue case, but I'm no lawyer, and the implications of various court cases can best be interpreted by those who are! Can the fiduciary simply compare the returns, and if the Participant 'lost' higher investment returns, just deposit the lost gain? If they don't, then does the Participant then have to go through the steps for an ERISA claim and first exhaust the administrative remedies available, then bring suit? (And an ERISA suit for very small returns would cost far more than the potential gain....) I'm sure this can't be all that uncommon, yet I find very little discussion of specific remedies or options. Maybe just a 'regular' PT -- correct and pay the penalty?"

BenefitsLink Message Boards

Press Releases

National Board for Health & Wellness Coaching Accredits ICARE's Recovery Coach Training (CPRC) for University of Wisconsin-Stevens Point

ICARE [International Center for Addiction and Recovery Education]

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

10b5-1 Trading Plans And Other SEC Rules Advisors Must Know

October 12, 2023 WEBINAR

IRA Reporting Requirements

November 7, 2023 WEBINAR


Deep Dive on Service Agreements

November 16, 2023 WEBINAR

American Bar Association Joint Committee on Employee Benefits [JCEB]

Last Issue's Most Popular Items

Recent IRS Snapshot Suggests Audit Interest in Timing of Employer Deductions of Retroactive Contributions to 401(k) Plans

Groom Law Group

The Vanguard Retirement Outlook: A National Perspective on Retirement Readiness (PDF)


Recommended Practices for ERISA Retirement Plan Administrative Fiduciaries

Verrill Dana LLP, via JDSupra

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

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