Get This Daily Newsletter by Email

BenefitsLink.com logo
EmployeeBenefitsJobs.com logo

Trusted Since 1995

Retirement Plans Newsletter

May 13, 2024

5 New Job Opportunities 5 New Job Opportunities

 

[Guidance Overview]

What Plan Sponsors Need to Know About DOL's Final QPAM Changes

"[S]ponsors won't need to take any immediate action in response to the changes. If a QPAM becomes ineligible to use the exemption in the future, it will need to notify the sponsor, who will have up to one year to assess and implement an appropriate course of action. DOL also confirmed that changes clarifying the scope of a QPAM's authority over plan transactions won't disrupt sponsors' routine monitoring activities and establishment of investment guidelines. The changes take effect on June 17."  MORE >>

Mercer

[Guidance Overview]

Exceptional Usefulness and Quality icon Who Owns Plan Forfeitures? New Cases Challenge IRS Guidance

"Plaintiffs in these suits have attempted to recast the decision how to apply forfeitures as a fiduciary determination, and claim that it is a prohibited transaction not to apply the forfeitures for the benefit of participants.... These cases may end up revolving on whether the plan language clearly permitted the use of forfeitures to reduce contributions. All plan sponsors should review their plan language to make sure their use of forfeitures is permitted by the plan text. It is preferable to list all three permissible uses in the plan text."  MORE >>

Cohen & Buckmann, P.C.

Cybersecurity Will Be Part of All DOL Retirement Plan Audits: What Plan Sponsors Must Do to Pass

"[T]he assumption some sponsors make that their plan uses Well-Known Vendor X, and so they can simply trust that this large vendor must maintain strong cybersecurity protections, is faulty ... A plan fiduciary still has to ... do their due diligence, document that they've done their due diligence, and make prudent decisions.' "  MORE >>

American Retirement Association [ARA]

Creating a Solid Missing Participant Policy

"[1] Involve the team.... [2] Clearly define 'missing' participants.... [3] Identify procedures to minimize missing participants.... [4] Define search procedures.... [5] Identify search documentation and retention.... [6] Conduct annual policy reviews."  MORE >>

Retirement Clearinghouse, via 401(k) Specialist

Employer 401(k) Matches for Student Debt Repayment: Killing Two Birds with One Stone? (PDF)

48 pages. "This article analyzes the potential impact of the 2022 SECURE 2.0 Act reform which permits employers to match contributions for student loan repayments, in 401(k) plans. [A] calibrated lifecycle model measures the impact of this reform on heterogeneous households' financial behavior and welfare.... [P]ost-reform, employees will repay more loan debt but reduce own retirement plan contributions, offset by higher employer-matching contributions that take loan repayments into account."  MORE >>

National Bureau of Economic Research [NBER]; purchase may be required for full document

Alaska 'Work and Save' Still on the Table

"SB 135 provides that an employer that does not offer a qualified retirement plan would be required to facilitate participation of its employees in the program. Eligible employees would be automatically enrolled in the program and make payroll deductions to an individual retirement savings account. They could opt out ... [A]ny person who earns compensation in Alaska would be eligible to voluntarily enroll in the program."  MORE >>

American Retirement Association [ARA]

CRS In Focus: Social Security Overview (PDF)

"How is Social Security financed? ... Who qualifies for benefits? ... How are benefits computed? ... Who is receiving benefits? ... How much do beneficiaries receive? ... What is Social Security's status?" [IF10426, updated May 10, 2024]  MORE >>

Congressional Research Service [CRS]

Current State of Social Security Operations and the Trust Funds (PDF)

38 presentation slides. Topics: [1] Current state of the Social Security Administration: SSA in the news; Staffing; and Key performance metrics. [2] Social Security trust funds: What are the trust funds; Trust fund mechanics; Historical and current numbers; Myths; and Potential solutions.  MORE >>

U.S. Social Security Administration [SSA]

Ohio State Teachers Board Election Gives Larger Majority to Reform Trustees

"[The] reformers have long been an advocate on behalf of retirees who have been angry over reduced and sometimes eliminated cost-of-living adjustments following the passage of a 2012 state law eliminating a 3% COLA and giving the board the authority to set them. Reformers have blamed investment management costs among other administrative costs and have promoted the idea of gutting investment staff and moving to all index funds."  MORE >>

Pensions & Investments

[Opinion]

Coalition Files Amicus Brief Supporting U.S. Supreme Court Review of Ninth Circuit Decision that Threatens to Explode Frivolous Litigation

"The amicus brief filed [by the coalition] in support of AT&T argues that: [1] The Ninth Circuit's decision renders standard and ubiquitous contracts ... in American retirement plans presumptively unlawful. [2] The Ninth Circuit's decision will open the floodgates to speculative claims regarding routine matters, multiplying frivolous litigation and costing employees and employers. [3] Allowing claims that all re-negotiations of service provider agreements are prohibited transactions unless proven otherwise will have far-reaching negative consequences for plan sponsors, fiduciaries, and participants." Bugielski v. AT&T Servs., Inc., No. 21-56196 (9th Cir. Nov. 8, 2023; cert pet. filed Apr. 5, 2024)]  MORE >>

