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Retirement Plan Administrator
Great Lakes Pension Associates, Inc.
in MI

401(k) Retirement Plan Administrator
Pollard & Associates, Inc.
in MD

Retirement Operations Specialist
TRI-AD
in AZ, CA

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EBRI Retirement Security Projection Model (RSPM) - Analyzing Policy and Design Proposals
RECORDED
EBRI [Employee Benefit Research Institute]

Work in Retirement: Expectations vs. Reality - Insights From the 2018 Retirement Confidence Survey
RECORDED
EBRI [Employee Benefit Research Institute]

Defined Benefit Plans for Account Balance Minds
January 16, 2019 WEBCAST
ASPPA [American Society of Pension Professionals & Actuaries]

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New Topics on the BenefitsLink Message Boards

New Comments and Topics

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IRS Proposes Changes to Hardship Distribution Regs

"[B]efore the end of the year, plan sponsors are encouraged to ... [1] Review hardship distribution provisions in Code Sec. 401(k) and 403(b) plan documents. [2] Determine which of the modifications described in the proposed regulation apply to the plan, and when or whether to implement any changes, including the adoption of related plan amendments. [3] Review and discuss any operational changes ... with third-party administrators."
McGuireWoods

SALGBA Regional Conference Henderson, NV

SALGBA is holding a Regional Conference January 14-16 in Henderson, NV. The conference is being hosted by the State of Nevada. More information please visit www.salgba.org .

IRS Proposed Regs Implementing Changes to Hardship Distribution Rules

"Many employers use volume submitter or prototype plan documents, and many of those document providers are making default changes to the hardship rules of those plans. Employers may need to determine whether they want to use the provider's default changes or do something different. Similarly, sponsors of individually designed plans may also want to speak with their third-party administrators about any changes being contemplated. The exact date that plan amendments will be required to implement the changes ... is not yet known." Jackson Lewis P.C.

IRS Reminder: Pre-Approved Filing Deadline Rapidly Approaching

"The on-cycle filing deadline for third cycle pre-approved defined contribution plans ends December 31, 2018. Please note the changes to the mailing address and shortened response times for follow-up requests for third cycle applications." Internal Revenue Service [IRS]

Finding Missing Participants in Your 401(k) Plan

"Send a certified letter to the participant's last known address.... Review other company and plan related records for an updated information.... [C]ontact the designated beneficiaries to obtain current contact information.... [C]heck employee records for an 'in case of emergency' contact.... Use free electronic search tools." Watkins Ross

The Complete Guide to a Fast, Pain-Free 401(k) Audit

"[1] What is the 401(k) audit? ... [2] Do you need a large plan audit? ... [3] 401(k) audit deadlines.... [4] The 401(k) audit process.... [5] 401(k) audited financial statement example.... [6] Tips for a smooth audit.... [7] How to find a good 401(k) auditor." ForUsAll

Now is a great time to join Worldwide Employee Benefits Network (WEB)

Worldwide Employee Benefits Network provides me a forum for education and information exchange with other Benefits Executives. Join today .

Are RMDs Required for a Retiree Turned Independent Contractor?

"Based on her age and the fact that you mention she will no longer be an employee as of the end of 2018, her first RMD will be due no later than April 1, 2019. That brings us to the more complicated part of the question...whether or not she truly ceases to be an employee when her new work arrangement starts on December 1, 2018. Unfortunately, the answer is not as clear cut as simply looking at the agreement you made with her or the fact that she now receives a 1099 rather than a W2 to report her pay. Instead, the IRS says that the employment/contractor status is based on who controls the arrangement." DWC

Current Concerns of 401(k) Plan Sponsors

"[1] Hardship withdrawals ... [2] Compliance ... [3] Sustainability ... [4] Low participation rates ... [5] Low savings rates ... [6] Costs ... [7] Fiduciary liability." Fiduciary News

Sweeping Tax, Retirement Bill Released in House

"The bill directs the IRS commissioner to submit a plan to restructure the agency, with a focus on boosting taxpayer service and cybersecurity, by Sept. 30, 2020.... [It also] includes provisions on multiple employer plans; pooled employer plans; rules relating to election of safe harbor 401(k) status; certain taxable non-tuition fellowship and stipend payments treated as compensation for IRA purposes; and repeal of maximum age for traditional IRA contributions." ThinkAdvisor

Advised Self-Directed Brokerage Accounts Are Better Diversified, Have Higher Balances Than Non-Advised Accounts

