"Because of the universal availability rule, the elective deferral contributions in 403(b) plans are not subject to any nondiscrimination or coverage testing, unlike elective deferral contributions in 401(k) plans. Conversely, employer contributions to 403(b) plans are not subject to the universal availability rules, so discrimination testing applies."  MORE >>

"In addition to the formula, the allocation of a matching contribution is also dependent on the compensation period used to determine the match, any plan-imposed limits, and the timing of the contributions.  ... The IRS has recognized this discretionary matching contribution information gap and voila, a new required participant notice is born.... The timing of the notice depends on whether your discretionary match is determined and funded annually, or whether you fund the match on a periodic basis (per pay period, monthly or quarterly). ... The first plan year the new requirement impacts your 401(k) plan depends on the date the Cycle 3 restatement was adopted."  MORE >>

"Depending on which type of fiduciary you hire, they can make a difference in how much money and time you spend by assisting with plan design, investment decisions, fund monitoring, or administration. Here are some of the key differences between 3(16), 3(21), and 3(38) fiduciaries, plus information on how each type could help your business."  MORE >>

"Here are a dozen observations.... [along with] a composite disclosure document that the profession can rally around. At the very least, it shows you the thinking of people who have put a lot of thought into this issue."  MORE >>

"No longer do we have the old 'three-legged stool' of retirement income, which consisted of Social Security, private pensions and personal savings. A 2021 study by the Social Security Administration revealed that the average retiree's income comes from workplace retirement plans (primarily defined contribution plans) and IRAs (36%), followed by Social Security benefits (30%) and earnings from work (25%)."  MORE >>

"[Among other items,] ARA recommends that the Service: ... [1] Shorten the time for the unresponsive participating employer's response to the second and third notices from 60 days to 30 days, with an optional extension, and Provide a special rule for consolidation of notices in clearly futile situations.... [2] Permit MEP administrators to maintain detailed procedures for complying with the Exception outside of the MEP plan document.... [3] Extend the 180-day safe harbor period for completion of a plan spinoff to 12 months"  MORE >>

"[SPARK recommends that] ... [1] a MEP will qualify for the SECURE Act's relief from the unified plan rule if ... the MEP administrator initiates a spinoff of the assets attributable to the employees of unresponsive employers to a separate single-employer plan, followed by a termination and distribution of the assets of such plan.... [2] the final regulations allow a MEP administrator to place mandatory cash-out amounts of $1,000 or less in an IRA (if the participant does not elect otherwise)."  MORE >>

"[T]here are currently 116 districts in [the 403bwise] database of more than 3,300 school districts who have earned an 'A' rating. More than half of these are in Wisconsin.... California, Texas and Florida have ZERO A-rated plans."  MORE >>

"Due to lack of Supreme Court guidance on these issues, it is still not clear the extent to which particular arbitration provisions may apply to ERISA fiduciary breach claims. However, several Circuit Courts of Appeal have now weighed in and a bill called the Employee and Retiree Access to Justice Act has been introduced in the House and Senate (HR 7740 and S 4219) with the express purpose of making predispute and nonconsensual post-dispute arbitration clauses unenforceable. What is a plan sponsor favoring arbitration to do?"  MORE >>

"A company's shareholder asserted claims against the company, its chief executive officer (CEO), and its board of directors alleging breach of contract, breach of fiduciary duty, and unjust enrichment based on the company's equity awards to its CEO, which the shareholder alleged violated the company's equity compensation plan. The Delaware Chancery Court rejected the defendants' motion to dismiss." [Garfield v. Allen, No. 2021-0420 (Del. Ch. May 24, 2022)]  MORE >>