Pension News in 2022

The following list tracks important guidance that were released during 2022.

Last Updated: February 1, 2024

Legislative Developments

• SECURE Act 2.0 enacts sweeping changes to employee benefits law, including mandatory automatic enrollment for certain new 401(k) plans, delayed required minimum distributions, enhanced catch-up limits for certain individuals nearing retirement age, a “Roth-ification” of retirement plans to raise revenue, top heavy exceptions for otherwise excludable employees, expanded distribution options and premature distribution penalty exceptions, codification of certain EPCRS correction methods, expansion of a controlled group exception to spousal attribution, a deferral-only safe harbor 401(k) plan, further conforming of 401k and 403b rules, expansion of SEPs and SIMPLEs, a new SAVER’s match, use of student loan repayments as “stand-ins” for elective deferrals, and enhanced small employer tax credits [Citation: SECURE 2.0 Act of 2022 (Division T of the Consolidated Appropriations Act, 2023), P.L. 117-328 (December 29, 2022)]
  Text available at https://www.congress.gov/117/bills/hr2617/BILLS-117hr2617enr.pdf

Treasury Regulations

• Proposed regulations would incorporate SECURE Act changes into RMD regulations, including post-death distribution rules under IRC §401(a)(9)(H), the new eligible designated beneficiary definition, and the transition to age 72 mandatory commencement age; update of rules relating to rollovers, 403(b) plans and governmental 457(b) plans and other clarifications [Citation: Prop. Treas. Reg. §§1.401(a)(9)-1 through 1.401(a)(9)-8, 1.402(c)-2, 1.403(b)-6(e), 1.408-8, and 54.4974-1, 87 F.R. 10504 (February 24, 2022)]
  Text available at: https://www.govinfo.gov/content/pkg/FR-2022-02-24/pdf/2022-02522.pdf
• IRS proposes to increase renewal user fee for ERPAs from $67 to $140 [Citation: Prop. Treas. Reg. §300.6, 87 F.R. 11366 (March 1, 2022)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2022-03-01/pdf/2022-04303.pdf
• Proposed regulations would provide qualification protection for MEPs where a participating employer’s actions might otherwise disqualify the entire plan [Citation: Prop. Treas. Reg. §1.413-2(a)(2), (a)(3)(iv), (a)(4), and (c), and 1.413-3, 87 F.R. 17225 (March 28, 2022)]
  Text available at: https://www.govinfo.gov/content/pkg/FR-2022-03-28/pdf/2022-06005.pdf
• Update to regulatory mortality assumptions under IRC §430(h)(3) proposed for post-2022 plan years [Citation: Prop. Treas. Reg. §§1.430(h)(3)-1, 1.431(c)(6)-1, 1.433(h)(3)-1, 87 F.R. 25161 (April 28, 2022)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2022-04-28/pdf/2022-06330.pdf
• IRS increases renewal user fee for ERPAs from $67 to $140 [Citation: Treas. Reg. §300.6, 87 F.R. 58968 (September 29, 2022)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2022-09-29/pdf/2022-21087.pdf
• IRS proposes to increase enrollment and renewal user fee for Enrolled Actuaries from $250 to $680 [Citation: Prop. Treas. Reg. §300.6, 87 F.R. 60357 (October 5, 2022)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2022-10-05/pdf/2022-21458.pdf
• Proposed regulations would make permanent a waiver of the physical presence requirement for spousal consent if certain conditions are met [Citation: Prop. Treas. Reg. §1.401(a)-21, 87 F.R. 80501 (December 30, 2022)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2022-12-30/pdf/2022-28327.pdf

