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Retirement Plans Newsletter

October 4, 2024

3 New Job Opportunities 3 New Job Opportunities

 

[Guidance Overview]

IRS Issues Guidance for Long-Term, Part-Time Employees in 403(b) Plans

"ERISA-covered 403(b) plans, such as those maintained by many colleges and universities, may continue to exclude student employees, even if those employees would be considered long-term part-time employees ... [T]he guidance also permits ERISA covered 403(b) plans to exclude employees who are expected to work less than 20 hours per week, as long as those employees do not meet the definition of a long-term part-time employee."  MORE >>

American Retirement Association [ARA]

[Guidance Overview]

IRA and Employer Plan Disaster Relief

"The SECURE 2.0 Act permanently allows affected IRA owners and plan participants in 401(a) defined contribution plans (including 401(k) plans), 403(a) and 403(b) annuity plans, and governmental 457(b) plans to take penalty-free distributions and to borrow more from their retirement savings when a major disaster has been declared by the President. This article summarizes current federal disaster relief guidance."  MORE >>

Ascensus

[Guidance Overview]

DOL Submits to OMB a Retirement Savings Lost and Found Template for ERISA-Covered Plans

"The data upload template and instructions related to the proposal by the [DOL] to collect information from retirement plan administrators of ERISA-covered plans on a voluntary basis to populate the Retirement Savings Lost and Found (RSLF) database have been posted ... Based on public comments ... the agency reduced the amount of data it requests plan administrators to voluntarily provide ... Only information for separated vested participants aged 65 or older is requested."  MORE >>

Milliman

Cornell Workers' ERISA Case Will Be Reviewed by Supreme Court

"Cornell University workers [have] convinced the US Supreme Court to review a circuit split over how relationships between benefit plans and their service providers can be challenged under ERISA. The workers asked the justices to review the ... Second Circuit's 2023 decision addressing what benefit plan participants must allege to show that an arrangement between a plan and its service provider violates [ERISA's] prohibited transaction rules." [Cunningham v. Cornell Univ., No. 21-0088 (2d Cir. Nov. 14, 2023; cert. pet. granted Oct. 3, 2024)]  MORE >>

Bloomberg Law

Court Declines to Dismiss Suit Alleging ERISA Violations by 401(k) Plan Sponsor That Used Plan Forfeitures to Reduce Employer Contributions (PDF)

"As noted by the court, DOL and IRS regulations permit forfeitures to be used to pay administrative expenses, reduce future employer contributions, or make additional employer contributions. The issue is the plan language granting the plan sponsor the 'discretion to choose' among these methods. If the plan had instead provided that all forfeitures would first be used to reduce employer contributions and then to pay plan expenses, the plan sponsor would have acted in a ministerial manner without exercising discretion, and a claim alleging ERISA violations would likely fail." [Rodriguez v. Intuit Inc., No. 23-5053 (N.D. Cal. Aug. 12, 2024)]  MORE >>

Thomson Reuters / EBIA

First Multiemployer Pension Plan Risk Transfer

"All told the plan shifted 8,700 retirees and beneficiaries (just under 50% of the total retiree group) from the plan to the insurance company. The transaction reduced plan assets by about 9%.... Multiemployer Trustees have traditionally been more connected to their retirees than private employers and thus reluctant to engage in these types of transactions. For example, it is much more difficult to give cost of living increases to retirees who have had their annuity purchased by an insurance company."  MORE >>

Bolton

Apollo, Athene Working on Alts, Annuities in DC Investing

"Apollo Global Management Inc. and its Athene Annuity & Life Co. insurance business emphasized during an investor day presentation that they consider alternative investments and in-plan annuities in defined contribution plans as a future growth area. The asset manager, which merged with insurance, annuity and pension risk transfer provider Athene in 2022, described to investors ... the 'massive need' for retirement products."  MORE >>

PLANSPONSOR; free registration may be required

Benefits in General

[Guidance Overview]

Proposed Corporate Minimum Tax Rules Generally Exempt Income Under Tax-Favored Benefit Plans

"Because a corporate tax on 'book income,' without adjustment, could include income and assets of tax-qualified pension and other post-retirement funds reported on a corporate taxpayer's financial statements, the Act includes an exemption for a covered benefit plan.... [P]roposed regulations detailing the scope of the 15% minimum tax and the required detailed calculations [were issued September 13]."  MORE >>

Groom Law Group

Executive Compensation and Nonqualified Plans

Third Circuit Affirms Judgment Awarding Top Hat Plan Participant Additional Benefits, Interest, Attorneys' Fees, and Costs

"The Bryn Mawr Board of Directors decided to use the Citi Rate to calculate and pay the lump-sum benefits. Campbell submitted a claim to the Bryn Mawr Board challenging the use of the Citi Rate.... Turning to the plain language of the Plan, the court found that the use of the Citi Rate was unreasonable. Section 6.2 expressly provides that ... the company was required to transfer cash in an amount equal to the discounted present value of all future benefits to each participant using the Treasury Rate. Termination of the Plan does not change this requirement." [Campbell v. Bd. of Dir. of Bryn Mawr Trust Co., No. 22-2723, (3d Cir. Oct. 3, 2024; unpub.)]  MORE >>

Roberts Disability Law

Employee Benefits Jobs

View job as Pension Plan Administrator for DeMars Pension Consulting Services, Inc.

Pension Plan Administrator

DeMars Pension Consulting Services, Inc.

Remote / Overland Park KS / Hybrid

View job as Pension Plan Administrator for DeMars Pension Consulting Services, Inc.
View job as Lead Transition Consultant - Retirement Plans for Ameritas

Lead Transition Consultant - Retirement Plans

Ameritas

Remote

View job as Lead Transition Consultant - Retirement Plans for Ameritas
View job as Retirement Services Manager for Alta Trust Company

Retirement Services Manager

Alta Trust Company

Lone Tree CO

View job as Retirement Services Manager for Alta Trust Company

Selected New Discussions

QNEC and Maxed Deferrals

"401(k) plan where employer missed depositing deferrals for an employee. The missed employee deferrals totaled $30,500. A QNEC will be made to correct this plus a match and earnings. Can he continue to defer to the plan and receive a match since we are still in the same plan year?"

BenefitsLink Message Boards

Adding Wife of Owner

"Wife of owner has worked but has not been on payroll. The plan requires 1000+ hours age 21, one year of entry. Is she eligible due to being the wife of owner or must she have been on payroll with the required service to actually enter the plan?"

BenefitsLink Message Boards

Press Releases

Income America Recognized as In-Plan Retirement Income Product/Service of the Year at the WealthManagement.com 2024 Industry Awards

American Century Investments

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Public Pension Insights 2024: A Comprehensive Survey on Compensation Trends

RECORDED

National Conference on Public Employee Retirement Systems [NCPERS]

DOL’s Rules Are Stayed: What Remains in Their Place?

October 4, 2024 PODCAST

Faegre Drinker

Last Issue's Most Popular Items

Text of IRS Notice 2024-73: Additional Guidance with Respect to Long-Term, Part-Time Employees, Including Guidance Regarding Application of Section 403(b)(12) to Long-Term, Part-Time Employees Under Section 403(b) Plans (PDF)

Internal Revenue Service [IRS]

Retirement Plan Sponsors Have Few 2024 Year-End Amendments

Mercer

Increased Penalties and Faster Enforcement: Potential Changes to the DOL's Form 5500 Penalty Program

Morgan Lewis

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

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