"The [DOL] is extending the comment period for a proposed rule that would update, clarify, and supersede the Department's current regulation governing the filing and processing of applications for administrative exemptions from the prohibited transaction provisions of [ERISA], the Internal Revenue Code ... and the Federal Employees' Retirement System Act of 1986 (FERSA).... [The DOL] is extending the comment period for an additional 45 days, through May 29, 2022."  MORE >>

"New IRS proposed regulations would implement the statutory exception to the 'one bad apple' rule for defined contribution (DC) multiple-employer plans (MEPs), as provided in the [SECURE] Act ... The proposal sets conditions for MEPs to use the exception and provides a framework to address a participating employer's failures, including detailed notice requirements. The proposal also explains the administrative duties of a pooled plan provider[.]"  MORE >>

"The preamble to the proposed regulation cautions participating employers that the 413(e) plan is required to pursue and implement the spinoff option, or its alternatives, with an unresponsive employer. It also reminds the unresponsive employer that it, and not the plan or any other employer in the plan, will be liable for any liabilities with respect to the plan attributable to employees of that employer and their beneficiaries."  MORE >>

"The Third Circuit noted that the MPPAA does not define employer and that the dictionary meaning of 'employer' as 'one who employs servants, workmen, etc. for wages' does not necessarily apply to J. Supor who may have employed the drivers only indirectly.... The court decided to follow seven of its sister circuits in adopting a more technical definition of employer, which draws on the definition of employer from Title I of ERISA[.]" [J. Supor & Son Trucking & Rigging Co. v. Trucking Emps. of N. Jersey Welfare Fund, No. 20-3286 (3d Cir. Apr. 5, 2022)]  MORE >>

"There is no definitive case law or other legal guidance prohibiting or restricting service providers from using plan participants' personal information to cross-sell financial products.... [1] Excessive fee litigation ... [2] Fiduciary duty and personal data ... [3] DOL audits ... [4] DOL fiduciary rule ... [5] State privacy laws ... [6] Risk mitigation."  MORE >>

"Using multi-manager white label investment funds in a defined contribution (DC) plan's core lineup can potentially bring significant diversification and return advantages over conventional single-manager funds."  MORE >>

"Between the end of February and March, the funded ratio for the Milliman 100 PFI climbed from 102.5% to 105.2% and the funded status surplus grew from $43 billion to $86 billion. March caps off the fourth consecutive month of discount rate increases; the rise in discount rates are driving the funding improvements both in March and for the quarter."  MORE >>

"Survey responses indicated that Americans value the discipline and investment opportunity that 401(k) plans represent and that individuals were largely opposed to changing the tax preferences or investment control in those accounts. A majority of respondents also affirmed a preference for control of their retirement accounts and opposed proposals to require a portion of retirement accounts to be converted into a fair contract promising them income for life from either the government or an insurance company."  MORE >>

"According to research conducted by Prudential in 2019, for each year an employee delays retirement, the cost to an employer can be more than $50,000 per employee. Additional costs can come through: Increased health care costs; Lower productivity; Higher salaries. For a company with 500 employees, the cost is estimated at $2.25 million if only 15 workers delay retirement for three years."  MORE >>

"If an employer chooses to allow individual custodial agreements in their plan, each approved investment provider would have their own individual agreement that would govern the participants account under the plan.... [If] an employer [then] chooses to eliminate an investment provider ... [t]he employer cannot force the participant to move their existing assets from the deselected provider to an approved provider.... Group custodial agreements name the employer (plan sponsor) as the agreement holder.... The employer has the right to choose and control who the investment provider is for the plan and the participant can choose what investments under the custodial agreement they want to invest."  MORE >>

"Like Neapolitan ice cream, 401(k), 403(b), and 457(b) are just three flavors of the same product. [A] chart summarizes some of the main differences between the three."  MORE >>

"Medium-tenure workers who spend the early part of their career in noncovered government employment are at most risk. These workers represent only a fraction of the noncovered workforce so that, ultimately, about 16 percent of noncovered workers -- representing between 750 thousand to 1 million employees annually -- could be at risk."  MORE >>

"The court, quoting the Plan's Section 409A interpretive language, concluded that, '… the Plan Administrator is directed to interpret Plan terms in conformance with Section 409A and its exemptions from taxation.' As such, the court ruled that the Plan administrator was not arbitrary and capricious in determining that Soto [1] had not experienced a qualifying layoff since she was not 'willing and able' to return to work due to her disability and [2] had not experienced a termination entitling her to Plan benefits." [Soto v. Disney Severance Pay Plan, No. 20-4081 (2d Cir. Feb. 16, 2022)]  MORE >>