IRS Guidance

• 2022 annual update of general procedures for obtaining Employee Plans private letter rulings, determination letters and opinion letters, and setting user fees for these rulings and letters as well VCP submissions [Citation: Rev. Proc. 2022-4, 2022-1 I.R.B. (January 3, 2022)]
  Text available at https://www.irs.gov/pub/irs-irbs/irb22-01.pdf#page=164
• IRS issues 2022 covered compensation table [Citation: Rev. Rul. 2022-2, 2022-4 I.R.B. (January 24, 2022)]
  Text available at https://www.irs.gov/pub/irs-drop/rr-22-02.pdf
• IRS revises calculation methods for “substantially equal payments” under IRC §72(t)(2)(A)(iv) to incorporate new RMD life expectancy tables [Citation: Notice 2022-6, 2022-5 I.R.B. (January 31, 2022; advance release on January 18, 2022)]
  Text available at: https://www.irs.gov/pub/irs-drop/n-22-06.pdf
• 2022 Cumulative List issued for review of 403(b) pre-approved plans submitted for Cycle 2 approval [Citation: Notice 2022-8, 2022-7 I.R.B. (February 14, 2022); advance release on January 28, 2022]
  Text available at: https://www.irs.gov/pub/irs-drop/n-22-08.pdf
• Form 8915-F issued to handle all qualified disaster distribution reporting after 2020 [Form 8915-F/Instructions for Form 8915-F (Rev. January 2022)]
  Text available at:
  https://www.irs.gov/pub/irs-prior/f8915f--2022.pdf (Form 8915-F)
  https://www.irs.gov/pub/irs-prior/i8915f--2022.pdf (Instructions to Form 8915-F)
• IRS temporarily suspends its IRA pre-approval program [Citation: Announcement 2022-6, 2022-13 I.R.B. (March 28, 2022) (advance release on March 14, 2022)]
  Text available at: https://www.irs.gov/pub/irs-drop/a-22-06.pdf
• Static mortality tables for IRC §430(h)(3) funding calculations for 2023valuation dates; applicable mortality tables for IRC §417(e) determinations for annuity starting dates that occur in stability periods beginning in 2023; mortality improvement rates for 2023 valuation dates [Citation: Notice 2022-22, 2022-20 I.R.B. (May 16, 2022)]
  Text available https://www.irs.gov/pub/irs-drop/n-22-22.pdf
• Temporary relief that waives physical presence requirement for spousal consent if certain conditions are met is extended to December 31, 2022 [Citation: Notice 2022-27, 2022-22 (May 31, 2022; advance release on May 12, 2022)]
  Text available at https://www.irs.gov/pub/irs-drop/n-22-27.pdf
• IRS will not rule on certain spinoff/termination transactions involving excess assets [Citation: Rev. Proc. 2022-28, 2022-27 I.R.B. (July 5, 2022; advance release on June 21, 2022)]
  Text available at https://www.irs.gov/pub/irs-drop/rp-22-28.pdf
• IRS issues guidance regarding the changes made by section 9707 of the American Rescue Plan Act of 2021 (the ARP), Pub. L. 117-2, to the election of alternative minimum funding standards under IRC §430(m) for a defined benefit pension plan that is a community newspaper plan or any other plan that is sponsored by an eligible newspaper plan sponsor [Citation: Notice 2022-31, 2022-29 I.R.B. (July 18, 2022; advance release on June 29, 2022)]
  Text available at https://www.irs.gov/pub/irs-drop/n-22-31.pdf
• IRS extends amendment deadlines for the SECURE Act, the CARES Act, the age 59½ in-service distribution rules under the Miner’s Act to December 31, 2025, and qualified disaster distribution amendments under the Taxpayer Certainty and Disaster Tax Relief Act of 2020 [Citation: Notice 2022-33, I.R.B. 2022-34 (August 22, 2022; advance release on August 3, 2022), as modified by Notice 2022-45, I.R.B. 2022-42 (October 17, 2022; advance release on September 26, 2022)]
  Text available at:
  https://www.irs.gov/pub/irs-drop/n-22-33.pdf (Notice 2022-33)
  https://www.irs.gov/pub/irs-drop/n-22-45.pdf (Notice 2022-45)
• Regulatory interpretation of the application of the 10-year rule for participants who die after the required beginning date will not be effective earlier than for 2023 RMD calculations [Citation: Notice 2022-53, I.R.B. 2022-44 (October 31, 2022; advance release on October 7, 2022)]
  Text available at https://www.irs.gov/pub/irs-drop/n-22-53.pdf
• Adjusted dollar limits for 2023 [Citation: Notice 2022-55 (advance release on October 21, 2022)]
  Text available at https://www.irs.gov/pub/irs-drop/n-22-55.pdf
• IRS modifies remedial amendment periods for new plans, establishes determination letter program for individually-designed 403(b) plans, and clarifies the scope of IRS’ review of individually-designed plans [Citation: Rev. Proc. 2022-40, 2022-47 I.R.B. (November 21, 2022)]
  Text available at: https://www.irs.gov/pub/irs-drop/rp-22-40.pdf
• 2022 remedial amendment list contains no required amendments [Citation: Notice 2022-62, 2022-49 (December 5, 2022) (advance release on November 21, 2022)]
  Text available at https://www.irs.gov/pub/irs-drop/n-22-62.pdf
• IRS issues 2023 covered compensation table [Citation: Rev. Rul. 2022-24, 2022-51 I.R.B. (December 19, 2022; advance release on December 8, 2022)]
  Text available at https://www.irs.gov/pub/irs-drop/rr-22-24.pdf

