PLANSPONSOR - September - October 2023 - 6
RULES & REGULATIONS
From Washington and the Courts
The DOL May Toughen
Provider Standards for PRTs
The ERISA [Employee Retirement Income
Security Act] Advisory Council hosted,
in mid-July, a consultation with stakeholders
in the pension and insurance
industries to discuss possible modifications
to Interpretative Bulletin 95-1. That
document, issued by the Department
of Labor in 1995, describes the fiduciary
standards for selecting an annuity
provider for a pension risk transfer. The
guidance requires pensions to consider
the provider's: investment portfolio; size
relative to the annuity contract; level of
capital and surplus; liability exposure;
and availability of state government guaranty
associations.
The SECURE 2.0 Act of 2022, which
built on the Setting Every Community
Up for Retirement Enhancement Act of
2019, requires the DOL to review IB 95-1
and recommend possible modifications
6 PLANSPONSOR.COM September - October 2023
to Congress by this year-end.
At the hearing, some modifications
were widely suggested to address
changes to the insurance market since
1995. These modifications included
consideration of: the ownership structure
and business model of the insurance
company, the insurer's use of reinsurance,
and the insurer's use of off-shore
and arbitrage strategies.
David Certner, legislative policy
director at the AARP, said PRTs are
generally done to de-risk plans and not
for the benefit of participants. He said
PRTs are not a per se violation of fiduciary
duty because the transfers are
something plans are empowered to do,
though taking that action,
like terminating
a plan, might not benefit participants.
Plans " generally do this for their
own purposes " to avoid carrying liability,
he said. It has been " settled law for quite
some time that plans [may] do this. "
IB 95-1 does not lay out criteria for
Art by Marc Rosenthal
whether or not to annuitize a pension
but for what a fiduciary must consider
when selecting an annuity provider to
perform one, Certner explained. Like
other speakers, he recommended that
the DOL add a review of an insurance
company's ownership structure, reinsurance
and track record of managing longterm
commitments to the new bulletin,
should there be one.
IRS Plans to Up ESOP
Enforcement
The IRS in early August warned businesses
and tax professionals to be alert to
a range of compliance issues potentially
associated with employee stock ownership
plans. Over the next year, the agency
will continue to use a range of compliance
tools, including education, outreach and
additional examinations, to address these
issues, it announced.
" This means spotting aggressive
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PLANSPONSOR - September - October 2023
Table of Contents for the Digital Edition of PLANSPONSOR - September - October 2023
INSIGHTS
PARTICIPANT ANALYSIS
RULES & REGULATIONS
UPFRONT
Building Strength
2023 Defined Benefit Administration Survey
2023 Best in Class 401(k) Plans
If the Goal Is Engagement
Upgrading NQDC Plans
When to Amend?
PRTs’ New Notoriety
Continuous Improvement
PLANSPONSOR - September - October 2023 - Cover1
PLANSPONSOR - September - October 2023 - FC1
PLANSPONSOR - September - October 2023 - FC2
PLANSPONSOR - September - October 2023 - Cover2
PLANSPONSOR - September - October 2023 - 1
PLANSPONSOR - September - October 2023 - INSIGHTS
PLANSPONSOR - September - October 2023 - 3
PLANSPONSOR - September - October 2023 - PARTICIPANT ANALYSIS
PLANSPONSOR - September - October 2023 - 5
PLANSPONSOR - September - October 2023 - RULES & REGULATIONS
PLANSPONSOR - September - October 2023 - 7
PLANSPONSOR - September - October 2023 - 8
PLANSPONSOR - September - October 2023 - 9
PLANSPONSOR - September - October 2023 - UPFRONT
PLANSPONSOR - September - October 2023 - 11
PLANSPONSOR - September - October 2023 - 12
PLANSPONSOR - September - October 2023 - 13
PLANSPONSOR - September - October 2023 - 14
PLANSPONSOR - September - October 2023 - 15
PLANSPONSOR - September - October 2023 - Building Strength
PLANSPONSOR - September - October 2023 - 17
PLANSPONSOR - September - October 2023 - 18
PLANSPONSOR - September - October 2023 - 19
PLANSPONSOR - September - October 2023 - 2023 Defined Benefit Administration Survey
PLANSPONSOR - September - October 2023 - 21
PLANSPONSOR - September - October 2023 - 22
PLANSPONSOR - September - October 2023 - 23
PLANSPONSOR - September - October 2023 - 2023 Best in Class 401(k) Plans
PLANSPONSOR - September - October 2023 - 25
PLANSPONSOR - September - October 2023 - 26
PLANSPONSOR - September - October 2023 - 27
PLANSPONSOR - September - October 2023 - 28
PLANSPONSOR - September - October 2023 - 29
PLANSPONSOR - September - October 2023 - 30
PLANSPONSOR - September - October 2023 - 31
PLANSPONSOR - September - October 2023 - If the Goal Is Engagement
PLANSPONSOR - September - October 2023 - 33
PLANSPONSOR - September - October 2023 - 34
PLANSPONSOR - September - October 2023 - 35
PLANSPONSOR - September - October 2023 - Upgrading NQDC Plans
PLANSPONSOR - September - October 2023 - 37
PLANSPONSOR - September - October 2023 - When to Amend?
PLANSPONSOR - September - October 2023 - PRTs’ New Notoriety
PLANSPONSOR - September - October 2023 - Continuous Improvement
PLANSPONSOR - September - October 2023 - Cover3
PLANSPONSOR - September - October 2023 - Cover4
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