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Drone test site in Rome to participate in next phase of drone-integration program
ROME — The Federal Aviation Administration (FAA) has selected the New York UAS test site at Griffiss International Airport in Rome as one of two sites for the second phase of the unmanned aircraft-traffic management pilot program (UPP). Virginia Tech Mid-Atlantic Aviation Partnership in Blacksburg, Virginia is the other, NUAIR said in a news release. […]
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ROME — The Federal Aviation Administration (FAA) has selected the New York UAS test site at Griffiss International Airport in Rome as one of two sites for the second phase of the unmanned aircraft-traffic management pilot program (UPP).
Virginia Tech Mid-Atlantic Aviation Partnership in Blacksburg, Virginia is the other, NUAIR said in a news release.
Syracuse–based NUAIR is short for Northeast UAS Airspace Integration Research. The nonprofit focuses on UAS operations, aeronautical research, safety management, and consulting services.
An unmanned aircraft system (UAS) includes a drone and equipment used to control its flight. A drone is also referred to in the industry as an unmanned aerial vehicle, or UAV.
The second phase of UPP will showcase capabilities and services that support high-density UAS or drone operations, including remote identification services and public-safety operations. Data collected from the UPP second-phase tests will help inform a cross-agency, unmanned traffic management (UTM) system implementation plan.
“We couldn’t be happier that the FAA has selected Oneida County’s New York UAS test site at Griffiss to develop the next phase of UAS traffic management,” Oneida County Executive Anthony Picente, Jr. said. “That our site has been chosen from what is already a small, elite group that has been granted test-site status, is a testament to the high quality of work and collaboration of our partners in Rome. It’s an honor to be on the forefront of the next evolution of this transformative technology.”
An unmanned traffic-management system would function much like the current manned air-traffic management system — assuring people, aircraft, and structures both in the air and on the ground remain safe.
“To unlock the full capabilities and functionalities” of drones for commercial use like package delivery or medical supply drop-offs, a safe, universal UTM system is needed nationwide, NUAIR contends. Research and testing done at the New York UAS test site through the UPP Phase II program will help make that UTM system “a reality.”
Over 3,000 advanced UAS test flights, including UTM tests, have been conducted at the New York UAS test site over the past five years. In 2019, Gov. Andrew Cuomo announced the completion of New York’s 50-mile drone corridor, which starts at the test site in Rome and stretches across the state to Syracuse. The corridor has the “needed” infrastructure and technologies in place to complete the advanced drone operations and UTM standardization work outlined in UPP Phase II, NUAIR said.
“The New York UAS test site being selected by the FAA to take part in this next phase speaks to the amount of meaningful testing and research we’ve been doing here in Central New York to advance the industry,” Tony Basile, COO of NUAIR, said. “The collaborative work we will achieve with our industry-leading partners will help shape the commercial drone industry on a national, if not international level.”
Virtual collaboration on UPP Phase II began in mid-April of this year, with live flights and component testing taking place at the test site starting this month.
UPP Phase I was completed in August 2019, in collaboration with NASA, FAA UAS test sites, and their industry partners. Phase I tested capabilities such as the exchange of flight data among UAS operators and generating an emergency “no-fly zone” for general unmanned aircraft, “clearing the skies for emergency response drones,” NUAIR said.
McCarthy Mercantile to provide showcase for artists, makers
SYRACUSE — A new underground indie marketplace, called the McCarthy Mercantile, is set to open under Wildflowers Armory in the basement of the McCarthy Building at 217 S. Salina St. on Sept. 16. The mission of McCarthy Mercantile is “to promote the independent makers, collectors, and artists of Central New York and foster creative collaborations,
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SYRACUSE — A new underground indie marketplace, called the McCarthy Mercantile, is set to open under Wildflowers Armory in the basement of the McCarthy Building at 217 S. Salina St. on Sept. 16.
