Retirement Plan Administrator
The Finway Group
in IA, Telecommute

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Distributions Retirement Planning
October 18, 2018 in CA
Western Pension & Benefits Council

Advanced Retirement Plan Benchmarking: Determining Reasonable Plan Fees When Providers Have Multiple Sources of Revenue
October 24, 2018 WEBCAST
University Conference Services

Executive Compensation Limitations: New IRS Section 162(m) Guidance and Key Planning Tips
November 13, 2018 WEBCAST
Strafford

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Helping Employees to Financial Wellness: Using a 401(k) Plan to Incentivize Employees to Reduce Their Student Loan Debt

"[C]onsiderations for an employer ... before adding [student loan repayment provisions] to the benefit program: ... [1] The plan will need to be amended and employee education will need to be provided. [2] The 401(k) plan recordkeeping system may need to be modified. [3] The employer may need to find the evidence that this provision will affect enough employees with student loans to be worth the potential cost of administrative changes on its end. [4] The employer will need to set up a protocol to confirm that the financial institution holding the student debt has received the appropriate payments by the employee." Milliman

IRS Retirement Plan Correction Program to Go Paperless

"Plan sponsors will continue to be permitted to file VCP submissions in paper form during a transition period ending April 1, 2019, at which point all VCP submissions will need to be made through the www.pay.gov website." Kilpatrick Townsend

Notes from Meeting of Actuaries 'Intersector Group' with PBGC, April 4, 2018 (PDF)

6 pages. Topics include: [1]  Distress terminations; [2] Update of PBGC assumptions; [3] De-risking activity; [4] Premium filings; [5] Multiemployer plan alternative withdrawal liability payment arrangements; [6] Multiemployer plan sponsors freezing legacy plans and starting new, separate plans. American Academy of Actuaries, Conference of Consulting Actuaries, Society of Actuaries, and ASPPA College of Pension Actuaries [ACOPA]

Court Finds GIC Provider is Not a Fiduciary

"The plaintiffs initially argued the contract is inappropriately structured per ERISA's demands and has enabled Principal to 'exercise its discretionary authority to retain unreasonably large and/or excessive profits rather than crediting the participants and beneficiaries of the plans with appropriate returns.' ... Principal successfully argued it is not a fiduciary for two reasons. First is the fact that Principal announces each new rate in advance, which allows participants time to decide whether to accept or reject the new rate.... Additionally, Principal argued the Principal Fixed Income Option is a guaranteed benefits policy (GBP) under ERISA, which means that the assets allocated to the option are not plan assets." [ Rozo v. Principal Life Ins. Co. , No. 14-463 (S.D. Iowa Sept. 25, 2018)]
PLANSPONSOR

OSF Healthcare Church Plan Challenge Dismissed

"OSF Healthcare System was founded by The Sisters of the Third Order of St. Francis. It operates 11 acute care hospitals, home health-care services and other health-care facilities in Illinois and Michigan.... A class of plan participants challenged its church-plan status, but [the judge said] that 'the undisputed facts demonstrate that OSF shares common religious bonds and convictions' with the Roman Catholic Church." [ Smith v. OSF Healthcare Sys. , No. 16-467 (S.D. Ill. Sept. 28, 2018)]
Pensions & Investments

An Introduction to Pension Risk Transfers (PDF)

"A lift-out transaction involves a subset of participants under a defined benefit plan. This subset may consist of retirees in pay status, or may also include terminated vested participants.... [1] Selecting an annuity provider ... [2] Negotiating the purchase agreement and group annuity contract ... [3] Administrative transition and premium adjustments ... [4] Annuity certificates." Eversheds Sutherland

How to Avoid Hidden 401(k) Fees

"One of the easiest ways to lower your costs is to look for cheaper investment options. Typically, the biggest bargains will be found among index funds ... If you work for a large employer, you may have another low-cost option: institutional funds, which may include lower-cost share classes of retail funds or collective investment trusts[.]" Consumer Reports

Strengthening Retirement Security: Return to Designing Retirement Plans Focused on Lifetime Income Strategies

"Supplemental DC plans were designed as tax advantaged savings vehicles for workers whose basic needs in retirement already would be met by a traditional DB plan. As a result, these core DC plans are primarily focused on wealth accumulation and preservation while failing to offer workers options to help them manage their income to last a lifetime." Georgetown University Center for Retirement Initiatives

Observations on the NIRS Private Retirement System Analysis: Data 'Minding' is In Order

"Last week the National Institute on Retirement Security released a report ... that claimed that the median retirement account balance among all working individuals is ... $0.00. Moreover, that same report claims that '57 percent (more than 100 million) of working age individuals do not own any retirement account assets in an employer-sponsored 401(k)-type plan, individual account or pension.' ... [M]uch of the data -- and key elements, such as wealth, income, participation and retirement savings -- that underlie the conclusions is 'self-reported' which ... even the report's authors acknowledge '...can be problematic...'.... [C]aution in applying the conclusions seems well-advised." Data 'Points'

DC Plan Customization to Drive Next Wave of Innovation

"[T]alk of open multiple employer plans is now widespread in the U.S.... These, like the U.K. and Australian master trusts, involve roles and responsibilities that traditionally fell to employers being taken on instead by a platform provider." Bob Collie, in Pensions & Investments

Sale of Business (Stock Sale) as of October 1; Effect on ADP Test?

A small business client has a 401k Plan that has to pass the ADP test for 2018. They are not Safe harbor. As of 10/1 the 100% owner is selling the stock to two previously rank and file employees. The plan has always passed the ADP test in prior years because the owner only deferred 2 percent more than these employees did. As of the end of the year, who is considered an HCE for the ADP test? Do the two new owners join the former owner in the HCE group, or does the previous owner become part of the NHCE group for ADP testing? Three other eligible NHCEs defer nothing. Any way around this for the year of sale? It looks like a possibility of the plan failing ADP. There is no match to consider. BenefitsLink Message Boards

Sponsor of Solo 401(k) Hires Employees: Must Now File 5500SF?

I have a solo 401k plan that now has employees. The solo plan has filed Form 5500-EZ for past several years. Can I transition the tax return automatically to the 5500SF because they now have employees or do I have to do anything with the 5500-EZ? BenefitsLink Message Boards

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Press Releases

David K. Young Consulting, LLC and Northeast Professional Planning Group, Inc Newly Formed Partnership David K. Young Consulting, LLC

South Carolina Medical Benefits Management Company Pays Former Employee for FMLA Violations U.S. Department of Labor

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Most Popular Items in the Previous Issue

Text of IRS Rev. Proc. 2018-52: Consolidated Statement of the Employee Plans Compliance Resolution System (PDF) Internal Revenue Service [IRS]

Multiemployer Defined Benefit Pension Plans: A Primer (PDF) Congressional Research Service [CRS]

Understanding Revenue Sharing and the Flow of Money in Retirement Plans (PDF) Grinkmeyer Leonard Financial