tag:blogger.com,1999:blog-41618430838952517722024-02-06T22:31:06.722-08:00Strategic Benefit ServicesRetirement and Benefit NewsAdminhttp://www.blogger.com/profile/02700653758262541729noreply@blogger.comBlogger174125tag:blogger.com,1999:blog-4161843083895251772.post-51740714736349692402020-11-05T02:00:00.007-08:002020-11-05T02:00:01.935-08:00Q3 Market Recap: Investor Optimism Amid the Pandemic<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEihgreic0bCwj6iu8MtH6OQaYlyF8axugGwaghz_PMOxmphDrTtNki0gOSpsiHXz3WMJnQqgTlpYD1e6aXlX1-G2YA9shevJ4VssGPrJ4QXPCx6sHKFFf5yJRa47s7j6WOVbaP_jGvV3WU/s2048/iStock-1172964252.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1365" data-original-width="2048" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEihgreic0bCwj6iu8MtH6OQaYlyF8axugGwaghz_PMOxmphDrTtNki0gOSpsiHXz3WMJnQqgTlpYD1e6aXlX1-G2YA9shevJ4VssGPrJ4QXPCx6sHKFFf5yJRa47s7j6WOVbaP_jGvV3WU/s320/iStock-1172964252.jpg" width="320" /></a></div>The U.S. equity market recovery that began on March 24 continued in earnest in Q3. However, the Index performance masks significant underperformance in the industries that continue to be impacted by the pandemic. Any failure of the presidential election process to determine a clear winner will likely provide fuel for near-term volatility. <p></p>Read the <a href="https://images.magnetmail.net/images/clients/HANYS_HBS/attach/SBS_Documents/Market_Recap/SBS_Market_Recap_3Q_2020_Bill.pdf">Q3 Market Recap</a> for a brief review of the market performance and chart shows the average annualized return for the S&P 500 Index under the presidential terms dating back to Franklin Roosevelt. Also included is an article describing how Strategic Benefit Services has been <i>Staying Connected to Meet Retirement Goals</i> in spite of the pandemic.<br /><br />If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by <a href="mailto:sbs@hanys.org">email </a>or by calling (855) 882-9177.Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-408266116300798092020-08-13T03:59:00.008-07:002020-08-13T08:30:26.160-07:00Q2 Market Recap: Extraordinary Times - Extraordinary Markets<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgkOU5TBB_i4Lk7F9U9cuMFjBmJzXAy_ixf-R6bQg5UEwhTq9_dbRmkEnxITAgFE4oDDKwpa8zddMDHRkpxJmXTUQS145yd4Oyy9JgF8jgeh2FuVWbgsIMNqUt4ca4Ki84iwVr793Wj-NE/s1800/Boomerang.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1050" data-original-width="1800" height="190" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgkOU5TBB_i4Lk7F9U9cuMFjBmJzXAy_ixf-R6bQg5UEwhTq9_dbRmkEnxITAgFE4oDDKwpa8zddMDHRkpxJmXTUQS145yd4Oyy9JgF8jgeh2FuVWbgsIMNqUt4ca4Ki84iwVr793Wj-NE/w328-h190/Boomerang.jpg" width="328" /></a></div>With the majority of Americans sheltering in place at the beginning of the second quarter, what reasonable person would have forecast that the S&P 500 Index would have appreciated 20.54%, for its best quarterly performance since its inception in 1957?<br /><br /><div>The extraordinary turnaround from the February-March bear market restored most of the negative returns investors suffered in Q1.<br /><br />Read the <a href="http://images.magnetmail.net/images/clients/HANYS_HBS/attach/SBS_Documents/Market_Recap/SBS_Market_Recap_2Q_2020_Bill.pdf" target="_blank">Q2 Market Recap</a> for a brief review of the market performance. Also included is a summary of IRS guidance impacting retirement plan relief under the CARES Act. <br /><br />If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by <a href="http://strategicbenefitservices.com/contact/" target="_blank">email </a>or by calling (855) 882-9177.</div>Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-57050358780755931802020-08-03T04:10:00.007-07:002020-08-03T06:28:38.383-07:00Understanding Voluntary Benefits <div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3gpc1mIrGz8dyi8ehaVS8YIKE4M5X3aVM76BYeZk6BSyEXl8GLI2znOca7AHNR5N2dWyoISVm24wM2nFnhbX095HtTWtOhtHMZBwBfJzkiEtAcGxJSq4lvwyTNnIpM8CuZOtIs2BWP1E/s1698/iStock_000019273252Medium.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1131" data-original-width="1698" height="273" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3gpc1mIrGz8dyi8ehaVS8YIKE4M5X3aVM76BYeZk6BSyEXl8GLI2znOca7AHNR5N2dWyoISVm24wM2nFnhbX095HtTWtOhtHMZBwBfJzkiEtAcGxJSq4lvwyTNnIpM8CuZOtIs2BWP1E/w410-h273/iStock_000019273252Medium.jpg" width="410" /></a></div>You know the importance of having health care coverage and a 401(k), but are you taking advantage of all the benefits your organization offers? Voluntary benefits are additional benefit options offered through the company. Unlike traditional benefits like health coverage, employees are responsible for paying most or all of the cost of these voluntary options. <br /><br /><b>What’s the Advantage? </b><div>You may wonder–if you’re responsible to pay, then why elect any voluntary benefits? There are several advantages. <br /><h4 style="text-align: left;">Lower Price </h4><span><a name='more'></a></span>If the benefit in question is something you are planning to purchase for yourself regardless, then it is probably more costeffective to purchase through your organization. The group rate SBS can secure is generally lower than what you’d pay buying individually from an insurance company. <br /><h4 style="text-align: left;">Convenience </h4>When you elect a voluntary benefit option through our open enrollment, your premium is paid through convenient payroll deductions just like your other benefits (and you receive the same benefit of pre-tax payroll deductions). Plus, you can skip the hassle of shopping around to find and purchase a plan – simply elect what you need during enrollment time. <br /><br />Unlike traditional benefits such as health coverage, employees are responsible for paying most or all of the cost of voluntary benefits<div><h4 style="text-align: left;">Protect Yourself and Your Family </h4>Many of these types of insurance may seem unnecessary, but they are designed to protect you in the event of an unexpected illness, accident, death or other event. For instance, you may be skeptical about needing disability insurance, but consider if you could afford to be disabled and without a paycheck for weeks or months, plus having medical bills to pay? Paying a small premium now can help protect you financially. <br /><h4 style="text-align: left;">Common Types </h4>There are a variety of voluntary benefit options; some of the common ones include: <br /><ul style="text-align: left;"><li><b>Life Insurance</b> – employees can typically elect up to a certain amount without needing to go through medical underwriting</li><li><b>Vision Insurance </b>– typically includes free annual eye exam and discounts on glasses and contacts </li><li><b>Dental Insurance</b> – generally covers preventive services and offers a discount on other treatments </li><li><b>Long-term Care Insurance</b> – covers the care people need when they have lost the ability to perform certain daily activities (care that may not be covered under Medicare or Medicaid) </li><li><b>Short-term Disability</b> – covers a percentage of lost pay due to time away
from work because of a disability, generally up to three or six months </li><li><b>Long-term Disabilit</b>y – covers care needed over a longer period of time, for
injuries that could affect someone for years </li><li><b>Accidental Death & Dismemberment</b> – coverage in case an employee
dies in an accident or loses a limb, vision or hearing. </li></ul><div>If you have any questions about voluntary benefits, or would like to talk to an employee benefits consultant, please get in touch by <a href="http://strategicbenefitservices.com/contact/">email</a> or by calling (855) 882-9177.</div></div></div>Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-31616522044297291122020-06-16T07:46:00.006-07:002020-06-17T08:12:21.160-07:00IRS permits remote notarization of participant elections<div>The economic and societal lockdowns that have been imposed in an attempt to slow the spread of the coronavirus have presented unique challenges, including some that may not have been contemplated when the lockdowns were instituted. <br /><br />Congress was quick to pass the <a href="http://news.strategicbenefitservices.com/2020/04/4-key-cares-act-provisions-for.html">CARES Act</a>, which gave retirement plan participants greater access to their plan balances through expanded loan and hardship distribution provisions. However, a stumbling block quickly became apparent when plan provisions required spousal consent for some distributions or loans. <br /><br />Spousal consent waivers for plans subject to qualified joint and survivor annuity provisions of Section 417 of the Internal Revenue Code generally must be witnessed in the physical presence of a plan representative or a notary public. Similarly, the same spousal consent and witnessing requirements apply to designate a non-spouse beneficiary for a 401(k) or ERISA-covered 403(b) plan. Physical presence can be difficult to achieve in light of stay-at-home orders and temporary business closures. <br /><br /><span><a name='more'></a></span>On June 3, the Internal Revenue Service issued Notice 2020-42, which provides some relief to the physical presence requirements for documents signed by a notary. The rules apply to those states that allow for remote electronic notarization. Many states, including New York, have passed legislation or issued executive orders to permit such actions. In New York, <a href="https://www.governor.ny.gov/news/no-2027-continuing-temporary-suspension-and-modification-laws-relating-disaster-emergency">Executive Order 202.7</a> allows for electronic notarization using audio-video technology provided that the following conditions are met: <br /><br /><ul style="text-align: left;"><li>The person seeking the notary’s services, if not personally known to the notary, must present a valid photo ID to the notary during the videoconference, not merely transmit it prior to or after.</li><li>The videoconference must allow for direct interaction between the person and the notary.</li><li>The person must affirmatively represent that he or she is physically situated in New York state.</li><li>The person must transmit by fax or electronic means a legible copy of the signed document directly to the notary on the same date it was signed. The notary may notarize the transmitted copy of the document and transmit the same back to the person.</li><li>The notary may repeat the notarization of the original signed document as of the date of execution, provided the notary receives such original signed document together with the electronically notarized copy within 30 days after the date of execution.</li></ul>The rules outlined above would also apply in the case of a plan representative witnessing a participant election. <br /><br />It is important to note that IRS Notice 2020-42 provides relief for the physical presence requirement by a notary public for the 2020 calendar year for those states that allow for remote electronic notarization. Remote electronic notarization in New York was approved via Executive Order 202.7, which was signed on March 7. The governor has issued subsequent executive orders that extend the original expiration date and will likely extend the expiration date further so long as work-in-place restrictions remain in effect. A bill has been introduced in the State Senate that would permanently authorize electronic and remote notarization. </div><div><br /></div><div>If you have any questions or would like to begin talking to a retirement plan advisor, please get in touch by <a href="http://strategicbenefitservices.com/contact/">email</a> or by calling (855) 882-9177. <br /><br /> </div>Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-28132133658274153292020-06-15T12:13:00.000-07:002020-06-15T12:13:30.943-07:00The DOL expands rules on e-delivery of participant notices<p class="MsoNormal">As described in our <span class="MsoHyperlink"><a href="http://news.strategicbenefitservices.com/2019/11/youve-been-put-on-notice.html">previous
article</a></span> on participant notices, plan sponsors of qualified
retirement plans must routinely provide various notices to participants and
beneficiaries regarding plan provisions, investment information, fees and more. On May 21, the U.S. Department of Labor
released new regulations regarding the electronic disclosure of these notices, ushering
in an era of convenience for a historically arduous requirement.<o:p></o:p></p>
<p class="MsoNormal">Electronic delivery rules have existed for years, but abiding
by them has been prohibitive, particularly when delivering to employees not
using a computer as an integral part of work duties. The new rules do not replace
the existing ones, but instead offer a more feasible alternative to them.<o:p></o:p></p>
<p class="MsoNormal"><span></span></p><a name='more'></a>In short, the new safe harbor framework allows sponsors to
provide required notices directly via email or to make them available on the internet
under certain requisite conditions. The process can be applied for participants
who have provided an email address or mobile number (for text notifications),
as well as those who are assigned a work email address. If an electronic
address isn’t provided by the participant or assigned by the employer or if
such an address is deemed to be invalid, then the sponsor must treat the
participant as if they “opted out” of electronic delivery and provide a paper copy
instead.<o:p></o:p><p></p>
<p class="MsoNormal">An initial paper notification must be provided to inform
participants about the electronic delivery process. This notification must be
provided prior to relying on the safe harbor as well as to all newly hired
employees. A <i>Notice of Internet Availability</i>
is sent electronically to participants once the notices are ready for viewing
(e.g., annually for most documents).
