ERISA Roundup - Q2 2021

July 2021

BY

Beth GarnerPartner, Employee Benefit Plan Audits National Practice Leader

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A NOTE FROM BDO’S NATIONAL ERISA PRACTICE LEADER


Right as we were finding our rhythm in the work-from-home environment, many companies are asking their employees to trade athleisurewear for suits and welcoming them back into the office. The future of work will certainly look different and you can trust that the BDO ERISA Center of Excellence will continue to be a reliable resource every step of the way.

In this edition of our ERISA Roundup you’ll find valuable materials covering the issues impacting plan sponsors and HR professionals. Have you looked into how nonqualified deferred compensation plans can help your company attract and retain top talent? Our latest insight will walk you through the many complexities. Have you seen the DOL’s new guidance on cybersecurity? Read more to see what you may have missed.

As always, I encourage you to follow along with our regular insights at www.bdo.com/erisa. Be sure to join our conversation at BDO Talks ERISA and send us a message about topics you want to hear more about at BDOTalksERISA@bdo.com.

Sincerely,


 

IN THIS ISSUE...

 

New Podcast! BDO Talks ERISA

In February, our ERISA Center of Excellence launched a monthly podcast - BDO Talks ERISA! This series covers best practices around all things ERISA and any other HR-related topics.


 

Preparing for Mandatory Lifetime Income Disclosures for DC Plans

As part of the overall movement toward financial wellness, Congress and the Department of Labor (DOL) are focused on giving retirees more visibility into how retirement savings translate into lifetime income.  


 

Missing Participants: What Plan Sponsors Need to Know About the DOL’s Latest Guidance

The DOL’s Missing Participants—Best Practices for Pension Plans describes a range of steps that retirement plan fiduciaries should consider to locate missing or nonresponsive participants.


 

Employer-Sponsored Student Loan Debt Relief Extended Through 2025

Employers can provide up to $5,250 annually in tax-free student loan repayment benefits per employee through 2025.


 

DOL Issues Cybersecurity Guidance for Retirement Plans

On April 14, the Department of Labor (DOL) outlined a range of practices for combatting the growing threat of cybercrime to ERISA-covered retirement plans.


 

Pension Relief Offered by the American Rescue Plan Act

In an effort to help the nation recover from the COVID-19 pandemic and related economic crisis, President Biden signed the $1.9 trillion American Rescue Plan Act of 2021 (ARPA) on March 11, 2021.


 

Navigating the Complexities of Nonqualified Deferred Compensation Plans

Employers are continuously looking for ways to enhance their ability to attract and retain top talent. This need will likely become more heightened as the economic recovery from the COVID-19 pandemic picks up steam and the labor market tightens.


 

2021 DEADLINES AND IMPORTANT DATES FOR PLAN SPONSORS

July 2021

July 26: Action: File PBGC Form 200 by July 26, if plan sponsor of a single-employer defined benefit plan does not make a July 15 required contribution, causing the plan to have more than $1 million in unpaid contributions.
 

August 2021

August 2: Action: Pay Patient-Centered Outcomes Research Institute (PCORI) fee by Aug 2. Self-insured health plans must pay $2.66 per person (covered by health plan).
August 13: File PBGC Form 10, by Aug 13, if a defined benefit plan with >100 participants 1) missed its July 15 required contribution, 2) the contribution is still unpaid as of Aug 15, 3) the contribution could not have been met with a Prefunding or Carryover Balance election and 4) a PBGC Form 200 was not already filed for the same event.
 

September 2021

September 15: Fund: If an extension was filed, Sept. 15 is the deadline to fund employer contributions.
September 30: Distribution: Sept. 30, Summary Annual Report sent to participants with Dec. 31 plan year end.

View All Deadlines and Important Dates
 
 

CONTRIBUTION PLAN LIMITS AND OTHER ROLLING NOTICES FOR 2021

In addition to those important deadlines and dates, plan sponsors should be aware of the contribution plan limits and other rolling notices for 2021:
  • Employee salary deferral limits for 401(k), 403(b) and 457 plans will be $19,500. Age 50 catch-up contribution limit increases to $6,500.
  • Health Savings Account contribution limit is $3,600 (single) and $7,200 (family). Age 55 catch-up contribution stays at $1,000.
  • Traditional and Roth Individual Retirement Account contribution limit will be $6,000. catch-up contributions for participants age 50 and over is $1,000.
  • Limitation for the annual benefit under a defined benefit plan under Section 415(b)(1)(A) will be $230,000.
  • The dollar amount used to define “highly compensated employee” under Section 414(q)(1)(B) will be $130,000.
  • Newly eligible employees must receive a Summary Plan Description (SPD) within 90 days after becoming covered by the Plan.
  • Provide quarterly statements and fee information to participants.
 
 

New Podcast Episodes! BDO Talks ERISA

In February, our ERISA Center of Excellence launched a monthly podcast - BDO Talks ERISA! This series covers best practices around all things ERISA and any other HR-related topics, including:How to avoid common compliance issues
  • How to avoid common compliance issues
  • How to navigate the ins-and-outs of ERISA’s fiduciary provisions
  • Our own experiences working for BDO’s ERISA Services group
  • A deeper dive into the insights we share through our BDO ERISA Center of Excellence
Listen to new episodes at BDO.com/BDOTalksERISA or subscribe on Apple Podcast or Spotify. If you have suggestions for future topics or have a question for us to answer, send an email to BDOTalksERISA@bdo.com.