"While only 19 percent of [self-directed brokerage account (SDBA)] participants chose to use an advisor, they reported an average balance of $449,552 -- nearly twice as much as the $234,643 reported by non-advised participants.... Baby Boomers represented the majority of advised accounts (45.4%), followed by Gen X (42.2%) and Millennials (8.5%)." Charles Schwab

Effects of the New UBTI Rules on Tax-Qualified Pension Investments Are Still Unclear (PDF)

"[Consider] a situation where a tax-qualified pension fund invests in 20 private equity partnerships, each of which then invests in 15 private equity investments. Is investing in private equity, generally, a separate trade or business? Or is investing in each private equity partnership a separate trade or business? Or, must a plan look through each private equity partnership to each separate investment? If the latter is the case, can a plan aggregate investments across investments that involve a similar trades or businesses? How should a plan handle investments in a fund of funds, a fund that invests in other funds, each of which in turn makes their own investments?" Eversheds Sutherland, via Bloomberg Tax

Dechert Comment Letter to SEC Regarding Standard of Conduct for Investment Advisers (PDF)

"[U]nless the standards provide appropriate flexibility to accommodate the vast diversity of advisers and clients, and allow for evolving and differing business models, they will harm advisers and clients, damage the industry, and stymie innovation. If the Commission decides to move forward with a final interpretation and does not withdraw the IA Proposal, we believe that the Commission must address a number of concerns." Dechert LLP

ISS Publishes Preliminary Compensation FAQs

"ISS announced a few changes to the Employee Plans Scorecard (EPSC). [1] [T]he change in control (CIC) vesting factor will be updated to provide points based on the quality of disclosure of CIC vesting provisions, rather than based on the actual vesting treatment of awards.... [2] ISS announced a new negative overriding factor relating to excessive dilution for the S&P 500 and Russell 3000 EPSC models.... [3] EVA measures will be phased-in basis over the 2019 proxy season. There will be no changes to the quantitative screens for the 2019 proxy season." Winston & Strawn LLP

The Seven 'Deadly Sins' for Compensation Committee Agendas in 2019

"[1] Not re-evaluating your clawback policies.... [2] Focusing only on your organizational design of today.... [3] Thinking about director pay disclosure the same way.... [4] Doing a perfunctory review of the compensation committee charter.... [5] Ignoring the war for talent.... [6] Disregarding the elephant in the room -- the potential for a downturn.... [7] Failing to understand economic value added (EVA)." Farient Advisors

B/R/F Issue Here? Different Fees Paid by Related Plans

Participant A owns 100% of XYZ corp which sponsors the XYZ Plan. As of 1/1/19, participant A will acquire a significant percentage of ABC corp, which sponsors the ABC Plan. ABC and XYZ will be a controlled group as of 1/1/19. XYZ corp is mostly management, ABC Corp is mostly non-skilled labor. The ABC Plan and the XYZ Plan are both at the same recordkeeper, and the plans will have the same plan design and availability. The only difference is that the ABC Plan has higher recordkeeping fees. It "feels" like a discrimination issue because the plan with mostly low paid labor is priced higher than the plan with mostly higher paid management, but each plan is priced on its own merits. Anyone see an issue with keeping the two plans separate based on the difference in pricing? BenefitsLink Message Boards

Independent Contractors in Governmental 457(b)

I recently came across an article ( here ) which suggested that including independent contractors in governmental 457(b) plans could cause those plans to lose their ERISA exemption. The author contends that, while independent contractors are permitted to participate in 457 plans, the ERISA exemption applies to "governmental plans," which are defined in ERISA 3(32) as plans that cover employees . (He acknowledges that plans that cover only independent contractors would be exempt in their own right because they don't cover any employees, but indicates that the governmental employer must maintain separate plans for employees and independent contractors in order for them both to be exempt from ERISA). While I follow his logic, I can't say that I've seen any other support for (or even discussion of) this position. Does anyone else agree or disagree with his position?
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Press Releases

Employee Benefit Research Institute Launches New Website and Branding EBRI [Employee Benefit Research Institute]

Transamerica Selects Timothy Jones as Head of Innovation Transamerica

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Most Popular Items in the Previous Issue

Proposed Amendments to the Hardship Distribution Regs (PDF) ASC

Year-End Compliance Reminders for Defined Contribution Plans Subject to ERISA (PDF) Prudential

Struggling Multiemployer Plans See Help Ahead at Expense of Healthy Funds Pensions & Investments