With certain exceptions, the availability of multiple notices can be
communicated in a single NOIA.<o:p></o:p></p>
<p class="MsoNormal">As with the existing rules, a paper notice must be furnished
upon request at no charge. Participants can choose to opt out of electronic delivery
and receive paper. For those who don’t opt out, the sponsor must evaluate the
use of electronic delivery for newly terminated employees who no longer have
access to work email.<o:p></o:p></p>
The new rules present an opportunity to significantly reduce cost and time spent in printing and distributing required disclosures. The rules take effect on July 26, but the DOL will allow plans to begin using the new rules immediately. These rules do not apply to welfare plan notices or to certain retirement plan notices required by the Internal Revenue Code, such as safe harbor and automatic enrollment notices. Although greatly simplified, the rules remain complex in nature. Plan sponsors should work with their service providers to take advantage of the new rules and to make sure all applicable notices are delivered as required by the IRS and DOL. <div><br /></div><div>If you have any questions or would like to begin talking to a retirement plan advisor, please get in touch by <a href="http://strategicbenefitservices.com/contact/">email</a> or by calling (855) 882-9177.</div>Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-35446618711269182722020-05-15T12:01:00.002-07:002020-05-15T12:16:23.269-07:00CRDs 100% taxable for New York state and local income tax purposes in 2020The Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law on March 27. Under the Act, participants affected by the coronavirus may be able to take distributions in 2020 of up to $100,000 from an employer-sponsored retirement plan or an IRA. Although allowing these distributions from a qualified retirement plan is optional, we have seen that a number of employers have chosen to amend their plans to permit such distributions. <br /><br />The Act provides that coronavirus-related distributions will not be subject to the mandatory 20% withholding nor the 10% early withdrawal penalty (for those younger than 59½) that would otherwise apply. <span><a name='more'></a></span>In addition, participants have the option to return some or all of the funds to the plan or IRA if done so within three years, thus avoiding taxation on these amounts. To the extent funds are not redeposited within the three-year period, such amounts will be subject to ordinary income tax. The income tax due on the distribution will be spread over three years unless the participant elects to have such amounts fully taxable in 2020. <br /><br />The recently passed New York state fiscal year 2021 budget puts a wrinkle on CRDs that participants may not appreciate. For tax years beginning before Jan. 1, 2022, the budget decouples New York state and New York City personal income taxes from any amendments made to the Internal Revenue Code after March 1, 2020, including the CARES Act. Simply put, CRDs will be 100% taxable for New York state and local income tax purposes in 2020. The tax bill that will come due next April could be significantly higher than what participants were expecting. <br /><br />The CARES Act provides those affected by the coronavirus much needed cash. However, it is important that they understand the cost associated with these distributions. Employers should carefully consider whether to allow CRDs from the retirement plan and to the extent that they do, ensure that communications to participants clearly outline the tax implications of these distributions. <br /><br />For more information, visit our <a href="http://news.strategicbenefitservices.com/2020/04/covid-19-retirement-and-benefit-plan.html" target="_blank">COVID-19 resource page</a> or speak with an SBS advisor at (855) 882-9177.Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-48683353133758535912020-05-04T04:00:00.000-07:002020-05-04T04:00:04.132-07:00Invisible<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsMwj1g52jUz7v1Oz9PHAy6m98fvqSV75Hp6a5HvahI50KfisElfej7A2KryeAHDMMsRVRWUOd6-qRucHUiyXYMWhdL8xFaK9bDPKnOLoUIdZYnND_qRwoqgUJuu1aPV3mdFn7BnYjWHA/s1600/iStock-91215045.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsMwj1g52jUz7v1Oz9PHAy6m98fvqSV75Hp6a5HvahI50KfisElfej7A2KryeAHDMMsRVRWUOd6-qRucHUiyXYMWhdL8xFaK9bDPKnOLoUIdZYnND_qRwoqgUJuu1aPV3mdFn7BnYjWHA/s320/iStock-91215045.jpg" width="213" /></a><br />
Investors are understandably concerned about the drop in value of their holdings as the first pandemic in many generations redefined our lives, seemingly overnight. SBS believes that investment processes, grounded in understanding the financial markets and the economy, provide the antidote for impulsive investment decisions.<br /><br />In The Wealth of Nations, a definitive examination of the practical and moral aspects of a market economy in the pre-industrial age, Scottish economist Adam Smith coined the term invisible hand as a guiding principle. Mr. Smith’s explanation of free-market economics in 18th century Great Britain centered on the belief that market participants always act in their own interest. A marketplace of sellers and buyers making voluntary transactions unleashes powerful economic forces — the invisible hand. <br /><a name='more'></a><br />In mid-February, approaching the 11th anniversary of the record-long bull market and primarily focused on maximizing returns, investors began to deal with the reality of the pandemic. The coronavirus overwhelmed securities markets. Investor confidence collapsed Feb. 24 when it became apparent the virus had infiltrated the United States.<br /><br />It is a long-held tenet of investing that markets hate surprises. In the first quarter of 2020, we saw the markets detest the unknown impact of the novel coronavirus on business and the economy. The novel coronavirus was a rare example of an unknown risk — a potential investment loss that is both unexpected and unmanageable. In the economic battle of this war, the invisible virus has temporarily shut down the invisible hand of the economy. <br /><br />As the magnitude of the public health crisis revealed itself, financial markets sold off dramatically. All of the symptoms of panic were there: illiquid markets, wide bid-ask spreads (absence of buyers) and high correlations across all asset classes (indiscriminate selling to raise cash).<br /><br />The first quarter performance numbers for fixed income, while generally positive, mask a brief interval of disturbing market dislocation. In an understandable flight to quality, high-quality bonds rallied in February. But on March 10, the bond market abruptly began selling off as the depth of the crisis caused a seemingly universal move to cash. Institutions, individuals as well as public and private sector investors sold bonds to raise the cash deemed essential to ride out the crisis. See Deborah Collins’ related article, <a href="http://news.strategicbenefitservices.com/2020/04/in-fed-we-trust.html">In Fed We Trust</a>, on the Federal Reserve’s unprecedented actions to shore up the debt markets. Despite the turmoil on bond trading desks, high-quality bonds (and bond funds) provided a vital cushion to equities within diversified portfolios, including target retirement date funds. <br /><br />In the midst of such negative market sentiment, it is understandable to be concerned. Policies and past practices remain relevant as we rebuild the economy and markets recover. Given the current state of the securities markets, SBS would like to re-state our investment philosophy—core beliefs that guide us as advisors for your organization’s retirement plan. Process is key to achieving your employees’ long-term goal of an adequately-funded retirement. To be effective, a process must be adhered to as the market traces its cycle. <br /><br />Process happens at three levels: <br /><ol>
<li>the retirement plan level; </li>
<li>investment managers; and </li>
<li>individual Investors. </li>
</ol>
Read the <a href="https://images.magnetmail.net/images/clients/HANYS_HBS/attach/SBS_Documents/Market_Recap/SBS_Market_Recap_1Q_2020_Bill.pdf">Q1 Market Recap</a> to learn more about the process at each of the three levels. If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or email us at sbs@hanys.org.Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-70185255904007506562020-04-27T05:00:00.000-07:002020-04-27T10:51:43.329-07:00SBS participant education services: Timely help from a safe distance<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgK_-Ut5xqc-rRiLItAG9Kr3XwUA9KJ0njU8YVHXMwGCQHiODLDdyaw2Pip0ungoBulJUPfhI2SHDGQAoqO5h5fY576-7VmJXHZLFFX_sjxiaxdzNQTmfZT_qlRATIA5md0jCSMq4jrNus/s1600/iStock-1219024292.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1104" data-original-width="1600" height="275" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgK_-Ut5xqc-rRiLItAG9Kr3XwUA9KJ0njU8YVHXMwGCQHiODLDdyaw2Pip0ungoBulJUPfhI2SHDGQAoqO5h5fY576-7VmJXHZLFFX_sjxiaxdzNQTmfZT_qlRATIA5md0jCSMq4jrNus/s400/iStock-1219024292.jpg" width="400" /></a></div>
The current pandemic environment proves how unpredictable this world can be throughout a person’s career and life. That’s why the value of Strategic Benefit Services’ participant education services cannot be overstated: Being there for our clients’ employees is of paramount importance and a key measure of our success. In addition to our plan level consulting services, we offer a dedicated team of highly trained and experienced educators to assist retirement plan participants. Our salaried team members educate employees, with no conflict of interest. <br />
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<a name='more'></a>Recently, our education services provided<b> timely help</b> for the employees at one of our New York City healthcare clients. From morning through evening, our educator hosted 30 personalized one-on-one telephonic meetings to help employees enroll in the retirement plan, update their savings rates and learn about their emergency options under the CARES Act. The employees appreciated being able to briefly escape the medical crisis and speak with an expert. Medical workers on the front line should not have the additional stress of worrying about their retirement account.<br />
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While onsite education is our primary approach, our<b> virtual meeting formats</b> have been essential during the COVID-19 pandemic for healthcare, not-for-profit and across all industries. Our virtual formats include individual phone call meetings, video chats and live or recorded group webinars. Individual meetings can be pre-scheduled or ad-hoc and our clients’ employees can reach our educators directly. An easy-to-use online scheduling tool is available to simplify the process for our clients and their employees.<br />
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Our educators take pride in assisting with individual account questions and guiding employees with available <b>tools and calculators</b> on retirement readiness and financial wellness. Our educators are sometimes the only people in the financial industry that an employee will meet with throughout their entire career. We are the familiar faces that are available as they start their employment, continue throughout their career and transition to retirement. <br />
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At SBS, we will continue to remain best in class in this area of need, whether we’re onsite or meeting virtually. To learn more about our education services, please email us at <a href="mailto:sbs@hanys.org">sbs@hanys.org</a> or call us at (855) 882-9177. Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-17980684468927705622020-04-16T07:38:00.001-07:002020-04-16T07:38:28.824-07:00In Fed We Trust In March, the market’s “fear gauge,” the VIX, reached 82.7, the highest close in its 30-year history. Daily moves in the S&P 500 averaged +/-5.0% and its 12.0% decline on March 16 was the worst day for the index since Black Monday in 1987. The New York Stock Exchange on March 23 closed the physical trading floor for the first time in its history and moved fully to electronic trading. <br />
