"This IRS clarification -- allowing correction of these late adoptions without requiring a corresponding VCP filing -- is very helpful. Further, while the IRS did not specifically address pre-approved defined contribution plans, for which the deadline to adopt a restatement for the current cycle is July 31, 2022, it is reasonable to conclude that this guidance will apply to those plans as well."  MORE >>

"A 401(k) provider [has] sued the [DOL], seeking to invalidate recent agency guidance that says companies that offer cryptocurrencies in retirement plans should expect to be investigated.... In its guidance, the regulator cited factors including the market's volatility and the lack of broadly accepted methodologies investors can rely on to evaluate cryptocurrency prices. Since November, bitcoin has lost about 56% of its value." [ForUsAll v. DOL, No. 22-1551 (D.D.C. complaint filed Jun. 2, 2022)]  MORE >>

"[This article considers] four recent cyber incidents in the news and then provide some resources to prepare against cyberattacks and what to do if your plan or service provider suffers a ransomware or other cyberattack. The HIPAA cybersecurity guidance on cyberattacks provided by the Office of Civil Rights (OCR) discusses steps an entity must take when evaluating whether a ransomware attack is a 'breach' under the HIPAA Privacy Rules. While OCR guidance is aimed specifically at HIPAA-covered entities, it is instructive for pension plans as well."  MORE >>

"[T]he rise of cost-effective, flexible managed account programs has the potential to disrupt the target date oligopoly and replace a good and convenient QDIA option with something much better in the coming years."  MORE >>

"T. Rowe Price data suggest that more participants are remaining in their DC plans for longer after they retire. Potentially accelerating this trend, lower cost for comparable investments versus a Rollover IRA, flexibility in drawing down assets, and investment solutions that generate income were all cited as features that may best persuade more participants to stay in plan after they retire ... [C]onsultants report simple systematic withdrawal capabilities as most appealing despite limitations."  MORE >>

"The first quarter SDBA Indicators align with the performance of volatile equity and bond markets ... Despite market turbulence, participants did not make significant changes to their investments during this period. Participant holdings remained similar to the prior quarter, with a slight increase in cash. Individual equities held the majority of participant assets (36%). Mutual funds were the second largest holding at 29%, followed by ETFs (21%), cash (13%), and fixed income (1%)."  MORE >>

36 pages. Full text of May 12, 2022 exam with answers, published online by IRS.  MORE >>

48 pages. Full text of May 12, 2022, exam with answers, published online by IRS.  MORE >>

"Financial markets continued to roil in May, but the net impact on pension finance was modest. Both model plans ... were close to even on the month. Through the first five months of 2022, Plan A remains up 4%-5% while the more conservative Plan B is holding at even on the year."  MORE >>

An unofficial monthly report of the Moody's Daily Long-term Corporate Bond Yield Averages and Moody's Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).  MORE >>

"The [SEC] announced eight new members to fill all vacancies on its Investor Advisory Committee. The new members join 15 current committee members. The committee, established under the Dodd-Frank Wall Street Reform and Consumer Protection Act, advises the Commission on regulatory priorities and various initiatives to help protect investors and promote the integrity of the U.S. securities markets."  MORE >>

"The proposal will create greater uncertainty for the regulated community.... The proposal will discourage applications.... The proposal will unnecessarily limit transactions eligible for relief.... Reliance is critical and must be clearly defined.... The SPARK Institute is also concerned about the proposal's new 2% presumption for qualified independent fiduciaries."  MORE >>

"A federal district court rejected a law firm associate's claim for interference with benefits under Section 510 of [ERISA]. According to the court, the associate did not provide sufficient evidence that his firm's stated reasons for terminating the associate's employment were pretextual." [Joffe v. King & Spalding LLP, No. 17-3392 (S.D.N.Y. May 26, 2022)]  MORE >>