"The new proposed regulations would provide an exception to the unified plan rule for a defined contribution MEP that would allow the MEP to remain tax-qualified even if a participating employer does not meet tax-qualification requirements."  MORE >>

"These multiple employer solutions were introduced through the SECURE Act to expand retirement plan access for all individuals -- and to build onto the foundation that already existed with Multiple Employer Plans (MEPs). However, since their introduction, there has been much confusion surrounding the types of multiple employer solutions available to smaller employers -- MEPs, PEPs, and Defined Contribution Groups (DCG). If you are thinking about joining a multiple employer plan arrangement, there are several considerations that should be made."  MORE >>

"Most plan participants are not equipped to make fully informed decisions on plan options. The DOL cautions that many may chase crypto options based on promises of high rewards without properly considering those options' risks. As such, the DOL warns that fiduciaries carry significant risks in providing and responsibly monitoring crypto-related options given what the DOL highlights as their potential volatility, security concerns, and nascent regulatory environment."  MORE >>

"[T]he preamble did not further define the types of investments that would require monitoring services.... [T]hat leaves financial institutions and investment professionals with the difficult task of determining whether a product is of unusual complexity and risk.... Unfortunately, the DOL did not provide any other guidelines or examples to help determine if particular products are unusually complex or risky. But, helpfully, FINRA has."  MORE >>

"The language in IR-2022-69 referred to reaching age 72 after June 30, 2021, which caused some confusion ... because the new rule of age 72 for RMDs made the half-year mark no longer relevant. ... [A]nyone who reached age 72 after June 30, 2021 but before January 1, 2022, [has] until April 1, 2022 to take their 2021 RMD. Those who reached age 72 June 30, 2021 and earlier, should have taken their 2021 RMD by December 31, 2021."  MORE >>

"Due to an arcane mismatch in rules, you might inadvertently pay too much tax on distributions from your retirement accounts. Most states follow the federal rules so this may be a problem in only a few states. In those few, however, the mismatch could inadvertently result in you erroneously paying significant additional state income taxes. Massachusetts is an outlier, along with Pennsylvania and New Jersey."  MORE >>

"[The Securing a Strong Retirement Act of 2022 (HR 2954)] includes provisions that would require 401(k) and 403(b) plans to automatically enroll participants upon becoming eligible; allow 403(b) plans to participate in multiple employer plans and invest in collective investment trusts; create a national online database of lost retirement accounts ... and make changes to qualified longevity annuity contracts, or QLACs, by removing the 25% cap[.]"  MORE >>

Video of March 29, 2022, hearing, with testimony by: [1] Petros Koumantaros, Spectrum Pension Consultants, GROUPIRA, and intellicents; [2] Ida Rademacher, The Aspen Institute; [3] Cindy Hounsell, Women's Institute for a Secure Retirement (WISER); and [4] Doug Chittenden, TIAA.  MORE >>

"[T]he combination of Automatic Contribution Plan/Arrangement (ACPA) provisions and enhanced Saver's Credit are projected to have a material impact on reducing retirement savings shortfalls when analyzed for households simulated to have a retirement deficit. For those currently ages 35-39, the reductions in retirement deficits vary from 17 to 26 percent, depending on race.... [T]he addition of employer matches on student loans or using the 'skinny' 401(k) for ACPA can add up to another 4 percent reduction in retirement deficits. Auto portability can add 11 to 14 percent, depending on race."  MORE >>

"To obtain an exemption, the appraisers and trustees hired by a company seeking an exemption must be independent. The DOL wants to define 'independence' to mean that no more than 2% of an advisor's revenue can come from the client seeking the exemption, an approach that, if applied to ESOPs, would rule out many current advisors in the ESOP field."  MORE >>

14 pages. "With increased interest from plan fiduciaries in CITs, the governance practices, and the policies and procedures banks and trust companies ... use to govern their CIT offerings, are emerging as factors that may warrant consideration by plan fiduciaries when making plan investment option decisions.... [This paper examines] the regulatory emphasis on the central role that good CIT governance -- in the form of well-designed and implemented bank-maintained processes and procedures -- plays in the ongoing management and operation of CITs."  MORE >>

"The litigation was originally focused on fiduciary breach allegations leveled against a hospital network -- claims which have since been settled -- but it also included separate accusations against Principal." [Kirk v. Principal Life Ins. Co., No. 21-0134 (S.D. Iowa Mar. 28, 2022)]  MORE >>

"Safe harbor 401(k) plans are subject to employer contribution and participant disclosure requirements that don't apply to [non-safe harbor] 401(k) plans. In exchange, a safe harbor plan can automatically pass the ADP/ACP test and satisfy the minimum contribution requirement when the top heavy test fails.... [T]his guide [answers] the most common [questions]."  MORE >>

"In addition to specific audit steps, there are new required management representations and responsibilities (particularly in determining that an entity is a qualifying institution for which an ERISA Section 103(a)(3)(C) audit may be performed)."  MORE >>

"Not only are plan amendments and meeting minutes vital for documenting adherence with ERISA and demonstrating meeting fiduciary obligations under ERISA, these documents also provide your auditors with information they will need to properly plan and execute your plan audit. Maintaining these documents and providing them early to your auditors will provide for a smoother and more efficient audit."  MORE >>