2020 has been filled with new legislation that affects the way the retirement plan industry must operate. From the SECURE Act to the CARES Act don't miss TPA expert and ERISA Attorney Ilene Ferenczy and PensionPro's Katie Boyer go in-depth as to how these changes affect your TPA compliance operations. Beyond just explaining the new laws, the sessions will demonstrate the practical application to your compliance procedures. These training sessions will also include interactive panel discussions and are FREE to all PensionPros who have PROPASS but open to all TPAs. Evolve the way you work.
ERISA Attorney Ilene Ferenczy
Session 1: October 21st 2:00pm – 4:00pm EDT (1 CE Credit)
Coronavirus-Related Distributions (CRD) and Loans
CARES Act provisions – Since Plan Sponsors were not required to implement all the CARES Act provisions, this will present many challenges to TPAs in the upcoming compliance cycle.
- Which Plan Sponsors implemented which provisions?
- Which recordkeepers implemented an ‘opt-out” period?
- Alternatively, was the decision made by the Plan Sponsor and if so, which ones?
- What information do we need to collect this year in addition to our normal data request?
In this session, we will break down the CARES Act provisions in more detail and discuss the best practices for tracking and performing additional client outreach that may be required prior to year-end. Below is a summary of the topics that will be covered in Session 1.
- CRDs – What you need to know about optional repayments and tax relief.
- Government Reporting – Collecting the information you need to prepare the Form 1099-R. Who is responsible for preparing the Form 8915-E and our suggestions for tracking future repayments of CRDs?
- Loans – If loan payments were suspended, what information do you need to ensure no loan defaults occur? When are deferred loan payments due, what guidance has the IRS provided regarding re-amortization, and who is responsible for this calculation – the TPA, the recordkeeper?
- Required Minimum Distributions – Were RMDs taken prior to the CARES Act being enacted? According to recent guidance from the IRS, participants who took an RMD in 2020 had the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver for 2020.
- Normal distributions paid during 2020 prior to the CARES Act – Are there any special considerations for tracking and reporting of distributions that were taken prior to the CARES Act being enacted?
- CRD general web collection project
- Using Distribution fields for targeted plan sponsor communications
- CRD information request blast email template
Session 2: October 22nd 2:00pm – 4:00pm EDT (1 CE Credit)
Annual Data Collection under the CARES Act
Data Collection and Annual Plan Compliance – Under normal circumstances, collecting annual data and providing annual plan compliance services is no easy task. With the law changes in 2020, this brings many other issues into the mix. In this session we will take a deep dive into the practical issues that will arise most frequently and what process changes can be put in place to ensure you have the information you need. Collecting the correct data for the 2020 cycle will be tantamount to effectively managing your annual compliance for the 2020 plan year.
- CARES Act Amendment – The deadline for most plans to adopt the CARES Act provision is the last day of the first plan year beginning on or after January 1, 2022 (governmental plans have two additional years). The amendment must reflect how the plan operated in the interim. We will help you create a process to document the optional provisions that were implemented by each plan.
- Partial Plan Termination – A plan sponsor never likes to hear that a partial plan termination has occurred. We expect this to be a common concern for the 2020 plan year. It is important to understand the differences between a leave of absence or furlough and a true termination and the impact each has on the plan. In addition, we will discuss how the dates of termination could impact this determination and how to adjust your census request to make sure you are receiving everything you need to help plan sponsors make this determination.
- Plan Compensation – For plan sponsors, determining plan compensation can be confusing at best. This year, they may have the added difficulty of government mandated PTO or company paid leave. We will discuss how different types of compensation should be classified and what you can do to make sure all applicable compensation has been submitted on the annual census. We’ll also review potential issues that may arise with the compensation ratio test.
- Defined Benefit Funding – If you administer defined benefit plans, I’m sure you prepared a lot of freeze amendments during 2020! We will discuss client outreach and questions to ask in your annual questionnaires to gauge a plan sponsor’s interest in unfreezing their plan for 2021, and for those that didn’t freeze, ways to reduce their funding burden going forward.
- Business Closures – We all heard so many stories this year about businesses that had to close their doors due to the pandemic. In this trying time, their retirement plan was probably low on the priority list. We will discuss best practices for handling these situations, including what you should do if you are unable to locate the plan sponsor.
- Non-Discrimination Testing – With so many layoffs and terminations, it is quite possible that plans who typically have no issue with their ADP/ACP tests may find themselves failing one or both tests.
- SECURE Act – With all the talk surrounding the CARES Act, it is easy to forget that was not the only piece of legislation that recently impacted the industry. We will discuss ways the SECURE Act impacts the annual plan compliance, including the additional flexibility to retroactively add a 4% safe harbor non elective contribution for the 2020 plan year.
- Annual Administration project that includes the following:
- Plan questionnaire with sample CARES Act data request items
- Suggested CARES Act and SECURE Act task items
$395 (or free with PROPASS)
October 21st – October 22nd
TRAINING EVENT TIMES:
2:00pm – 4:00pm EDT (Both Sessions)