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As headlines focused on the equity markets, the volatility in the fixed income markets was unrivaled. As investors looked to raise cash, dealers, who typically act as shock absorbers for the bond market, were not able to match panicked sellers with willing buyers. A lack of liquidity occurred in the fixed income market and extreme price dislocations occurred. <br />
<a name='more'></a><br />
Issues were selling far below their intrinsic value. No segment of the bond market was left out, including Treasuries. Treasury yields collapsed in March to all-time lows and investment-grade credit spreads widened dramatically, experiencing an unprecedented 150 basis point move. Downgrades, especially in high-yield bonds, seemed unavoidable as the fear of “fallen angels” became reality. Extraordinary measures were required to stabilize the fixed income markets. <br />
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The Federal Reserve responded quickly, utilizing emergency rate cuts and unlimited quantitative easing. It slashed policy rates to near 0% and purchased treasuries, peaking at $75 billion per day, mortgage-backed securities, collateralized MBSs and agency MBSs. It established several swap lines to stem the heavy selling by foreign central banks that needed to raise cash. <br />
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In addition, the Fed announced a number of new targeted lending facilities to support commercial paper issuers, primary dealers and money market funds. It re-established the Term Asset Backed Securities Loan Facility to support credit to consumers and businesses. The Fed even agreed to purchase high-yield exchange traded funds and the fallen angels, or downgraded bonds issued by large corporations. It has essentially become the buyer of last resort for a broad spectrum of debt. <br />
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Altogether, the Fed has expanded or created nine lending programs and has agreed to provide up to $2.3 trillion in loans to entities that do not have ready access to the debt markets, including aid to states, cities and mid-small businesses. The Fed’s balance sheet has surpassed $6 trillion for the first time in its history. The Fed has clearly signaled it stands ready to do whatever is necessary to stave off a long-lasting recession. <br />
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If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or email <a href="mailto:sbs@hanys.org">sbs@hanys.org</a>.Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-43190792684953983162020-04-15T05:11:00.001-07:002020-04-16T06:26:53.256-07:00Strategic Benefit Services: Selected as a 2019 NAPA Top DC Advisor Team<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOXKlIDxg2hAKl7F8iLLdLIsDhuIuwLrgK8_HzIKoNJtYH1PzLt3PmTjMSP4jZVCj1UBuSzMk2F3L4z_bk5htDkvhmMJnhVmVY4YdaSMVwApaDty4KKrIcdZKyWjAKBVwPXg8aqM0Y7ubo/s1600/TopDCAdvisorTeams_Logo_2019.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="978" data-original-width="921" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOXKlIDxg2hAKl7F8iLLdLIsDhuIuwLrgK8_HzIKoNJtYH1PzLt3PmTjMSP4jZVCj1UBuSzMk2F3L4z_bk5htDkvhmMJnhVmVY4YdaSMVwApaDty4KKrIcdZKyWjAKBVwPXg8aqM0Y7ubo/s200/TopDCAdvisorTeams_Logo_2019.jpg" width="188" /></a></div>
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Strategic Benefit Services is proud to be selected by the National Association of Plan Advisers as a <a href="https://www.napa-net.org/industry-intel/accolades/top-dc-advisor-teams" target="_blank">2019 Top DC Advisor Team</a>. </div>
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The NAPA Top DC Advisor Team list highlights the nation’s leading retirement plan advisor firms who help Americans prepare for a finalcially secure retirement. Selected teams having at least $100 million in DC assets under advisement. Visit the <a href="https://www.napa-net.org/industry-intel/accolades/top-dc-advisor-teams" target="_blank">NAPA website</a> to learn more about this award.<br />
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If you would like to speak with a consultant at Strategic Benefit Services or learn more about our services, please call (855) 882-9177 or email <a href="mailto:sbs@hanys.org">sbs@hanys.org</a>.</div>
Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-11619257219272898202020-04-13T04:30:00.000-07:002020-04-13T06:14:26.486-07:00Important considerations for retirement plan sponsors during the coronavirus pandemicWe are in unprecedented times and companies are facing a multitude of challenges in many aspects of business. Here at Strategic Benefit Services, we are committed to helping guide our clients through these times. Below are important considerations for retirement plan sponsors during the coronavirus pandemic.<br />
<ol>
<li><b>Eye on compliance.</b> Remote work conditions have put distance between many collaborative human resources staff. It’s critical to keep a focus on key administrative tasks such as the timely funding of plan contributions and processing of participant requests. Keeping your retirement plan vendors apprised of any staff reductions and plan changes can help ensure smooth plan administration during this time.</li>
<li><b>Working with a tighter budget<a name='more'></a></b></li>
<ul>
<li><b>Plan contribution flexibility. </b>If budget constraints exist, consider whether your retirement plan’s contributions are mandatory or discretionary, and, if necessary, whether you are able to amend your plan to provide some relief at this time.</li>
<li><b>Plan expenses. </b>You should be aware of your vendors’ fees and confirm they are reasonable. Certain types of plan expenses can be paid from plan assets. While allocating fees to the plan participants may not seem ideal, it may perhaps help you avoid the suspension of employer contributions. Also, this may be an opportunity to evaluate whether certain tasks can be streamlined or administered at a lower cost (e.g., electronic delivery of certain participant communications).</li>
<li><b>Use of plan forfeitures.</b> Forfeitures happen when employees terminate employment before becoming fully vested in a plan’s employer contributions. The plan’s forfeiture account can typically be used to help pay certain plan expenses or offset funding for employer contributions. Forfeitures typically need to be used each plan year and may be helpful right now if the budget is tight.</li>
</ul>
<li><b>Impact of layoffs</b></li>
<ul>
<li><b>Layoff versus leave. </b>There are important differences when administering the plan rules relative to terminated employees and those on leave. Notwithstanding in-service withdrawal provisions or circumstances made available under the CARES Act (as referenced further below), employees put on leave don’t incur a distributable event from the plan like terminated employees. Also, employees on leave may be eligible for a temporary suspension of plan loan repayments, whereas terminated employees will typically incur a taxable event on unpaid loan balances when payroll-deducted repayments cease if a one-time full payment isn’t made.</li>
<li><b>Plan leakage. </b>If you have to let people go, be aware that participants in most defined contribution plans will have the ability to take an immediate distribution from their retirement account after termination, regardless of age. This differs from participants in traditional defined benefit pension plans who may need to wait until actual retirement age to receive their benefit. Educating employees on all available options, including a deferral of payments until retirement age, is an important way to help them make a choice that is right for their individual circumstance.</li>
<li><b>Partial plan termination.</b> A partial plan termination can result when layoffs reduce a plan’s participant count by at least 20%. This type of plan event can mandate that you fully vest participants and should be monitored closely.</li>
</ul>
<li><b>CARES Act.</b> The recently passed CARES Act provides the option to make the distribution and loan terms in your retirement program more flexible as a result of the coronavirus pandemic. For more information, see our <a href="http://news.strategicbenefitservices.com/2020/04/4-key-cares-act-provisions-for.html">separate summary</a>.</li>
<li><b>Participant education. </b>Volatile market conditions and general uncertainty underscore the need for education services. Take advantage of virtual education services if offered by your vendors.</li>
</ol>
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If you would like to speak with a consultant at Strategic Benefit Services on these or any other topics or learn more about our participant education services, please call (855) 882-9177 or email <a href="mailto:sbs@hanys.org">sbs@hanys.org</a>.<br />
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<i>This material is intended for informational purposes only. It should not be construed as legal advice and is not intended to replace the advice of a qualified attorney or tax advisor. </i>Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-71550298272899790872020-04-09T08:36:00.005-07:002020-06-16T12:32:51.979-07:00COVID-19: Retirement and Benefit Plan Resources<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFH50DUUfJi3g-TWNArYfXFRsgbfai4wavomiqg5GhWuznjJ-NmFjTy-_3SB42SlaifoTM-_5ENLSf3-YsToZdY655UIy4BZB2nc9tOQpFzS5jJad5bgUs6jSlvtHz3LFFdd_JgduGsCRA/s1600/covid-19_image2.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="384" data-original-width="998" height="244" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFH50DUUfJi3g-TWNArYfXFRsgbfai4wavomiqg5GhWuznjJ-NmFjTy-_3SB42SlaifoTM-_5ENLSf3-YsToZdY655UIy4BZB2nc9tOQpFzS5jJad5bgUs6jSlvtHz3LFFdd_JgduGsCRA/s640/covid-19_image2.jpg" width="640" /></a></div>
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As the COVID-19 crisis continues to unfold, we are closely monitoring news and updates from top sources. We’ll be updating this section as new developments unfold. Here are several key articles and links to help plan sponsors and administrators navigate the COVID-19 impact to retirement and benefit plans:<br />
<h4>
Retirement Plans</h4>
<ul>
<li><a href="http://news.strategicbenefitservices.com/2020/04/4-key-cares-act-provisions-for.html" target="_blank">4 Key CARES Act Provisions for Retirement Plan Sponsors</a></li>
<li><a href="http://news.strategicbenefitservices.com/2020/03/markets-react-to-coronavirus.html" target="_blank">Markets React to Coronavirus</a> </li>
<li><a href="http://news.strategicbenefitservices.com/2020/04/important-considerations-for-retirement.html" target="_blank">Important Considerations for Retirement Plan Sponsors during the Coronavirus Pandemic</a></li>
<li><a href="http://news.strategicbenefitservices.com/2020/04/in-fed-we-trust.html" target="_blank">In Fed We Trust</a> </li>
<li><a href="http://news.strategicbenefitservices.com/2020/04/sbs-participant-education-services.html" target="_blank">Participant Education Services: Timely Help from a Safe Distance</a></li><li><a href="http://news.strategicbenefitservices.com/2020/05/the-coronavirus-aid-relief-and-economic.html" style="display: inline;" target="_blank">CRDs 100% Taxable for New York State and Local Income Tax Purposes in 2020</a></li><li><a href="http://news.strategicbenefitservices.com/2020/06/irs-permits-remote-notarization-of.html" target="_blank">IRS Permits Remote Notarization of Participant Elections</a></li>
</ul>
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<h4> Employee Benefits</h4>
<ul>
<li><a href="https://images.magnetmail.net/images/clients/HANYS_HBS/attach/Miscellaneous/CARESActExpandsHealthCoverageRules_SBS.pdf" target="_blank">CARES Act Expands Health Coverage Rules</a></li>
<li><a href="https://images.magnetmail.net/images/clients/HANYS_HBS/attach/Miscellaneous/Understandingthe2TrillionStimulusPackage_SBS.pdf" target="_blank">Understanding the Historic $2 Trillion Stimulus Package</a></li>
<li><a href="https://images.magnetmail.net/images/clients/HANYS_HBS/attach/Miscellaneous/EmployeeCompensationandBenefitsDuringClosuresandFurloughs_SBS.pdf" target="_blank">Employee Compensation and Benefits During Closures and Furloughs</a></li>
<li><a href="https://images.magnetmail.net/images/clients/HANYS_HBS/attach/Miscellaneous/DOL_Coronavirus_Paid_Leave_Laws_SBS.pdf" target="_blank">DOL Clarifies Exemptions to Coronavirus Paid Leave Laws</a></li>
