It has now been a dozen years since the IRS issued Revenue Procedure 2007-71, which was written in response to the logistical difficulties which arose from the mammoth changes imposed by the 2007 changes to the 403(b) regulation. That regulation imposed substantially new responsibilities on 403(b) plan sponsors, including the employer’s need to track and be held accountable for all 403(b) contracts which had ever been issued under that 403(b) plan. Considering that some…

If you talk to anyone who is working on pension legislation, they all will tell you that the provisions of RESA and the SECURE Act are as sure a thing as there is in DC; that their passage is not a matter of “if” but it’s just a matter of “when.” MEPs and “Group” arrangements (which permits unrelated employers on the same platform to file a consolidated 5500)  are critical pieces of that…

The regulatory scheme governing the registration and sales of securities and the regulatory scheme governing retirement plan investments have historically developed separately from each other. The SEC and the U.S. Department of Labor’s Employee Benefits Security Administration (the “EBSA”) had worked independently of each other for decades, with their regulatory paths only occasionally crossing. Indeed, not only had there been little coordination between the SEC and EBSA, there had always been a bit of regulatory animosity…

The Department of Treasury has fulfilled its portion of the directive under Executive Order (the “EO”)13847 by issuing its proposed regulation giving relief to under the “one bad apple” rule. That EO had two MEP directives: the DOL was directed to propose regs which we permit unrelated employers to adopt MEPs (which it has done); and the Treasury was directed to issue rules which would prevent the disqualification of a Multiple Employer Plan under Code…

As the restatement process for 403(b) plans continues on, a familiar “vestige” of certain past practices of a major vendor continues to bubble its way to the top. That “vestige” is the 403(b) “Money Purchase Plan.” It is a very common practice in the 403(b) market for an employer to specifically identify the percentage of compensation it will deposit as an employer contribution to their 403(b) plan: percentages as high as 8, 10 or 12%…

The Portman-Cardin Bill, the Retirement Security and Savings Act – 2019 introduces sweeping changes to 403(b) plans by expanding their investment universe. These changes, however, also required modification to the Securities Laws otherwise applicable to 403(b) plans in order for them to work. A few critical issues have gone unanswered in the legislation, and there are a number of transition issues which we will have to be addressed. Technically, the Act expands 403(b) custodial account…

For all the noisy support being generated for the changes to Multiple Employer Plan arrangements in RESA and SECURE, little notice is being given to the provisions which are likely to have a much more meaningful impact on the ability for smaller plans to obtain the advantages of scale: the rules permitting the “Combined Annual Report for Groups of Plans.” These rules are based upon old DOL regulations called “Group Insurance Arrangements (or “GIAs) for…