[Guidance Overview]

DOL Electronic Retirement Rule Reminders

"[K]ey points employers and plan administrators should know ... [1] Covered individual ... [2] Covered documents ... [3] Notice of internet availability (NOIA) ... [4] Right to copies of paper documents or globally opt-out of e-delivery ...[5] Special rule for annual combined notices of internet availability ... [6] Direct delivery via electronic mail."   MORE >>

Withum Smith+Brown, PC

California's Program for Those with No Employer-Sponsored Retirement Plan Defeats Court Challenge

"By removing 'uncertainty about these program's legal status,' the decision could weaken opposition to the further adoption of state-run savings plans, which 13 states and two cities have approved, said John Scott, director of the Pew Charitable Trusts' retirement-savings project. Currently, California, Oregon and Illinois are enrolling workers, while states including New Jersey, Maryland and Virginia are developing programs." [ Howard Jarvis Taxpayers Ass'n v. California Secure Choice Ret. Savings Program , No. 20-15591 (9th Cir. May 6, 2021)]   MORE >>

The Wall Street Journal; subscription may be required

Ninth Circuit Finds California's State-Managed IRA Program Is Not Preempted by ERISA

"The Ninth Circuit found that CalSavers is not an ERISA plan because it is established and maintained by the State, not employers. The employers' non-discretionary administrative involvement is not enough to mean that they 'established or maintained' an ERISA plan." [ Howard Jarvis Taxpayers Ass'n v. California Secure Choice Ret. Savings Program , No. 20-15591 (9th Cir. May 6, 2021)]   MORE >>

Roberts Disability Law

Excessive Fees Lawsuit Can Proceed Against Quest Diagnostics

"[Quest Diagnostics] had argued that the lead plaintiff in the case did not personally own all the investments being challenged by the lawsuit, a fact which it used to suggest dismissal of the plan-wide claims was warranted. 'Given the consolidated complaint's pleaded injury -- the general mismanagement of the plan.... plaintiffs have sufficiently alleged standing to maintain this suit,' the ruling states. " [ In re Quest Diagnostics ERISA Litigation , No. 20-7936 (D.N.J. May 4, 2021)]   MORE >>

planadviser

New York's 'Best Interest' Rule for Life and Annuities: Future Is in Doubt

"The Appellate Division reversed the trial court's decision, concluding that the amendments violated due process rights and were unconstitutionally vague.... If the NYDFS appeals, it will likely also move for a stay ... If the NYDFS elects not to appeal, it will likely propose a new amendment with more prescriptive requirements to comply with the Appellate Division's opinion." [ Indep. Ins. Agents and Brokers of New York v. New York State Dept. of Financial Serv. , No. 530047 (N.Y. App. Div., 3d Dep't, Apr. 29, 2021)]   MORE >>

Debevoise & Plimpton LLP

Revisiting Compliance: Sunset on an EPCRS Correction Method

"Operational errors in a retirement plan are common under normal circumstances, and it's even more likely that errors have occurred during the chaos of this past year. It is therefore more crucial now than ever to have measures in place to find mistakes and to know how to make the necessary corrections when the mistakes are found.... Unfortunately, the auto-deferral correction method under EPCRS is no longer available."   MORE >>

Graydon

How Mass Retirement Is Affecting the Bond Market

"[W]ith mass retirement setting in, how [pension] funds are managed can affect retirees everywhere -- regardless of work history.... [As] more pension recipients enter retirement, managers of that capital usually dial back risk, meaning elevated fixed income exposure. That can skew return assumptions lower because bonds are less risky than equities."   MORE >>

ETF Trends

April's Robust Investment Returns Boost Corporate Pension Funding Despite Drop in Discount Rates

"During April, pension funding ... improved by $2 billion thanks to a robust 2.30% investment gain, increasing the market value of assets by $34 billion. The asset improvement, however, was offset by a 14 basis-point drop in the monthly discount rate ... The funded ratio inched up for the month, from 98.2% at the end of March to 98.3% as of April 30."   MORE >>

Milliman

Congressional Leaders Call for GAO Review of Target Date Funds

"Sen. Patty Murray (D-WA), Chair of the Senate Committee on Health, Education, Labor & Pensions, and Rep. Robert Scott (D-VA), Chairman of the House Committee on Education & Labor, have written to the head of the Government Accountability Office (GAO), asking them to conduct a review of target-date funds (TDFs)."   MORE >>

American Retirement Association [ARA]

Couple Retiring Today Will Need $300,000 During Retirement to Cover Medical Expenses, an 88% Increase Since 2002

"[A] 65-year old, opposite-gender couple retiring this year can expect to spend $300,000 in health care and medical expenses throughout retirement. For single retirees, the 2021 estimate is $157,000 for women and $143,000 for men.... 82% of Americans say the pandemic has impacted their retirement plans. For those within 10-years of retirement, one-in-five (22%) say they are accelerating their timeline to leave the workforce. Of this group, 80% are under the age of 65, meaning they will need to bridge their health care options before eligibility for Medicare kicks in."   MORE >>

Fidelity

Court Allows Discovery in ERISA Case Based on 'Information and Belief' Allegations That Plaintiff Merely Believed to Be True

"[W]hile the Supreme Court has made it more difficult under some circumstances for ERISA plaintiffs to withstand motions to dismiss, district courts may still favor discovery over dismissal. Individual district courts may decide to encourage settlement and preclude appellate review by allowing claims to continue, even when the allegations are based on information that a plaintiff merely believes to be true." [ Teamsters Local Union No. 727 Health and Welfare Fund v. De La Torre Funeral Home & Cremation Services, Inc. , No. 19-6082 (N.D. Ill. Mar. 5, 2021)]   MORE >>

Seyfarth

Matchmaker, Matchmaker, Make Me a 401(k) Match ... Based on My Student Loan Repayments

"Among other provisions, SECURE 2.0 would permit employers to make matching contributions under a 401(k) plan, 403(b) plan or SIMPLE IRA with respect to 'qualified student loan payments.' ... The proposed provisions in SECURE 2.0 would ... give employers a clear path to follow in providing this benefit."   MORE >>

Holland & Hart LLP

Top Issues on Compensation Committee Agendas

"[1] How has the role of the compensation committee expanded? [2] What factors are involved in tying compensation to ESG goals? [3] How have 2021 say-on-pay vote results and 2020 compensation disclosures impacted decision-making?"   MORE >>

Meridian Compensation Partners, LLC

? View More Jobs ? Post a Job ? Subscribe to Job Alerts

Timing of First-Time Homebuyer's IRA Withdrawal

"An individual is a first time homebuyer. His IRA is in an 18 month CD that will mature in October. He expects to close on a home approximately July 31. He wants to take a $10K IRA distribution for the home purchase, but the CD won't mature until after the closing. He can borrow $10K from a family member for the gap period from closing until October. Can he still withdraw from the IRA after-the-fact and count it as a home purchase distribution exempt from the premature distribution tax?"

BenefitsLink Message Boards

? View All Discussions ? Get a free Daily Digest

NWPS Adds to Its Business Development Team with Industry Professional Mike Cohen AIF

NWPS

? View More Press Releases

Should a Publicly-Traded Company Sponsor an ESOP? Pros and Cons

May 20, 2021 WEBCAST

Hunton Andrews Kurth

? View All Upcoming ? View Webcast Recordings

House Committee Unanimously Approves SECURE 2.0

RPA Convergence

Designing Your 401(k) Plan for Combined Testing with a Future Cash Balance Plan

DWC

Supreme Court Ruling on Social Security Claim Has Implications for ERISA Claims

DeBofsky Sherman Casciari Reynolds P.C.