275 pages. "These proposed regulations would update several existing regulations under sections 401(a)(9), 402(c), 403(b), 457, and 4974 to reflect statutory amendments that have been made since those regulations were last issued. These proposed regulations also clarify certain issues that have been raised in public comments and private letter ruling requests. These proposed regulations also replace the question-and-answer format of the existing regulations under sections 401(a)(9), 402(c), 408, and 4974 with a standard format."  MORE >>

"In light of the DOL's three-part guidance, plan fiduciaries ... [should] work with their plan recordkeepers to ensure appropriate measures are taken to address and reduce missing participant issues. Those measures should be clearly described in a written policy ... [which] should also describe the plan sponsor's procedures for handling uncashed checks.... [Ongoing] efforts to locate missing participants should be documented[.]"  MORE >>

"Unless they are timely distributed, excess elective deferrals are in included in a participant's gross income for the year in which they were made to a plan, and for the year in which they are distributed from the plan. A distribution of excess elective deferrals is reported on IRS Form 1099-R (not on Form W-2 or a corrected Form W-2)."  MORE >>

"We are less than six months away from the Cycle 3 defined contribution pre-approved plan restatement deadline, which is July 31, 2022! ... If you are a pre-approved plan Provider and have not already gotten all or most of your restatements completed, now is the time to focus on getting your clients' PPA 401(k), profit sharing, money purchase and ESOP plans onto the updated Cycle 3 versions!"  MORE >>

"While the ASOP revision includes changes to a number of technical items relating to funding calculations and related disclosures, the most controversial change is the addition of a requirement to calculate and disclose a 'Low-Default-Risk Obligation Measure,' which is the value of liabilities using an interest rate derived from low-default-risk fixed income securities."  MORE >>

"[F]iduciaries should ensure that benchmarks and standards for evaluating investments and fees are formalized in their plan's investment policy statement and/or other applicable governance documents. Moreover, such regular review should be adequately documented in the plan's records in order to demonstrate that fiduciaries are prudently monitoring plan investments." [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022)]  MORE >>

"Pennsylvania has adopted legislation implementing the model regulation concerning suitability in annuity transactions adopted by the National Association of Insurance Commissioners (NAIC). This brings to 19 the total number of states adopting the NAIC suitability model. Nevada may be the next state to watch."  MORE >>

"[W]hile somewhat volatile, interest rates increased over 2021, with medium-term (2nd segment) rates up around 40 basis points (longer-term, 3rd segment rates were generally flat). These increasing rates present a number of significant and complicating issues for sponsors considering de-risking."  MORE >>

"The [DOL], along with other federal agencies, is reviewing transactions connected to the employee stock ownership portion of the 401(k) retirement account. The agencies are looking into the way the 401(k) plan purchased certain securities used in connection with company contributions, according to the [Wells Fargo disclosure filing]."  MORE >>

"In the last five years, the proportion of retirees depleting their lump sums continues to grow ‐- and they are being depleted more quickly. Today, 1 in 3 retirees who took a lump sum from a defined contribution plan depleted their lump sum, on average, in 5 years."  MORE >>

31 pages. Employee benefits items begin on page 3, including 19 retirement-related projects and 17 projects related to executive compensation, employment taxes, health care, and other benefits.  MORE >>

"Recent decisions show that courts remain split on key issues, including the interpretation of the U.S. Supreme Court's decision in LaRue v. DeWolff, Boberg & Assoc., who must/can consent to a plan amendment, and the applicability and application of the 'effective vindication' doctrine. Recent court decisions in the Seventh Circuit, as well as Delaware, New York, and Florida district courts have reached different results, and for different reasons."  MORE >>

"Employers may need to consider customized health care solutions to specifically cover employees living in a foreign country.... Typically, qualified retirement plan participation is not affected for U.S. citizens living and working abroad for a limited period of time.... Employers should also consider childcare benefits, employee wellness programs, tuition reimbursement, travel insurance and expense reimbursement benefits[.]"  MORE >>

"The official 110-page SAS 136 includes a plethora of information and changes that affect all phases of the audit, including engagement acceptance to reporting. [Two] key provisions may have significant implications for plan sponsors. [1] Communication and disclosure of management's responsibilities in the engagement letter.... [2] ERISA Section 103(a)(3)(C) audits and the auditor's opinion."  MORE >>