"The letter... concludes that annuity buyouts involving employees who remain employed generally should not be counted when determining whether a defined benefit plan has experienced an 'active participant reduction' reportable event under [ERISA]. In explaining that conclusion, the agency also reiterated that once pension liabilities have been transferred to an insurer, the PBGC no longer bears responsibility for paying benefits if that insurer later fails." MORE >>
"According to the guidance, Trump Accounts ... and employer contribution arrangements to them generally will not be considered employee pension benefit plans under [ERISA], provided that employers maintain a limited role and meet specific conditions. The clarification removes a potential compliance concern for employers weighing whether to offer contributions to the accounts as a workplace benefit, particularly for employees' children." MORE >>
"The final policy may impact health plans that are not directly required to provide EHB, such as self-insured group health plans and large-group market fully insured plans that must follow the annual and lifetime dollar-limit restrictions on EHB and annual cost-sharing limitation requirements.... The final policy is consistent with CMS' desire to provide the 'regulatory framework' for innovation, without mandating it.... Issuers should plan to follow the timelines as outlined by their State and CMS. This policy is subject to litigation in Columbus II. " MORE >>
"All employers with 100+ covered employees must set up a Minnesota Secure Choice Employer Account by June 30, 2026, and either enroll their workers in the state's payroll‑deduction IRA program or certify their exemption by the required date. Noncompliant employers face graduated fines of up to $500 per employee after an initial warning period." MORE >>
"The court explained that a suit for benefits due must be brought against a party with an obligation to pay, which is the entity that controls benefit determinations. Here, the plan and the summary plan descriptions consistently identified Prudential as the Claims Administrator with discretionary authority to process and decide claims, while Accenture, as Plan Administrator, retained authority only over limited matters such as eligibility." [Justman v. Accenture LLP, No. 25-2084 (3d Cir. June 17, 2026)] MORE >>
"While the judge dismissed one count of the complaint for alleged breach of the duties of prudence and loyalty under ERISA regarding the reasonableness of 401(k) plan fees, he allowed the other four counts to proceed.... The proposed class alleges that Lockheed and its investment management subsidiary breached their fiduciary duties of prudence and loyalty under ERISA by selecting and retaining the TDFs despite their poor performance." [Fezer v. Lockheed Martin Corp., No. 25-0908 (D. Md. Apr. 16, 2026)] MORE >>
"The OBBBA significantly expanded Code Section 4960 for taxable years beginning after Dec. 31, 2025, broadening the scope of employees that tax-exempt organizations must evaluate for potential excise tax exposure.... Tax-exempt organizations should review compensation arrangements, deferred compensation plans and compliance processes before the new rules take effect, particularly where compensation may approach or exceed the $1 million threshold." MORE >>
"Plan sponsors that are considering offering a large behavioral health network should note that its effectiveness will depend more on thoughtful design, governance and deployment than on the size of the network. This article describes large behavioral health networks and their appeal. It also covers things to consider before choosing a large behavioral health network. Additionally, it outlines four steps that plan sponsors can follow to ensure the successful introduction of a large behavioral health network." MORE >>
"One major type of Defined Contribution (DC) systems are provident fund systems.... [P]rovident fund systems are very inexpensive, while private pensions are costly due to administrative costs (like DB systems) and due to high levels of profit taking. Members of provident fund systems can invest money themselves.... [P}rovident fund systems are the most efficient and cost-effective social security system available, apart from different kinds of (smart or blind) universal benefit systems." MORE >>
"Notice 2026-36 clarifies that the amended definition of covered employee applies to individuals who were employees of an ATEO in any tax year beginning after December 31, 2016 and on or before December 31, 2025, if the individual was a covered employee for the tax year under the prior law, and any individual who is an employee of an ATEO in any tax year beginning after December 31, 2025 (unless an exception applies). The Notice also indicates that the forthcoming proposed regulations will include exceptions to the definition of covered employee, including limited hours and nonexempt funds, similar to the exceptions under the TCJA regulations." MORE >>
"Request disclosure of rebates for all formulary drugs.... Examine how rebates, guarantees and exclusions are defined in the contract. Small nuances in contract language can drive costs over time.... When a plan's PBM is incentivized to managing future price increases, prescription drug cost trend tends to improve.... Particularly for plan sponsors that signed their PBM contract years ago, it's worth exploring options, because drug pricing dynamics and PBM pricing models have recently changed dramatically." MORE >>
"With this rule, the DOL proposes a regulatory safe harbor from which the acts of plan fiduciaries of defined contribution plans will be given the presumption of prudence.... [N]early 45,000 comments were filed, with some comments providing substantive suggestions to improve the implementation of the rule and other comments objecting to the rule because of concern that it will encourage the inclusion of risky, complex, and higher cost investment options, and result in less protection for Americans' retirement savings. It remains to be seen how the DOL will respond[.]" MORE >>