<li><a href="https://youtu.be/xwvXuPKi1iI">Small Business Exemption to Coronavirus Paid Leave Laws - Video</a></li>
</ul>
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If you would like to speak with a consultant at Strategic Benefit Services on this or any other topic, please call (855) 882-9177 or <a href="http://strategicbenefitservices.com/contact/">via email</a>.</div>
Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-17949990272111078532020-04-01T08:58:00.010-07:002020-06-30T03:56:29.739-07:004 key CARES Act provisions for retirement plan sponsorsOn March 27, President Trump signed the Coronavirus Aid, Relief and Economic Security Act, legislation intended to provide relief to Americans amid the coronavirus pandemic. In addition to emergency provisions including financial stimulus payments to qualifying Americans, the Act provides certain relief within retirement plans to participants and plan sponsors. Specifically, the Act provides for the following:<br /><br />
<ol>
<li><b>Coronavirus-related distributions.</b> Before December 31, 2020, IRA holders and participants in defined contribution plans can withdraw up to $100,000 as a “coronavirus-related distribution.” To qualify, one must have been diagnosed with COVID-19, had a spouse or dependent diagnosed, or experienced adverse financial consequences due to virus-related work reduction. The law refers to such financial consequences as those resulting from being quarantined, furloughed or laid off or having work hours reduced due to such virus or disease, being unable to work due to lack of child care due to such virus or disease, closing or reducing hours of a business owned or operated by the individual due to such virus or disease, or other factors as determined by the Secretary of the Treasury. Participants can self-certify their eligibility. Administratively, the $100,000 limit applies across all plans of the employer or controlled group.<br /><br /><i><b><font color="#003e7e">Update: Among other important clarifications for plan sponsors and individuals, the <a href="https://www.irs.gov/pub/irs-drop/n-20-50.pdf">IRS guidance released on June 19</a> expands the availability of coronavirus-related distributions and loan relief. Qualification now extends to those with reduced pay, a rescinded job offer, or a delayed start to a new job due to COVID-19. It also extends to those whose spouse or fellow household member has suffered certain financial effects from COVID-19, including impacts to a business owned or operated by that person.</font></b></i><br /><br /><span><a name='more'></a></span>The standard 20% federal tax withholding does not apply to these distributions; nor does the 10% excise tax penalty on early withdrawals before age 59 ½. Taxation of these distributions can be spread over three years, or repaid or rolled over within the same time period without violating contribution limit rules.<br /><br />Adoption of this provision is optional. For plans that choose to adopt the provision, plan documents will need to be amended by the last day of the plan year beginning on or after Jan. 1, 2022.<br /><br /></li><span><!--more--></span><span><!--more--></span><span><!--more--></span>
<li><b>Loan relief. </b>Until September 22, 2020, the maximum loan available for a participant in a defined contribution plan is increased for the next 180 days from 50% of one’s vested balance up to $50,000, to 100% of one’s vested balance up to $100,000 for individuals meeting the criteria outlined above for coronavirus-related distributions. Additionally, repayments on outstanding loans due between now and the end of the year can be delayed one year. The loan term can be extended accordingly and interest will continue to accrue.<br /><br />Adoption of this provision is optional. For plans that choose to adopt the provision, plan documents will need to be amended by the last day of the plan year beginning on or after Jan. 1, 2022.<br /><br /></li>
<li><b>Suspension of required minimum distributions. </b>The requirement for participants to receive RMDs from defined contribution plans and IRAs in 2020 has been suspended.<br /><i><b><br /><font color="#003e7e">Update: <a href="https://www.irs.gov/pub/irs-drop/n-20-51.pdf">IRS guidance released on June 23</a> extends the 60-day rollover period through August 31, 2020 for RMDs issued in 2020. This provides an avenue for individuals to defer taxation on RMDs issued before the CARES Act was enacted. The guidance also allows 2020 RMDs to be repaid to the source IRA or defined contribution plan, subject to plan terms.</font></b></i><br /><br /></li>
<li><b>Defined benefit plan funding and benefit restriction relief. </b>Sponsors of defined benefit plans can delay required contributions for 2020 until Jan. 1, 2021. They can also elect to maintain their 2019 adjusted funding target attainment percentage, if favorable, to help avoid benefit restrictions. </li>
</ol>
Plan sponsors should check with their record keepers as to how the optional provisions are being implemented. Some record keepers are using an “opt-in” approach where plans have to affirmatively elect to adopt the changes; other record keepers are using an “opt-out” approach where the changes will be automatically put into effect unless a plan affirmatively elects not to.<br /><br />While retirement plans are intended for retirement, it’s important that those in dire financial situations have some options in this unprecedented time. If you would like to speak with a consultant at Strategic Benefit Services on this or any other topic, please call (855) 882-9177 or email <a href="mailto:sbs@hanys.org">sbs@hanys.org</a>.Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-80206128301504222062020-03-03T05:57:00.002-08:002020-04-03T13:15:01.530-07:00Markets React to Coronavirus We have the following observations about the impact of the novel coronavirus outbreak on markets. First identified in Wuhan, China, in December 2019, cases of COVID-19 continue to climb. <br />
<br />
Though this coronavirus presents unique challenges, New York’s hospitals and health systems have extensive experience successfully managing outbreaks. In the past 20 years, they have been leaders in tackling the 2003 SARS outbreak, the 2009 influenza pandemic (“swine flu”), the 2014 Ebola outbreak and others. <br />
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The vast majority of cases have been in mainland China. However, with more confirmed cases being reported across the globe this week, concerns have become more widespread, particularly after the Centers for Disease Control and Prevention cautioned about the potential impact in the United States.<br />
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<a name='more'></a>As this coronavirus outbreak has spread to six of the world’s seven continents, fear has overtaken the markets, causing extreme selling pressure across equities and commodities. The flight to safety has investors buying bonds, lifting the prices higher and the yields to record lows. <br />
<br />
While the spread of this serious global health threat is frightening and the impact on families and communities are on the top of our minds, we encourage clients to maintain an even hand and steady course. Diversification is a key tool in combatting volatility. Diversification, along with consistent rebalancing, can help investors weather periods of heightened volatility. <br />
<br />
We have seen several cases of widespread health scares over the years and observed that the initial market reaction has sometimes been severe and widespread, but the disruptions have proven to be brief and high-quality fixed income has provided some stability to portfolio structures. <br />
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Want to learn more about COVID-19? We encourage you to follow information provided by these trusted sources: <br />
<ul>
<li><a href="https://www.who.int/health-topics/coronavirus">World Health Organization</a> </li>
<li><a href="https://www.cdc.gov/coronavirus/2019-ncov/index.html">Centers for Disease Control and Prevention</a></li>
<li><a href="https://www.health.ny.gov/diseases/communicable/coronavirus/">New York State Department of Health</a></li>
</ul>
We will continue to monitor developments closely and report back as appropriate. In the meantime, if you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-2041138191299207822020-02-20T04:00:00.000-08:002020-04-01T09:13:52.472-07:00FMLA Administration OutsourcingThe Family and Medical Leave Act (FMLA) is a federal law that allows eligible employees to take unpaid leave for a variety of personal circumstances. Due to the numerous regulations and complexities of the FMLA, administering FMLA leave can be a daunting task for many HR departments. In an effort to make FMLA administration more accurate and efficient, many employers have opted to outsource their leave programs to outside vendors.<br />
<h4>
Why Do Companies Outsource FMLA Administration? </h4>
<br />
<a name='more'></a>Many small companies struggle to find the time and resources required to properly train staff on FMLA administration, and employers who deny eligible employees leave or violate FMLA requirements could face hefty fines and legal repercussions.<br />
<br />
As a result, HR representatives will sometimes grant too much leave to employees out of fear that an eligible employee’s leave request might accidentally be denied. While this practice might spare companies from finding themselves in serious legal trouble, it can also lead to staffing issues and decreased productivity.<br />
<h4>
How Does FMLA Outsourcing Work? </h4>
When leave programs are outsourced, the process of handling all of a company’s FMLA-related workload is transferred to an outside FMLA administration vendor. FMLA administration vendors stay current on evolving regulations and changes to the federal law as well as individual state laws which may affect an employee’s eligibility and leave rights. This greatly increases the likelihood that leave will be administered properly and in compliance with all applicable rules and regulations. In addition, lifting the responsibility off of in-house HR departments can significantly reduce workloads, giving staff more time to devote to other necessary projects and tasks.<br />
<h4>
What Are the Disadvantages? </h4>
While FMLA outsourcing can make FMLA administration more accurate and efficient, there are a few drawbacks to consider. HR departments may need an initial adjustment period while they reshuffle their workload and delegate new tasks.<br />
<br />
Employees might be displeased with needing to contact an outside resource rather than their company’s HR department to make leave requests. In addition, decisions regarding leave requests may not happen as quickly as they do when employees are able to speak directly to an HR representative, even if the vendor is complying with FMLA deadlines. Any additional delay can cause frustration as employees attempt to plan for their personal circumstances.<br />
<h4>
Is FMLA Outsourcing Right for Your Company? </h4>
It is important to consider several factors in order to determine which FMLA administration option is best for your organization. Examine how efficiently your company’s HR department currently handles FMLA administration. Brought to you by the insurance professionals at HANYS Benefit Services<br />
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Are they able to keep track of FMLA regulations and stay up to date on changes to FMLA requirements? Are leave requests being over-granted due to a lack of understanding of FMLA regulations and employee eligibility requirements?<br />
<br />
In addition, assess your HR department’s current workload to determine whether FMLA administration is making it difficult to delegate or complete other tasks.<br />
<br />