The mission of McCarthy Mercantile is “to promote the independent makers, collectors, and artists of Central New York and foster creative collaborations, as well as provide the most unique underground shopping experience available in the heart of downtown Syracuse,” says Michael John Heagerty, founder and co-owner of Wildflowers Armory, an artisan collective which describes itself as a “multi-vendor marketplace” shop. McCarthy Mercantile “seeks to strive to reflect the diversity of our community — both artists and audiences — while providing a welcoming space for creatives to connect with the public,” he adds.
The 8,100-square-foot lower level of the McCarthy Building will house eight tenants, including Wildflowers expanding into a multi-level shop as the corner tenant in the underground level, Heagerty says.
Wildflowers Armory moved to a 2,000-square-foot space on the ground floor of the McCarthy Building in late 2019 after previously being located at 225 W. Jefferson St., in a 2,200-square-foot space across from the MOST since May 2018. Wildflowers will nearly double its space with the expansion to the lower level.
The other tenants of the McCarthy Mercantile are: SoFlea and Syracuse Yoga, combining a vintage shop and yoga classes; Lakeshore Hardwoods, a shop for woodworkers; Better, serving the skateboard, art, and subculture community; Simplistically Holistic, a holistic shop; P.A.S.T. (People Are Stronger Together) a multifaceted network that begins with an emphasis on the artist in all of us; Kanga Tutoring, a provider of tutoring services to students; and Accents, a shop for jewelry, local art, home decorations, furniture, and accessories.
There will also be an industrial creative event space at the McCarthy Mercantile, called ROOTED, which Heagerty says he will run for benefit of the other tenants.
“Syracuse wants something different — something they haven’t seen before,” he says. “Artistic workshops, dance lessons, pop-ups, fashion shows, craft fairs, and more will fill the eclectic calendar.”
The McCarthy Building’s landlord Washington Street Partners (WSP) funded and completed the renovations to create McCarthy Mercantile. The WSP team doing the renovation work was led by William and Johnny Mahar.
Heagerty says he acted as leasing agent to recruit the various vendors. He declined to disclose the total cost of the project.
After opening, what’s next? Heagerty replies, “Continue the momentum and foster the undeniable creative buzz at the McCarthy Mercantile. Fill the calendar with interesting, intimate events from burlesque to DIY workshops, artist lectures to film screenings, floating galleries to disco roller-parties, and so much more.”
Syracuse looks for buyer for former Syracuse Developmental Center property
SYRACUSE — The City of Syracuse has put the former Syracuse Developmental Center campus up for sale. It is the “long vacant,” 48-acre property that the City of Syracuse seized for back taxes last year, per a news release. The westside site is listed with commercial-brokerage firm Cushman & Wakefield/Pyramid Brokerage Company, which the city
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SYRACUSE — The City of Syracuse has put the former Syracuse Developmental Center campus up for sale.
It is the “long vacant,” 48-acre property that the City of Syracuse seized for back taxes last year, per a news release.
The westside site is listed with commercial-brokerage firm Cushman & Wakefield/Pyramid Brokerage Company, which the city selected in a public request for proposals to market and sell the property.
The property — located at 800-802 Wilbur Ave. next to Tipperary Hill — includes more than 600,000 square feet of buildings. Walsh authorized seizure of the property from Syracuse Center LLC, which owed more than $887,000 in back taxes, including interest and penalties going back to 2015. The property had also been vandalized.
“This is a prime piece of real estate with close proximity to major transportation routes and the downtown area. It has tremendous potential to positively contribute to our economy and our neighborhoods,” Walsh contended. “We acted decisively to address the public safety problems the site was creating. I’m looking forward to this next phase in redeveloping and restoring activity to the site.”
The city and Cushman & Wakefield/Pyramid Brokerage Company said they are seeking proposals for investment that will have a positive impact on surrounding or adjacent neighborhoods, as well as the rest of the city.
