"Neither the information letter nor the supplemental statement addresses other federal or state laws that may apply to PE investments. The guidance also doesn't address offering PE funds as stand-alone investment options in DC plans, which would present distinct legal and operational issues."  MORE >>

"This Legal Sidebar provides background on ERISA's requirements for retirement plans and plan fiduciaries; discusses the Court's decision in Hughes; and concludes with select considerations for Congress." [LSB10636, updated Jan. 31, 2022] [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022)]  MORE >>

"The DOL requires the plan sponsor to engage in an objective process designed to elicit information necessary to evaluate candidates considering, but not limited to ... [1] Qualifications of the service provider, [2] Whether it has a consistent track record of service, [3] Its professional 'bench-strength' and tenure of staff, [4] The quality of services provided and [5] Reasonableness of the provider's fees in light of the services provided."  MORE >>

"[T]he assumed relationship between future investment returns and assumed inflation is both an important factor in retirement planning and that inflation is a significant risk. It also shows that since Social Security is indexed to inflation, deferring commencement can significantly mitigate inflation risk (even more so than under the default assumptions)."  MORE >>

"The authors claim that with the longer time horizon, the riskier assets in DB lead to higher returns, which lead to higher income per dollar contributed, which is their definition of greater efficiency. But it's not that simple.... The NIRS study, and general practice within the public DB universe, assumes away the very real cost of DB guarantees. The result is a massive understating of DB plan cost."  MORE >>

"[T]here is a one-size-fits-all approach to plan management and fiduciary decisions -- cost-efficiency and the 'commensurate return' guidelines of Section 90, comment h(2), of the Restatement (Third) of Trusts. Both the law and common sense support such a position." [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022)]  MORE >>

"[The Northwestern] opinion leaves open a lot of questions about ... just how 'paternalistic' an ERISA fiduciary should be.... [T]he more interesting question is whether options should be removed from the menu not because they are, standing alone, completely unsuitable for any beneficiary, but because the menu as a whole is too challenging for the beneficiary to be able to make good choices." [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022)]  MORE >>

"If you're seeking out or evaluating a job offer, here are some benefits that could be of great value to you.... [1] Paid time off ... [2] Subsidized or free health insurance ... [3] Matching dollars for your retirement plan ... [4] Gym or fitness equipment subsidies."  MORE >>