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Pension Changes for Single-Employer Plans in the American Rescue Plan Act

"While changes to the multi-employer system were designed to provide funding to significantly underfunded plans, the single-employer changes were designed to reduce the funding requirements for plans for the rest of the decade."

Defined Benefit Pension Plan Contributions: To 2021 and Beyond

"Some plan sponsors may choose to defer required 2020 plan contributions to January, 2021, while those companies having a good financial year may opt to contribute on the normal schedule, and may also contribute more than the required amount. The decision to defer 2020 plan contributions, effectively at least doubling their contribution requirements in 2021, should be made only after weighing the pros and cons."

Compensation Impacts of COVID-19

"Designing, implementing and analyzing compensation strategies as a part of an employer's total rewards strategy requires agility and stamina. Most importantly, organizations must utilize strong data to back a thorough understanding of what it takes today and will take in the future to balance business needs with the ability to attract, retain and reward employees using every total rewards tool, including compensation."

How to Successfully Navigate a DOL ESOP Investigation

"Because the DOL does not detail their selection process, understanding why your ESOP is under investigation remains unclear.... DOL enforcement agencies typically provide little advance notice, so knowing how to respond before an investigation begins is critical.... [T]he department does provide online access to its enforcement manual, detailing their internal audit guidelines and checklists."

Interactive Forecasting of DB Plan Results

"[This] case study illustrates the power of interactive modeling on understanding the extent that different variables, like cash contributions, long-term bond rates, and asset returns, affect the future outlook for the defined benefit pension plan."

PBGC Premium Savings with Quarterly Contributions

"Plan sponsors who have continued their 2020 plan year contributions will earn PBGC premium savings by reassigning the 2020 quarterly contributions to the 2019 plan year.... The savings to the variable rate premium is approximately 4.3 percent of the amount of contributions reassigned to the 2019 plan year.... A PBGC premium savings option also is available for plan sponsors who have planned to delay all 2020 contributions until December 31, 2020 -- if they are willing to accelerate all of the delayed contributions ... to October 15, 2020."

Conducting a Successful Benefits Enrollment for Employees Working Remotely

"[W]ith the pandemic continuing to force social distancing, employers won't be scheduling in-person enrollment meetings or health fairs. This year's enrollment calls for a new approach to reaching a remote workforce.... Video conferencing and webinars allow employers to present updates for the 2021 benefits package and also respond immediately to questions from employees."

IRS Issues CARES Act Guidance for Single-Employer DB Plans

"Many plan sponsors are considering taking advantage of the extended due date for the 2020 calendar year required contributions.... [1] Contribution amounts will be increased ... [2] An amended Form 5500 filing will be required.... [3] The audit report may need to be updated ... [4] The contribution deadline applies to excess contributions ... [5] AFTAP certification for 2020 may be lower ... [6] Prefunding Balance elections are also delayed ... [7] A Plan Sponsor may use the prior year AFTAP certification for any plan year occurring in 2020 ... [a] The election can be used for a 2019 plan year ... [b] Plan Sponsors must make the election ... [c] Election by the Plan Sponsor is a recertification ... [d] Presumptive AFTAP for the following year is based on the actual AFTAP."

PBGC Clarifies Rules Around Pension Plan Changes Made by CARES Act

"The PBGC clarified for employers that as long as they make their required contributions by the adjusted due date, no late contribution notice requirements are triggered. If contributions are not made by the revised dates, the usual reporting requirements will then apply."

IRS Issues Guidance for Mid-Year Reduction/Suspension of Safe Harbor Contributions

"This relief from the notice requirements does not apply to a plan amendment which reduces or suspends safe harbor matching contributions. That type of amendment would still need to provide a 30-day advance notice and an election opportunity before the reduction or suspension could take effect. The guidance and relief provided under Notice 2020-52 [also] applies to 403(b) plans that use the 401(m) safe harbor rules."