"[T]hese cases show that courts (and particularly the Sixth Circuit) are willing to scrutinize dated actuarial assumptions used by defined benefit pension plans.... [T]he tables in these cases ... are by no means outliers. Mortality tables of this vintage are used by the majority of plans nationwide. While this has been an accepted industry practice for decades, this Sixth Circuit ruling demonstrates that it is not without risk." [Reichert v. Kellogg, No. 24-1442, consol. Watt v. FedEx, No. 24-5945 (6th Cir. Mar. 16, 2026)] MORE >>
"An important and separate 'tool,' if you will, in the professional's portfolio for use in assessing and understanding the manner in which any lifetime income program will fit into any particular DC plan is simply recognizing that annuities [1] are a necessary element of providing lifetime guarantees under DC plans; [2] are normal; [3] have been used in DC plans for, literally, generations; and [4] that their use is supported by a substantial legal and regulatory infrastructure." MORE >>
"The new law creates the Utah Retirement Plan Exchange, a program through which eligible private-sector employers may review, compare, and select one or more retirement plans to provide coverage to their employees. The options employers could make available to participating private-sector employees include an IRA, a Roth IRA, or a 401(k). Employees will be automatically enrolled, but can opt out." MORE >>
"Electing to terminate a defined benefit pension plan is one of the most effective ways to eliminate long-term risk.... Decisions have to be made with the best interests of your participants in mind, and longer processes often equal greater costs. [This article explores] how the plan termination process works, the benefits of a faster plan termination, and how to find the best partner for the process." MORE >>
"[T]he Sixth Circuit reversed the orders of two district courts that had granted motions to dismiss and held that the use of outdated mortality tables violates ERISA.... The [Missouri district court] held that the plain language of ERISA's statutory text does not require that mortality tables be periodically updated or reasonable and, therefore, use of the mortality table designated in the plan document does not violate ERISA or breach ERISA's fiduciary duties." [Reichert v. Kellogg, No. 24-1442, consol. Watt v. FedEx, No. 24-5945 (6th Cir. Mar. 16, 2026); Landel v. Olin Corp., No. 25-0096 (E.D. Mo. Mar. 20, 2026)] MORE >>
"Longer life expectancies, shifting workforce dynamics, and the gradual disappearance of defined benefit pensions are forcing employers and retirement plan sponsors to rethink how plans are designed and communicated.... Employers that embrace thoughtful plan design, behavioral insights, and improved participant engagement can help workers avoid common mistakes and build stronger retirement security." MORE >>
"One of the notable trends in the U.S. retirement system over the past five decades is that private sector employees have become less likely to be covered by defined benefit (DB) pension plans and more likely to be covered by defined contribution (DC) pension plans. In recent years, more private sector workers have participated in DC plans than in DB plans. For example, in 2023, DC plans had 93.4 million participants, while DB plans had 11.1 million participants. Until 1984, DB plans had more active participants than DC plans did." [IF12007 Mar. 25, 2026] MORE >>
"More than $600 billion has left defined contribution plans each year since 2000 through rollovers and cashouts ... If even half of those outflows had stayed in the system, ... total DC plan assets would be 27% higher today.... [M]ore than 70,000 new DC plans were added each year from 2022 to 2024 ... Just 0.3% of defined contribution plans from only 2,110 employers cover 50% of all participants, underscoring how outcomes for tens of millions of workers hinge on a narrow slice of the plan universe." MORE >>
11 pages. "Cash Balance plans currently outnumber traditional DB plans by nearly 2 to 1. Between 2015 and 2024, the number of Cash Balance plans increased by nearly 70%, while the number of traditional DB plans decreased by more than 50%.... The healthcare sector leads businesses in the number of Cash Balance plans ... Out of all new Cash Balance plans implemented with over 100 participants since 2018, the market-based interest crediting rate is the most common plan design structure." MORE >>
"[T]he exemption for safe harbor 401(k) plans related to top-heavy testing is nullified when after-tax contributions are present. In such cases, the safe harbor plan must satisfy top-heavy requirements. However, the plan can take safe harbor nonelective and matching contributions into account in determining whether an employer has satisfied its top-heavy minimum-contribution obligation." MORE >>
"[1] Participants in larger plans may benefit from lower fees than those in smaller plans.... [2] Collective Investment Trusts now hold 42% of DC plan assets as sponsors seek lower costs.... [3] Despite over $6.3 trillion in DC plan outflows since 2015, this dynamic environment creates new opportunities for innovation and participant engagement. [4] DB plans ... account for a quarter of retirement distributions and support nearly 30 million people." MORE >>