IRS Informal Rulings, Letters or other "Soft" Guidance

• DC plans can be aggregated to satisfy the 25% transfer requirement under IRC §4980(d) [Citation: PLR 202230006 (May 4, 2022; released July 29, 2022)]
  Text available at https://www.irs.gov/pub/irs-wd/202230006.pdf

DOL Regulations

• Civil penalty adjustments for 2022 [Citation: DOL Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2022, DOL Reg. §2575.3, 87 F.R. 2328 (January 14, 2022)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2022-01-14/pdf/2022-00144.pdf
• DOL proposes changes to procedures for requesting class and administrative exemptions from the prohibited transaction rules [Citation: Prop. DOL Reg. §§2570.30 - 2570.52, 87 F.R. 14722 (March 15, 2022)]
  Text available at: https://www.govinfo.gov/content/pkg/FR-2022-03-15/pdf/2022-04963.pdf
• DOL/IRS/PBGC finalize modifications to the Form 5500 series to incorporate SECURE Act [Citation: Revision of Annual Information Return/Reports, 26 C.F.R. Part 301 and 29 C.F.R. Parts 2520 and 4065, 87 F.R. 31133 (May 23, 2022)
  Text available at: https://www.govinfo.gov/content/pkg/FR-2022-05-23/pdf/2022-10658.pdf
• DOL updates Interpretive Bulletin on independence of accountant [Citation: DOL Reg. § 2509.2022-01 (replacing §2509.75-1), 87 F.R. 54368 (September 6, 2022)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2022-09-06/pdf/2022-18898.pdf
• DOL proposes regulations regarding independent contractor status to be more consistent with judicial precedent and the FLSA’s text and purpose [Citation: Prop. DOL Reg. §§795.100-795.115 (Wage and Hour Division), 29 C.F.R. Part 795, 87 F.R. 62218 (October 13, 2022)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2022-10-13/pdf/2022-21454.pdf
• DOL adopts new rules to allow for climate change and other ESG factors to be considered in a fiduciary’s selection of plan investment or designated investment alternatives, and in exercising proxy voting and other shareholder rights [Citation: Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights, 87 F.R. 73822 (December 1, 2022)]
  Text available at: https://www.govinfo.gov/content/pkg/FR-2022-12-01/pdf/2022-25783.pdf

DOL Formal Guidance/Prohibited Transaction Exemptions

• DOL finalizes amendments to several class exemptions to eliminate references to credit ratings, as required by the Dodd-Frank financial reform legislation [Citation: Amendments to Class Prohibited Transaction Exemptions to Remove Credit Ratings Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, 87 F.R. 12985 (March 8, 2022)]
  Text available at: https://www.govinfo.gov/content/pkg/FR-2022-03-08/pdf/2022-04866.pdf
• Proposed amendments to PTE 84-14 would clarify effect of foreign convictions and add requirements aimed at better protecting the interest of plan participants [Citation: Proposed Amendment to Prohibited Transaction Class Exemption 84-14 (the QPAM Exemption), 87 F,R, 45204 (July 27, 2022)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2022-07-27/pdf/2022-15702.pdf
• DOL proposes restating the VFC Program to add a limited self-correction option for delinquent participant contributions, and to expand and clarify the correction rules for certain other covered transactions [Citation: Proposed Amendments to Voluntary Fiduciary Correction Program, 87 F.R. 71164 (November 21, 2022)]
  Text available at: https://www.govinfo.gov/content/pkg/FR-2022-11-21/pdf/2022-24703.pdf
• Proposed amendments to class exemption would recognize proposed self-correction procedure under VFC Program, eliminate 3-year limitation and make several other clarifications [Citation: Proposed amendments to PTE 2002-51, 87 F.R. 70753) (November 21, 2022)]
  Text available at: https://www.govinfo.gov/content/pkg/FR-2022-11-21/pdf/2022-24702.pdf

