Tuesday, September 21, 2021 The IRS recently updated its “Employee Plan Compliance Resolution System” (EPCRS). For your information, the EPCRS is a correction program administered by the IRS for plan sponsors to correct certain errors in pension plans. The EPCRS has three different components: the self-correction program, the voluntary correctionRead More →
The IRS recently updated its “Employee Plan Compliance Resolution System” (EPCRS). For your information, the EPCRS is a correction program administered by the IRS for plan sponsors to correct certain errors in pension plans. The EPCRS has three different components: the self-correction program, the voluntary correction program and the auditRead More →
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The company and law firm names listed above are generated automatically based on the text of the article. We are improving this functionality as we continue to test and develop in beta. We appreciate comments, which you can provide using the comments tab on the right of the page. SeptemberRead More →
Hughes v. Northwestern Univ. n ° 19-1401,953 F.3d 980 (7th Cir. 2020),cert. allowed, 2021 WL 2742780 (US July 2, 2021) Oral argument scheduled for December 6, 2021. Problem: Are allegations that a defined contribution pension plan paid or charged its members a fee that significantly exceeded the fee for theRead More →
Qualified employees would be automatically enrolled in the plans – with target date funds as the default option – at a 6% contribution rate that would be increased – unless members opt out – by 1 percentage point each year until it reaches 10%. For IRAs, the Internal Revenue ServiceRead More →
The individual audit requirements in the recently proposed federal regulations on the filing of consolidated group retirement plans cast doubt on whether workplace plans are joining forces. Benefits lawyers and pension plan sponsors who hoped the 2019 legislation allowing groups of similar plans to file single, consolidated government disclosures wouldRead More →
Nowadays, almost everything – and everyone – is online, including pension plan members. Members can use their plan’s websites or online portal to do just about anything – enroll (or opt out), make or change contribution choices, select or change investment options, request distributions, etc. It is not surprising thatRead More →
Mandel Ngan | AFP | Getty Images House Democrats on Monday proposed a series of changes to the retirement accounts of the wealthy, as part of a tax code restructuring tied to a $ 3.5 trillion budget plan. Taken together, the Democrats’ reforms aim to erode the use of retirementRead More →
United States: On the Horizon – New Pension Design Opportunities! Meet: “Securing A Strong Retirement Act Of 2021”, Aka “SECURE 2.0” September 13, 2021 Bryan Cave Leighton Paisner LLP To print this article, simply register or connect to Mondaq.com. Important legislation is being drafted in the House that promises toRead More →
SEP IRA: It’s a structure very similar to Solo 401 (k) s with two main exceptions. The costs are minimal as it does not require the support of a plan administrator and it can cover the employees. In this plan, all contributions are made by the employer for a maximumRead More →
As you approach retirement, you’ve reviewed your numbers and you may be feeling good about what you see. You have a complete plan. The one that takes taxes into account. Protects you from market risk and provides you with a strategic form of income to meet your ongoing monthly expenses.Read More →
What would you like to know Respondents from a single vendor reported time savings of 17% to 50%, according to Principal Financial Group. Three-quarters of plan sponsors with multiple providers said they would save time using only one provider. Seventy-three percent of sponsors with an accountant said employees were engagedRead More →
Many people dream of retiring with a million dollars or more under their belt. Now the reality is, you don’t really have to focus on a million dollar nest egg. You may be able to do very well in retirement with less savings, or you may need a lot more.Read More →
vitapix | E + | Getty Images Tax breaks for retirement plans, such as 401 (k) plans and individual retirement accounts, can reward workers for saving more money, but these write-offs can also widen the racial wealth gap. It is according to a new analysis from the Tax Policy CenterRead More →
Behavioral boost passes real-world test with 6,000 workers Deploying deferred gratification for the benefit of our future selves is not man’s natural default mode. Yet we have a retirement system based on workers who must choose to do just that. Traditional pensions have all but disappeared for private sector workers,Read More →
Q. My daughter works for a small nonprofit business with less than 25 employees, so she cannot participate in the New Jersey Secure Choice Savings Program. What other ways can she save for retirement? – try to help A. We are happy to hear that your daughter wants to saveRead More →
