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Retirement Plans Newsletter

April 1, 2024

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[Guidance Overview]

How DOL's Proposed Automatic Portability Regs Will Affect Defined Contribution Plans

"Under the proposed regulations, a transfer under an automatic portability program would qualify as a prohibited transaction exemption from ERISA as granted by the SECURE 2.0 Act. The proposed regulations also address rules for service providers that charge direct fees to plan sponsors instead of IRA owners. However, the plans involved -- both those transferring out the IRA funds (transfer-out plans) and those receiving the transferred IRA funds (transfer-in plans) -- must meet certain requirements[.]"  MORE >>

Hall Benefits Law

[Guidance Overview]

The New Fiduciary Rule, Part 26: Changes to PTE 2020-02 Affecting the Advisor

"[T]he most significant change for PTE 2020-02 is not the changes to its provisions, but that many more recommended transactions will need the relief provided by PTE 2020-02. The impact on individual advisors -- 'investment professionals' -- appears to be minimal…primarily additional disclosures. Once the disclosures are developed, the new work due to the changes should be largely done. From then on, the disclosures just need to be delivered…and possibly explained."  MORE >>

Plaintiffs Request Court Approval of $8.7M Settlement in ERISA Cyberattack Class Action Lawsuit

"The agreement, if approved by a Georgia federal judge, would resolve all claims brought against Horizon in response to a cyberattack that exposed the personally identifiable information (PII) of more than 100,000 Horizon customers and a potential settlement class of over four million individuals." [Sherwood v. Horizon Actuarial Services LLC, No. 22-1495 (N.D. Ga. settlement agreement filed Mar. 11, 2024)]  MORE >>

Holland & Knight

Seventh Circuit Orders Refund of Withdrawal Liability to Employer Where CBA Did Not Require It to Make Pension Contributions

"[T]he court held that under ERISA, Bulk Transport was not required to make contributions to the Fund on behalf of employees whose work was not covered by the CBA or the addendum. The court explained that the terms of pension contributions to multi-employer plans cannot be changed orally." [Bulk Transp. Corp. v. Teamsters Union No. 142 Pension Fund, No. 23-1563 (7th Cir. Mar. 22, 2024)]  MORE >>

Roberts Disability Law

Stakeholders to Discuss Retirement Rule with OMB

"Many stakeholders securing OMB meetings in the coming two weeks have previously expressed opposition to the rule and have called for it to be withdrawn in its entirety. Others have expressed support for the rule and are urging it to be finalized.... According to the OMB website, 14 different meetings with stakeholders are on the docket."  MORE >>

401(k) Specialist

Can ChatGPT be Your ERISA Counsel?

"ChatGPT 3.5 did a good job summarizing the issue, formatting an easy-to-read response, and providing generally accurate guidance on the correction.... The guidance was not exactly correct nor did it necessarily provide information a plan sponsor would need to fully implement a correction."  MORE >>

Faegre Drinker

FAS87 ASC715 Discount Rates and Moody's Rates, March 28, 2024

An unofficial monthly report of the Moody's Daily Long-term Corporate Bond Yield Averages and Moody's Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).  MORE >>

BenefitsLink Message Boards


American Benefits Council Comment Letter to EBSA on Proposed Regs for Automatic Portability Transactions

"DOL should remove the aspect of the proposal that requires a plan sponsor to appoint a special plan official specifically charged with monitoring APTs. This is unnecessary micromanagement of a plan sponsor's fiduciary process to monitor service providers and plan transactions. DOL should remove the unnecessary disqualification provisions it has copied from the QPAM changes, which could cause unnecessary disruption to plan sponsors."  MORE >>

American Benefits Council


Is the 401(k) Really a 'Horrible' Retirement Plan?

"A recent 'news' post about a blog post finds some curious 'faults' with the 401(k).... Apparently rather than saving for retirement, we're supposed to 'look for an investment that will pay for your desired standard of living. Make your money work for you, not the other way around.' What could go wrong?"  MORE >>

Data 'Points'


Using Behavioral Psychology to Improve Fiduciary Prudence

"[D]eveloping an ERISA-compliant decision-making process is relatively simple once the fiduciary understands the importance of 'controlling the controllables' as part of a prudent fiduciary process.... [E]valuating decisions based purely on results is flawed in that often results are influenced by factors which are beyond anyone's control. Fiduciaries should be evaluated on their ability to control the controllable."  MORE >>

The Prudent Investment Adviser Rules

Executive Compensation and Nonqualified Plans

Noncompete Covenants in Deferred Compensation Plans: Proceed with Caution

"A recent Delaware Supreme Court decision ... looks favorably on such forfeiture for competition provisions. But other states, especially California, continue to pass laws that create legal risks when incorporating restrictive covenants into compensation arrangements. And the FTC proposed (but has not yet adopted) a nationwide ban on many noncompetes. [This] article explores these recent developments and suggests steps employers should consider when incorporating restrictive covenants into their SERPs or other deferred compensation plans."  MORE >>

Troutman Pepper

Tax Return Checklist: Preventing Costly Mistakes with Stock Options, Restricted Stock, and ESPPs

"[1] Compensation income ... [2] Stock sales: capital gain or loss ... [3] Cost basis of company stock sales ... [4] Alternative Minimum Tax (AMT) ... [5] Equity comp income left off W-2 ... [6] Estimated taxes ... [7] IRS Form 1099-NEC for nonemployees."  MORE >>

Employee Benefits Jobs

View job as Retirement Plan Administrator for CPS Inc.

Retirement Plan Administrator

CPS Inc.


Selected New Discussions

401(k)/PSP for 2023

"I'm doing the plan document for another TPA, 401(k)/PSP with effective date of 1/1/2023 except there will be no deferrals for 2023, deferrals to start 1/1/24 and the other TPA says to me- leave the effective date 1/1/23, we won't use the 401(k) portion until 2024. I am more inclined to do a 401(k)/PSP effective 1/1/23 for the profit sharing with a 'special effective date of 1/1/24 for deferrals, which I think makes more sense. Owner only plan, no employees. Other thoughts?"

BenefitsLink Message Boards

Sole Prop Contributions to DB Plan

"If I understand correctly, a one-person owner of a business with a DB plan can ultimately contribute more than their W-2 to a DB plan. Can a Sole Proprietor (with no W-2 income) do that as well? Seems the subtraction on Schedule C would make it impossible."

BenefitsLink Message Boards

Press Releases

Social Security to Raise the Representative Fee Cap to Help with Claiming Benefits

Social Security Administration

IRALOGIX Teams Up with Shlomo Benartzi and PensionPlus to Offer Personalized Retirement Spending Solution


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Compensation Trends in M&A Transactions

May 9, 2024 WEBINAR

Williams Mullen

Last Issue's Most Popular Items

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

Motley Fool

IRS Updates Its Priority Guidance Plan

Haynes and Boone, LLP

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

MSN News

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

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