"With only two months remaining for federal fiscal year (FFY) 2022, [Milliman's] forecast of the 2023 IRS limits will most likely show that FFY 2022 will set the record for a one-year increase, both in dollars and percentage."  MORE >>

"[A] plan will sometimes provide a separate employee elective deferral election on bonuses when the plan already includes bonus payments in its definition of compensation. This article provides background on this issue and discusses the consequences of providing separate deferral elections on bonuses, the potential risks of permitting such separate elections, and related considerations that are important to maintain the tax-qualified status of a plan."  MORE >>

"A flurry of new 401(k) lawsuits challenging companies that offer their workers conservative, low-cost target-date funds has enraged retirement industry insiders who say the complaints mean no retirement plan is safe from litigation. The class actions are leveled at major companies defaulting employee investments into a suite of BlackRock Inc. index funds that automatically de-risk investments according to a specific target date -- usually when investors are expected to retire."  MORE >>

"Recent decisions in the Sixth Circuit have inspired yet another fiduciary defendant to request a reconsideration of their motion to dismiss a plaintiff's excessive fee suit. This time it's the fiduciary defendants of Michigan's Spectrum Health System 403(b) plan[.]" [McNeilly v. Spectrum Health System, No. 20-0870 (W.D. Mich. Jul. 16, 2021; motion for reconsideration filed Aug. 3, 2022)]  MORE >>

"[T]he plaintiffs alleged that fiduciaries violated ERISA by retaining nine MainStay funds that were poor performers compared with benchmarks and cost more than comparable investments in the marketplace. These funds are proprietary New York Life investments. [The judge] rejected defendants' motion to dismiss for eight of the nine funds, saying the plaintiffs' allegations 'support a reasonable inference' that the fiduciaries used a flawed process to retain the funds." [Krohnengold v. New York Life Ins. Co., No. 21-1778 (S.D.N.Y. Aug. 10, 2022)]  MORE >>

"In addition to helping insulate trustees from DOL audit risk by supporting plan financial statements, effective payroll audit programs help level the playing field for all contributing employers.... To be effective, the payroll audit program must be aligned with the trust collection policy, and both testing procedures and reporting should be tailored to specific plan needs."  MORE >>

35 pages. "This study looks at the feasibility and fairness of adding two risk sharing mechanisms -- automatic annuitization and a reserve fund -- to Auto IRA and similar plans in the absence of other needed reforms.... Does it make sense for state-sponsored Auto IRA plans to offer guaranteed lifetime benefits ... if it is not politically possible to adopt other key features ... especially mandatory contributions and a progressive subsidy?"  MORE >>

21 pages. "Various strategies using home equity in conjunction with retirees' securities portfolios have been analyzed and compared, using Monte Carlo simulation.... The previous articles have not considered, in any detail, the legacies left by the retirees, nor compared them ... This article ... provides that analysis and comparison.... The previous articles have not considered the composition of the retirees' net worth during retirement ... This article ... quantifies the extent to which the Coordinated Strategy results in greater proportions of securities in the retirees' net worth than the Last Resort Strategy."  MORE >>

24 pages. "53% report that employees are accelerating their retirement plans, while 41% say the largest wave of retirements is coming in the next few years ... Only 41% feel their employees are financially prepared for retirement  ... Top exit interview response: Compensation not competitive"  MORE >>

"The survey does not make the case that an employer's retirement plan, whatever the design, has a substantial impact on recruiting or retention at all.... Plan sponsors should avoid treating retirement plan design only as a tool for retaining employees. Rather, they should focus on a retirement plan design that realistically meets the needs of a modern workforce."  MORE >>

"Though the apparent harm in Gimeno occurred during the enrollment process, its reasoning could be applied to statements, actions, or inactions that occur at any point during the plan administration process." [Gimeno v. NCHMD, Inc., No. 21-11833 (11th Cir. Jun. 28, 2022)]  MORE >>