"[The final rules] affect how a group health plan communicates with out-of-network providers, participates in payment negotiations, and resolves billing disputes. Because self-insured group health plans are ultimately responsible for ensuring compliance with these new IDR requirements, plan sponsors should work with their third-party administrator (TPA) to confirm that existing processes meet the new standards. Where gaps exist, plan sponsors may want to revise the TPA services agreement to address the requirements summarized below and consider including indemnification provisions or performance guarantees to protect the plan in the event the TPA fails to comply." MORE >>
"This time of year typically brings key filings such as Form 5500 for calendar-year plans, Patient-Centered Outcomes Research Institute (PCORI) fee payments, Summary Annual Report (SAR) distributions, and medical loss ratio (MLR) rebate considerations, among others. Staying ahead of these requirements is critical to avoiding potential penalties and maintaining compliance with applicable federal laws." [Includes both standard Federal deadlines, and select state and local deadlines.] MORE >>
Topics include: [1] Important terminology for reference on key topics; [2] Stock purchase plan options and amendments; [3] Asset purchase plan options and amendments; [4] CG/ASG transition period for coverage testing under IRC 410(b)(6)(C); [5] Comparing and unifying plan designs. MORE >>
"While many investors assume they can move IRA assets as often as they wish, the rules depend on the method used. For example, an IRA-to-IRA rollover may be done only once during a 12-month period, while transfers are not subject to that limitation. If you are planning to move your IRA, understanding the difference between a transfer and a rollover is key to avoiding costly mistakes." MORE >>
"[T]he employer is only responsible for determining the following with respect to each employee: [1] whether the employee is covered under an HDHP or a non-HDHP (e.g., a general-purpose health FSA or HRA) sponsored by that employer; and [2] the employee's age, for determining whether the employee is eligible for age 55 catch-up contributions (the employer may rely on employees' representations as to their dates of birth)." MORE >>
"Employees accrue one hour of paid sick leave for every 30 hours worked, beginning at the start of employment.... Employers may frontload the full 40 hours at the start of the year to satisfy the accrual requirement, in which case they are not required to allow carryover of unused leave into the following year.... For absences of three or more consecutive workdays, employers may require reasonable documentation that leave was used for a covered purpose." MORE >>
"In the current environment, the focus for many plan sponsors is on the considerations and implications related to guaranteed lifetime income because this is still new territory for them, and many also will want to consider at least one other non-guaranteed option for their plan lineups. At a high level, the [steps] explained in [this article] can help identify the plan's specific goals and needs and guide the design of an effective program[.]" MORE >>
"The June 10 draft proposes amending the Accounting Standards Codification to require that firms value the cost of benefits offered as market-based cash balance plans ... by setting the discount rate equal to the assumed interest crediting rate.... Almost 60% of all DB plans in the U.S. are now cash balance plans, ... In 2018, only about 10% of cash balance plans used a market-based crediting rate, but that figure now sits around 60%." MORE >>
"The updated rules, effective June 1, 2026, make a number of substantive additions and clarifications, including new guidance on joint employment, workplace posting, rate of pay for tipped employees, reasons for use, paid sick leave abuse, successor employer obligations, benefit year administration, universal PTO policies, and accrual for exempt & non-exempt employees." MORE >>
"The PCMA is alleging that the PDAA will cause substantial harm to the association's members ... The PDAA was crafted to rein in the influential middlemen, which sit at the epicenter of the U.S. pharmaceutical supply chain and control the flow of drugs between pharmaceutical companies, insurers, pharmacies and patients.... [The Illinois law was enacted last July,] part of a larger wave of state legislatures across the country passing PBM reform legislation to the annoyance of market giants in the industry." [Pharmaceutical Care Mgmt. Ass'n v. Gillespie, No. 25-3200 (C.D. Ill. complaint filed Jun. 16, 2026)] MORE >>
"Advisors with clients who receive federal benefits must become experts in pension rules, service credit calculations, and benefit elections to serve as a valuable resource during both the planning and retirement phases." MORE >>
"A new retirement saving option for teachers participating in the Bay State's teacher retirement system is closer to being available, courtesy of legislation that has passed both chambers of the Massachusetts legislature." MORE >>
"In enforcement actions and audit findings, regulators have consistently identified deficiencies in comparative analyses, particularly where plans cannot adequately document how NQTLs are designed and administered. The most common MHPAEA compliance challenges [include] ... [1] Data access and vendor dependency.... [2] Identifying all applicable NQTLs.... [3] Explaining factors and evidentiary standards ... [4] Demonstrating operational compliance.... [5] Ongoing maintenance obligations.... [6] Fiduciary responsibility.... If this process appears to be complex and overwhelming, that’s because, quite honestly, it is." MORE >>
