"Employers' average contribution rates for the State Fiscal Year 2023-24 will increase from 11.6% to 13.1% of payroll for the Employees' Retirement System (ERS) and from 27.0% to 27.8% of payroll for the Police and Fire Retirement System (PFRS)."  MORE >>

Draft as of September 6, 2022; form revision date December 2022.  MORE >>

"The greatest threat is for plan-to-IRA rollover recommendations that do not satisfy the conditions of the PTE. That is due to, for example, ERISA's private of action for fiduciary breach, the large amounts involved in some rollovers, and the requirement that participants be given the specific reasons why a rollover recommendation is in their best interest. However, the PTE also create opportunities to recommend proprietary investments to plans and IRAs and to recommend additional services such as investment management services for participants."  MORE >>

"There is no such thing as FIFO ('first in, first out') with a Roth IRA. LIFO ('last in, first out') and pro rata also have zero bearing on Roth IRA withdrawals. In fact, there is a simple ordering procedure for Roth IRA distributions: Contributions come out first. When they are depleted… Converted dollars come next. When they are depleted… Earnings come out last. That's it. Those are the ordering rules, and it does not matter from which Roth IRA you take a distribution."  MORE >>

"[EBSA announced] that it will hold an online public hearing on the proposed amendment to its Class Prohibited Transaction Exemption 84-14, commonly known as the qualified professional asset manager exemption. EBSA is also extending the public comment period for the proposed amendment for an additional 15 days, through October 11. This period will be supplemented by a subsequent comment period beginning after the hearing in mid-November."  MORE >>

"401(k) plan fiduciaries defeated claims by participants that they breached their duties under ERISA with respect to investment fees.... At a minimum, [these two cases provide] vivid illustrations of the difficulties of bringing successful suits challenging the fees and investment returns for ERISA pension plans." [Albert v. Oshkosh Corp., No. 21-2789 (7th Cir. Aug. 29, 2022); Rozo v. Principal Life Ins. Co., No. 21-2026 (8th Cir. Sep. 2, 2022)]  MORE >>

"[B]usinesses and employers should be aware of the upcoming increase in enforcement and ... should perform self-audits to see if there are document or operational failures that might be self-corrected or corrected under EPCRS or the Voluntary Closing Agreement program.... [T]here is significant reason to believe that there may be an enforcement initiative for nonqualified deferred compensation plans."  MORE >>

"In cases where services aren't bundled, the recordkeeper represents the hub for all other service providers. The potential for a breakdown in integration can lead to frustration for plan sponsors. When they begin to blame everyone else, that's when the real problems start."  MORE >>

"The five-year clock does not restart for each Roth contribution or new account owned. Instead, all an individual's Roth IRAs are aggregated, allowing for an owner to roll over or transfer their Roth IRA to a new IRA custodian without restarting the five-year requirement. The only exception to this rule applies to inherited Roth IRAs or Roth 401(k)s."  MORE >>

"While total AuM has reached record highs, growth has slowed from 11.5% in 2020 to 8.9% in 2021.... [T]he latest performance is enough to take five-year cumulative growth to 50.2% in the period between 2016 and 2021."  MORE >>

"For people in their younger years, starting a retirement savings plan can be the biggest challenge, but also the most important step toward ensuring financial security and well-being in the future ... Those already saving may still want to take a couple of steps to make sure they are on course to meet their retirement goals. First and foremost, make sure you are on track. You can do that using this retirement calculator, which will help you gauge how your savings are stacking up against your likely needs."  MORE >>

"In addition to preparing the examinations, the Advisory Committee reviews statistical results of the examinations and recommends appropriate pass marks to the Joint Board. It also assists in developing the syllabi and addressing other issues related to the enrollment examination process. Members are appointed for two-year terms.... The Joint Board is now seeking applications from enrolled actuaries[.]"  MORE >>

"Despite myriad spiking costs, many plan sponsors with a robust retirement plan and matching contribution are not cutting back retirement benefits ... Plan sponsors have increased mental health benefits and added high-deductible health plans as an avenue for navigating the effects of increased inflation ... Employers are bolstering and adding voluntary benefits such as supplemental insurance for critical illness and personal accident and hospital indemnity coverage ... Employers are also incorporating child and elder care benefits[.]"  MORE >>

"Identifying and appropriately dealing with executive compensation matters are critical to the overall success of a private company transaction. Such matters are a source of potential liabilities to consider in determining the price that an acquirer will pay for the target company. Ensuring that key employees of the target are appropriately incentivized through the closing of the transaction and any post-closing integration period is crucial."  MORE >>