For more information on whether FMLA administration outsourcing is right for your company or to begin talking to an employee benefits consultant, please get in touch by <a href="http://strategicbenefitservices.com/contact/">email</a> or by calling (855) 882-9177.Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-57121315717271475532020-01-29T04:00:00.000-08:002020-01-29T05:39:32.190-08:00Q4 Market Recap: Roaring into the 20s<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFwhjCCb35pd_yYfdZ5TPT_SINcYpy-2DV5r_IUdQ5XaHdD8OFwrXM5IiCIXbaDi3NH_y3RtVlY1yzbuZHEnnH8FOoOnwtV8_SVNsWrWXVQHNudWHmhyphenhyphenda31TVT1BH1D7bEsdeWVddpno/s1600/iStock-1150335759.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1069" data-original-width="1600" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFwhjCCb35pd_yYfdZ5TPT_SINcYpy-2DV5r_IUdQ5XaHdD8OFwrXM5IiCIXbaDi3NH_y3RtVlY1yzbuZHEnnH8FOoOnwtV8_SVNsWrWXVQHNudWHmhyphenhyphenda31TVT1BH1D7bEsdeWVddpno/s320/iStock-1150335759.jpg" width="320" /></a>U.S. equities continued to roar leading into 2020. The Federal Reserve reversed course on monetary policy in 2019, stimulating both the economy and securities markets.<br />
<br />
Read the <a href="https://images.magnetmail.net/images/clients/HANYS_HBS/attach/SBS_Documents/Market_Recap/SBS_Market_Recap_4Q_2019_Bill.pdf" target="_blank">Q4 Market Recap</a> for a brief review of the 2019 stock market performance and outlook for 2020. Also included is an update on important provisions in the Setting Every Community Up for Retirement Enhancement (SECURE) Act.<br />
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If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-15050848913044428582020-01-16T05:27:00.000-08:002020-01-22T18:23:18.008-08:00Fiduciary safe harbor for selection of lifetime income provider<div class="MsoNormal">
<o:p></o:p></div>
The <a href="http://news.strategicbenefitservices.com/2020/01/dont-get-caught-in-act.html">Setting Every Community Up for Retirement Enhancement (SECURE) Act </a>provides a safe harbor for plan fiduciaries who select a guaranteed retirement income contract, which is defined as an annuity contract for a fixed term or providing for systematic payments guaranteed by the provider to be made over the life, life expectancy or joint lives or life expectancies of a participant and beneficiary.<br />
<br />
Retirement plan fiduciaries will be deemed to have acted prudently and will be eligible for the new safe harbor protection if they engage in and document the following process: <br />
<ul>
<li>objective, thorough and analytical search for an annuity provider; </li>
<li>consideration of all costs, benefit features and terms of the contract; </li>
<li>obtain written assurances from the provider of compliance with all federal and state laws and regulations governing lifetime income solutions, including state insurance laws; </li>
<li>as a result of the analysis, the plan fiduciaries should be able to conclude that the provider has the financial strength to fulfill all its obligations under the contract; and </li>
<li>the cost of the contract is reasonable (the SECURE Act does not require that fiduciaries select the lowest cost provider). </li>
</ul>
Annuities may not be appropriate for all plans, but interested plan fiduciaries now have a safe harbor if they wish to consider including them.<br />
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If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or email us at sbs@hanys.org.Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-17560440739249341142020-01-14T05:57:00.002-08:002020-01-23T05:32:14.055-08:00Don’t Get Caught in the Act:<h2>
The Setting Every Community Up for Retirement Enhancement (SECURE) Act</h2>
After spending most of 2019 on hold in Congress, the SECURE Act was passed and signed into law on December 20. This is the largest retirement reform act since the Pension Protection Act in 2006 and has a broad focus on improving both the reach and quality of retirement plans, as well as updating several individual tax rules.<br />
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While most changes require no immediate action, it’s important for plan sponsors to be aware of changes that may soon impact them. Here is a chart with the most significant changes:<br />
<a name='more'></a><br />
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<th style="width: 20%;">Topic</th>
<th style="width: 30%;">Summary</th>
<th style="width: 35%;">Considerations</th>
<th style="width: 15%;">Effective Date</th>
</tr>
<tr>
<td>Multiple employer plans (MEPs); Pooled employer plans</td>
<td>Perhaps the most significant portion of the bill provides an updated structure to facilitate open multiple employer plan arrangements, or “pooled employer plans” for unrelated employers. The Act also provides relief from plan disqualification by eliminating the “one bad apple” rule, which held all employers in a MEP liable for the plan failures of one co-sponsor.</td>
<td>MEP arrangements can be advantageous for smaller companies that would otherwise struggle to afford the fixed cost of sponsoring a plan independently. The Act promises additional guidance and model plan language to assist interested sponsors and pooled plan providers.</td>
<td>Plan years beginning after Dec. 31, 2020</td>
</tr>
<tr>
<td>Increase in 10% cap for automatic enrollment safe harbor after first plan year</td>
<td>Certain safe harbor automatic enrollment plan designs involve the automatic escalation of savings rates to 10%. This changes the maximum to 15%.</td>
<td>While few participants follow the full escalation schedule before terminating employment or making their own independent savings election, this change reflects the reality that 10% is too low for someone relying on automation to help them save enough for retirement.</td>
<td>Plan years beginning after Dec. 31, 2019</td>
</tr>
<tr>
<td>Rules relating to election of safe harbor 401(k) status</td>
<td>Plan sponsors have significantly more time to enact a non-elective safe harbor plan design for a given plan year. In general, sponsors can do so as late as 12 months following the plan year; however, a larger contribution may be required. The non-elective notice requirement no longer applies.</td>
<td>Safe harbor plan designs mandate certain minimum benefits to non-highly compensated employees, thereby exempting plan sponsors from non-discrimination tests and enabling highly compensated employees to save more. With less rigid timing rules, sponsors are afforded more flexibility to designate a safe harbor plan design for a particular plan year, (potentially after “preliminary” non-discrimination tests have been completed for the year).</td>
<td>Plan years beginning after Dec. 31, 2019</td>
</tr>
<tr>
<td>Treatment of custodial accounts on termination of Section 403(b) plans</td>
<td>Upon plan termination, the in-kind distribution of 403(b)(7) custodial accounts can be directed by the plan sponsor.</td>
<td>It can be challenging for sponsors during a plan termination to distribute all assets from the plan. This change helps sponsors move accounts that typically require an active election by the individual account holders.</td>
<td>Pending guidance</td>
</tr>
<tr>
<td>Qualified cash or deferred arrangements must allow long-term employees working more than 500 but less than 1,000 hours per year to participate</td>
<td>The statutory minimum eligibility requirements are updated to allow more part-timers to save in a qualified plan. Specifically, workers who have at least 500 hours in three consecutive years must now be allowed to defer to the plan. This new rule does not apply to employee eligibility for employer contributions.</td>
<td>This change follows the pattern of other SECURE Act changes by expanding the reach of retirement plan coverage. Sponsors will need to accommodate the administration of more eligible participants, but, where applicable, are able to exclude this newly eligible group from nondiscrimination testing.</td>
<td>Plan years beginning after Dec. 31, 2020</td>
</tr>
<tr>
<td>Plan adopted by filing due date for year may be treated as in effect as of close of year</td>
<td>Sponsors can adopt a plan by the tax filing due date (including extension), instead of the last day of the first plan year.</td>
<td>Employers are often faced with competing priorities and unpredictable cash flows. This provision makes it easier for employers to formally offer a plan, even if after the end of the first plan year.</td>
<td>Tax years after Dec. 31, 2019</td>
</tr>
<tr>
<td>Disclosure regarding lifetime income</td>
<td>At least annually, benefit statements provided to participants must include a “lifetime income disclosure” describing the participant's accrued benefit under the plan as an equivalent lifetime income stream.</td>
<td>Many defined contribution plan record keepers who provide benefit statements for their plan sponsor clients are already doing this as an added-value. Promised guidance will help set a standard for actuarial equivalency assumptions. Sponsors may need help with lifetime income calculations to ensure they are following regulations correctly. In the end, this should help participants better understand the value of their lump sum defined contribution plan benefits.</td>
<td>12 months after final DOL rules are issued</td>
</tr>
<tr>
<td>Fiduciary safe harbor for selection of lifetime income provider</td>
<td>The Act provides a safe harbor for plan fiduciaries who select a guaranteed retirement income contract (annuity contract) for a fixed term or providing for guaranteed annual or more frequent payments.</td>
<td>Annuities may not be appropriate for all plans, but now interested plan fiduciaries have a safe harbor if they wish to consider including them. Here's a link to the <a href="http://news.strategicbenefitservices.com/2020/01/fiduciary-safe-harbor-for-selection-of.html">roadmap</a>.</td>
<td>Immediate</td>
</tr>
<tr>
<td>Portability of discontinued lifetime income options</td>
<td>The SECURE Act allows plan participants to elect direct trustee-to-trustee transfers or distributions of lifetime income options that are eliminated as options within a plan.</td>
<td>Compared to defined benefit plans, a disadvantage of defined contribution plans has been their limited ability to offer longevity protection to participants. To the extent a DC plan has a lifetime income option in the plan, this new regulation makes it easier for participants to preserve their investment if no longer offered in the plan, by transferring it to another plan or IRA or by commencing annuity payments.</td>
<td>Plan years beginning after Dec. 31, 2019</td>
</tr>
<tr>
<td>Modification of nondiscrimination rules to protect older, longer service participants</td>
<td>Sponsors who recently froze defined benefit accruals can avoid certain nondiscrimination rules that may otherwise inhibit “make-up” benefits to these employees in a defined contribution plan.</td>
<td>While this relief comes after decades of plan sponsors freezing defined benefit accruals, it's certainly welcome to those trying to design retirement benefits for affected long-service employees.</td>
<td>Immediate</td>
</tr>
<tr>
<td>Increased penalties for failure to file retirement plan returns</td>
<td>IRS penalties have been increased for late filings of Form 5500 and Form 8955-SSA and for late issuances of income tax withholding notices.</td>
<td>With penalties increasing by a multiple of 10, the IRS is getting strict on timeliness. Plan sponsors must work with their vendors to ensure timely completion.</td>
<td>Filings and issuances required after Dec. 31, 2019</td>
</tr>
<tr>
<td>Modification of required distribution rules for designated beneficiaries</td>
<td>Most non-spouse beneficiaries of DC plan participants or IRA account holders must take full distribution of payments no later than 10 years after the death of the account holder.</td>
<td>In general, the tax revenue expected from these accelerated distributions will buttress many of the other changes in this Act that encourage participants to save for retirement. This all but eliminates stretch IRAs.</td>
<td>Distributions to beneficiaries for account holders who pass away after Dec. 31, 2019</td>
</tr>
<tr>
<td>Increase in age for required beginning date for mandatory distributions</td>
<td>The age to start required minimum distributions increases from 70 ½ to 72.</td>
<td>While the participants and account holders are the ones required to commence RMD payments from qualified plans and IRAs, sponsors of qualified plans often play an important role to help facilitate these distributions each year to older participants. Those turning 70 ½ after 2019 get to defer their savings longer.</td>
