"Cintas petitioned the Supreme Court because it disputed an April ruling by the 6th U.S. Circuit Court of Appeals ... Appeals court judges rejected the use of arbitration, noting the key factor was the absence of the Cintas 401(k) plan's consent to arbitration.... Arbitration isn't prohibited in ERISA complaints, but the Cintas case is just part of the differing court rulings about arbitration in allegations of fiduciary mismanagement." [Hawkins v. Cintas Corp., No. 21-3156 (6th Cir. Apr. 27, 2022; cert. pet. filed Sep. 8, 2022)]  MORE >>

"In 2021 and the first half of 2022, multiple TDF providers announced changes to their strategic target date fund glidepaths.... Many providers increased growth asset exposure to help address shortfall and longevity risk.... [A] number pf providers increase exposure to inflation-sensitive assets, most notably late in the glidepath.... [R]esearching and evolving the glidepath is of the utmost importance to help ensure participant needs are met."  MORE >>

"[P]rivate investments offer important value in the form of increased expected investment returns, [and] can be instrumental in improving funded status and achieving other plan goals.... [M]any plan sponsors still abruptly cut off PI commitments or do not optimize their usage as the plan matures. This paper explores how plan sponsors should use PI strategies within their toolkit and customize their composition over time to reflect a plan's evolving goals."  MORE >>

"The average Annuity Purchase Interest rates jumped this past month, with the average duration 7 rate at 4.24% and average duration 15 rate at 4.25%.... Annuity Purchase costs ... dropped significantly this past month, the lowest ... observed year to date. Average annuity purchase rates have increased over 240 basis points in the last twelve months."  MORE >>

"This post describes who is eligible to participate in 403(b) plans, IRS universal availability rules, financial challenges of non-teachers, steps to get started with -- and educated about -- 403(b)s, emergency withdrawal options, and success stories of wealthy 403(b) non-teacher participants. Research results, three 'need to know' facts, and six take-away action steps conclude this discussion."  MORE >>

"[In] 2020 the average initial monthly retirement benefit, for teachers retiring with 30 years of service, is 11.2 percent lower than that of teachers retiring in the same plan with the provisions that were in place in 2000, implying a lower annual benefit of over $3,000. [The authors] examine why state plans that cover only teachers, along with plans in which teachers are not included in Social Security, have made smaller reductions in the generosity of their pension benefits in recent decades."  MORE >>

"Getting the most out of Social Security will matter more than ever. Personal savings will play a larger role. Active income can go a lot further than you might imagine."  MORE >>

"The stock sell-off will sting for retirees, but there's a major silver lining: higher rates on savings and fixed-income investments. That's a reversal from the rock-bottom rates over the past decade, which created a serious challenge for retirement planning."  MORE >>

"Assuming savings rates in Maryland are similar to savings rates experienced in Oregon and California ... half or more of participants will have an average account balance of less than $1,000 during the first year of participation.... [F]ees in that initial year are likely to exceed 250 basis points for many, perhaps most MarylandSaves participants."  MORE >>

"Employers may want to consider building in flexibility to their education assistance programs and to any matching contributions offered through coordination of such a program and a 401(k) plan benefit.... [If] proposed measures take effect, more individuals will be eligible for $0 monthly income-based payment amounts in the future.... [E]mployers that do not currently offer education assistance programs may want to consider adding one by January 1, 2023, as many borrowers' priorities will be shifting from retirement savings to student loan repayments then."  MORE >>

"Given recent market trends, many private companies have seen valuations decline significantly, resulting in an increasing number of service providers holding 'underwater' or 'out of the money' stock options. As a result, companies may be considering repricing their stock options to help retain and appropriately incentivize employees and other service providers by reducing the exercise price of stock options that are above the current fair market value of the underlying stock. This article answers frequently asked questions from private companies that are contemplating a stock option repricing."  MORE >>