The ERISA Industry Committee [ERIC]

Executive Compensation and Nonqualified Plans

[Guidance Overview]

FTC’s New Non-Compete Rule: FAQs for Employers

"What types of non-compete clauses are barred by the Rule? ... Who is considered a 'senior executive' under the Rule? ... Can an employer enforce an existing non-compete against a worker that qualifies as a senior executive? ... Are non-disclosure or non-solicitation provisions barred by the Rule? ... What are the notice requirements under the Rule? ... Do employers need to provide notice to former workers? ... Does the Rule have a safe harbor provision for employers?"  MORE >>

Nelson Mullins

[Guidance Overview]

FTC's Noncompete Ban Will Be Effective September 4

"The final rule was published in the Federal Register on May 8, 2024, and the FTC notes that its expected effective date is therefore September 4, 2024.... [T]he rule's effective date is employers' deadline to comply with the rule's notice requirement.... The final rule includes model language to assist employers in sending compliant notices to applicable workers, which can be delivered to workers via hand delivery, regular mail, email, and even text messages."  MORE >>

Winstead

[Guidance Overview]

Fallout After Sweeping FTC Ban on Noncompetes, Part 3: Impact on Mergers and Acquisitions

"One of the primary exemptions under Section 280G permits the company to establish by clear and convincing evidence that a payment is 'reasonable compensation' for services to be provided after the change in control, which includes refraining from providing services due to an enforceable noncompete covenant. To the extent that covenants based on noncompete clauses are unenforceable under the Final Rule, a significant tool used to reduce parachute tax penalties will cease to be available. T"  MORE >>

Morgan Lewis

Employee Benefits Jobs

View job as Defined Benefit Plan Administrator for Scott Retirement Advisors, Inc.

Defined Benefit Plan Administrator

Scott Retirement Advisors, Inc.

Remote

View job as Defined Benefit Plan Administrator for Scott Retirement Advisors, Inc.

View job as Retirement Plan Administrator for The Finway Group

Retirement Plan Administrator

The Finway Group

Remote / West Des Moines IA

View job as Retirement Plan Administrator for The Finway Group

View job as Plan Document Specialist for Definiti

Plan Document Specialist

Definiti

Remote

View job as Plan Document Specialist for Definiti

View job as Retirement Plan Consultant - 401(k) and/or DB for Compensation Planning Inc.

Retirement Plan Consultant - 401(k) and/or DB

Compensation Planning Inc.

Remote / Warwick RI

View job as Retirement Plan Consultant - 401(k) and/or DB for Compensation Planning Inc.

View job as Lead Transaction Specialist for EGPS

Lead Transaction Specialist

EGPS

Remote

View job as Lead Transaction Specialist for EGPS

Selected New Discussions

401(k) 12 Month Rule

"Does the 12 month rule (terminating 401(k) and starting a new plan) apply to a Solo 401(k) Plan? In December of 2023 solo 401(k) sponsor terminated his Roth 401(k) and rolled the funds to his Roth IRA. Now he wants to start another Solo 401(k) for 2024. Does the 12 month rule apply in which case he can not defer to the new plan until 2025?"

BenefitsLink Message Boards

Forged Consent to Change of Beneficiary

"If a Participant of a Plan during a Divorce changed their beneficiary designation from their sign and had someone else sign as the Wife to change it and to withdrawal, is that illegal and what can be done to make sure the other side receives their share of the Retirement?"

BenefitsLink Message Boards

Press Releases

PLANADVISER’S 2024 Retirement Plan Adviser of the Year Winners

PLANADVISER

Edelman Financial Engines Acquires Soundmark Wealth Management

Edelman Financial Engines

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

The Data, Empirical Information Fueling the Final Fiduciary Rule

RECORDED

ASPPA [American Society of Pension Professionals & Actuaries]

DOL’s Tim Hauser on the Final Fiduciary Rule’s Myths, Controversies

May 13, 2024 PODCAST

National Association of Plan Advisors [NAPA]

Drawing Conclusions: Moving Forward After the Release of DOL Fiduciary Rule 4.0

May 15, 2024 WEBINAR

Eversheds Sutherland

Last Issue's Most Popular Items

Form 5330 E-Filing Requirement Headache

Locke Lord LLP

IRS Issues Fact Sheet on Disaster Relief Distributions and Loans

CAPTRUST

A Long and Winding Road: DOL's Final Fiduciary Definition and Exemptions for Investment Advice

Eversheds Sutherland

Unsubscribe  |   Change Email Address

Search Past Issues   |   Privacy Policy

Submit an Article   |   Contact Us   |   Advertise Here

Copyright 2024 BenefitsLink.com, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

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

Links to web sites other than BenefitsLink.com and EmployeeBenefitsJobs.com are offered as a service to our readers. We are not involved in their production and are not responsible for their content.