Actuary
Summit Benefit & Actuarial Services
Telecommute

Salesperson - Internal TPA Plan Sales
Cetera Retirement Plan Specialists
in CT, DC, DE, MA, MD, ME, MI, NH, NJ, NY, OH, RI, VA, Telecommute

Benefit Manager
Pension Dynamics Company LLC
in CA

Pension Administrator
PPS Pension Services
in NY

Plan Administrator
Newport Group
in CA, TX

Internal Sales Consultant
Newport Group
in CA, NC

?See All Jobs

?Post a Job

All Day Event with Stephen Forbes
September 11, 2018 in MN
ASPPA Benefits Council [ABC] of Greater Twin Cities

Pension Plans: Impacting Savings and Talent Management
September 27, 2018 WEBCAST
Bloomberg BNA

?See 117 Upcoming Webcasts and Conferences

?See 1362 Recorded Webcasts

New Topics on the BenefitsLink Message Boards

New Comments and Topics

All Topics , Grouped by Forum

IRS Private Letter Ruling Will Help Clear the Way for 401(k) Plan Student Loan Benefits

"[T]he IRS concluded that the employer could make a non-elective contribution to its 401(k) plan, where the amount of the non-elective contribution would be based on an employee's total student loan repayments and would be contributed to the plan in lieu of the matching contributions that would otherwise be made to the plan had the employee made pre-tax, Roth 401(k) and/or after-tax contributions. The student loan benefit program detailed in [ PLR 201833012 ] includes a number of key features[.]"
McDermott Will & Emery

Don't let lost participants stop your plan termination process.

PBI's Fiduciary Locate Service ensures you have all the documentation guidance set forth by the DOL, IRS and PBGC. Contact us now to ensure your diligence obligation is completed and you can move ahead with your plan termination by year end.

IRS Weighs in on 401(k) 'Match' to Student Loan Repayments

"The IRS has approved an arrangement under which an employer 'matches' employee student loan repayments by making non-elective contributions to its 401(k) plan on behalf of the employees paying the loans.... The program described in [ Private Letter Ruling 201833012 ] solves the problem of low 401(k) plan participation by employees who are carrying student loan debt, allowing them to obtain the 'free' employer matching funds that they would otherwise forego."
E is for ERISA

Puerto Rico Treasury Department Extends Period to Make Hurricane-Related Retirement Plan Distributions

"Pursuant to AD 17-29, distributions from a qualified plan or an IRA on account of Hurricane Mar?a could be made from September 20, 2017 until June 30, 2018 (the 'eligible period'). On July 31, 2018, the PR Treasury issued Administrative Determination Number 18-13 extending the eligible period until November 30, 2018 to make eligible distributions pursuant to AD 17-29 and 18-02 . All other provisions under AD 17-29 and AD 18-02 remain in effect."
Littler

Eleventh Circuit: ESOP's Failure to Honor Plan Diversification Election Was Arbitrary and Capricious

"[T]he employer contended that the plan administrator's decision was supported by the fact that the Federal Reserve Bank had prohibited it from redeeming its stock. However, the appellate court, like the district court, rejected that argument as a post-hoc explanation for denying the participants' elections to diversify." [ Bryant v. Community Bankshares, Inc. , No. 17-15360 (11th Cir. June 12, 2018)]
Wolters Kluwer Law & Business

Federal Judge Sends Scottrade Case Back to State Court

"[W]hile Scottrade had argued that this case is of 'central concern' to ERISA, [the Massachusetts district court opinion states] that 'no federal issue is necessarily raised from the face of plaintiff's administrative complaint,' specifically that under Massachusetts state law: [1] Scottrade 'engaged in unethical or dishonest conduct or practices' ... and [2] Scottrade 'failed reasonably to supervise agents, investment adviser representative or other employees ...' -- going on to note that 'a court could resolve both claims without any analysis of the DOL Fiduciary Rule.' " [ Enforcement Section of the Massachusetts Securities Division of the Office of the Secretary of the Commonwealth v. Scottrade , No. 18-10508 (D. Mass Aug. 16, 2018)]
National Association of Plan Advisors [NAPA]

Available now! DATAIR's PPA DB & CB Plan Documents!

IRS-approved Defined Benefit and Cash Balance plan documents, including SPDs, forms and notices. Experienced and dedicated support team that includes actuaries. Special limited-time pricing. For more information: www.datair.com or 888-328-2474

The Tax Cuts and Jobs Act of 2017 Affects DB Plan Contributions

"The [reduction of] the corporate tax rate from 35% to 21% in 2018 may have an indirect impact on defined benefit plan sponsors. [The authors] explore this further ... What is the deadline for making these contributions to receive the higher tax deduction? ... What is trapped capital? ... What other advantages are there to funding more than the minimum required contribution? ... Will a large contribution reduce future required contributions to the plan? ... What is the industry trend for discretionary contributions? ... Where are companies finding the funds necessary to make these contributions? ... Is there anything else DB sponsors should be considering?" Russell Investments

