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Retirement Plans Newsletter

October 26, 2023

2 New Job Opportunities 2 New Job Opportunities


[Guidance Overview]

Common Mistakes in 457 Plans of Tax-Exempt Organizations

"[C]onfusion still exists between 457(b) plans and 457(f) plans ... As top hat plans, [exempt organization (EO)] 457(b) plans need not file an annual Form 5500 return but must file a one-time top hat statement with the [DOL]. EO 457(b) plans also have special rules about elective deferrals by participants ... 457(b) plans have an annual contribution limit for 2023 of $22,500, which happens to be the same as the contribution limit for a 401(k) or 403(b) plan. However, these are independent and separate contribution limits."  MORE >>

Hall Benefits Law

New PTE Procedures Could Be Coming Soon

"[The OMB] regulatory review dashboard shows that a final rule updating the prohibited transaction exemption procedures was submitted for review by [EBSA] on Oct. 24.... [A] summary description explains that the guidance will revise the department's procedure for granting prohibited transaction exemptions, which was last updated in 2011."  MORE >>

American Retirement Association [ARA]

Will Gen Z Employees Be Able to Save Enough in Their Defined Contribution Plan to Retire? (PDF)

"Changing retirement from age 65 to age 67 has a dramatic impact, improving the worst case for running out of retirement savings by six years ... [A] 1% increase in the participant savings rate improves the worst case by three years and, in most cases, the participant should have the ability to maintain their lifestyle in retirement ... Increasing the company match from 50% to 100% on the first 5% of participant savings ... has about the same impact on participant outcomes as ... deferring retirement to age 67."  MORE >>


Changes in 401(k) Plan Asset Allocation Among Consistent Participants, 2016-2020

"Consistent 401(k) participants' exposure to equities was relatively unchanged between year-end 2016 and year-end 2020.... Older consistent 401(k) participants increased their exposure to target date funds between year-end 2016 and year-end 2020.... Most consistent 401(k) participants who were fully invested in target date funds at year-end 2016 remained fully invested in target date funds at year-end 2020."  MORE >>

Employee Benefit Research Institute [EBRI]

Demystifying the ESOP Feasibility Study

"A feasibility study needs to look at financing options, how much the ESOP should acquire, becoming (or staying) C or S, either to take advantage of the tax deferral on the sale of stock to an ESOP, different rules for participation in the plan, how much to sell in the transaction, and how much a transaction would cost.... Make sure that the 'suitability' concerns of all the constituents are addressed first. The feasibility study should then measure achievable and reasonable outcomes. Leveraged and non-leveraged alternatives should be considered."  MORE >>

Employee Benefits Law Group

Survey Says: What Do Participants Want from Their Retirement Benefits?

"[W]hat do retirement plan participants want from their 401(k) and other retirement plans? What features, services and support do they value the most? Surveys by leading retirement plan recordkeepers shed light on these questions, providing insights for employers and financial advisors.... Understanding what your employees want from their 401(k)s and other company retirement plans is crucial for creating effective and engaging retirement solutions."  MORE >>


Pensions Are Disappearing, But This May Be the Next Best Thing

"Since regular, reliable income is so desirable in retirement, those without pensions might want to consider annuities. With an annuity, you typically fork over a hefty lump sum (or a series of premiums) to an insurance company, and in exchange, it provides income to you.... Here are some of the main kinds of annuities you'll likely run across:"  MORE >>

Motley Fool

Determining an Accurate Personal Retirement Goal

"Answers to these two questions take a saver further down the road to understanding their PRG than any general survey: [1] When does the participant want to retire? [2] How much does the participant want in monthly income in retirement? ... [M]any retirement plan service providers have not taken the time to help participants define these two 'wants.' [This article provides] guidance on these two components of a personal retirement goal."  MORE >>

Fiduciary Benchmarks

Benefits in General

The Eastern District of Kentucky Enters the Fray, Compels Individual Arbitration

"The court agreed with the trustee that the Plan's waiver language was enforceable, following Sixth Circuit precedent ... Rejecting [the employees'] argument that the Plan provisions operated as a prospective waiver of statutory remedies under ERISA, the district court.... reasoned that '[a]n arbitration agreement thus does not alter or abridge substantive rights; it merely changes how those rights will be processed.' " [Merrow v. Horizon Bank, No. 22-123 (E.D. Ky. Oct. 24, 2023)]  MORE >>

Miller & Chevalier

Employee Benefits Jobs

View job as Enrolled Actuary
            for Robin S. Weingast & Associates

Enrolled Actuary

Robin S. Weingast & Associates

Remote / Garden City NY / Hybrid

View job as Enrolled Actuary for Robin S. Weingast & Associates

View job as Plan Consultant
            for Edberg Perry LLC

Plan Consultant

Edberg Perry LLC

AZ / Hybrid

View job as Plan Consultant for Edberg Perry LLC

Selected New Discussions

RMD for an As-Needed Employee

"Dentists are know for having 'prn' employees. These people fill in vacations, etc. Often they've worked in the past but left. So on one hand they terminated some time in the past but they are still getting paid now and then and getting a plan contribution since they were previously eligible. So if the person is 73, I suppose best to do an RMD to be safe."

BenefitsLink Message Boards

Press Releases

Candidly Expands Beyond Student Debt Solutions with Emergency Savings Solution to Build Financial Resilience


Hint Announces Partnership with Clearwater Benefits to Expand Member Healthcare and Prioritize Patient-Centric Care

Hint Health

News OneDigital Company Announces Launch of Broker-Carrier RFP and Quoting API Integration with MetLife


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Cybersecurity and Employee Benefit Plans: Where Are We Now?

December 13, 2023 WEBINAR

Worldwide Employee Benefits Network [WEB]

Last Issue's Most Popular Items

Results in New Wave of 401(k) Forfeiture Lawsuits May Hinge on Plan Terms

Bloomberg Law

Is Your Company Part of an Affiliated Service Group?

Employee Fiduciary

IRS Determination Letter Program Opens for 403(b) Plans

McDermott Will & Emery

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

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