Lifetime income disclosure requirement. The Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE Act”), enacted on December 20, 2019, added a new annual disclosure requirement for benefit reports to members and beneficiaries. The new disclosure obligation applies to all defined contribution plans covered by ERISA (forRead More →
According to the United States Small Business Administration, small businesses employ half of all private sector employees in the United States. However, a majority of small businesses do not offer retirement savings benefits to their workers. If you are like many other small business owners in the United States, youRead More →
THE 5 BEST STATES FOR ACCESS TO THE EMPLOYER PENSION PLAN 5. IOWA Share of workers with access: 56.8% Share of workers who participate: 49.3% Share of workers earning less than $ 50,000 with access: 49.7% Share of workers earning less than $ 50,000 who participate: 39.7% (Photo: f11photo /Read More →
What would you like to know Only about 5% of 401 (k) plans offer an annuity option in the plan. The Secure Act of 2019 should encourage 401 (k) sponsors to add annuity options. The provision of annuities in the plan helps plan sponsors demonstrate that the primary goal ofRead More →
My friend Abby recently graduated from graduate school and has just started a new job as a business analyst. After reviewing her company’s employee benefits program, she called to ask two specific questions: What is the difference between a traditional plan and a Roth 401 (k) plan? And which oneRead More →
BANDAR SERI BEGAWAN – Looking to grow your wealth by investing in a guaranteed return plan? Takaful Brunei Keluarga (TBK) has just launched a unique contribution plan that allows clients to invest and grow their savings in the short term. From August 2 to November 1, you can enroll inRead More →
On July 16, 2021, the IRS issued Revenue Procedure 2021-30, an updated version of the Employee Plans Compliance Resolution System (“EPCRS”). Pension plan sponsors can use the EPCRS to correct certain compliance errors and avoid the adverse tax consequences associated with plan exclusion. We have provided a summary of theRead More →
The Internal Revenue Service has updated and expanded the ability to correct operational and plan documentation flaws with the new and improved Employee Plan Compliance Resolution System (Rev. Proc. 2021-30) (EPCRS). Issued and generally effective July 16, 2021, the EPCRS revises and expands the previous version of the same programRead More →
Vermont Pension Plan members are upset, and rightly so! The unfunded liability of the pension plan has been increasing for years and now stands at nearly $ 6 billion and the expected contribution determined by the actuarial profession, or CEDA, is out of control. This is the amount that theRead More →
In the wake of the Setting Every Community Up for Retirement Enhancement Act (SECURE) of 2019, there is currently broad bipartisan support in Congress for additional pension legislation providing incentives to increase employee retirement savings. . The House and Senate have drafted essentially similar bills that are being drafted inRead More →
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Photo of a couple filling out papers together at home getty Are you maximizing your employer’s contributions to the pension plan? Did you know that you may be able to put extra money into your after-tax plan? (The IRS 2021 annual limit for the total of all annual contributions isRead More →
The Supreme Court recently granted the writ of certiorari requested by Northwestern University pension plan members, following the solicitor general’s plea for the court to hear the case. Hughes v. Northwestern Univ., n ° 19-1401, 2021 US LEXIS 3583 (July 2, 2021). The certiorari motion states the question presented asRead More →
Defined contribution plans are employer-sponsored retirement plans where employees, and sometimes employers, make regular contributions to the plan, but the payout at retirement depends on how the employee invests the pension. ‘silver. The government places restrictions on how much you can contribute to a defined contribution plan and when youRead More →
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An Exxon Mobil Corp logo is seen at the Rio Oil and Gas Expo and Conference in Rio de Janeiro, Brazil, September 24, 2018. REUTERS / Sergio Moraes / File Photo Register now for FREE and unlimited access to Reuters.com Register HOUSTON, July 2 (Reuters) – Exxon Mobil Corp (XOM.N)Read More →
The IRS has extended until June 30, 2022, the remote notarization relief that gives pension plans more flexibility for member choices that require a witness, such as 401 (k) and loan applications. spousal consent to changes in the distribution of survivor pension benefits. IRS Notice 2021-40, released June 24, waivesRead More →
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The design of a pension plan can make or break an employee’s ability to maintain their standard of living … [+] retired. Getty Images / iStockphoto The design of a pension plan can make or break an employee’s ability to maintain their standard of living in retirement. Over the pastRead More →