<td>Distributions after Dec. 31, 2019 to those attaining age 70 ½ after Dec. 31, 2019</td>
</tr>
<tr>
<td>Repeal of maximum age for traditional IRA contributions</td>
<td>Individuals can now contribute to traditional IRAs after age 70 ½</td>
<td>While this doesn't affect employer plans, IRAs are popular and it's important for plan sponsors to know about this change in the rule affecting their older workers.</td>
<td>Tax years after Dec. 31, 2019</td>
</tr>
<tr>
<td>Penalty-free withdrawals from retirement plans for individuals in case of birth of child or adoption</td>
<td>Plans can allow qualified birth or adoption distributions up to $5,000 per parent, and, when distributed, they are exempt from the 10% excise tax that often applies to early withdrawals. Distributions must be made within one year following the birth or adoption.</td>
<td>This creates a new distributable event under retirement plans and one that will be welcomed by new parents. Amounts can be repaid back to the plan in certain circumstances. As with other distributable events, sponsors must ensure a prudent administrative process, particularly when the sponsor is part of a controlled group.</td>
<td>Distributions after Dec. 31, 2019</td>
</tr>
</tbody></table>
<br />
The Act defines a remedial amendment period through the 2022 plan year for certain related plan document changes (or 2024 for governmental plans). <br />
<br />
In addition to items in the chart above, the Act offers tax credits for companies starting a new retirement plan or adding an automatic enrollment feature, allows 529 accounts to cover costs of student loan repayments and apprenticeship programs and includes a number of other individual and plan-level provisions. <br />
<br />
Alongside the SECURE Act, the Bipartisan American Miners Act was also signed into law, which includes a provision allowing in-service distributions from pension plans and governmental 457(b) plans at age 59 ½, a decrease from age 62 (pension plans) and 70 ½ (governmental plans). <br />
<br />
A PDF of the full SECURE Act is <a href="https://www.congress.gov/116/bills/hr1994/BILLS-116hr1994rds.pdf">available online</a>. The Act promises more guidance in several areas. In the meantime, for more information on the impact of this Act, please contact Strategic Benefit Services by <a href="http://strategicbenefitservices.com/contact/">email </a>or by calling (855) 882-9177.
Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-42277389406784536282019-11-12T04:00:00.000-08:002019-11-12T04:00:00.832-08:00Q3 Market Recap: The Federal Reserve Past and Present<h2>
The longest bull market in history continues to run through Q3. </h2>
<div>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHSATMDxB-hyoOXBtuU2xPYz5cVAEsTpFZ0r3QOQLcr_nbtvWtFIVAUwWDTkk4yMMEpk5Z1Pr37aF-6g9IV_X_1wAP1a11Ce_5JetP-JucsKxfiip3pYm_sGp6KgtDr0b_aXnK5TgotQk/s1600/Finance.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1016" data-original-width="1600" height="253" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHSATMDxB-hyoOXBtuU2xPYz5cVAEsTpFZ0r3QOQLcr_nbtvWtFIVAUwWDTkk4yMMEpk5Z1Pr37aF-6g9IV_X_1wAP1a11Ce_5JetP-JucsKxfiip3pYm_sGp6KgtDr0b_aXnK5TgotQk/s400/Finance.jpg" width="400" /></a>Investors remain focused on three key areas: trade conflict, slowing global economic growth and the Federal Reserve monetary policy. Under the successive leadership of three chairs, the Fed has fostered the longest economic expansion in U.S. history. <br />
<br />
Read the <a href="https://images.magnetmail.net/images/clients/HANYS_HBS/attach/SBS_Documents/Market_Recap/SBS_Market_Recap_3Q_2019_Bill.pdf" target="_blank">Q3 Market Recap</a> to learn more about the recent history of bull markets, as well as the Q3 market drivers. Also included is an overview of key year-end notices plan sponsors may need to provide to employees according to IRS and DOL regulations. <br />
<br />
If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.</div>
Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-70412717683302847422019-11-05T04:00:00.002-08:002020-06-15T12:20:11.843-07:00You’ve Been Put on NoticeAs we enter the fourth quarter of 2019, it’s important for sponsors of calendar year retirement plans to be mindful of certain required participant notices. Sponsors of qualified retirement plans, such as 401(k) or 403(b) plans, may need to provide several of these notices per various Internal Revenue Service and Department of Labor regulations.<br />
<br />
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<b><span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Notice<o:p></o:p></span></b></div>
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<b><span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Purpose<o:p></o:p></span></b></div>
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<b><span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Audience<o:p></o:p></span></b></div>
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<b><span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">General Deadline<o:p></o:p></span></b></div>
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<b><span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Deadline for Calendar Year Plans<o:p></o:p></span></b></div>
</td></tr>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Qualified Default Investment Alternative<o:p></o:p></span></div>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Informs of the plan’s default investment in the event the participant does not make an investment election. Helps maintain 404(c) protection.<o:p></o:p></span></div>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Active eligibles and terminated participants<o:p></o:p></span></div>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">At least 30 days ahead of plan year<o:p></o:p></span></div>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Dec. 2<o:p></o:p></span></div>
</td></tr>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Automatic Contribution Arrangement<o:p></o:p></span></div>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Informs of the plan's feature to automatically enroll participants to a default savings rate in the plan and the potential “refundability” of deferrals.<o:p></o:p></span></div>
</td><td style="border-bottom: 1pt solid; border-left: none; border-right: 1pt solid; border-top: none; height: 30pt; padding: 0in 5.4pt; width: 1in;" width="96"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0in;">
<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Active eligibles<o:p></o:p></span></div>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">30 to 90 days ahead of plan year<o:p></o:p></span></div>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Dec. 2<o:p></o:p></span></div>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Safe Harbor<o:p></o:p></span></div>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Informs of the plan's intent to provide a safe harbor contribution, alongside other key plan provision details.<o:p></o:p></span></div>
</td><td style="border-bottom: 1pt solid; border-left: none; border-right: 1pt solid; border-top: none; height: 30pt; padding: 0in 5.4pt; width: 1in;" width="96"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0in;">
<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Active eligibles<o:p></o:p></span></div>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">30 to 90 days ahead of plan year<o:p></o:p></span></div>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Dec. 2<o:p></o:p></span></div>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Universal Availability<o:p></o:p></span></div>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Informs 403(b) participants about the opportunity to establish or change their salary deferrals in the plan.<o:p></o:p></span></div>
</td><td style="border-bottom: 1pt solid; border-left: none; border-right: 1pt solid; border-top: none; height: 36.4pt; padding: 0in 5.4pt; width: 1in;" width="96"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0in;">
<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Active eligibles<o:p></o:p></span></div>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Annually<o:p></o:p></span></div>
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<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Dec. 31<i><o:p></o:p></i></span></div>
</td></tr>
<tr style="height: 30pt;"><td style="border: 1pt solid; height: 30pt; padding: 0in 5.4pt; width: 80.45pt;" width="107"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0in;">
<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Plan and Investment Fee Disclosure<o:p></o:p></span></div>
</td><td style="border-bottom: 1pt solid; border-left: none; border-right: 1pt solid; border-top: none; height: 30pt; padding: 0in 5.4pt; width: 170.15pt;" width="227"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0in;">
<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Summarizes fees that may be paid from participant accounts or withheld by investment companies.<o:p></o:p></span></div>
</td><td style="border-bottom: 1pt solid; border-left: none; border-right: 1pt solid; border-top: none; height: 30pt; padding: 0in 5.4pt; width: 1in;" width="96"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0in;">
<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Active eligibles and terminated participants<o:p></o:p></span></div>
</td><td style="border-bottom: 1pt solid; border-left: none; border-right: 1pt solid; border-top: none; height: 30pt; padding: 0in 5.4pt; width: 85.5pt;" width="114"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0in;">
<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Every 14 months<o:p></o:p></span></div>
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<i><span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Depends on timing of prior mailing<o:p></o:p></span></i></div>
</td></tr>
<tr style="height: 30pt;"><td style="border: 1pt solid; height: 30pt; padding: 0in 5.4pt; width: 80.45pt;" width="107"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0in;">
<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Summary Annual Report<o:p></o:p></span></div>
</td><td style="border-bottom: 1pt solid; border-left: none; border-right: 1pt solid; border-top: none; height: 30pt; padding: 0in 5.4pt; width: 170.15pt;" width="227"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0in;">
<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Summarizes the plan's key financial and administrator information with respect to the prior year's Form 5500 filing.<o:p></o:p></span></div>
</td><td style="border-bottom: 1pt solid; border-left: none; border-right: 1pt solid; border-top: none; height: 30pt; padding: 0in 5.4pt; width: 1in;" width="96"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0in;">
<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Active and terminated participants<o:p></o:p></span></div>
</td><td style="border-bottom: 1pt solid; border-left: none; border-right: 1pt solid; border-top: none; height: 30pt; padding: 0in 5.4pt; width: 85.5pt;" width="114"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0in;">
<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">60 days following the plan’s regular or extended Form 5500 filing deadline<o:p></o:p></span></div>
</td><td style="border-bottom: 1pt solid; border-left: none; border-right: 1pt solid; border-top: none; height: 30pt; padding: 0in 5.4pt; width: 58.5pt;" width="78"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0in;">
<span style="font-family: "tradegothic lt condeighteen"; font-size: 10pt;">Sept. 30 or Dec. 16<o:p></o:p></span></div>
</td></tr>
</tbody></table>
<br />
Sponsors with calendar year plans that extended their Form 5500 deadline to Oct. 15 may be able to align the delivery of any applicable notices into a single mailing event.<br />
<br />
