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Retirement Plans Newsletter

October 30, 2023

4 New Job Opportunities 4 New Job Opportunities


[Official Guidance]

Text of FRTIB Final Regs: Elimination of Mandatory Roth Distributions for Federal Thrift Savings Plan

"This direct final rule makes technical conforming revisions necessary to implement statutory amendments made by the SECURE 2.0 Act of 2022. Specifically, it eliminates the requirement to take mandatory Roth distributions.... This rule is effective on January 1, 2024, unless significant adverse comment is received by December 15, 2023."  MORE >>

Federal Retirement Thrift Investment Board [FRTIB]

[Guidance Overview]

IRS Issues Eagerly Awaited 2024 Defined Benefit Mortality Tables

"The regulation reflects the first update to the base mortality rates since 2018 and has a surprise adjustment to the mortality projection scale to reflect the impact of COVID-19 for 2020 through 2023. The final rule lets most sponsors using plan-specific mortality tables continue relying on them for 2024, but another IRS proposal addresses substitute mortality tables for 2025 and later valuation years."  MORE >>


[Guidance Overview]

Upcoming Deadline icon Special DOL Proxy Voting Rules Take Effect on December 1: Action Items for ERISA Plan Fiduciaries

"[F]iduciaries of ERISA plans that are invested in a Pooled Plan Asset Vehicle should confirm that, to the extent the ERISA plan was required to expressly or effectively agree to be subject to the Pooled Plan Asset Vehicle's IPS (and, accordingly, that the ERISA plan's IPS will not apply), a determination was made that the Pooled Plan Asset Vehicle's IPS is consistent with applicable ERISA requirements and otherwise complies with the ERISA plan's governing documents."  MORE >>


[Guidance Overview]

Retirement Plan Disaster Distributions May Be Available for Kansas Severe Storms

"[FEMA has] issued a disaster declaration ... for severe storms, straight-line winds, tornadoes, and flooding in Kansas, [which occurred July 14-21, 2023] ... Employers with qualified retirement plans may allow participants to take hardship distributions if they have incurred expenses and losses because of a FEMA-declared disaster, and their principal residence or place of employment at the time of the disaster is located in an area designated by FEMA as eligible for individual disaster assistance."  MORE >>


DOL to Roll Out New ‘Retirement Security Rule’ on Tuesday, October 31

"After months of anticipation, the [DOL] will release a new version of its proposed fiduciary rule for public comment on Oct. 31.... Referred to as the retirement security rule by the DOL, rather than the fiduciary rule (as most industry insiders call it) or conflict of interest rule (as the [DOL] referred to it), it would redefine fiduciary investment advice under [ERISA]."  MORE >>

American Retirement Association [ARA]

Plan Sponsors: Take a Close Look at Forfeiture Compliance

"At least four class action lawsuits have now been filed alleging that the plan fiduciaries engaged in self-dealing when they exercised their fiduciary discretion to allocate forfeitures to offset employer plan contributions instead of to offset plan expenses ... It is imperative that you closely examine [your plan document] concerning the treatment of forfeitures.... A closer look at your forfeiture account can help you ascertain whether forfeitures are being utilized correctly."  MORE >>

Boutwell Fay LLP

Federal Employee Thrift Savings Plan Will Implement SECURE 2.0 Changes to Catch-Up Contributions

"[T]he Thrift Savings Plan will use the entirety of a recently announced two-year 'transition period' to prepare to implement new rules governing how older federal employees can make catch-up contributions as they approach retirement."  MORE >>

Government Executive

Grow and and Protect Your Practice with MEP to PEP Conversions

"[M]ore than half of smaller employers surveyed by LIMRA that are considering a defined contribution plan are interested in learning more about PEPs, regardless of whether they have a retirement plan currently in place. With that in mind, there are multiple strategies you can consider -- not only to target employers who haven't yet adopted a retirement plan, but also to transition existing retirement plan clients into a PEP. Or even to convert existing MEPs to PEPs."  MORE >>


PBGC Approves $49 Million in SFA for Local 210’s Plan

"The plan, based in New York City, New York, covers 3,887 participants in the transportation industry ... [and] will receive approximately $49.3 million in special financial assistance ... The plan was projected to become insolvent and run out of money in 2026."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]


'Knew or Should Have Known': Annuities, Plan Sponsors, and Fiduciary Law, Part 1

"The SECURE Act provides a potential safe harbor against fiduciary liability for plan sponsors offering annuities within their plans in the event that the annuity issuer is subsequently unable to honor its legal obligations to plan participants.... [T]here are other significant potential liability issues with annuities that investment fiduciaries should be aware of, issues that, left unaddressed, effectively make most annuities potential fiduciary liability traps for plan sponsors and other investment fiduciaries."  MORE >>

