Hello PLANSPONSOR readers! This week we focus on plan design and administration. A survey and expert commentary shows small retirement plans are seeking the help of advisers and why this is so. An alert about benefit limitations for retirement plans covering Puerto Rico residents reminds plan sponsors to review any plan design and administrative differences for plans covering residents of U.S. territories. From the courts, one case has lessons for what constitutes a qualified domestic relations order (QDRO) for Employee Retirement Income Security Act (ERISA) plans, and other litigation stresses the importance of plan sponsors doing due diligence when deciding to offer a stable value fund in their plans. And, October Three Consulting suggests defined (DB) plan sponsors can reduce PBGC premiums by splitting up their plans. All this and more in this edition of PLANSPONSOR Weekend!
Beginning in January, terminating defined contribution (DC) plans will have the option of transferring missing participants’ benefits to the Pension Benefit Guaranty Corporation (PBGC) instead of establishing an individual retirement account (IRA) at a financial institution.
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The lawsuit says the so-called “incentive” Yale offers for participating in the wellness program are in fact a “penalty” that violates non-participants’ right, and it notes that the Equal Employment Opportunity Commission (EEOC) withdrew the incentive portions of its wellness program rules.