In addition to the above notices, plans must provide a Summary of Material Modifications to participants no later than 210 days following the plan year in which an amendment was effective. Alternatively, providing an updated Summary Plan Description satisfies this requirement. Updated SPDs are required to be provided every five years if material changes are made or every 10 years if no material changes have been made. If you recently amended or restated your plan document, this upcoming annual notice mailing may provide an opportunity to satisfy the SMM/SPD requirement as part of the same mailing.<br /><br /> While the DOL and IRS each have rules for distributing these notices electronically, abiding by the rules can be challenging. Per <a href="http://news.strategicbenefitservices.com/2020/06/the-dol-expands-rules-on-e-delivery-of.html">our subsequent article,</a> DOL e-delivery regulations finalized in May 2020 have made this task easier and more cost-effective in many situations. <br /> <br /> It’s important to note that in addition to the annual requirements, these notices should be provided to employees in your plan enrollment materials before or coincident with each participant’s eligibility for the plan.<br />
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Finally, there may be other participant notices that apply for defined benefit plans, other benefit plans or for situations such as plan terminations, blackout periods and disclosure of electronic statement delivery. Be sure to work with your service providers and make sure all applicable notices are mailed out as required by the IRS and DOL.<br />
<br />
If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-71340129011113321992019-08-01T06:35:00.001-07:002019-08-01T06:35:18.603-07:00Q2 Market Recap: Powell's "Porridge"<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiaDW4I6Fa96kNlJcwkCrVndE6TqjAW9o375WrJNdy98GFQC8cJmlvnrlTGqlh9jaau8Jj12DSIBHCwbOKeLomyOwPcGe0OssVhsdK5mRhBHf0LkrVdd4Q1U4ESfK0yWZ_VHjWFBQTTeGb4/s1600/porridge.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="632" data-original-width="1600" height="126" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiaDW4I6Fa96kNlJcwkCrVndE6TqjAW9o375WrJNdy98GFQC8cJmlvnrlTGqlh9jaau8Jj12DSIBHCwbOKeLomyOwPcGe0OssVhsdK5mRhBHf0LkrVdd4Q1U4ESfK0yWZ_VHjWFBQTTeGb4/s320/porridge.jpg" width="320" /></a></div>
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The Fed defines success for monetary policy as when the economy is like Goldilocks’ porridge — not too hot and not too cold. Investors have enjoyed Fed Chair Jerome Powell’s “Porridge” several times in 2019 as we ushered in the longest bull market in history.<br />
<br />
Read the <a href="https://images.magnetmail.net/images/clients/HANYS_HBS/attach/SBS_Documents/Market_Recap/SBS_Market_Recap_2Q_2019_Bill.pdf" target="_blank">Q2 Market Recap</a> to learn more about the porridge-like conditions during Q2. Also included is update on the current buzz around a Multiple Employer Plan (MEP).<br />
<br />
If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-3612970518514142562019-06-13T04:30:00.000-07:002019-06-13T04:30:06.650-07:00Strategic Benefit Services expands into the small to mid-sized marketAfter 40 years of providing retirement plan advisory services to large institutions, Strategic Benefit Services is taking its experience and expertise to the smaller end of the market.<br /><br />Though employers with assets under $10 million may not have the same resources as larger organizations, they do have the same responsibilities and objectives: a fiduciary duty to conduct plan business in a prudent fashion and the need to offer an attractive and competitive retirement plan for their employees.<br /><br />“We believe sponsors in the smaller end of the market are often underserved and may not be getting the proper fiduciary oversight,” said James Kelley, president of Strategic Benefit Services. “With our new service offering, we are looking to relieve some of their administrative burden, fiduciary responsibilities and operating expenses.” SBS has created a solution that largely shifts the fiduciary and administrative burdens to third parties while crafting a lower cost, institutionally structured retirement program.<br /><br />
<h4>
About Strategic Benefit Services</h4>
SBS has been providing retirement services to leading healthcare, not-for-profit and corporate organizations for more than four decades. SBS provides trusted advisory and consulting services, including plan design, vendor management, investment selection and monitoring, operational oversight, and on-site education and communication. SBS also provides services in support of employer mergers and acquisitions, defined benefit plan de-risking strategies and other complex matters including Department of Labor and IRS audits. Named a PlanAdviser Top 100 Retirement Plan Adviser for 2016, 2017 and 2019, SBS conducts business in accordance with strong values in a manner that is in the best interests of its clients, with an ultimate goal of assuring clients’ employees are ready for retirement.<br /><br />SBS is headquartered near Albany, with offices in Rochester, Tonawanda and Melville, New York.Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-12395601433414278162019-05-01T09:28:00.000-07:002019-05-01T10:24:29.509-07:00Q1 Market Recap: Equities deliver a convincing head fake<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXxdBU4fZG2D7chWZ0VylMPwR26fNXtIxSQ_O1v2XkIqYb7SSVS4e048cAm76F5Qp_WkGunddLO5ADkNWAbDVOR2jFrS9bvTQWw4S6A6XQg819hmKwQCuYcu-xbko-OQrXJp1w3VDGaYQ/s1600/stock+chart.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="749" data-original-width="1200" height="199" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXxdBU4fZG2D7chWZ0VylMPwR26fNXtIxSQ_O1v2XkIqYb7SSVS4e048cAm76F5Qp_WkGunddLO5ADkNWAbDVOR2jFrS9bvTQWw4S6A6XQg819hmKwQCuYcu-xbko-OQrXJp1w3VDGaYQ/s320/stock+chart.jpg" width="320" /></a>The fourth quarter of 2018 ended with significant market volatility. Yet, the U.S. equity performance was in recovery mode in the first quarter of 2019.<br />
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<div>
</div>
<div>
In March, we witnessed the ten-year anniversary of the bull market for equities, making it the longest bull market on record. In hindsight, the sharp sell-off in the fourth quarter looks like a head fake for investors. <br />
<br />
Read the <a href="https://images.magnetmail.net/images/clients/HANYS_HBS/attach/SBS_Documents/Market_Recap/SBS_Market_Recap_1Q_2019_Bill.pdf" target="_blank">Q1 Market Recap</a> to learn more about the dramatic recovery for the start of 2019. Also included is a legislative and regulatory update on what's happening in the retirement market.<br />
<br />
If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.</div>
Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-7844250955911525072019-04-17T11:08:00.004-07:002019-04-26T11:43:56.524-07:00WEBINAR: Doing Good While Doing WellMore and more investors are seeking to combine their personal values with their investment decisions without sacrificing long-term results. But how important should the focus on socially responsible investing strategies be?<br />
<br />
Join us on <a href="http://protect-us.mimecast.com/s/bHfCC73MnzH1pP9SW14yU"><b>May 14 at 11 a.m. for Doing Good While Doing Well</b></a>, a free webinar that explores socially responsible investing. Attending this webinar with Strategic Benefit Services and Nixon Peabody will help you determine if socially responsible, or ESG, investing makes sense in your retirement plan. Learn more about:<br />
<div>
<ul>
<li>the potential value of ESG investing to investors and plan sponsors;</li>
<li>ESG investment fund ratings and reporting standards;</li>
<li>fiduciary oversight challenges for ESG investing and compliance best practices; and</li>
<li>key tools and resources for consideration.</li>
</ul>
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<b>PRESENTERS:</b><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiV0vQvr3jqwpi83DR1pRDV_zwBPfnm1qUcOpRdpALpE3U4mIokx44ycmOmUSvZq72fe_Ptnz2J_RNjt1SeATUsvIEWlpxtcXrB4-NZGDnNVJYyGiTyxJA1J__Lh2WjhPfDUfFaClZ2Iug/s1600/wd.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="130" data-original-width="98" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiV0vQvr3jqwpi83DR1pRDV_zwBPfnm1qUcOpRdpALpE3U4mIokx44ycmOmUSvZq72fe_Ptnz2J_RNjt1SeATUsvIEWlpxtcXrB4-NZGDnNVJYyGiTyxJA1J__Lh2WjhPfDUfFaClZ2Iug/s1600/wd.jpg" /></a></div>
<b>William Desormeau </b></div>
<div>
Vice President, Strategic Benefit Services<br />
<br />
Bill is responsible for providing financial and investment advisory services on retirement plans.</div>
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<br />
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<b>Eric Paley</b>
<br />
<div>
Partner, Nixon Peabody</div>
<div>
<br />
Eric Paley advises clients on how to comply with the laws governing their employee benefits programs<br />
<div>
</div>
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Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.comtag:blogger.com,1999:blog-4161843083895251772.post-50861210517955218582019-03-25T07:27:00.000-07:002019-03-25T11:07:46.374-07:00Federal vs. New York family and medical leave laws – Part 4<div class="separator" style="clear: both; text-align: center;">
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The federal Family and Medical Leave Act provides eligible employees of covered employers with unpaid, job-protected leave for specified family and medical reasons. <br />
<br />
In addition to the federal FMLA, New York has laws regarding pregnancy leave, adoptive parents leave, blood donation leave, bone marrow donation leave, military spouse leave and paid family leave (effective Jan. 1, 2018). <br />
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The comparison chart below concludes our review of federal vs. New York family and medical leave laws. This chart reviews leave requests, certification requirements, as well as other laws.<br />
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<b><span style="color: white; font-family: "tradegothic lt"; font-size: 12.0pt; line-height: 107%;">Family and Medical Leave in New York</span></b><b><span style="color: white; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;"><o:p></o:p></span></b></div>
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<b><span style="color: white; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">FEDERAL ELEMENTS<o:p></o:p></span></b></div>
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<b><span style="color: white; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">STATE ELEMENTS<o:p></o:p></span></b></div>
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<b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Leave Requests<o:p></o:p></span></b></div>
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<span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">To be
made by the employee at least 30 days prior to date leave is to begin where
need is known in advance or, where not foreseeable, as soon as practicable.<o:p></o:p></span></div>
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<span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">If due to
a planned medical treatment or for intermittent leave, the employee, subject
to healthcare provider's approval, shall make a reasonable effort to schedule
it in a way that does not unduly disrupt the employer's operations.<o:p></o:p></span></div>
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<span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">If due to foreseeable active duty
of family member, notice must be made as soon as practicable.<span style="mso-bidi-font-weight: bold;"><o:p></o:p></span></span></div>
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<b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Pregnancy leave</span></b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">: Employers cannot discriminate on the
basis of sex and must treat disability arising from pregnancy in the same
manner as other disabilities.<o:p></o:p></span></div>
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<b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Adoptive parents leave</span></b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">: Employers that permit employees to
take leaves of absence upon the birth of a child must permit an adoptive
parent, following commencement of parent-child relationship, the same leave
upon the same terms (unless the child has reached school age or, in the case
of a hard-to-place or handicapped child, has reached age 18).<o:p></o:p></span></div>