The city hasn’t set a formal asking price. It will consider all proposals for the full or partial redevelopment of the property’s campus, “allowing for subdivisions and investment by multiple developers and end-users,” the City of Syracuse said.
All letters of interest and offers are to be submitted though Cushman & Wakefield/Pyramid Brokerage. The site was listed in mid-August, and proposals will be accepted “prior to Oct. 15,” the city said.
Further information on the property is available at the following website:
https://www.pyramidbrokerage.com/properties/listings/details/Y16966/800-wilbur-avenue-syracuse-ny-former-sdc.
Bassett’s new leadership team includes COO, other members
COOPERSTOWN, N.Y.— The new leadership team of the Cooperstown–based Bassett Healthcare Network includes Jeff Joyner as chief operating officer (COO) and other officials. Joyner has served as president of A.O. Fox Hospital in Oneonta since 2015. He will remain involved in the leadership of A.O. Fox Hospital as part of his broader responsibilities and officially
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COOPERSTOWN, N.Y.— The new leadership team of the Cooperstown–based Bassett Healthcare Network includes Jeff Joyner as chief operating officer (COO) and other officials.
Joyner has served as president of A.O. Fox Hospital in Oneonta since 2015. He will remain involved in the leadership of A.O. Fox Hospital as part of his broader responsibilities and officially started working in his new role on Aug. 31, Bassett announced in a news release.
Joyner is among the first appointments of Dr. Tommy Ibrahim, president and CEO of Bassett Healthcare Network, to the new network leadership team.
The group is described as “individuals who will work in various capacities to propel the network toward full integration, optimize core solutions, and position Bassett as a national player in health care delivery.”
Besides Joyner, Ibrahim’s appointments to the leadership team include Lisa Betrus, senior VP, chief strategy, and transformation officer; Cailin Purcell, VP, chief of staff; and, Michael Thompson, VP, systems improvement.
About Joyner
In his role as senior VP and COO for Bassett Healthcare Network, Joyner will serve as the executive responsible for network-hospital operations, system-support services, and all integration efforts.
Prior to his tenure at A.O. Fox Hospital, Joyner held executive-leadership positions in several organizations, including system VP of operations at St. Joseph’s Healthcare in New Jersey; VP of professional services at Sibley Memorial Hospital, an affiliate of Johns Hopkins Medicine; and VP of patient support services at Holy Cross Hospital in Silver Springs, Maryland.
He holds a master’s degree in health-care administration and is a fellow of the American College of Healthcare Executives.
Besides his work as a health-care executive, Joyner is also former member of the Maine State Legislature, having served two terms from 1993 to 1997, per Bassett.
About Betrus
Betrus has been the CEO and administrator for Valley Health Services and Valley Residential Services in Herkimer since 1998, Bassett said.
In 2017, her role was expanded to include VP for continuum of care for the Bassett Healthcare Network.
In her role as senior VP, chief strategy and transformation officer, Betrus’ duties will include developing, communicating, executing, and sustaining network strategic initiatives. She’ll remain “very involved” in the leadership of long-term care at Valley Health Services, Valley Residential Services, other continuum-care services, and will lead continued development of ambulatory services across the region, the organization said.
About Purcell
Purcell has been a leader in the Bassett Medical Group for 10 years, beginning as a manager in the department of medicine before moving into the role of senior director for the department.
In 2018, Purcell transitioned to the senior director of the department of surgery, which includes leadership of women’s health, anesthesia, and perioperative services.
In her role as the VP, chief of staff, Purcell will support the president and CEO and all members of the executive leadership team in all aspects of daily operations of the network. She will also be working on system-improvement activities and “will play an important role” in building the Bassett Healthcare administrative-fellowship program, developing future leaders for the organization.
Purcell worked for more than 10 years in a variety of leadership roles in health-care organizations in the Capital Region, prior to her arrival at Bassett.