PBGC Regulations and Other Guidance

• Civil penalty adjustments for 2022 [Citation: PBGC Adjustment of Civil Penalties for Inflation, PBGC Reg. §§4071.3 and 4302.3, 87 F.R. 2340 (January 14, 2022),]
  Text available at https://www.govinfo.gov/content/pkg/FR-2022-01-14/pdf/2022-00778.pdf
• PBGC finalizes rule for plans to apply for financial assistance under the American Rescue Plan Act [Citation: PBGC Reg, §§4262.1-4262.17, 87 F.R. 40968 (July 8, 2022)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2022-07-08/pdf/2022-14349.pdf
• PBGC adopts changes to its procedures for examining PBGC records to reflect FOIA changes [Citation: PBGC Reg. §§4901.1-4901.34, 87 F.R. 43991 (July 25, 2022)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2022-07-25/pdf/FR-2022-07-25.pdf
• Proposed regulations would provide interest rate assumptions that may be used by a plan actuary in determining a withdrawing employer’s liability under a multiemployer plan [Citation: Prop. PBGC Reg. §4213.1-4213.11, 29 C.F.R. Part 4213 (added), 87 F.R. 62316 (October 14, 2022)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2022-10-14/pdf/2022-22304.pdf

EBSA Advisory Opinions, Field Assistance Bulletins and other informal guidance from the DOL

• DOL cautions extreme care before considering a cryptocurrency option in a 401(k) plan’s investment menu [Citation: Compliance Assistance Release No. 2022-01, 401k Plan Investments in Cryptocurrencies (March 10, 2022)]
  Text available at:
  https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/plan-administration-and-compliance/compliance-assistance-releases/2022-01.pdf
• Employees who assist in collecting and transmitting participant contributions from their employers to a Pooled Employer Plan are not “handling funds” for bonding purposes [Citation: Letter from DOL Division of Coverage, Reporting and Disclosure to The Surety & Fidelity Association of America (September 7, 2022)]
  Text available at:
  https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/information-letters/09-07-2022.pdf

