Deferred Compensation News and Updates

Deferred Compensation News brings you the latest information and insights on 409A nonqualified deferred compensation; institutional COLI, BOLI, and ICOLI; tax-and cost-efficient non-COLI funding strategies; low-cost tax managed non-COLI asset/liability designs; executive benefits benchmarking; succession planning and timely issues of executive pay and benefits. 
Featured image for “Cybersecurity for Your Defined Benefit Plan”
May 07, 2021

Cybersecurity for Your Defined Benefit Plan

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Last month, the U.S. Department of Labor (DOL) issued a press release aimed at defined benefit plan sponsors, plan fiduciaries, record keepers, and plan participants. For the first time, the DOL’s Employee Benefits Security Administration issued cybersecurity guidance.
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Featured image for “IRS Announces Retirement Plan Contribution Limits for 2021”
October 29, 2020

IRS Announces Retirement Plan Contribution Limits for 2021

benefit plan

The IRS has published benefit and retirement plan contribution limits for 2021. Notice 2020-79 defines the updated dollar limitations for tax qualified benefit and defined contribution plans. Chart
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Featured image for “Clarification of Benefit Plan Proxy Voting Obligations”
September 14, 2020

Clarification of Benefit Plan Proxy Voting Obligations

benefit plan

The U.S. Department of Labor (DOL) has proposed a rule on employee benefit plan proxy voting and the exercise of other specific shareholder rights. The new DOL proposed rule is intended to clarify the duties of Employee Retirement Income Security Act of 1974 (ERISA)-covered plan fiduciaries regarding proxy voting. Per the DOL’s proposed rule: “This document also states that Interpretive Bulletin 2016-01 no longer represents the view of the Department regarding the proper interpretation of ERISA with respect to the exercise of shareholder rights by fiduciaries of  ERISA-covered plans, and notes that it will be removed from the Code of Federal Regulations when a final rule is adopted.” The proposal would amend ERISA Regulation Section 2550.404a-1  (“Investment Duties”) and is intended to resolve what the DOL describes as, “a persistent misunderstanding among some stakeholders that ERISA fiduciaries are required to vote all proxies, and in light of recent actions by the Securities and Exchange Commission (SEC) related to the proxy voting process.” Benefit Plan Proxy Voting Confusion The existing confusion has been a perception that fiduciaries must vote all proxies. As a result of this misperception, plans have unnecessarily spent funds researching items of no material economic significance. The new proposal
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