About Thompson
Reporting to the chief of staff, Thompson will join Bassett Healthcare Network as the VP of systems improvement.
He comes to Bassett from INTEGRIS Health in Oklahoma City, where he has spent the last five years in a variety of roles — most recently as VP for provider services and integration.
In his role as VP of systems improvement, Thompson will partner with administrative and medical-staff leadership to develop and implement a strategic performance-improvement plan for all hospitals across the Bassett Healthcare Network.
Prior to working for INTEGRIS, Thompson spent 10 years with the U.S. Postal Service in a “variety of positions with increasing responsibility.” He is described as a Lean Six Sigma expert and has “extensive experience” in LEAN methodology and system design.
Dannible & McKee readies for virtual fraud prevention conference
SYRACUSE, N.Y. — Two representatives from insurance firm Haylor, Freyer & Coon, Inc. are among the presenters at a virtual fraud-prevention conference that Syracuse–based accounting firm Dannible & McKee, LLP is set to host on Sept. 22 from 8:30 a.m. to 12:00 p.m. The “uncertainty and disruption” that the COVID-19 pandemic has caused has also
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SYRACUSE, N.Y. — Two representatives from insurance firm Haylor, Freyer & Coon, Inc. are among the presenters at a virtual fraud-prevention conference that Syracuse–based accounting firm Dannible & McKee, LLP is set to host on Sept. 22 from 8:30 a.m. to 12:00 p.m.
The “uncertainty and disruption” that the COVID-19 pandemic has caused has also created opportunity for crime and fraud, the firm said in an email about the fraud conference.
Businesses are faced with “increased risks” from remote access and growing use of electronic transactions, along with the “rising revenue losses due to fraudulent activities,” Dannible & McKee noted.
In the conference, participants can learn about fraudulent threats amid the pandemic crisis and about steps they can take to minimize their exposure and protect their business.
Presentations
Leigh Balcom, a business & planning manager at M&T Bank, will speak on the topic, “Fraud Threats to a Business in a Remote Environment.” It’s a discussion on threats that may impact a business. Topics include the current fraud landscape, trends in payment fraud, social engineering, and best practices for safeguarding one’s company and customer data.
Another topic, called “Cyber Liability – Proactive and Reactive Protection,” will focus on how cyber-crime is “quickly becoming one of the most intimidating threats the business community has ever seen.” Businesses worldwide watch as their networks are locked down, Bitcoin ransom is requested, information is stolen, and the personal data of customers and employees is compromised. As technological integration continues, these incidents are becoming “more and more common.” Through real-life examples, this presentation aims to educate attendees on how businesses can proactively prepare for cyber events by implementing the proper insurance and risk-management strategies.
Two representatives from Haylor, Freyer & Coon — Anto Almasian, risk-management advisor, and Steve DeRegis, senior VP/risk-management advisor — will handle the presentation.
In addition, Christopher Didio and Sean Daughton, audit partners at Dannible & McKee, will speak on the topic, “Don’t Lose Control During COVID-19.”As companies adjust to the “new normal” of remote operations during the COVID-19 crisis, maintaining focus on the effective operation of internal controls is “critical.” In this session, the Dannible & McKee audit partners will provide insight into COVID-19 focused fraud trends and the new fraud risks arising in the current landscape and offer practical considerations to ensure internal controls are operating effectively.
Brian Johnson, also an audit partner at Dannible & McKee, will speak on the topic, “5 Most Scandalous Fraud Cases of 2019.” “Fraud, sadly, never seems to be on the decline — fraudsters come up with new ways to defraud their victims every year. With so many notable schemes, it’s hard to narrow down those that take the cake as the most scandalous. In this presentation, we will count down the top five that shook the world in 2019, according to Fraud Magazine,” Dannible & McKee explained.
