"[Notice 2022-33] apparently did not extend the deadline to amend plans for changes to loans and in-service withdrawals due to coronavirus (CARES Act) ... Assuming this omission was intentional and the IRS doesn't issue a revised Notice extending that deadline, plan amendments for all CARES Act provisions other than the suspension [of required minimum distributions] still need to be adopted by the previous deadlines."  MORE >>

"The plaintiffs in this case made broad allegations that plan fiduciaries failed to implement a prudent process for selecting and monitoring investment options, resulting in excessively expensive funds across the entire lineup. The plaintiffs also alleged fiduciaries imprudently selected actively managed target-date funds instead of lower-cost index options. The three plaintiffs had collectively invested in only seven of the plan's 37 investment options, and each plaintiff invested in just one of the 13 funds in the plan's target-date series." [Boley v. Universal Health Services, Inc., No. 21-2014 (3rd Cir. Jun. 1, 2022)]  MORE >>

"The Seventh Circuit recently ... [affirmed] the dismissal of claims brought by participants in the Boeing 401(k) plan, ... on grounds that [1] the fiduciary responsibilities associated with the company stock fund had been delegated to an independent fiduciary, and [2] the insider fiduciaries had no duty to disclose corporate inside information to the plan participants or the independent fiduciary.... [T]he Seventh Circuit's opinion provides helpful guidance to plan sponsors and fiduciaries that go beyond the specific circumstances presented in the case." [Burke v. The Boeing Company, No. 19-2203 (7th Cir. Aug. 1, 2022)]  MORE >>

"The lawsuits bring to eight the number of ERISA lawsuits in recent days ... against sponsors and fiduciaries alleging that they should not have retained the BlackRock Lifepath Index Funds. Plaintiffs contend that the BlackRock series had a poorer overall performance than four other popular target-date series, some of which were passive and some of which were actively managed."  MORE >>

"Plan Benefit Services and its parent, Fringe Benefit Group, are appealing the certification of a class in a 2017 lawsuit accusing the company of charging excessive administration fees. The class members are employed by more than 2,000 companies, but the three named plaintiffs all work for the same Texas construction company and are participants in a single benefit plan. The Chamber said that under [ERISA], plaintiffs only have standing to sue over fees charged by plans in which they participate." [Chavez v. Plan Benefit Services, Inc., No. 22-50368 (5th Cir. amicus brief filed Aug. 2, 2022)]  MORE >>

"A recent survey by financial services firm BlackRock broke down the average retirement balance by age and by whether or not participants had access to a workplace retirement account.... If you're nowhere near the averages for your age right now, that doesn't mean you should panic. And if you're ahead of these numbers, that doesn't mean you can relax and take it easy."  MORE >>

"[A]ssuming you don't need the RMD for living expenses ... a transfer in-kind of securities from your IRA to a taxable brokerage account may make sense. Not only can it help you maintain the same market exposure, just in a different part of your portfolio, but the transfer may also reduce the taxes due on future appreciation when you eventually do sell."  MORE >>

"[T]he CommonSpirit decision has revived the meritless 'apples and oranges' argument regarding fiduciary prudence, even though both the Brotherston decision and SCOTUS' denial of cert discredited such an argument. As a result, the Sixth Circuit has arguably created an unnecessary divide within the circuits.... [However,] the Sixth Circuit may have actually provided a valuable opportunity to provide more certainty for plan sponsors and to clarify the guidelines going forward for 401(k)/403(b) administration and litigation." [Smith v. CommonSpirit Health, No. 22-5964 (6th Cir. Jun. 21, 2022)]  MORE >>