ERISA Litigation

• Pleading sufficient to try ERISA §502(a)(3) claim seeking recovery from employer-fiduciary for alleged misleading statements regarding life insurance benefit elections made by a now-deceased participant [Citation: Delker v. MasterCard International, Inc., No. 20-3600, ___ F.3d ___ (8th Cir. January 5, 2022)]
  Text available at: https://ecf.ca8.uscourts.gov/opndir/22/01/203600P.pdf
• Supreme Court vacates Seventh Circuit rejection of plaintiffs’ claims in excessive fee case because it did not consider the Tibble holding that failure to prudently monitor investment options and plan expenses is not excused by offering a sufficient number of prudent investment options [Citation: Hughes v. Northwestern University, No. 19-1401, 595 U.S. ___ (Sup.Ct. January 24, 2022)]
  Text available at: https://www.supremecourt.gov/opinions/21pdf/19-1401_m6io.pdf
• Arbitration agreement did not apply to ERISA §502(a)(2) claims for fiduciary breach because the claims belong to the plan, not to the employees who are subject to the arbitration agreement [Citation: Hawkins v. Cintas Corporation, No. 21-3156, ___ F.3d ___ (6th Cir. April 27, 2022)]
  Text available at https://www.opn.ca6.uscourts.gov/opinions.pdf/22a0089p-06.pdf
• Deficiencies in insurer’s benefit election procedures supported lower court’s grant of summary judgment in ERISA §502(a)(3) claim for additional insurance coverage [Citation: Skelton v. Radisson Hotel Bloomington, No. 21-2641, ___ F.3d ___ (8th Cir. May 6, 2022)]
  Text available at https://ecf.ca8.uscourts.gov/opndir/22/05/212641P.pdf
• Named plaintiffs do not have to be invested in all of the investment options for which excessive fees are alleged in order to certify the class [Citation: Boley v. United Health Services, Inc., No. 21-2014, ___ F.3d ___ (3rd Cir. June 1, 2022)]
  Text available at https://www2.ca3.uscourts.gov/opinarch/212014p.pdf
• Merely offering actively-managed funds as an option, which bear higher expense ratios, is not itself a violation of fiduciary prudence [Citation: Smith v. CommonSpirit Health, No. 21-5964. ___ F.3d ___ (6th Cir. June 21, 2022)]
  Text available at https://www.opn.ca6.uscourts.gov/opinions.pdf/22a0134p-06.pdf
• Eleventh Circuit also recognizes equitable surcharge as an appropriate remedy under ERISA §502(a)(3) even though it provides for monetary relief [Citation: Gimeno v. NCHMD, Inc., No. 21-11833, ___ F.3d ___ (11th Cir. June 28, 2022)]
  Text available at https://media.ca11.uscourts.gov/opinions/pub/files/202111833.pdf
• Actuary’s assumptions to calculate withdrawal liability must be a reasonable assumption regarding the plan’s historic investment experience [Citation: United Mine Workers of American 1974 Pension Plan v. Energy West Mining Company, No. 20-7054, ___ F.3d ___ (D.C.Cir. July 8, 2022)]
  Text available at: https://www.cadc.uscourts.gov/internet/opinions.nsf/C03826AEB3E517B68525887900595CAE/$file/20-7054-1954079.pdf
• Corporate insiders serving as fiduciaries can transfer risk regarding stock drop decisions by delegating exclusive investment authority to independent fiduciary [Citation: Burke v. The Boeing Co., No. 20-3389, ___ F.3d ___ (7th Cir. August 1, 2022)]
  Text available at:
  http://media.ca7.uscourts.gov/cgi-bin/rssExec.pl?Submit=Display&Path=Y2022/D08-01/C:20-3389:J:Hamilton:aut:T:fnOp:N:2911081:S:0
• DOL’s broad subpoena authority extends to cybersecurity investigations and may be applied to non-fiduciary service providers [Citation: Walsh v. Alight Solutions, LLC, No. 21-3290, ___ F.3d ___ (7th Cir. August 12, 2022)]
  Text available at:
  https://www.govinfo.gov/content/pkg/USCOURTS-ca7-21-03290/pdf/USCOURTS-ca7-21-03290-0.pdf
• Second Circuit reaffirms that the Mandatory Victims Restitution Act authorizes garnishment of 401(k) funds, but lower court needs to determine whether 10% premature distribution penalty should apply [Citation: United States v. Greebel, No. 21-993, ___ F.3d ___ (2nd Cir. August 24, 2022)]
  Text available at:
  https://www.ca2.uscourts.gov/decisions/isysquery/87b6b977-f0e1-45e6-94da-080d5bc379be/2/doc/21-993_opn.pdf#xml=https://www.ca2.uscourts.gov/decisions/isysquery/87b6b977-f0e1-45e6-94da-080d5bc379be/2/hilite/
• Insurer acting in fiduciary capacity did not breach duties of prudence and loyalty in the manner in which it set guaranteed interest rates for stable value contracts [Citation: Rozo v. Principal Life Insurance Co., No. 21-2026, ___ F.3d ___ (8th Cir. September 2, 2022)]
  Text available at https://ecf.ca8.uscourts.gov/opndir/22/09/212026P.pdf
• “More harm than good” Dudenhoeffer pleading test trips up plaintiffs again in stock drop case involving insider information that could affect the value of the employer securities [Citation: Perrone v. Johnson&Johnson, No. 21-1885, ___ F.3d ___ (3rd Cir. September 7, 2022)]
  Text available at: https://www2.ca3.uscourts.gov/opinarch/211885p.pdf
• Statute of limitations to bring claim of underpayment of benefits begins when the first alleged underpayment is made, not the earlier date when the plan explained the benefit [Gragg v. UPS Pension Plan, No. 22-3379, ___ F.3d ___ (6th Cir. December 16, 2022)]
  Text available at: https://www.opn.ca6.uscourts.gov/opinions.pdf/22a0269p-06.pdf

Miscellaneous Guidance

• None