OCRRA appoints two to board of directors
SYRACUSE, N.Y. — The Onondaga County Resource Recovery Agency (OCRRA) recently announced it has appointed Corey Driscoll Dunham and Stephanie Pasquale to its board of directors. Driscoll Dunham has more than 10 years of experience, including roles in government and community relations at Syracuse University and Cornell University, as well as positions in public service
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SYRACUSE, N.Y. — The Onondaga County Resource Recovery Agency (OCRRA) recently announced it has appointed Corey Driscoll Dunham and Stephanie Pasquale to its board of directors.
Driscoll Dunham has more than 10 years of experience, including roles in government and community relations at Syracuse University and Cornell University, as well as positions in public service at the city, state, and federal levels. She is currently the chief operating officer for the City of Syracuse, overseeing city departments including Public Works, Engineering, Water, and Parks, Recreation and Youth Programs. Driscoll Dunham has a master’s degree in public administration from the Nelson A. Rockefeller College of Public Affairs and Policy at the University at Albany.
Pasquale has more than 20 years of experience in housing and community development. She is currently the director of neighborhood advancement at the Allyn Family Foundation. Pasquale holds a bachelor’s degree in policy studies and a master’s in public administration from the Maxwell School at Syracuse University.
OCRRA, which has its main office at 100 Elwood Davis Road in Salina, oversees the waste management and recycling programs for Onondaga County.
New state law requires plans to protect public workers in health emergencies
A new state law requires all public employers to create plans to “adequately” protect workers in the event of another state disaster emergency involving a communicable disease. The plans would apply to both the state and localities, including school districts, the office of Gov. Andrew Cuomo announced. The governor signed the legislation on Labor Day. Plans
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A new state law requires all public employers to create plans to “adequately” protect workers in the event of another state disaster emergency involving a communicable disease.
The plans would apply to both the state and localities, including school districts, the office of Gov. Andrew Cuomo announced. The governor signed the legislation on Labor Day.
Plans must be submitted to unions and labor-management committees within 150 days, and they need to be finalized on April 1, 2021.
Operation plans must include a list and description of positions considered essential, along with descriptions of protocols to follow to enable all non-essential employees to work remotely.
Plans must also include a description of how employers would stagger work shifts to reduce overcrowding.
In addition, operation plans need to have protocols for personal protective equipment, or PPE, for when an employee is exposed to disease, for documenting hours and work locations for essential workers; and for working with essential employees’ localities for identifying emergency housing if needed.
Operations plans must also have “any other requirement determined by the New York State Department of Health, such as testing and contact tracing,” Cuomo’s office said.
Plans must be submitted to public unions for review. The New York State Department of Labor will also create an online portal for public employees to report violations of health and safety rules for communicable diseases, including COVID-19.
VIEWPOINT: How To Stop Toxic Leadership From Spreading A Virus In Your Company
Toxic workplaces sometimes start at the top. Difficult, abrasive leaders can create a culture of tension, fear, and abusive behavior at every organizational level. Those types of leaders may produce results, but their actions also lead to dysfunction and employee turnover. Ending the pattern of toxicity starts with companies recognizing red flags, coming up with new
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Toxic workplaces sometimes start at the top. Difficult, abrasive leaders can create a culture of tension, fear, and abusive behavior at every organizational level.
Those types of leaders may produce results, but their actions also lead to dysfunction and employee turnover.
Ending the pattern of toxicity starts with companies recognizing red flags, coming up with new principles of management behavior, and holding leaders accountable for their actions.
Organizations often overlook abrasive behavior or see it as a necessary means to an end. This sends employees the message that such behavior is acceptable and to be imitated to skyrocket up the corporate ladder. Then it’s like a virus that continues to spread.
All too often, companies are overly results-oriented. Leaders tend to be preoccupied with what needs to be done and what key performance indicators to monitor, but they rarely pay attention to how the work is to be done and whether employees are using acceptable behaviors to achieve those results. This focus on outcomes over methods allows toxic behaviors to remain unchecked for years.
