PLANSPONSOR - June/July 2021 - 5

ACA's SCOTUS Ruling
The U.S. Supreme Court, by a 7-2 vote,
quashed the latest effort to overturn the
Patient Protection and Affordable Care
Act (ACA). According to the ruling, the
Republican-led states challenging the law
had failed to show they were harmed by
the requirement that Americans obtain
insurance, as no penalty is required, so the
states had no standing to sue.
The Joe Biden administration has said it
would like to allow and expand subsidies
for those with employer health coverage,
notes Kathryn Bakich, national director
of health care compliance and senior vice
president at Segal, a human resources
(HR) firm. This could potentially wean
employees off any existing health insurance
coverage, if they find the public option
is a better fit. " This is something we must
watch carefully because employer coverage
is still good coverage, " she says, stressing
that employers should keep their benefits
up to date and competitive.
Cybersecurity Audits
In a blog post, attorneys with Morgan,
Lewis & Bockius LLP have confirmed that
the Department of Labor (DOL) has begun
an audit initiative focused on retirement
plan cybersecurity practices. According to
the post, the DOL has issued information
and document requests to plan sponsors,
" and the[se] requests are probing and indicate
serious inquiry. "
The agency issued cybersecurity
guidance for the first time in April. This
included three parts: tips for hiring a
service provider with strong cybersecurity
practices; cybersecurity program best
practices; and online security tips for
participants. Although the DOL guidance
varies little from what experts have already
suggested, plan fiduciaries should be sure
to put it into practice, advises Andrew
Elbon, a partner with law firm Bradley.
The Morgan Lewis attorneys say the
requests are coming quickly, and the ones
they have reviewed ask for a broad amount
of information and documentation such
as all cybersecurity and informationsecurity
program policies, procedures and
guidelines related to the plan.
IRS Extends Physical
Presence Relief
The IRS is extending, through next
June 30, the temporary relief from the
physical presence requirement, by which
participants have needed to have all plan
elections witnessed in person by a plan
representative or notary. According to
includes the period beginning on March
13, 2020, and ending on March 31, 2021, if
the number of active participants covered
by the plan on March 31, 2021, is at least
80% of the number of active participants
covered on March 13, 2020. "
Now, the IRS has issued guidance
to clarify implementation of this partial
plan termination relief. In a Q&A on its
website, the agency says, " A reasonable,
good-faith interpretation of the term 'active
participant covered by the plan,' applied in
For 2021, a sponsor must allow longterm
employees working 500 to 1,000
hours a year to participate in its plan.
Notice 2021-40, the extension is due to
the continuing COVID-19 pandemic and
to permit consideration of stakeholder
comments. The temporary relief applies
to states that permit remote notarization
if certain requirements have been met.
In Notice 2021-3, the agency had
solicited comments on whether the relief
should be made permanent and, if so,
what procedural safeguards might be
necessary to reduce the risk of fraud,
spousal coercion, or other abuse in the
absence of a physical presence requirement.
The IRS says any permanent
modification of the requirement would
be made through the regulatory process,
thus offering a further opportunity for
stakeholders to provide comments.
IRS Clarifies Partial
Plan Termination Relief
The most recent COVID-19 pandemic
relief bill, attached to the Consolidated
Appropriations Act, 2021, includes provisions
to help retirement plan sponsors
avoid a partial plan termination. The bill
states: " A plan shall not be treated as having
a partial termination (within the meaning
of 411(d)(3) of the Internal Revenue Code
of 1986 [IRC]) during any plan year [that]
a consistent manner, " could include new
participants, hired within that period; it
also notes that relief extends beyond reductions
related to the pandemic.
SCOTUS Is Asked to Take
403(b) Excessive Fee Case
U.S. attorneys have asked the Supreme
Court to grant a petition for a writ of
certiorari requested by participants in two
Northwestern University 403(b) retirement
plans who are suing the school over excessive
recordkeeping and investment fees.
A writ of certiorari is a request that the
Supreme Court order a lower court to send
up the record of the case for review.
The question before the high court is
whether participants in a defined contribution
(DC) Employee Retirement Income
Security Act (ERISA) plan stated a plausible
claim for relief against plan fiduciaries
for breach of the duty of prudence by
alleging that they caused the participants
to pay investment management or administrative
fees higher than those charged for
materially identical investment products
or services. Last year, the 7th U.S. Circuit
Court of Appeals affirmed a lower court's
decision granting Northwestern's motion
to dismiss the case. -PS
PLANSPONSOR.COM June - July 2021 5
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PLANSPONSOR - June/July 2021

Table of Contents for the Digital Edition of PLANSPONSOR - June/July 2021

2021 Plan Sponsor of the Year Winners
2021 Recordkeeping Survey
The Right Provider Team
For the Best Collaboration
2021 PLANSPONSOR Service Stars
PLANSPONSOR - June/July 2021 - Cover1
PLANSPONSOR - June/July 2021 - Cover2
PLANSPONSOR - June/July 2021 - 1
PLANSPONSOR - June/July 2021 - 2
PLANSPONSOR - June/July 2021 - 3
PLANSPONSOR - June/July 2021 - 4
PLANSPONSOR - June/July 2021 - 5
PLANSPONSOR - June/July 2021 - 6
PLANSPONSOR - June/July 2021 - 7
PLANSPONSOR - June/July 2021 - 8
PLANSPONSOR - June/July 2021 - 9
PLANSPONSOR - June/July 2021 - 2021 Plan Sponsor of the Year Winners
PLANSPONSOR - June/July 2021 - 11
PLANSPONSOR - June/July 2021 - 12
PLANSPONSOR - June/July 2021 - 13
PLANSPONSOR - June/July 2021 - 14
PLANSPONSOR - June/July 2021 - 15
PLANSPONSOR - June/July 2021 - 16
PLANSPONSOR - June/July 2021 - 17
PLANSPONSOR - June/July 2021 - 18
PLANSPONSOR - June/July 2021 - 19
PLANSPONSOR - June/July 2021 - 20
PLANSPONSOR - June/July 2021 - 21
PLANSPONSOR - June/July 2021 - 2021 Recordkeeping Survey
PLANSPONSOR - June/July 2021 - 23
PLANSPONSOR - June/July 2021 - 24
PLANSPONSOR - June/July 2021 - 25
PLANSPONSOR - June/July 2021 - 26
PLANSPONSOR - June/July 2021 - 27
PLANSPONSOR - June/July 2021 - 28
PLANSPONSOR - June/July 2021 - 29
PLANSPONSOR - June/July 2021 - 30
PLANSPONSOR - June/July 2021 - 31
PLANSPONSOR - June/July 2021 - The Right Provider Team
PLANSPONSOR - June/July 2021 - 33
PLANSPONSOR - June/July 2021 - 34
PLANSPONSOR - June/July 2021 - 35
PLANSPONSOR - June/July 2021 - For the Best Collaboration
PLANSPONSOR - June/July 2021 - 37
PLANSPONSOR - June/July 2021 - 38
PLANSPONSOR - June/July 2021 - 2021 PLANSPONSOR Service Stars
PLANSPONSOR - June/July 2021 - 40
PLANSPONSOR - June/July 2021 - Cover3
PLANSPONSOR - June/July 2021 - Cover4
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