It’s time to restate your defined benefit plan document

Every retirement plan is required to have a formal written document that spells out how it operates.

Every retirement plan is required to have a formal written document that spells out how it operates.

When Congress passes new laws that impact how retirement plans work, the IRS and other agencies create new regulations to reflect these changes and, as you might expect, some need to be incorporated into your plan document. The formal rewrite and re-adoption of your plan document is a called a restatement. Given the hundreds of thousands of qualified retirement plans, the government established a pattern of multi-year cycles to balance all of the required work.

Your Defined Benefit plan is modeled on a pre-approved prototype or volume submitter document that’s part of a cycle that must be restated every six years. It’s important to know that the deadline to restate your plan is April 30th 2020. This current cycle is related to The Pension Protection Act of 2006 which introduced many important changes to retirement plans. You may hear this referred to as the “PPA Restatement.”

It’s a big project and our goal is to complete it well in advance of the government’s deadline. We’ll be reaching out to communicate more information about the details of the restatement process and the costs associated with completing this essential work for you.

Questions?

As always, don’t hesitate to contact Brad Bechtel using the information below to ask questions or to chat about how we can help achieve your retirement goals.

Brad Bechtel

Senior Vice President
Employee Benefit Services

Brad Bechtel leads AGH’s employee benefit services (EBS) division, which serves clients nationwide. EBS is one of the region's largest providers of retirement plan recordkeeping services for daily valuation plans. The division provides consulting services to clients on employee benefit plans, including plan design, implementation, operation, fiduciary due diligence, compliance, and through affiliate AGH Wealth Management, discretionary and non-discretionary investment fiduciary services, investment advisory services and employee education.

Bechtel is experienced in executive compensation, including non-qualified, phantom stock, top hat and excess benefit plans, as well as other deferred compensation approaches. He has consulted for numerous Fortune 500 corporations on investment management and fiduciary due diligence. He also provides search and selection due diligence consulting services for companies seeking new investment and recordkeeping providers for their qualified plans. Bechtel is a registered investment advisor who holds Series 7, 24 and 66 FINRA registrations, and he is a member of the American Society of Pension Professionals & Actuaries.

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