Here are three ways businesses can encourage leaders to engage in healthy behavior and detoxify the culture:
Establish specific codes of conduct. Correcting or preventing abusive behavior by leaders means first establishing a code of conduct — with management principles — as an essential part of the corporate culture. Communicate to all employees, including supervisors, managers, and executives, that the organization will not tolerate bullying to any degree. Post these codes everywhere — in company manuals, in meeting rooms, on the website — and discuss them at kickoff meetings and conferences. The codes of conduct should explicitly state that employees who violate this principle will be disciplined and may be terminated. Organization heads should communicate to their brilliant jerks that they are valued for their brilliance, but that misbehavior has consequences, which will be applied.
Expand evaluations. Leaders should be evaluated not only on what results they are achieving, but also on how they are performing as overall leaders. Performance reviews should also consider the quality of interactions with employees. It’s important in this evaluation process that employees should have an opportunity to evaluate their manager’s leadership in annual or semi-annual reviews.
Offer coaching and support. If they are receptive, brilliant jerks should be offered the support of a customized coaching program to help them change their destructive behaviors and leverage their strengths. They need to be shown how their outstanding abilities that help the company are being undermined by a lack of interpersonal skills. All too often, leaders think an authoritative, demonstrative style is largely responsible for their success, when an argument can be made that it’s just as responsible for driving good people away, and for planting the seeds of their own future derailment.
Management needs to keep behavior principles in mind and reference them every day. Otherwise, the company’s values and leadership principles are just talk, and it risks creating cynics throughout the organization.
Dr. Katrina Burrus (www.ExcellentExecutiveCoaching.com) is author of “Managing Brilliant Jerks: How Organizations and Coaches Can Transform Difficult Leaders into Powerful Visionaries.” She is also founder of MKB Conseil & Coaching and Excellent Executive Coaching, LLC.
VIEWPOINT: Amended Compensation Rule and Eligible Nonpayroll Costs for PPP forgiveness
VIEWPOINT On Aug. 24, the U.S. Small Business Administration (SBA) issued guidance on the Paycheck Protection Program (PPP) pertaining to employee-owner compensation and nonpayroll costs eligible for loan forgiveness. Here is a rundown of the particulars. Payroll costs — owner-employee compensation The SBA stated that individuals with an ownership of less than 5 percent of
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VIEWPOINT
On Aug. 24, the U.S. Small Business Administration (SBA) issued guidance on the Paycheck Protection Program (PPP) pertaining to employee-owner compensation and nonpayroll costs eligible for loan forgiveness. Here is a rundown of the particulars.
Payroll costs — owner-employee compensation
The SBA stated that individuals with an ownership of less than 5 percent of a C- or S- Corporation borrower are exempt from application of the PPP owner-employee compensation rule when determining the amount of their compensation that is eligible for loan forgiveness. This means that the forgiveness-eligible compensation of owner-employees with less than 5-percent ownership is no longer capped at an amount of 2.5 months’ worth of 2019 net profit (maximum of $20,833) for the extended 24-week period, but rather, the employee salary amount (maximum of $46,154). The SBA’s rationale was that owner-employees with less than 5-percent ownership in the company likely have no meaningful ability to influence decisions over how loan proceeds are allocated. However, the newly issued guidance does not address if this rule also applies to members owning less than 5 percent of interests in a limited-liability corporation, or LLC.
Nonpayroll costs — tenant, sub-tenant, and household expenses
The SBA stated that amounts attributable to the business operation of a tenant or sub-tenant of the PPP borrower or, in the context of home-based businesses, household expenses are not eligible for forgiveness.
The SBA provided some examples:
• If a borrower rents an office building for $10,000 per month and subleases out a portion of the space to other businesses for, say, $2,500 per month, only $7,500 per month is eligible for loan forgiveness.
• If a borrower has a mortgage on an office building it operates from but leases out a portion of the space, the portion of mortgage interest that is eligible for loan forgiveness is limited to the percent-share of the fair market value of the space that is not leased out.
