Retirement Practice Legal Consulting & Compliance Quarterly Update - Q2 2019 (US)

The newsletter above is Aon's Q2 2019 Quarterly Update from Retirement Legal Consulting & Compliance. Download the full update above to learn more. 


Spring has sprung, bringing us an important new retirement development. 

In 2015, the Internal Revenue Service (IRS) indicated an intention to severely restrict a plan sponsor's ability to offer retirees in pay status single lump-sum distributions in lieu of ongoing monthly payments. The IRS recently announced that no such restrictions will be issued, and plan sponsors again have access to this very useful pension de-risking strategy. This Quarterly Update begins with an article about retiree lump-sum windows and how plan sponsors can use them to meet de-risking goals. 

One topic that frequently comes up for employers is whether their employees will have enough funds saved for retirement. Although there may be a number of savings opportunities available to employees, health savings accounts are one of the more tax-favorable tools that can be used to help employees save more and be better prepared for retirement. We discuss how to best optimize these savings vehicles in this issue. 

Plan sponsors often ask for help managing their retirement plans. Aon has developed two programs designed to transfer much of the day-to-day responsibilities from the plan sponsor to Aon. The first is an offer for Aon to accept fiduciary decision-making responsibilities for defined benefit and defined contribution (DC) plans as well as nonqualified plans. The second is a program to help manage DC plan responsibilities. For DC plans, the two programs can be combined, and a customized program can be developed to best meet a plan sponsor's needs. 

As reported last quarter, the retirement plan community is paying close attention to recent lawsuits filed against plan sponsors and fiduciaries of pension plans challenging the actuarial equivalence factors used for converting benefits into optional forms and for early retirement reductions. As expected, the defendants have filed motions to dismiss the complaint in each of the cases, but we haven't seen the plaintiffs' responses yet. We include a short update about these cases (and one new one that was just filed) and will continue to provide updates as the litigation continues. 

We continue our focus on plans covered under Section 403(b) of the Internal Revenue Code (relating to plans of certain tax-exempt organizations). This issue contains an article discussing lawsuits brought against plan sponsors of these plans. We also discuss some recent fiduciary litigation and other interesting updates in the Quarterly Roundup, a regular feature of our publication. 

Download the full Quarterly Update above to learn more. 

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Retirement Practice Legal Consulting & Compliance Quarterly Update - Q1 2019 (US)
Retirement Practice Legal Consulting & Compliance Quarterly Update - Q1 2019 (US)