"[T]he deferral rules for governmental 457(b) plans generally require an election to defer (or a change in an existing election) to be made during the calendar month prior to the calendar month in which the subject income would be paid. Although there is an exception for a newly hired employee who is becoming eligible for the plan for the first time -- which allows an election to be made in the first month of employment when the employee is being paid -- that initial election must be made on or before the employee's first day of work."  MORE >>

"The court ruled on summary judgment that the right to defer receipt of the pension benefit after age 62 was a protected benefit under Code section 411(d)(6) and was not subject to any exception.... Treasury Regulations have provided for decades that, under both sections 411(a)(11) and 417(e), involuntary distributions are allowed if the benefit is immediately distributable (i.e., for age 62 or normal retirement age, if later). Despite the regulatory authorization, the court found it sufficient to review only the statutory text to determine that an 'involuntary distribution' only applies to benefits with a value of up to $5,000." [Cooper v. Willis Towers Watson Pension Plan for U.S. Employees, No. 21-4319 (C.D. Cal. Mar. 3, 2022)]  MORE >>

"A plan sponsor participant in the ADP TotalSource Retirement Savings Plan, a multiple employer plan, has lost its effort to sue ADP, ADP TotalSource Group and the plan's administrative committee over allegedly excessive fees.... McCaffree [argued] that it has constitutional standing because it might be sued as a co-fiduciary for the defendants' alleged breach of fiduciary duties, and that it has statutory standing as a fiduciary.... [The district court judge] found that the plaintiff does not plead any facts suggesting that it could actually be held liable as a co-fiduciary. " [McCaffree Financial Corp. v. ADP, Inc., No. 20-5492 (D.N.J. Mar. 30, 2022)]  MORE >>

"The plaintiffs complained that investment management fees for some mutual funds were higher than for fees in plans of a similar size. They also alleged that some of the mutual funds weren't in the lowest-fee share class. They also claimed that the plan's record-keeping fees were excessive[.]" [Moore v. Humana, Inc., No. 21-0232 (W.D. Ky. Mar. 31, 2022)]  MORE >>

"[T]he attempt to brighten the brain of employees when it comes to money appears to have failed. Sadder still, it may have actually made things worse. It may be scaring people away from learning critical lessons that may help lead to better and happier lives. What went wrong and how do we fix it?"  MORE >>

"By June 30, 2022, businesses with 5 or more California employees must either enroll in CalSavers, a state-managed system of Roth IRA accounts, or establish their exemption from CalSavers by adopting 401(k) or other retirement plans of their own. Other states have implemented or are rolling out similar auto-IRA programs. [Here] are some potential pitfalls for new plan adopters that business owners should be aware of, and, where possible, take steps to avoid."  MORE >>

"Record keeping and administrative fees ranged from 0.0008% to 2.01% of assets. Fees for investment options ranged from 0.01% to 2.37%. Larger plan sponsors -- universities, states, and sponsors with $1 billion or more in assets -- reported taking steps to reduce fees. Plan sponsors with less than $1 billion in assets more often reported not having information needed to monitor fees." [GAO-22-104439, published Mar. 4, 2022, released Apr. 4, 2022]  MORE >>