• If a borrower shares rented space with another business, when determining eligible loan forgiveness, the borrower must prorate rent and utility payments in the same manner as on the borrower’s 2019 tax filings, or if a new business, the borrower’s expected 2020 tax filings.
• If a borrower works from home, when determining eligible loan forgiveness, the borrower may include only the share of covered expenses that were deductible on the borrower’s 2019 tax filing, or if a new business, the borrower’s expected 2020 tax filings.
Nonpayroll costs — rent, lease, and mortgage payments to a related party
The SBA stated that rent or lease payments to a related party may be eligible for forgiveness, but mortgage-interest payments to a related party are not eligible for forgiveness. Any ownership in common between the business and the property owner is a related party.
Further, rent payments to a related party are eligible for forgiveness as long as: (1) the amount of loan forgiveness requested for rent or lease payments to a related party is no more than the amount of mortgage interest owed on the property during the covered period that is attributable to the space being rented by the business; and, (2) the lease and the mortgage were entered into prior to Feb. 15, 2020. The borrower must provide its lender with mortgage-interest documentation to substantiate these payments.
Kate Chmielowiec and Elizabeth L. Lehmann are associate attorneys in the Syracuse office of Bond, Schoeneck & King PLLC. Contact them at kchmielowiec@bsk.com and elehmann@bsk.com, respectively. Jeffrey B. Scheer is a member (partner) in the law firm. Contact him at jscheer@bsk.com
USDOL rule aims to improve workers’ ability to measure lifetime-benefits payments
Seeks to determine readiness to retire The U.S. Department of Labor’s (USDOL) Employee Benefits Security Administration (EBSA) on Aug. 18 announced an interim final rule that will help workers determine their ability to retire. That rule would allow them to estimate how their current savings in a 401(k)-type plan might translate
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Seeks to determine readiness to retire
The U.S. Department of Labor’s (USDOL) Employee Benefits Security Administration (EBSA) on Aug. 18 announced an interim final rule that will help workers determine their ability to retire.
That rule would allow them to estimate how their current savings in a 401(k)-type plan might translate into lifetime monthly payments, per a USDOL news release.
The rule implements section 203 of the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019.
The SECURE Act, signed into law by President Donald Trump, amended the pension-benefit statement requirements under section 105 of the Employee Retirement Income Security Act of 1974 (ERISA). It requires a participant’s accrued benefits to be included on his/her pension-benefit statement as a current account balance, and as an estimated lifetime stream of payments.
Using assumptions set forth in the rule, plan administrators will show participants equivalents of their retirement savings as monthly income under two potential scenarios — first, as a single lifetime-income stream, and second, as an income stream that factors in a survivor benefit.
“Our goal is to help workers and retirees understand how savings translate to retirement income,” Jeanne Klinefelter Wilson, acting assistant secretary of labor for the Employee Benefits Security Administration, said. “Defined contribution plan savings are meant to stretch across the years of retirement. When workers are reminded of what their balances could mean in terms of an estimated monthly dollar amount, they can use this information to plan both savings and spending.”
Interim final rule
Under the interim final rule, retirement plans would provide lifetime-income illustrations using prescribed assumptions designed to give savers a “realistic illustration” of how much monthly retirement income they could expect with their account balance.
Retirement plans also will provide explanations about what the lifetime-income illustrations mean and the assumptions used to calculate the illustrations.
To help ease the administrative burdens on plan administrators, the interim final rule includes model language that may be used for these explanations. Plan fiduciaries that use the regulatory assumptions and the model language prescribed by the rule will qualify for liability relief and will not be held liable in the event participants are unable to purchase equivalent monthly payments.
The interim final rule will be effective 12 months after the date of its publication in the Federal Register. The interim final rule includes a 60-day comment period. The department will use comments to improve the rule before its effective date.
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