PLANSPONSOR Weekend Newsdash
Week ending April 5th, 2019

For more than a year, lawmakers have been working on legislation designed to increase employee coverage under employer-sponsored retirement plans and to encourage the use of lifetime income products in plans, and it seems momentum is building for the passage of such legislation. Meanwhile, lawmakers are also questioning the IRS’ reversal of its stance on offering lump-sum payment windows to retirees already receiving defined benefit (DB) plan annuity payments. Court cases also may have an effect on Employee Retirement Income Security Act (ERISA) rules, as well as regulations to increase access to health care benefits for employees. These items and more are the focus of this edition of PLANSPONSOR Weekend.

Editor's choice
Senators Question a Policy Reversal to Allow Lump-Sum Payouts to Retirees
A letter to the IRS and Treasury asks why employers will be permitted to offload pension liabilities and transfer risk to retirees. Read more >
Intel Wants Supreme Court’s Take on ‘Actual Knowledge’ Under ERISA
A decision by the Supreme Court on the question of what establishes “actual knowledge” of an alleged breach of fiduciary duty could have a big influence on how judges apply limitations periods in ERISA cases. Read more >
Court Says DOL Overstepped Boundary with AHP Regulations
A district court has determined that the Department of Labor’s 2018 final regulations on association health plans are unlawful. Read more >
Plan Sponsors Have a Duty to Monitor Health Benefit Service Providers and Fees
In a ruling in favor of a health benefit plan sponsor, a federal court judge lays out prudent processes the sponsor took to select and monitor service providers and monitor the plan’s fees. Read more >
IRS Updates Operational Compliance List for Retirement Plans
2019 items for which plan amendments may be needed include changes to hardship withdrawal regulations, retirement plan relief for victims of 2018 hurricanes and nondiscrimination relief for closed defined benefit (DB) plans. Read more >
Senators Propose Requiring Employers to Contribute to Workers’ Savings Accounts
The Saving for the Future Act would require employers to contribute 50 cents to a savings account for each worker for every hour worked, or more than $1,000 a year, with the goal of helping workers prepare for emergencies and retirement. Read more >
The Senate Math That Could Block SECURE Act
Senate floor time is at a premium ahead of the 2020 presidential election—so much so that even legislation that passed the House with a near-unanimous bipartisan vote is not guaranteed to become law.
House Committee Advances Bill to Establish Union Pension Lifeline Program

The legislation aims to establish a 30-year loan program and new financial assistance for financially troubled multiemployer pension plans.

Open MEPs Not for Every Plan Sponsor
If legislation passes to allow for open multiple employer plans (MEPs) for plan sponsors without a common nexus, experts believe they will offer benefits to plan sponsors, but there would be some considerations to explore before joining one.
Driving Financial Wellness at Work
Wes Collins, senior manager of participant advice services at CAPTRUST, discusses financial wellness areas of focus, broken out by career stage.
Pension Participants Claim ERISA Breaches in Dow DuPont Pension Transfer

In a new ERISA lawsuit seeking class action status, the plaintiffs claim their pension assets were disloyally and imprudently transferred during a complex series of corporate spinoffs and mergers.

Editorial: Alison Cooke Mintzer

Advertising: Paul Zampitella

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