PLANADVISER - January/February 2021 - 5

Trust requested that a police report be
filed. He offered to help Mandli file the
report, and Mandli accepted the help.
On September 9, American Trust's
chief revenue officer sent a letter to
Mandli stating, " We are pleased to
let you know that we have been able
to recoup from the Internal Revenue
Service the $24,800 paid in taxes in
connection with the distribution. Additionally,
we will reimburse our $105
distribution fee. All other efforts to
recover any of the stolen funds will
need to be performed by you. "
The lawsuit asks that American
Trust be held liable to make good to the
plan the losses to it from the trustee's
breach of fiduciary duties in an amount
not less than $99,200 plus lost earnings
from last February 14 " and other equitable
or remedial relief as the court may
deem appropriate. "
CARES Act Provisions Are Extended
The latest COVID-19 relief bill, attached
to the Consolidated Appropriations Act,
2021, enables certain retirement plan
sponsors that laid off or
furloughed
employees due to economic issues
caused by the pandemic to avoid a
partial plan termination. The bill was
signed this past December 28 by former
President Donald Trump.
The bill states: " A plan shall not be
treated as having a partial termination
(within the meaning of 411(d)(3)
of the Internal Revenue Code of 1986)
during any plan year [that] includes
the period beginning on March 13,
2020, and ending on March 31, 2021,
if the number of active participants
covered by the plan on March 31, 2021,
is at least 80% of the number of active
participants covered by the plan on
March 13, 2020. "
The new bill does not extend the
time available for plan participants to
take coronavirus-related distributions
(CRDs); however, it does add money
purchase pension plans as a plan type
from which participants may take a
CRD. The provision is retroactive to
the passage of the Coronavirus Aid,
Relief and Economic Security (CARES)
Act. The CARES Act provision of CRDs
expired on December 30.
The Consolidated Appropriations
Act, 2021, also allows for distributions
from retirement plans for participants
affected by disasters other than the
COVID-19 pandemic, as declared by the
former president. Participants in 401(k),
403(b), money purchase pension and
government 457(b) plans may take up
to $100,000 in aggregate from whatever
retirement plan accounts they own,
without tax penalties. Income tax on
these distributions may be spread over
three years, and participants may repay
the distributions, over three years, into
a plan designed to accept rollovers.
Participants have until 180 days
after enactment of the bill to take qualified
disaster distributions.
Further, the new bill extends the
expanded limits for qualified retirement
plan loans allowed under
CARES Act
for
that
same 180-day
period. It similarly extends the oneyear
delay in loan repayment for participants
having repayment due dates
between the first day of the disaster
incident period and ending 180 days
after the last day of the period.
The newly passed stimulus bill also
includes provisions related to employer
benefits other than retirement plans.
The CARES Act allowed employers to
make payments of up to $5,250, tax
free, toward employees' student loans
through the end of this year. The new
bill extends that until the end of 2025.
UPenn 403(b) Plan Settles
A new court filing in the U.S. District
Court for the Eastern District of Pennsylvania
describes the terms of a settlement
reached between the University
of Pennsylvania (UPenn) and plaintiffs
in a long-running and complex
Employee Retirement Income Security
Act (ERISA) fiduciary breach lawsuit.
The case boasts a detailed procedural
history that first saw the District
Court dismiss the complaint. That
decision, filed in 2017, was based in
part on the fact that the UPenn 403(b)
plan in question offered a wide array
of investment options, which the court
interpreted to mean that the claims
that participants were forced into highpriced
and poorly performing investments
could not stand up.
Defendants admit no wrongdoing
Rob Portman, Senate
Retirement Advocate, to Retire
U.S. Senator Rob Portman, R-Ohio,
will not seek re-election after his term
finishes in 2022, generating no small
measure of surprise and a degree of
consternation for the retirement planning
industry.
This is because Portman is viewed
by many retirement planning professionals
as one of their long-time top
advocates in Congress. Portman has
not only held a leading position on the
powerful Senate Finance Committee
for many years-including having
been chairman of the Subcommittee
on Social Security, Pensions and
Family Policy-he has been one of the
main advocates of several popular
pieces of retirement reform legislation
supported by advisers and their
industry trade groups.
Naturally,
retirement
industry
practitioners will be eagerly watching
what the Senate does during the newly
installed Congress, which will now be
Portman's last.
" Over the next two years, I look
forward to being able to focus all of
my energy on legislation and the challenges
our country faces, rather than
on fundraising and campaigning, "
Portman said in a statement. " During
my service in the Senate, I am proud
of what we've been able to accomplish
for Ohio and the country. I have consisthe
or
liability with respect to any of the
allegations or claims in this action. As
is par for the course, the settlement
document stipulates that up to a third
of the settlement amount can be paid
as plaintiffs' attorneys fees.
Voya Settles With the SEC
The Securities and Exchange Commission
(SEC) announced that Voya Financial
Advisors has agreed to settle
charges related to the alleged disclosure
failures and misleading statements it
reportedly gave to clients regarding
investment advice about mutual funds,
illiquid alternative investments and
cash sweep vehicles. The settlement
includes a distribution of money to
harmed clients and the retention of an
independent compliance consultant.
planadviser.com January-February 2021 | 5
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PLANADVISER - January/February 2021

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