The Prudent Investment Adviser Rules

Benefits in General

Cybersecurity Triggers a New Paradigm in Vendor Monitoring

"Traditional questionnaire-based evaluations and SOC 2 reports are insufficient for giving current information about a vendor's security posture. Plan fiduciaries must adopt a more intelligent and scientific approach ... to protect sensitive data, stay ahead of new threats, and ensure their providers are committed to upholding a solid security posture. Plan fiduciaries can improve their cybersecurity defenses and reduce the risks related to vendor relationships by employing continuous monitoring, quantifiable metrics, and rigorous testing."  MORE >>

Roland Criss

C-Suite's Input Is Key to Successful Health, 401(k) Plan Designs

"Evaluating and designing a benefits package that packs a punch is a big lift that requires the involvement of an organization's top decision makers and leaders. Too often, however, companies relegate all benefit-related tasks to just the human resources department ... The C-suite possesses the data and information necessary to make key benefits strategy decisions, such as growth and profit projections, anticipated personnel needs, merger and acquisition possibilities, financial analyses, and product-development goals."  MORE >>

BenefitsPro; free registration required

Employee Benefits Jobs

View job as Distribution and Loans Specialist
            for Bates & Company, Inc.

Distribution and Loans Specialist

Bates & Company, Inc.

Winter Park FL

View job as Distribution and Loans Specialist for Bates & Company, Inc.

View job as Plan Compliance Analyst (Administrator)
            for RPA

Plan Compliance Analyst (Administrator)


Remote / Falls Church VA

View job as Plan Compliance Analyst (Administrator) for RPA

View job as Senior Retirement Analyst
            for Dunbar, Bender & Zapf, Inc.

Senior Retirement Analyst

Dunbar, Bender & Zapf, Inc.

Remote / Pittsburgh PA

View job as Senior Retirement Analyst for Dunbar, Bender & Zapf, Inc.

View job as Retirement Plan Analyst – Defined Contribution Plans
            for M2B Retirement Consulting LLC

Retirement Plan Analyst – Defined Contribution Plans

M2B Retirement Consulting LLC

Remote / Wexford PA

View job as Retirement Plan Analyst – Defined Contribution Plans for M2B Retirement Consulting LLC

Selected New Discussions

SECURE 2.0 Terminal Illness Distributions

"Section 326 of SECURE 2.0 regarding terminal illness was effective December 29, 2022, and exempts benefit recipients from the 10% early distribution penalty if they have a terminal illness as defined in Act. They also can repay the distribution under the same terms that apply to the qualified birth or adoption distributions. The Plan Administrator is required to get a doctor's certification providing that the participant meets the statutory definition. IRS has not released any guidance on this. Are your plans administering this? Have your plans been amended for this? Do you intend to amend your plans for this?"

BenefitsLink Message Boards

RMD Due Date for Surviving Spouse

"Participant is still working at age 74 and therefore has delayed taking any RMDs under the still working exception. Participant dies on March 1s and their surviving spouse is the sole beneficiary. When is the first RMD due? December 31st of the year of death? April 1 in the year after death? Dec 31 in the year after death?"

BenefitsLink Message Boards

Leaving a PEP and Establishing a Standalone Plan

"I have a client who has a 401(k) in a PEP plan. They want to leave the PEP and transfer their existing employee balances to their new 401(k). Can they do this without triggering a distributable event? In short...they just want to escape the PEP and have their own standalone plan without allowing their employees to withdraw their existing funds. I was assuming they can...but wanted some thoughts on this."

BenefitsLink Message Boards

Press Releases

SPARK Institute Welcomes The Cerrado Group as Newest Member

SPARK Institute

Epstein Becker Green Expands Employee Benefits Practice with Five-Attorney Group in Pittsburgh

Epstein Becker Green

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Best Interest Principles: DOL Fiduciary Rule and SEC Guidance

October 31, 2023 WEBINAR

InvestorCOM Inc.

Investment Committees working with Investment Advisors (OCIO Method)

November 15, 2023 WEBINAR

Worldwide Employee Benefits Network [WEB] - Northeast Ohio Chapter

Building an Actuarial Practice

November 30, 2023 WEBINAR

American Society of Enrolled Actuaries [ASEA]

2024 BMC

January 17, 2024 in AZ

NIPA [National Institute of Pension Administrators]

Last Issue's Most Popular Items

Final Regs Update Pension Plan Mortality Tables and Proposed Regs Address COVID Impact on Substitute Tables

Groom Law Group

Draft of 2023 Instructions for IRS Form 8915-D: Qualified 2019 Disaster Retirement Plan Distributions and Repayments (PDF)

Internal Revenue Service [IRS]

American Airlines Again Moves to Dismiss Suit Challenging Inclusion of ESG Funds in Retirement Plan

Cadwalader, Wickersham & Taft LLP

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

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