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Retirement Plans Newsletter

March 29, 2024

4 New Job Opportunities 4 New Job Opportunities


[Official Guidance]

Social Security Eliminates Overpayment Burden for Social Security Beneficiaries

"The Social Security Administration announced it will decrease the default overpayment withholding rate for Social Security beneficiaries to ten percent (or $10, whichever is greater) from 100 percent ... There will be a short transition period where people will continue to experience the older policy. People placed in 100 percent withholding during this transition period should call Social Security's National 800 Number ... The change applies to new overpayments. If beneficiaries already have an overpayment with a withholding rate greater than ten percent and would like a lower recovery rate, they too should call Social Security[.]"  MORE >>

U.S. Social Security Administration [SSA]

[Guidance Overview]

SECURE 2.0 Automatic Enrollment Requirements

"A plan adopted before December 29, 2022, but not effective until after December 29, 2022, is not subject to mandatory automatic enrollment.... Employers that maintain or sponsor newly established 401(k) and 403(b) plans subject to mandatory automatic enrollment must establish the plan in a way that satisfies the requirements listed in Code Section 414A."  MORE >>

Jackson Lewis P.C.

ESG in 401(k) Plans in the Wake of Spence v. American Airlines

"The denial of a motion to dismiss in the Spence case may be alarming for retirement plan fiduciaries because the court set a very low bar for plaintiffs to meet in alleging fiduciary breaches that relate to ESG investments.... [T]he Spence court did not find that the plaintiffs needed to allege any specific defects in the Committee's fiduciary process to survive a motion to dismiss." [Spence v. American Airlines, Inc., No. 23-0552 (N.D. Tex. February 21, 2024; motion for summary judgment filed Feb. 26, 2024)]  MORE >>

Kilpatrick Townsend

Federal Appeals Court Orders Union Pension Fund to Repay Employer $2 Million

"[A] federal appeals court ordered a Teamsters pension fund to return approximately $2 million in withdrawal liability payments to an employer that had stopped contributing in 2005. The case is remarkable because the court ruled against the Teamsters pension fund by relying on a legal principle normally invoked by pension funds to extract additional contributions from employers." [Bulk Transport Corp. v. Teamsters Union No. 142 Pension Fund, No. 23-1563 (7th Cir. Mar. 22, 2024)]  MORE >>

Fisher Phillips

Pension Risk Transfer Considerations and Recent Litigation

"AT&T and Lockheed Martin both used the same insurance provider for their PRTs which plaintiffs characterized as a 'risky new insurance company' and not 'the safest annuity available' as [Interpretive Bulletin 95-1] would require. It is not clear whether similar concerns would be voiced with other insurance providers or if these cases are outliers based on a particular provider." [Piercy v. AT&T Inc., No. 24-10608 (D. Mass. complaint filed Mar. 11, 2024); Konya et al. v. Lockheed Martin Corp., No. 24-0750 (D. Md. complaint filed Mar. 13, 2024)]   MORE >>

Bricker Graydon

PBGC Says Central States Will Reimburse SFA Overpayment

"[PBGC] responded to a subpoena from a House committee addressing the repayment of a Special Financial Assistance Program overpayment to a multiemployer pension fund, saying the Department of Justice is working to recover the funds.... [The] subpoena requires him to provide documents and communications related to quantifying other potential overpayments to other plans; communications with Central States regarding collection; and communications with other agencies in the executive branch regarding collection, among other items."  MORE >>

PLANSPONSOR; free registration may be required

Corporate Transparency Act Compliance for Employee Stock Ownership Plans

"If no other exemption applies, then the ESOP-owned corporation will be required to report beneficial ownership (among other items) to FinCEN. Beneficial ownership analysis for purposes of the CTA must be conducted on a case-by-case basis ... [This article] attempts to provide some key considerations specific to ESOP-owned holding corporations"  MORE >>

Thompson Hine

Majority of Plan Sponsors Concerned Future Retirees Will Run Out of Money in Retirement

"When asked about the chances that an individual will live beyond age 86, 54% of plan sponsors underestimate that half of individuals will live beyond average life expectancy. Additionally, most plan sponsors (78%) underestimate the number of centenarians -- those who reach the age of 100 -- projected for the United States in the future.... [M]ore than half of plan sponsors (54%) identified inflation risk, a decline in purchasing power, as the greatest retirement risk, while 23% identified longevity as the greatest retirement risk."  MORE >>


Employers Can Support Gen Z in Saving

"A significant proportion of Gen Z is interested in employer assistance with their student loans ... [O]ther benefits ... members of Gen Z ... may find attractive ... [1] providing a financial planner with whom they can consult; [2] providing access to online financial services; and [3] putting in place a means by which they can make loan payments through automatic payroll deductions."  MORE >>

National Tax-Deferred Savings Association [NTSA]


