"There remains a problem of interpretation: what is a 'cryptocurrency option'? The Release provides two clues indicating that DOL will define it broadly and view the presence of any cryptocurrency as too much cryptocurrency.... Given both the tone of the Release and the expansive language used by DOL, caution suggests plan sponsors should avoid any cryptocurrency making its way into their investment menus -- in any form and at any level."  MORE >>

"Careful consideration surrounding existing qualified retirement plans or the New Jersey Secure Choice Savings Program should be evaluated in tandem with the federal Securing a Strong Retirement Act that is currently being debated in Congress.... The New Jersey Secure Choice Savings Program Act's expected implementation date was March 28, 2021; however, the program was allowed a one-year extension to March 28, 2022, due to COVID-19. However, as of today the program is not operational."  MORE >>

"Though the proposed rule presents the opportunity to simplify and align the treatment of Section 403(b) plans and Section 401(a) qualified plans, it poses administrative difficulties and potential conflicts with state law.... Employers are not a party to individual contracts between plan participants and investment firms, which would limit the ability of employers to compel RMDs.... To the extent any changes need to be made to these contracts, state-level approval may be required as insurance companies are governed by state law requirements."  MORE >>

"This report explores four aspects of the U.S. retirement system. First [the authors] examine major trends in the U.S. system in terms of coverage, assets, and the number of plans.Second, [they] take a deep dive on the costs to workers and retirees of these plans and their investments. Third, [they] look at the kind of investments these plans hold. Although this report is mostly focused on defined-contribution, or DC, plans, [it concludes] by examining defined-benefit ... plans, which continue to contribute to millions of Americans' retirement security."  MORE >>

"Whether it's new employees or long-time veterans, there's one important hurdle the company must continually overcome: trust. Many workers are not familiar with financial processes in general, let alone the monetary machine that is the 401k plan.... Once employees buy into the concept of the 401k, it opens up avenues for greater money matters that, while seemingly very different from the retirement plan, are nonetheless fundamental to a happy life (not just a happy retirement). Some feel companies should be more aggressive in making this connection."  MORE >>

"While the decision is unpublished, the Ninth Circuit ruling furthers the increasing concern among plan sponsors and fiduciaries that even the most bare-bones claims challenging the fees and investment offerings of 401(k) plans will withstand motions to dismiss. Of particular concern is the courts' increasing tendency to allow claims challenging the use of higher-cost share classes to proceed, even where the complaint makes no effort to consider the likelihood that these share classes generate revenue sharing payments that offset any higher fees to plan participants." [Davis v. Salesforce.com, Inc., No. 21-15867 (9th Cir. Apr. 8, 2022; unpub.)]  MORE >>

"When done prudently, a diversified portfolio can help employees improve expected returns while lowering overall portfolio volatility. Because of their low correlation to traditional assets and relatively high risk-adjusted returns, many institutional and retirement investors are looking to alternative asset classes, such as cryptocurrency, to diversify."  MORE >>

"While the Green Book would not change the 409A rules themselves, the proposal would require employers to withhold the 20 percent additional income tax and additional interest tax on the NQDC included in an employee's income as a result of a 409A violation.... The Green Book includes a proposal that generally would limit pre-funding of retiree [health] benefits to the longer of [1] the working lives of the covered employees or [2] 10 years, unless the employer commits to maintaining the same level of benefits for 10 years."  MORE >>