Anthony Scott’s professional life was filled with “many adventures over many years”, he says, selling beer and cars to China after leaving the army. But he eventually decided to return to the UK, where he now finds himself trying to build a financial business at a time when consolidators roamRead More →
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Solo 401 (k) Shutterstock Profitable traders want to maximize pension contributions in trading activities and also in their full-time jobs. Traders are investment pros and understand the power of tax-free funding while saving for retirement. However, wages are necessary to contribute to a pension plan. Eligible active merchants tax statusRead More →
Text size The time of dreams The federal government’s Thrift Savings Plan will begin providing environmental, social and governance funds in 2022, the latest sign of the growing acceptance of sustainable investing by pension plans. ESG funds will be available in a new “mutual fund window,” similar to a brokerageRead More →
Participants in the American Red Cross (ARC) pension plan have gone to federal court, alleging that pension fund fees were not below market standards and investment returns were below average . Fund participants claim to have lost millions of dollars, according to a class action lawsuit filed with the U.S.Read More →
While pension plan committees, also known as plan fiduciary or supervisory committees, have structures as diverse as the companies that sponsor them, new research shows key consistency in how committees are designed and operated. Pension committees are responsible for a wide range of decisions regarding the operation, benefits and costsRead More →
Friday, June 4 marks the day the Presidential Coordinating Commission on Climate Change decides its position on South Africa’s Nationally Determined Updated Contribution (or NDC, a plan highlighting actions, targets, climate policies and measures to be implemented in response to climate change, and as a contribution to the achievement ofRead More →
BALTIMORE, June 1, 2021 /PRNewswire/ — T. Rowe Award (NASDAQ-GS: TROW) has developed a new framework to help sponsors of defined contribution (DC) plans evaluate retirement income solutions for members to meet the changing needs of retirees. The valuation framework is intended to allow plan sponsors to tailor their DCRead More →
Sometimes simple decisions have complicated implications. When BU officials suspended the University’s contributions to the BU’s retirement plan on July 1, 2020, citing the financial impact of the coronavirus pandemic, it seemed simple. It was not, as officials are now learning. (University officials say the one-year suspension saved BU $Read More →
On May 11, the New York City Council enacted local law to establish a retirement savings program for certain employees of private companies. What are the details? The new law creates a mandatory, self-enrolling individual retirement account (IRA) program for private sector employers in New York City who do notRead More →
In a new report, the Congressional Joint Committee on Taxation estimates that 22% of net contributions to 401(k) and other workplace retirement savings plans made by people age 50 or younger during a given year are withdrawn early in the form of hardship withdrawals, loans or cash withdrawals by personsRead More →
On May 11, 2021, the New York City Council enacted a local law to establish a retirement savings program for certain employees of private entities. What are the details? The new law creates a mandatory auto-enrollment Individual Retirement Account (“IRA”) program for employees of private sector employers in New YorkRead More →
A bill allowing workers to make student loan repayments while their employers make matching contributions to their defined contribution accounts was reintroduced in the Senate on Thursday. Under the Pension Parity Act for Student Loans, employers are allowed to make matching contributions to workers’ 401(k), 403(b), and SIMPLE and governmentRead More →
By Danielle Harrison, CFP Benjamin Franklin is often quoted for his statement: “Nothing can be said for certain, except death and taxes”. What Ben Franklin failed to explain, however, is that just because taxes are certain doesn’t mean they aren’t constantly changing and won’t present a lot of uncertainty. OurRead More →
(Photo: Shutterstock) The COVID-19 pandemic has had a noticeable impact on higher education institutions and their employees, and as a result, pension policymakers are looking to bolster their financial wellness plans to help employees feel more in control of their finances. Additionally, as plan sponsors seek to reduce complexity andRead More →
(Photo: Shutterstock) More than three-quarters — 77% — of Americans believe all workers should have access to a retirement plan, study finds National Institute on Retirement Security. Two-thirds believe pensions promise a more secure retirement than the ubiquitous 401(k) plan. Americans’ support for retirement is not surprising given the currentRead More →