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<b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Blood donation leave</span></b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">: No provision; however, the </span><span class="MsoHyperlink"><span style="font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;"><a href="http://www.labor.ny.gov/formsdocs/wp/LS703.pdf">New York Department of
Labor has issued guidelines</a></span></span><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;"> allowing employers to require at least:<o:p></o:p></span></div>
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</span></span></span><!--[endif]--><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">three
working days’ advance notice of the employee’s intent to take leave for
off-premises blood donation; or<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .25in; margin-right: 0in; margin-top: 6.0pt; mso-list: l1 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="color: black; font-family: "symbol"; font-size: 9.5pt; line-height: 107%;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">two days’
advance notice of the employee’s intent to take leave for any other blood
donation.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">The
employer may require up to 10 working days’ advance notice as necessary to
fill the position if both:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .25in; margin-right: 0in; margin-top: 6.0pt; mso-list: l2 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><span style="color: black; font-family: "symbol"; font-size: 9.5pt; line-height: 107%;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">the
employee taking leave is in a job that is essential to the employer’s
operations or necessary to comply with legal requirements; and<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .25in; margin-right: 0in; margin-top: 6.0pt; mso-list: l2 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><span style="color: black; font-family: "symbol"; font-size: 9.5pt; line-height: 107%;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">three
days’ notice is insufficient for the employer to fill the position for the
leave period.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">If leave
is for blood donation in an emergency, employers must reasonably accommodate
a shorter notice period.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Bone marrow donation leave</span></b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">: No provision, however, the </span><span class="MsoHyperlink"><span style="font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;"><a href="http://www.labor.ny.gov/sites/legal/counsel/pdf/Other/RO-10-0079%20Bone%20Marrow%20Donation.pdf">New
York Department of Labor has advised</a></span></span><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;"> that employers may require notice:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .25in; margin-right: 0in; margin-top: 6.0pt; mso-list: l0 level1 lfo3; text-indent: -.25in;">
<!--[if !supportLists]--><span style="color: black; font-family: "symbol"; font-size: 9.5pt; line-height: 107%;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">at least
24 hours in advance of a scheduled bone marrow donation; or<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: .25in; margin-right: 0in; margin-top: 6.0pt; mso-list: l0 level1 lfo3; text-indent: -.25in;">
<!--[if !supportLists]--><span style="color: black; font-family: "symbol"; font-size: 9.5pt; line-height: 107%;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">as soon
as possible after receipt of a request for an unscheduled bone marrow
donation.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Military spouse leave</span></b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">: No provision<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Paid family leave</span></b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;"> (effective Jan. 1, 2018): When the
need for family leave is foreseeable (for example, for the birth or placement
of a child or for planned medical treatment), an employee may be required to
provide his or her employer with 30 days’ advance notice of the intention to
take family leave. If the need for leave is not foreseeable, the employee
must provide notice as soon as practicable.</span><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;"><o:p></o:p></span></div>
</td>
<td style="border: none; mso-cell-special: placeholder; padding: 0in 0in 0in 0in;" width="2"><div class="MsoNormal">
<br /></div>
</td>
</tr>
<tr style="mso-row-margin-right: 1.3pt; mso-yfti-irow: 3;">
<td style="border-top: none; border: inset silver 1.0pt; mso-border-alt: inset silver .75pt; mso-border-top-alt: inset silver .75pt; padding: 4.5pt 4.5pt 4.5pt 4.5pt; width: 67.9pt;" valign="top" width="91"><span style="font-family: "tradegothic lt"; font-size: 11.0pt; line-height: 107%;"><br clear="all" style="page-break-before: always;" />
</span>
<br />
<div align="center" class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; text-align: center;">
<b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Certification Requirement<o:p></o:p></span></b></div>
</td>
<td colspan="2" style="border-bottom: inset silver 1.0pt; border-left: none; border-right: inset silver 1.0pt; border-top: none; mso-border-alt: inset silver .75pt; mso-border-left-alt: inset silver .75pt; mso-border-top-alt: inset silver .75pt; padding: 4.5pt 4.5pt 4.5pt 4.5pt; width: 207.0pt;" valign="top" width="276"><div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Employer
may require certification for the following:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Request
for leave because of serious health condition </span><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">or to care
for covered service member with a serious illness or injury.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Request for qualifying exigency
leave because of family member’s </span><span style="font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">active duty or call to active
duty in the Armed Forces.<span style="color: black;"><o:p></o:p></span></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">To demonstrate
employee's fitness to return to work from medical leave where employer has a
uniformly applied practice or policy requiring such certification.</span><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;"><o:p></o:p></span></div>
</td>
<td colspan="2" style="border-bottom: inset silver 1.0pt; border-left: none; border-right: inset silver 1.0pt; border-top: none; mso-border-alt: inset silver .75pt; mso-border-left-alt: inset silver .75pt; mso-border-top-alt: inset silver .75pt; padding: 4.5pt 4.5pt 4.5pt 4.5pt; width: 215.6pt;" valign="top" width="287"><div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Pregnancy leave</span></b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">: Employers cannot discriminate on the
basis of sex and must treat disability arising from pregnancy in the same
manner as other disabilities.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">An
employee must cooperate in providing medical or other information that is
necessary to verify the existence of the disability or pregnancy-related
condition, or that is necessary for consideration of the accommodation. The
employee has a right to have such medical information kept confidential.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Adoptive parents leave</span></b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">: Employers that permit employees to
take leaves of absence upon the birth of a child must permit an adoptive
parent, following commencement of parent-child relationship, the same leave
upon the same terms (unless the child has reached school age or, in the case
of a hard-to-place or handicapped child, has reached age 18).<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Blood donation leave</span></b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">: No provision, however, the </span><span class="MsoHyperlink"><span style="font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;"><a href="http://www.labor.ny.gov/formsdocs/wp/LS703.pdf">New York Department of
Labor has issued guidelines</a></span></span><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;"> allowing employers to require proof of off-premises blood donation.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Bone marrow donation leave</span></b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">: Employer may require physician
verification for the purpose and length of each leave requested by an
employee.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Military spouse leave</span></b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">: No provision<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Paid family leave</span></b><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;"> (effective Jan. 1, 2018): An employee
may be required to provide a medical certification completed by a healthcare
provider to support the need for family leave.</span><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;"><o:p></o:p></span></div>
</td>
<td style="border: none; mso-cell-special: placeholder; padding: 0in 0in 0in 0in;" width="2"><div class="MsoNormal">
<br /></div>
</td>
</tr>
<tr style="mso-row-margin-right: 1.3pt; mso-yfti-irow: 4; mso-yfti-lastrow: yes;">
<td style="border-top: none; border: inset silver 1.0pt; mso-border-alt: inset silver .75pt; mso-border-top-alt: inset silver .75pt; padding: 4.5pt 4.5pt 4.5pt 4.5pt; width: 67.9pt;" valign="top" width="91"><div align="center" class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Other<o:p></o:p></span></b></div>
</td>
<td colspan="2" style="border-bottom: inset silver 1.0pt; border-left: none; border-right: inset silver 1.0pt; border-top: none; mso-border-alt: inset silver .75pt; mso-border-left-alt: inset silver .75pt; mso-border-top-alt: inset silver .75pt; padding: 4.5pt 4.5pt 4.5pt 4.5pt; width: 207.0pt;" valign="top" width="276"><div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<br /></div>
</td>
<td colspan="2" style="border-bottom: inset silver 1.0pt; border-left: none; border-right: inset silver 1.0pt; border-top: none; mso-border-alt: inset silver .75pt; mso-border-left-alt: inset silver .75pt; mso-border-top-alt: inset silver .75pt; padding: 4.5pt 4.5pt 4.5pt 4.5pt; width: 215.6pt;" valign="top" width="287"><div class="MsoNormal" style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt;">
<span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;">Registered
domestic partners must be treated the same as spouses for most purposes under
New York law, including for employee leave purposes.</span><span style="color: black; font-family: "tradegothic lt"; font-size: 9.5pt; line-height: 107%;"><o:p></o:p></span></div>
</td>
<td style="border: none; mso-cell-special: placeholder; padding: 0in 0in 0in 0in;" width="2"><div class="MsoNormal">
<br /></div>
</td>
</tr>
</tbody></table>
</div>
</div>
<br />
Please note that the information in the above chart focuses on statewide laws. Employers must be aware that numerous cities across the country (including <a href="http://www1.nyc.gov/site/dca/about/paid-sick-leave-what-employers-need-to-know.page">New York City</a>) have enacted local ordinances that mandate employers provide paid sick leave to employees. An employer located in a city with a paid sick leave law must comply with the local ordinance and statewide law, if applicable. <br />
<br />
Read about other federal and state areas of comparison in federal vs. New York family and medical leave laws – <a href="http://news.strategicbenefitservices.com/2019/03/federal-vs-new-york-family-and-medical_4.html">Part 1</a>, <a href="http://news.strategicbenefitservices.com/2019/03/federal-vs-new-york-family-and-medical.html">Part 2</a> and <a href="http://news.strategicbenefitservices.com/2019/02/federal-vs-new-york-family-and-medical.html">Part 3</a>. These comparison charts are provided for general informational purposes only. They are not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. If you have any questions or would like to begin talking to an employee benefits consultant, please get in touch by <a href="http://strategicbenefitservices.com/contact/">email</a> or by calling (855) 882-9177.Marketinghttp://www.blogger.com/profile/03771038194340892784noreply@blogger.com