"The proposed regs cover numerous topics, but one of the most noteworthy is an unexpected interpretation of the so-called '10-year rule' for inherited IRAs and other defined contribution plans. If finalized, this interpretation -- which contradicts earlier IRS guidance -- could lead to larger tax bills for certain beneficiaries."  MORE >>

"The Named Plaintiffs' interests are sufficiently aligned with those of the class because the common allegation for each class member -- Universal's alleged imprudence in managing the Plan's funds -- is central to the claims of the Named Plaintiffs and absent class members. The court declined to adopt a per se rule as to whether a class representative must have invested in each of the challenged funds." [Boley v. Universal Health Serv. Inc., No. 21-2014 (3d Cir. Jun. 1, 2022)]  MORE >>

"The IRS Employee Plans function is piloting a pre-examination retirement plan compliance program beginning in June 2022. This program will notify a plan sponsor by letter that their retirement plan was selected for an upcoming examination."  MORE >>

"With interest rates increasing rapidly, upcoming changes to the applicable interest rate may cause lump sum payments to decrease. In some cases, the decrease may be significant.... This will result in increased liquidity needs for the plan in order to fund the distributions, and may also give rise to an accounting charge for a settlement, which can occur when lump sum distributions for a given year exceed a threshold."  MORE >>

"A slim update to Form 5500 ... makes a handful of changes to reporting for defined benefit plans and defined contribution multiple-employer plans (MEPs). However, the update defers the bulk of last year's broader package of proposed revisions ... The final changes -- including a new 50-year benefit projection for single-employer DB plans -- are effective for 2022 plan-year reporting."  MORE >>

"[M]anaged account services look at additional factors -- such as outside assets, other pensions, personal savings rates, income and a personalized risk tolerance -- to determinate an appropriate asset allocation.... Hence, the need for a personal representative to engage with the participant (frequently) in one-on-one communication to construct an optimal, personalized asset allocation strategy."  MORE >>

275 pages. "The reserves of the combined OASI and DI Trust Funds along with projected program income are sufficient to cover projected program cost over the next 10 years ...  However, the ratio of reserves to annual cost is projected to decline from 230 percent at the beginning of 2022 to 74 percent at the beginning of 2031.... OASDI cost is projected to exceed total income in 2022, and the dollar level of the hypothetical combined trust fund reserves declines until reserves become depleted in 2035.... Considered separately, the OASI Trust Fund reserves become depleted in 2034, and, for the first time since the 1983 Trustees Report, the DI Trust Fund reserves do not become depleted within the 75-year long-range projection period."  MORE >>

"Virginia's new state-facilitated private retirement program, called RetirePath Virginia, will open by July 1, 2023 ... As in other state-based IRA programs, RetirePath Virginia is intended to provide residents who don't otherwise have access to a workplace retirement savings plan the option to save a portion of their pay in a professionally managed IRA account."  MORE >>

"The 76 reported transactions in 2021 represented a leap over the 28 and 32 transactions reported in 2019 and 2020, respectively ... In the decade since 2012, 187 retirement advisory firms have been acquired.... Based on announced M&A transactions through the end of April 2022, deal levels are down compared to early 2021."  MORE >>

"Even if Fidelity finds a way to appease the DOL, ... the plaintiffs bar will be waiting. 'Any employer who would follow the Fidelity lead by offering cryptocurrency and 401(k) plan is exposing itself to very serious risk of a fiduciary breach,' said Jerry Schlichter, whose firm, Schlichter Bogard & Denton, has won more than $1.5 billion for clients in retirement plan litigation."  MORE >>

"[T]he typical state of California government worker aged 25 to 34 has more than a third of their defined contribution assets in short-term fixed income and stable-value funds.... [S]tocks outperformed short-term bonds in almost 90 percent of the 10-year periods since [the author] started investing, and the average annual outperformance of stocks over short-term fixed income for that full time period was nearly 10 percentage points."  MORE >>

"The proposal would ... [discourage] retirement plan sponsors and service providers from requesting exemptions and approaching DOL with questions about the prohibited transaction rules. The proposal would also unnecessarily narrow the universe of parties and transactions that are eligible for an exemption.... [T]he proposal would ... express DOL's views on broader fiduciary and prohibited transaction issues that are unrelated to the filing of an exemption application and which should be the subject of a separate rulemaking."  MORE >>