As many people struggle to overcome the financial setbacks caused by the COVID-19 pandemic, more employers are focusing their efforts on helping employees improve their financial well-being and save for the future. . An October 2020 study from the Employee Benefit Research Institute reveals that more and more employers areRead More →
Dragon Capital VietFund Management, a Ho Chi Minh-based fund management company, has launched Vietnam’s first private sector retirement savings vehicle. The defined contribution plan, with government tax incentives for employees and employers, offers savers three fund options: a relatively high risk 50-50 split between stocks and bonds, a mix ofRead More →
(Photo: Shutterstock) Group employer plans (PEPs) were created to give employees of small businesses access to a defined contribution pension plan, with the promise of easing administrative hardship for small business owners. Suppliers are stepping up to offer them, advisors are talking about them, and employers are curious about them.Read More →
By Joseph Stenken, J.D. When most people think of investments to use in a qualified retirement plan, they usually think of mutual funds or individual stocks. What many people may not realize is that it is also possible to use retirement plan assets to purchase life insurance as part ofRead More →
Reprocessing puzzle solved. Getty Most people who work for companies can set aside money through a 401(k) or equivalent program. But if you’re retired or a business owner, you can also put a plan in place. Bruce Bell, attorney in the Chicago office of Schoenberg Finkel Beederman Bell Cooler, showsRead More →
The US Department of Labor (DOL) has unveiled an interim final rule (the “Lifetime Income Disclosure Rule”) that adds a new lifetime income disclosure requirement for administrators of defined contribution plans (for example, plans covered by Section 401 of the Internal Revenue Code (Code) (k) or Section 403 (b) ofRead More →
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What is an employee contribution plan? An employee contribution plan is a type of employer savings plan. By choosing to participate in the plan, employees contribute a percentage of their salary to the plan, which is then invested on their behalf by a third-party plan administrator. Employers, on the otherRead More →
It may seem counterintuitive, but stashing funds in your retirement plan at work could actually make it harder to retire. Some worktops are great while others are expensive and stiff. And some plans may be good for some employees, but not for you. So how do you know if yourRead More →
The IRS recently issued to document vendor opinion letter approvals for updated and pre-approved documents for defined contribution plans. This starts the next cycle of required restatements of the defined contribution plan documents. If you are an employer who is currently sponsoring a 401 (k) plan, profit sharing plan, moneyRead More →
It is your responsibility to fill your retirement piggy bank. Getty How much can you save for your retirement in 2021 in tax-advantaged accounts? How does $58,000 sound? The Treasury Department announced inflation-adjusted numbers for retirement account savings for 2021. The base salary deferral amount for 401(k) and similar workplaceRead More →
A proposal to rezone 143 ha of land to allow approximately 1,200 low density residential lots in Wadalba East was adopted at the September 28 Council meeting. The rezoning documents will go to the state government for approval which would allow Council to change its local planning rules. However, theRead More →
Earlier this year, we discussed the lifetime income disclosure requirement included in the Every Community Establishment for Retirement Enhancement Act of 2019 (the “SECURE Act”). When the disclosure requirement takes full effect, the benefit statement issued by each defined contribution plan governed by ERISA must include lifetime income illustrations andRead More →
(Photo: Shutterstock) Sales of defined contribution plans are expected to take a hit in 2020 as the coronavirus pandemic has prompted many employers to postpone or cancel the competition of their plans. A survey of archivists by the Secure Retirement Institute and the Retirement Leadership Forum found that DC planRead More →
Earlier this month, the U.S. Department of Labor (“DOL”) issued a newsletter confirming the widely held view that private equity can be small components of diversified investment portfolios managed by professional funds, such as target maturity funds and balanced funds, offered to participants in 401(k) plans and other defined contributionRead More →
Related practices and jurisdictions Since the start of the COVID-19 pandemic, we have received daily calls and emails from our customers asking how leaves, layoffs, the CARES Act and a host of other pandemic-related changes are affecting plans. benefits they offer to their employees. These conversations inevitably lead to theRead More →
