"Late payment of required minimum distributions (RMDs) is an ongoing source of plan sponsor headaches.... If the RMDs extend over many years, VCP might be the only avenue available for the sponsor to fix the error and maintain Plan qualification.... If RMD failures do not extend beyond the past three years, the sponsor can correct using the self-correction program (SCP)."  MORE >>

"Using arguments that closely resemble other lawsuits filed by plaintiffs represented by the increasingly active law firm Capozzi Adler, the plaintiffs here allege that the defendants breached the duties they owed to the plan and to the plaintiffs by failing to adequately monitor and control the plan's recordkeeping costs." [Fritton v. Taylor Corporation, No. 22-415 (D. Minn. complaint filed Feb. 14, 2022)]  MORE >>

"The demands of ERISA prudence do not reflect modern portfolio management, which seeks to manage risk by examining the portfolio as a whole. Rather, ERISA fiduciaries have a duty to make available only prudent investment choices to plan participants investing their own accounts. Investment choices deemed imprudent are not rehabilitated by looking at all the investment options available to participants as a whole." [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022)]  MORE >>

"The [Auto-Reenroll Act of 2022 (HR 6782)] would enhance auto-enrollment plans by amending safe harbors in ERISA and the Internal Revenue Code to encourage plan sponsors to reenroll non-participants at least once every three years, unless the individual affirmatively opts out again."  MORE >>

"The court concluded that the plan correctly interpreted the term 'layoff' as excluding terminations based on disability, and that this interpretation was consistent with regulations under Section 409A (which were incorporated in the plan's definition of layoff)." [Soto v. Disney Severance Pay Plan, No. 20-4081 (2d Cir. Feb. 16, 2022)]  MORE >>

"ISS and GL, the two most influential proxy advisory firms, may significantly impact a company's [say-on-pay (SOP)] vote with their recommendations.... [W]ith Against recommendations from both ISS and GL increasing, Say on Pay approvals are decreasing.... Although SOP support typically decreases about 24 percent with an ISS Against recommendation, the range of voting outcomes can vary widely."  MORE >>