"[T]he DOL has provided guidance on including private equity as a component of an investment option, and the U.S. District Court for the Northern District of California has ruled on fiduciary issues related specifically to including alternative investments as a component of a large defined contribution plan's investment options."  MORE >>

"[T]he DOL is working on a further expanded fiduciary definition and a more demanding PTE 84-24 that will increase the oversight responsibilities for covered recommendations by insurance agents. There may be a role for [independent marketing organizations (IMOs), field marketing organizations (FMOs), and brokerage general agencies (BGAs)] in the anticipated revised 84-24 in terms of the oversight of the recommendations by independent agents."  MORE >>

"[1] Plan amendments for SECURE Act and CARES Act changes.... Part-time eligibility rules.... Required beginning date.... Coronavirus-related distributions and loans.... [2] New disclosure requirements for lifetime income illustrations."  MORE >>

"[T]he Second Circuit joined the Third, Seventh, and Ninth Circuits in applying the doctrine of successor liability to claims for withdrawal liability under [ERISA]. The court did not ... find successor liability in this case because the acquiring company specifically did not acquire the facility or employees that triggered the liability. The court also held that C&S Grocers was not liable for withdrawal liability under an 'evade and avoid' theory, as an 'employer,' or under a theory of 'common control.' " [New York State Teamsters Conference Pension and Retirement Fund v. C&S Wholesale Grocers, Inc., No. 20-1185 (2d Cir. Jan. 27, 2022)]  MORE >>

"[T]he court's opinion provides little practical guidance to the 7th US Circuit Court of Appeals -- which must now reconsider its decision upholding dismissal of the lawsuit -- or the many other federal courts evaluating the viability of similar lawsuits involving both 403(b) and 401(k) plans." [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022)]  MORE >>

"Nearly all bilateral tax treaties contain special rules relating to pension funds or arrangements.... Proposed regulations under Section 897(l) ... define 'pension and retirement benefits' narrowly, but in a way that commentators have criticized as unrealistic.... In the interest of coherence and sound administration, the final regulations should incorporate a presumption that if a pension plan is covered by a treaty, it meets the requirement of Section 897(l)(2)(B)."  MORE >>

"[F]our out of every 10 people cashed out their balances after termination within a 10-year period.... [T]he group most likely to cash out were those with the smallest balances, such that 80% of people who had an account of less than $1,000 cashed out, while 62% of those with balances between $1,000 and $5,000 cashed out."  MORE >>

"Despite investment losses in January, the 100 largest U.S. corporate pensions moved into the black, with a $24 billion funding surplus at the end of the month. An increase in the benchmark corporate bond interest rates used to value pension liabilities led to an $82 billion liability improvement.... [T]he funded ratio for the PFI plans rose from 99.8% at the end of December to 101.4% as of January 31. This is the highest funded ratio for these plans in over 13 years, since August 2008."  MORE >>

"Discount rates rose sharply as Treasury yields increased across the entire yield curve and credit spreads widened. Equity returns were negative for the month due to ongoing uncertainty regarding Fed rate hikes, inflation, and political conflicts. While the rise in discount rates will result in a decline in liabilities for the month, plans with equity exposure may see a decline in funded status."  MORE >>