BlackRock CEO Calls Retirement Age of 65 'Crazy': Here Are Reasons He's Wrong

"Here are four reasons he might be wrong about raising the retirement age.... [1] Many seniors would see lower benefits.... [2] It would especially hurt those who need social security the most.... [3] Many older workers face ageism.... [4] Most Americans don't have enough retirement savings."  MORE >>

Motley Fool


Billionaire Calls Retirement Age of 65 'Crazy': Here Are Reasons He's Right

"The billionaire investment advisor warned that the country is headed for a 'retirement crisis,' and that one way to avoid it is to convince more people to delay retirement beyond 65 years old.... [1] Longer lifespans mean longer retirements for many Americans.... [2] Social Security is heading into uncharted territory.... [3] Employer-sponsored retirement plans will grow."  MORE >>

MSN News

Benefits in General

Strategies to Avoid Burnout for Benefits Professionals

"Upgrade your communications channels to connect with a globally-dispersed, generationally-diverse workforce.... Implement a comprehensive total rewards management platform.... Rely on decision support tools to supplement your team.... Partner with the right compliance experts for your business."  MORE >>


IRS Updates Its Priority Guidance Plan

"The IRS recently released its second quarter update to its 2023-2024 Priority Guidance Plan, which contains several significant retirement, executive compensation, and health and welfare initiatives for this year."  MORE >>

Haynes and Boone, LLP

Illinois Temp Agencies Will Not Be Required to Pay Temp Workers Benefits Equal to Directly Hired Employees

"The federal court ... ruled that this benefits cash equivalency requirement is inconsistent with -- and pre-empted by -- federal benefits law (ERISA).... As of March 11, 2024 -- the date of the federal court's injunction -- staffing agencies are no longer required to provide temporary workers with the hourly cash equivalent of benefits." [Staffing Servs. Ass'n. of Ill. v. Flanagan, No. 23-16208 (N.D. Ill. Mar. 11, 2024)]  MORE >>

Taft Stettinius and Hollister Llp

Employee Benefits Jobs

View job as Third Party Administration Consultant for Modern Wealth Management

Third Party Administration Consultant

Modern Wealth Management

Remote / Overland Park KS / NY / Hybrid

View job as Retirement Specialist for Alerus

Retirement Specialist


Remote / MN / ND

View job as Retirement Specialist for Alerus

View job as Business Advisor, Retirement Specialist for Alerus

Business Advisor, Retirement Specialist


Fargo ND / Hopkins MN / Arden Hills MN

View job as Business Advisor, Retirement Specialist for Alerus

View job as Retirement Implementation Coordinator for Alerus

Retirement Implementation Coordinator


Remote / MN / ND

View job as Retirement Implementation Coordinator for Alerus

Selected New Discussions

In-Plan Roth Conversion

"Just a simple clarification... A client with a 5 participant 401(k) plan asked about the mega backdoor roth option. I explained that every year we max out the plan to the 415 limit, there is no room for a voluntary after tax contribution. Can she convert the PS contribution to ROTH each year with an in-plan conversion?"

BenefitsLink Message Boards


"Company A (which maintains a 401k plan) and Company B (which maintains a SIMPLE IRA) intend to create a JV. Company A will hold less than 80% interest in the JV after the transaction. Company B's employees will be transferred to Company A in connection with the transaction and become employees of Company A. The intent is to offer Company A's 401k plan to the former employees of Company B (who participated in the SIMPLE IRA) immediately after close. Post-closing the SIMPLE IRA will continue to be maintained by the JV or Company B.

  • Do you see any issue with offering former Company B's employees who become employees of Company A in connection with the transaction the ability to participate in Company A's 401k plan immediately after close? Post-closing Company A will not be in a controlled group of corporations that includes the JV or Company B. I'm assuming that the transaction will trigger a separation from service for former Company B's employees that come over to Company A.
  • Will the entity that maintains the SIMPLE IRA (either Company B or the JV) have an obligation to fund elective deferrals and employer contributions through the end of the calendar year for the employees who terminate with Company B and transfer employment to Company A?
  • If the JV/Company B do not have any employees post-closing would they be able to dissolve the SIMPLE IRA mid year?'

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

ERISA Moments Episode 21: The DOL Fiduciary Proposals and Rollover Recommendations


Faegre Drinker

2024 Workplace Benefits Conference

May 6, 2024 in FL


Last Issue's Most Popular Items

Qualified Plan Issues in Corporate Transactions: When Does a Transaction Trigger a 401(k) Participant's Right to a Distribution?

Reinhart Boerner Van Deuren s.c.

What Makes a TPA Great: How Technology Is Leveling the Playing Field

Ilene Ferenczy, via Stax•ai

Terminating an Overfunded Pension Plan: Who Gets the Excess?

USI Consulting Group

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

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