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April 7th, 2020 Information & Insights for the 403(b) Community Plan Sponsors Should Be Extra Vigilant During Severe Market Volatility For both DB and DC plan sponsors, fiduciary actions follow a different time frame when there is a sustained market crisis. Principal the Latest Provider to Waive Retirement Plan Transaction Fees It is also waiving plan sponsors’ fees for certain retirement plan amendments and halting rate increases for group benefits. Ask the Experts Partial FICA Tax for Governmental 457(b) Plan Contributions “I read in a past Ask the Experts column that employer contributions are subject to FICA, except if the employee is not subject to FICA taxes in general, as is the case for certain state and local government employees that are members of a retirement system. Our state and local governmental employees are not subject to Social Security; however, they are eligible for Medicare, and pay Medicare taxes. Would employer contributions to the 457(b) be subject to Medicare taxes?” ERISA Lawsuit Activity Continues Despite Court Lockdowns Plan sponsors should continue to pay attention to litigation and consider what litigation may arise. Furloughs Vs. Layoffs: Which May Trigger a Partial Plan Termination? ‘Companies tend to use the terms interchangeably, which is why it can be confusing,’ says Lorie Maring, a partner at Fisher Phillips. Empower Waives Fees for Retirement Plan Loans and Hardship Withdrawals The change is for all tax-qualified workplace retirement plans administered by Empower that permit such distributions and includes new provisions allowed for under the CARES Act. Employers Can Offer More Student Loan Repayment Help to Employees The CARES Act allows employers to contribute toward employees’ student loan debt tax-free to employees, and employees need guidance on what they can and should do about deferring payments. Administrative Considerations for CARES Act Transactions Plan sponsors need to understand the details and ask themselves certain questions to make sure they are complying with the new law. Voya to Credit Transaction Fees Related to CARES Act In addition, the retirement plan provider is offering free access to financial resources to Americans. Important Considerations Before Waiving RMDs Taking required minimum distributions (RMDs) is about shifting to a taxable account, not necessarily about liquidating investments. Supreme Court Denies Review of UPenn ERISA Lawsuit A last ditch effort to point out that another circuit found no evidence of fiduciary misconduct in a similar case apparently did not persuade the high court it needed to resolve a circuit split. Did someone forward you this newsletter? Sign up here to get (b)lines directly in your mailbox! Unsubscribe | Manage Subscriptions | Contact Us Copyright ©2024 Asset International, Inc. All rights reserved. No reproduction without prior authorization. Modern Slavery Statement 2022 | Do Not Sell My Personal Information | Privacy (including cookies), Social Media & Legal 702 King Farm Boulevard, Suite 400, Rockville, MD 20850