"The notarization requirement was implemented as a measure to prevent fraud. There was not then, and is not today, any evidence showing that a notarization requirement decreases fraudulent TSP withdrawals. Our assumption that the security-related benefits of requiring notarization were appreciable enough to justify the burdens they impose on TSP participants and their spouses was grounded in speculation and custom.... [We] are adopting the proposal to remove the notarization requirement as final. The FRTIB will continue to require written spousal consent[.]"  MORE >>

May 23, 2022. "The failure to qualify as a pre-approved plan is not a qualification issue. Being a pre-approved plan is one method of meeting the requirement to have an updated written plan document. If the employer who sponsors a plan does not timely adopt a current pre-approved plan, it can still meet the written document requirements as an individually designed plan. Individually designed plans that don't meet those requirements can be self- corrected[.]"  MORE >>

"[The final revisions] [1] Update the Form 5500 instructions to improve reporting on the actuarial and retirement plan schedules (Schedules MB, SB, and R) filed by defined benefit pension plans subject to Title IV of ERISA. [2] Adopt additions to the plan characteristics codes reported on line 8 of Form 5500, and on line 9 of Form 5500-SF, to implement Section 101 of the SECURE Act by improving the data reported on defined contribution MEPs, including PEPs. [3] Add clarifying additions to the instructions related to Part II of Form 5500 and Form 5500-SF that collect plan sponsor and plan administrator information."  MORE >>

"The [DOL] historically has not taken a position on what investments an ERISA-covered plan should or should not make or what investments should or should not be made available to participants. However, it has issued guidance regarding what factors a plan fiduciary should consider when deciding how to invest plan assets, including when the investments under consideration are more complex.... [T]he Supplemental Statement reminds us ... that similar principles apply when considering designated investment alternatives that invest a portion of their assets in PE."  MORE >>

"Retirement plan sponsors largely are taking a cautious approach to ESG.... Fewer than 1/3 of plans reported that they have either implemented or are planning to implement some level of ESG considerations into their investment process/ investment due diligence. Over half of respondents reported having conducted ESG education over the last two years. About 1/3 of plans noted a lack of evidence of ESG performance as impacting their willingness to consider ESG."  MORE >>

"Part of the monitoring process must include writing things down. That means that any formal reporting ... [received from a] service provider or investment professional should be retained ... This does not necessarily mean it has to be paper, but it does require ... a governance folder with this historical information to support the decisions ... The decisions themselves and the basis on which they were made need to be documented somewhere so that there is proof the proper procedures were followed."  MORE >>

"Put yourself in the shoes of a new retiree without a plan. Once they step away from the corporate cocoon, they step into a world full of choice. While not obligated to, wouldn't it be nice if 401k plan sponsors had a retirement training program devised to at least point them in the right direction?"  MORE >>

"A majority of moderate-income retirement savers say they strongly oppose new government regulations that would prohibit financial professionals from being compensated by commission for selling annuities ... Since annuities are typically sold on a commission basis, a fiduciary-only regulation would make this guaranteed lifetime income product harder to obtain for moderate-income savers who are in or near retirement."  MORE >>

"While there's nothing retirees can do about economic forces ... retirees and those on the cusp of retirement can act now to insulate themselves against the effect of rising prices. Such steps include: [1] Maintain a diversified portfolio; [2] Consider annuities; [3] Pay down debt with home equity; [4] Delay Social Security."  MORE >>

"Eighty percent of advisers and 65% of institutional consultants recommended a personalized experience to encourage retirees to stay in plan. For consultants ... the top priority is to expand custom investment solutions capability; a custom target-date fund format is the first recommendation for larger plans. For advisers, the most important adviser-managed account features include 'personalized investment experience for the participant' and 'participant data integration technology'[.]"  MORE >>

"About two-thirds of U.S. households had a financial stake in the U.S. retirement system in 2019 ... through participation in one or more pension plans and/or ownership of DC plans or IRA assets.... [A]mong all U.S. households ... in 2019, 63.3% had DC assets, participated in DB plans, or had IRA assets, 37.5% had DC assets, 30.2% participated in DB plans, and 25.4% had IRA assets." [IF12117, May 23, 2022]  MORE >>

"Studies show that retirees have tended to draw down their financial wealth very slowly. But these retirees generally had defined benefit (DB) pension plans, which pay benefits for life. Hence, this slow drawdown pattern may not hold for new retirees, who rely on 401(k)s.... The analysis suggests that many new retirees could deplete their 401(k) assets by age 85, meaning that they face a greater risk of outliving their savings."  MORE >>

"Plan sponsors could be making more trips to court for retirement plan fiduciary breach claims instead of settling through arbitration, under ... the Employee and Retiree Access to Justice Act [HR 7740], which seeks to prohibit arbitration of claims challenging the administration and fiduciary management of benefit plans regulated under [ERISA]. If passed, the bill would modify the standard of review held by courts when a plan participant or beneficiary is refused retirement, health or other benefits under an ERISA plan."  MORE >>

"While salary is typically the most important factor when a person is assessing a job offer, it may come as no surprise that the other top three financial considerations reported by young professionals include: medical benefits (54%); retirement savings (49%); and bonus (34%). When it comes to non-financial benefits that young professionals would prioritize in a job offer, they include paid time off (59%), schedule flexibility/remote work (65%) and professional development (28%)."  MORE >>