"[T]he December 31, 2025 amendment deadline generally will apply to both pre-approved plans and individually designed plans. Note that December 31, 2025 is a fixed date and the deadline is not tied to a plan's plan yea....Notice 2022-33 did not provide an extension of the amendment deadline for tax-exempt 457(b) plans."  MORE >>

"The court also found that the trustees and the plan administrator did not violate their ERISA fiduciary duties by not amending the Plans to allow rollovers.... The court rejected Plaintiffs' alternative theory that ERISA Section 4235 requires a plan to transfer assets when an employer withdraws as a result of a change in the bargaining representative. This provision does not apply to defined-contribution plans.' [Dean v. Nat"l Prod. Workers Union Severance Tr. Plan, No. 21-1872 (7th Cir. Aug. 15, 2022)]  MORE >>

"These decisions effectively rebut the arguments of fiduciary imprudence asserted in most excessive fee lawsuits, where plaintiffs ask the court to infer fiduciary malpractice based on circumstantial evidence of what participants consider an undesirable outcome. In so doing, the Sixth Circuit's analysis is instructive on Hughes."  MORE >>

"The proposed class action lawsuit suggests the Dover Corporation permitted the payment of excessive recordkeeping and managed account fees within the defined contribution retirement plan it offers to its employers. The suit also suggests the plan fiduciaries' retention of the managed account provider, Financial Engines, constituted a violation of ERISA." [Gosse v. Dover Corp., No. 22-4254 (N.D. Ill complaint filed Aug. 11, 2022)]  MORE >>

"When evaluating active and index funds, compare long-term returns.... The odds of outperforming index funds varies by category.... Low-cost active funds are more likely to beat index funds.... Picking active funds that beat index funds takes skill -- and maybe some luck!"  MORE >>

"This research explores the allocation decisions of 9,324 newly enrolled DC participants who are self-directing their accounts in a DC plan that offers at least one ESG fund. Overall interest in ESG strategies among these participants is relatively weak, with only 8.9% of participants having any allocation to an ESG fund and average allocations to ESG strategies of only 18.7% among those holding any ESG funds."  MORE >>

14 pages. "The article first discusses how COVID-19 has affected U.S. labor and capital markets, providing background on how the pandemic has disrupted workers' ability to accrue future pensions. The second section discusses the government response through changes in pension laws and regulations. The third section discusses the changes made by pension plan sponsors and the responses of workers."  MORE >>

"[U]nlike during the Great Recession, contributions by individuals to retirement savings vehicles did not meaningfully decline.... IRA withdrawals substantially declined in 2020 for those older than age 72.... [L]ikely due to the partial suspension of the early withdrawal penalty, employer-plan withdrawals increased for those under age 60."  MORE >>

"Average retirement account balances decreased, but less than the market decline in Q2 -- and less than the last major period of market volatility.... Significant growth occurred in IRA accounts, especially among Gen Z and Millennials.... Total 401(k) savings rates continue to hover at record levels.... The majority of retirement savers did not make changes to their asset allocation.... Outstanding 401(k) loans and average loan amounts continued to decline."  MORE >>

"The IRS guidance provides that there must be a written 403(b) plan, but does not require that there be a written 403(b) plan document. A written 403(b) plan may consist of materials that collectively contain the plan provisions, such as salary reduction agreements, employee handbooks, investment contracts, and collective bargaining agreements."  MORE >>

"[T]he varied distribution protocols outlined in different life insurance and 401(k) plan provider documents are often contrary to what one might expect would be the distribution protocol.... [T]he distribution of large sums of money could potentially be against the deceased employee's wishes. The best way to avoid this issue is to make sure that an individual employee's life insurance and 401(k) beneficiary form(s) exist, is current, and matches any estate planning documents."  MORE >>