KOLKATA: The board will soon consider a proposal for a voluntary contribution of 10 rupees to the coal mining pension fund for each tonne of coal sold. This will add at least Rs 600 crore to the Rs 13,000 crore fund, which is expected to run out of money inRead More →
THIRUVANANTHAPURAM : After clashing with opposition over the one-month salary contribution of all state government officials to the CM’s Covid Relief Fund, Chief Minister Pinarayi Vijayan presented another proposal on Wednesday: a six-day wage deduction over the next five months on a temporary basis. That would mean one month’s salaryRead More →
Houston Methodist will change the insurance of 26,000 hospital system employees from UnitedHealthcare to Cigna, one of the nation’s largest insurers – the latest move in a protracted battle between one of Houston’s largest hospital systems and UnitedHealthcare. On Monday, Houston Methodist announced that it will cover its employees throughRead More →
A Serious Fraud Office accountant was challenged on the basis of evidence that the accused fraud Eugene DeMarco could not have paid his filmmaker employers the more than $ 2 million DeMarco’s company received for their airplanes. era. DeMarco, 57, was a production manager and pilot for The Vintage AviatorRead More →
The contractor registry – the blue book of building and construction – was sold to a benefit plan in 2012, according to the federal government, for far more than it was worth. The U.S. Department of Labor sued Blue Book consultant Professional Fiduciary Services LLC on August 22 in federalRead More →
Adam Orr | aorr@shj.com Big changes are afoot for BMW employee benefits as the company moves away from pensions to employee retirement accounts. BMW spokeswoman Mariella Kapsaskis said the company will freeze its retirement system on June 30 for employees who were hired before March 1, 2012. After that date,Read More →
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While many would agree that saving for retirement is a great financial deal, a significant number of employees still do not participate in their employer-sponsored retirement plans. Lack of participation can be the result of insufficient income to contribute to retirement. However, many times employees do not participate because theyRead More →
Early versions of web portals for plan members only provided information on account balances and investment options. Today’s innovative portals supplement this basic information with retirement income planning analysis and member-specific advice on improving retirement outcomes. Layout and site designs and user interaction features are also changing, based on behavioralRead More →
Fifteen years ago, I bought a Flying Scot sailboat from 1969. It is a 19-foot sailboat. I was the fourth or fifth owner. Although I didn’t know much about its original design specs, it sailed quite well. However, every once in a while I noticed some stresses and strains inRead More →
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What is a defined contribution (DC) plan? A defined contribution (DC) plan is a generally tax-deferred retirement plan, such as a 401 (k) or 403 (b), in which employees pay a fixed amount or percentage of their salary into an account intended for finance their retirement. The sponsoring company, atRead More →
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Defined benefit plan or defined contribution plan: an overview Employer pension plans are divided into two broad categories: defined benefit plans and defined contribution plans. As the name suggests, a defined benefit plan, also known as a traditional pension plan, provides a specified payment amount at retirement. A defined contributionRead More →
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A qualified retirement plan is simply a plan that meets the requirements set forth in section 401(a) of the US tax code. This does not mean that other types of plans are not available to build your nest egg. However, the majority of retirement savings programs offered by employers areRead More →
Michigan Blue Shield Blue Cross approved a plan to convert its retiree health insurance plan to a defined contribution plan that will allow it to budget health care costs more accurately and offer more flexible options to its retirees, Crain’s has learned. The changes affect participants who retired after JanuaryRead More →
Don Redeem | Register of Monks The Iowa General Assembly must change the state employee pension system, known as IPERS, from the current defined benefit plan to a defined contribution plan as soon as possible. The Public Interest Institute has written about this problem and its solution several times inRead More →
Putting commandments on hats only works if you’re Trump. Photo: Justin Sullivan / Getty Images A Goldman Sachs employee who was hoping to make the transition from the lucrative world of finance to the lucrative world of Donald Trump swag only managed to find himself on administrative leave. The TimesRead More →