"Due in part to litigation pending in other Circuits and the lengthy dissent in the Sixth Circuit decision, the plans may seek to settle the cases or may request a re-hearing before the entire Sixth Circuit court of appeals. Even if the re-hearing request is not granted, the cases will still go back to the relevant district court for a determination of whether the actuarial assumptions are unreasonable.... Note that the decision pertains only to the QJSA determination, and does not address early retirement calculations." [Reichert v. Kellogg, No. 24-1442, consol. Watt v. FedEx, No. 24-5945 (6th Cir. Mar. 16, 2026)] MORE >>
"The Department of the Treasury (Treasury Department) and the [IRS] invite the public to submit recommendations for items to be included on the 2026-2027 Priority Guidance Plan.... Please submit recommendations for guidance by Friday, May 29, 2026, for possible inclusion on the original 2026-2027 Priority Guidance Plan." MORE >>
"In a given year, 83 percent of all households will face at least one type of spending shock, and on average, these unexpected expenses equal about 10 percent of annual income. To cover these expenditures over a 25-year retirement requires a fund of $200,000 to $400,000. The need for an emergency fund, combined with the fact that the very wealthy can self-insure against running out of money, limits the potential market for annuities." MORE >>
"West Virginia legislators passed a bill (HB 4009) that permits companies to provide portable benefit accounts for workers without needing to classify those workers as employees. Governor Patrick Morrisey has not signed or vetoed the bill yet. If enacted, the bill would take effect for taxable years starting on January 1, 2026, or later." MORE >>
"The Program is open to employers, plan sponsors, unions, and supporting practitioners (like lawyers and actuaries).... Submissions to the Program are made electronically.... The Program also includes a searchable database that will serve as a public repository of opinion letters issued by the Office of the General Counsel from 1974 to date." MORE >>
"This article provides a high-level overview of the most common retirement plan structures used by governmental employers, including defined benefit pension plans, 457(b) deferred compensation plans, 401(a) defined contribution plans, and hybrid approaches that combine elements of these structures." MORE >>
"72% of responding pre-retirees expected to retire on their own terms, up 5 percentage points from last year.... Respondents from younger generations were particularly open to alternative paths ... Overall, 34% of pre-retirees expected to reduce their hours before retiring, 30% expected to take on fewer responsibilities, and 18% expected to move into freelance or contract work. " MORE >>
"The law applies to all private New York State for-profit and non-profit employers who do not offer their employees an employer sponsored retirement plan, and who also meet all of the following requirements: [1] Had at all times during the previous calendar year at least ten employees in New York State, [2] Has been in business for at least two years, and [3] Has not offered, in the preceding two years, an employer sponsored retirement plan." MORE >>
"Registration deadlines are staggered based on employer size, with the first deadline -- March 18, 2026 -- applying to employers with 30 or more employees.... Participating employers are required to facilitate enrollment and payroll deductions, but do not sponsor the IRAs." MORE >>
"Trump accounts are set to launch in July ... However, many policy experts are already speculating on how they could be further integrated into the retirement system, such as using them to assist in account consolidation and to increase uptake of the Saver's Match." MORE >>
"Retirees often rely on simple, hands-off spending strategies ... These approaches require little engagement or complex decision-making and may result in suboptimal spending.... Goal-setting may be the missing driver, where retirees may need new or renewed goals in retirement to motivate more-engaged spending decisions." MORE >>
"Among all civilian workers, 75% had access to employer-sponsored pension plans. A greater percentage (65%) had access to DC plans than had access to DB plans (24%).... A greater percentage of state and local public sector workers (92%) had access to pension plans compared to private sector workers (72%). State and local government workers were more likely to have access to DB pension plans (86%, compared with 14% for private sector workers), whereas private sector workers were more likely to have access to DC pension plans (70%, compared with 38% of state and local government workers)." [IF13185 Mar. 18, 2026] MORE >>
"Medicare Part B premiums, which cover doctors and hospital outpatient services, will rise to about $5,000 a year by 2035, up from about $2,440, according to a recent report by the Senate Joint Economic Committee.... Part of the expected increase in Medicare Part B premiums -- or about $450 a year of the projected $5,000 a year premium -- would be due to overpayments made by the government to Medicare Advantage plans, the report said." MORE >>
"The program would cost the federal government $285 billion over its first ten years, RAND estimated....As workers build up their retirement savings, they become less dependent on Medicaid and Supplemental Security Income ... By year 40, total government costs would add up to nearly $1.2 trillion. Total savings would have pushed past $5 trillion." MORE >>
