10 pages. "In light of the changes to section 430(m) made by the ARP, this notice modifies the guidance provided in Notice 2020-60.... Definition of a community newspaper plan ... Definition of eligible newspaper plan sponsor and applicability of election to controlled group members ... Renumbering of paragraphs of section 430(m) ... Manner and content of election ... Extension of time to make retroactive section 430(m) elections and associated funding balance elections ... Plan sponsors that applied the pre-ARP provisions of Section 430(m)."  MORE >>

"[T]he Sixth Circuit addressed several major issues arising out of excessive fee litigation, including [1] whether it is imprudent to offer actively managed funds in a 401(k) plan; [2] whether passively managed funds are meaningful benchmarks for actively managed funds with respect to performance or fees; [3] the extent to which circumstantial allegations of fund underperformance can support an inference that a fiduciary acted imprudently; and [4] the extent to which allegations of excessive recordkeeping and investment management fees can support an inference of imprudence based on purported industry averages." [Smith v. CommonSpirit Health, No. 22-5964 (6th Cir. Jun. 21, 2022)]  MORE >>

"The court found that the board's decision was 'legally incorrect and directly contradicts the plain meaning of the Plan language' [and] its interpretation of the Plan was 'inconsistent with a fair reading of the Plan and entirely lacks support in the administrative record' ... The court further found that the medical evidence demonstrating that Cloud suffered a disability resulting from his numerous concussions while playing in the NFL was overwhelming." [Cloud v. The Bert Bell/Pete Rozelle NFL Player Retirement Plan, No. 20-1277 (N.D. Tex. Jun. 21, 2022)]  MORE >>

"[This article reviews] some of the common reasons the audit may be delayed ... to see how they can be avoided and explore the solutions.... Employers should carefully consider the decision to file the Form 5500 without the complete audit report to meet the extended Form 5500 filing deadline (typically October 15). The incomplete filing approach may result in the loss of the DFVCP option if the DOL issues the letter of deficiency before the amended return is filed."  MORE >>

"Automatic enrollment almost doubles plan participation and successfully gets participants who might not have otherwise saved saving. However, it can also result in participants saving less than those who voluntarily opt in and set their own deferral rate. Automatic enrollment combined with automatic escalation creates better participation and savings outcomes."  MORE >>

"The estimated funded ratio of the 100 largest U.S. public pension plans moved very slightly lower, from 78.6% at the end of April 2022 to 78.4% at the end of May 2022 ... The deficit between the estimated assets and liabilities widened by a correspondingly modest amount, from $1.243 trillion to $1.259 trillion during May."  MORE >>

"Though 'probability of adjustment' is an improvement over 'probability of failure', it can still greatly underestimate the probability of actual spending adjustments, especially when dynamic spending strategies are involved. In those cases, it may make sense ... to communicate in terms of the actual dollar spending adjustments that would be triggered in specific scenarios[.]"  MORE >>

10 pages. "ERISA falls short of its objectives in certain key respects, terribly so. Greater coverage and increased benefits for regular rank-and-file employees, while not exacting pain for most of our employer and employee populations, is needed. Placing wronged employees on even footing to fight the bad actors is essential. And let's stop killing us with nonstop, burdensome, expensive changes in the law that do not provide meaningful solutions to what seems to be clear important shortcomings."  MORE >>

"This article provides an overview of common integration-related issues that arise with respect to 401(k) and health and welfare plans in strategic mergers and acquisitions (M&A) transactions, and [discusses]: [1] The areas on which buyers their advisors should focus during diligence in order to best integrate a target's health and welfare plans; [2] Similar issues that arise with respect to 401(k) plans; and [3] Some of the unique concerns surrounding health and welfare and 401(k) plans sponsored by professional employer organizations (PEOs)."  MORE >>