When Former Employees and their Retirement Plans Can't Find Each Other

"[1] Lost pension plans: What happens when a worker or retiree can't find a pension plan? ... [2] Missing Participants: What happens when a pension plan can't find a retiree? ... [3] Omitted participants: what happens when an insurance company doesn't have the right information?" Pension Rights Center

Retirement Education Preferences: 2018 Participant Survey Results

16 pages. "[1] Survey participants ranked 'understanding available retirement planning tools and resources' as their top area of interest 25% of the time.... [2] Participants reported a variety of preferences for how they wish to receive retirement and financial education, including interactive and personalized experiences. [3] Those survey participants going through transitional periods ... seek more personalized support.... [4] Approximately a third of each age group surveyed said they know what their retirement plan is, but they want more help understanding and using the available tools and resources." CUNA Mutual Retirement Solutions

Illinois Secure Choice Retirement Savings Program May No Longer Be Mandatory

"The veto makes the Secure Choice program permissive, rather than mandatory.... The Governor noted ... concerns with the Secure Choice program [including] [1] Fewer small employers will sponsor retirement plans; [2] Small employers may terminate their existing company-sponsored plans; [3] Federal guidance has changed regarding the relationship of programs like Secure Choice with [ERISA]; and [4] The program has a history of delays and poor implementation." Jackson Lewis P.C.

How Should Social Security Adjust When People Live Longer?

"This brief outlines the implications of three approaches to adjusting Social Security for longer lives: [1] making no adjustment, which has applied over most of Social Security's history; [2] keeping constant the expected number of retirement years; and [3] keeping constant the relative share of life in retirement. Compared to age 65 retirement in 1940, people under each rule would retire in 2100 at age 65, 79, and 76, respectively." Urban Institute

How Would Indexing for Improvements in Life Expectancy Affect Social Security Trust Fund Balances?

"Adjusting Social Security retirement ages as people live longer would significantly improve trust fund balances over the long run, though it would have only modest effects in the short term. By the 75th year, Social Security actuaries project that raising the retirement age by indexing it to life expectancy would reduce annual deficits by one-third to one-half, depending on the adjustment, and improve actuarial balances by one-fifth to two-fifths." Urban Institute

Fundamental Unfairness: Defined Contribution Plans and the Courts

"[We] might see the plaintiffs' bar starting to plead these cases relying more on the [Restatement (Third) of Trusts] cost-efficiency standard in connection with the use actively managed mutual funds in pension plans.... [It] will put an end to the 'acceptable range of annual expense ratios' argument that plans have been arguing and, unbelievably, some courts have adopted ... [By] pleading the Restatement's cost-efficiency requirement for actively managed mutual funds, the plaintiffs' bar should be able to effectively prevent wrongful dismissals by the court based on the facts of the case[.]" The Prudent Investment Fiduciary Rules

Ninth Circuit Withdraws Altera Decision, Leaving the Tax Court Decision in Force for Now

"[T]he Tax Court [had] invalidated [Treas. Reg. 1.482-7A(d)(2)] which provides that in the context of qualified cost-sharing agreements the cost of employee stock compensation must be treated as a per se expense allocated between related parties.... On July 24, 2018, the Ninth Circuit by a vote of 2-1 reversed the Tax Court's [decision] ... Prior to the release of the opinion, one of the two judges who voted to reverse the Tax Court died.... The decision to withdraw the case ... was done by the Court and appears to be an admission by the Court that they made a mistake in allowing Judge Reinhardt's vote to be cast after he passed." [ Altera Corp. v. Comm'r , Nos. 16-70496, 16-70497 (9th Cir. Aug. 7, 2018)]
EisnerAmper

Effect of Top Heavy Status on Safe Harbor Plan That Excludes HCEs

Medical office has safe harbor match plan (no profit sharing funding). Plan excludes HCEs from the safe harbor match because there are a number of high-paid para-professionals. Plan is not top heavy at this point. But when it does become top heavy, certainly the non-key HCEs will need to receive 3% (since the key owners are deferring the max). And I assume ONLY the non-key HCEs who are excluded from the safe harbor match need to get the top heavy contribution (whether they deferred or not). The top heavy contribution would not need to be shared among all non-keys, correct? BenefitsLink Message Boards

? Subscribe to the BenefitsLink Message Boards Digest — a free daily email of all new discussions (not just the selected few shown above). View a sample issue .

Most Popular Items in the Previous Issue

Text of IRS PLR 201833012 Permitting 401(k) Employer Nonelective Contributions Conditioned on Student Loan Repayments (PDF) Internal Revenue Service [IRS]

More Americans Are Going Bankrupt in Retirement National Public Pension Coalition

Benefits Considerations for Seasonal Employees Transitioning to Ongoing Positions Morgan Lewis

Press Releases

In Remembrance, Bill Beyer Keightley & Ashner LLP

Blue Prairie Group Adds Veteran Retirement Plan Consultant Blue Prairie Group

Willis Towers Watson Appoints Don Delves as Executive Compensation Leader, North America Willis Towers Watson

View All Press Releases