"The claims in these cases are atypical of claims usually asserted by ERISA plaintiffs because the allegations in the BlackRock cases are focused on performance alone, and not the funds' cost. Further, because the primary focus of previous plaintiffs has been on the investment options' costs, the focal point of litigation has traditionally been actively managed investment options and the claim that the options were overly priced, in addition to being poorly performing. The complaints in the BlackRock cases appear to concede that the passively managed BlackRock Funds were not overpriced."  MORE >>

"Plaintiffs claim that during the class period -- from September 27, 2016, to 'the date of judgment' -- the defendants breached their fiduciary duties to participants and engaged in prohibited transactions under ERISA ... by overpaying for stock in the employee stock ownership plan." [Beville v. GreatBanc Trust Company, No. 22-2354 (D. Minn. complaint filed Sep. 26, 2022)]  MORE >>

"Despite the existence of a conflict of interest, the Eighth Circuit concluded that there was no breach of the duty of loyalty where the insurer was not motivated by economic self-interest and did not place its own interests ahead of those of the participants or the plan. Thus, in the Eighth Circuit at least, if a fiduciary insurer can show that the interest rate for fixed-income investments is set according to a shared interest with participants, and appropriately accounts for its risks and costs in offering the investment, there should be no breach of the duty of loyalty." [Rozo v. Principal Life Ins. Co., No. 21-2026 (8th Cir. Sep. 2, 2022)]  MORE >>

"The need to help plan participants translate retirement savings into income is real and well understood. In equal form, the layers of complexity and variation in approaches have influenced the tepid pace of adoption thus far. In this article, [the authors] offer a backdrop of complicating factors, summarize key retirement service and solution concepts, and provide suggested activities for plan sponsor consideration."  MORE >>

"A new bill from top Republicans on the Senate Banking Committee aims to open workplace retirement plans to a bigger range of investments, making it easier for 401(k) plans to diversify with holdings in private equity, hedge funds, real estate, cryptocurrencies and other alternative assets.... The [Retirement Savings Modernization Act] would also clarify that expenses related to these investments, which in many cases charge higher fees than traditional mutual funds found in typical 401(k) plans, would be acceptable."  MORE >>

"[L]imited scope audits are history, being replaced by ERISA Section 103(a)(3)(C) audits. This newly named audit does not change any of ERISA's laws or applicability. However, it does affect how 401k plans are audited, effective as of on December 15, 2021."  MORE >>

"An increase of 100 basis points (bps) in interest rates reduces pension liabilities on average by 12% to 15%.... Looking at year-to-date movements through July 31, 2022 ... pension liabilities are down nearly 20%.... This article explores some strategies that plan sponsors should consider now, even if a plan's funding situation is not ideal, to avoid missing out on what might be a 'golden' opportunity."  MORE >>

"Best practices: [1] Assess state/local law to conform to SECURE and CARES provisions. [2] Coordinate with your plan document provider on required and optional plan design features. [3] Authorize an individual to be responsible for timely adopting plan amendments to the 457(b) plan and ensure that the plan amendment is timely signed. [4] Maintain the plan document, including amendments, in a secure location."  MORE >>

"[E]mployer contribution rates to 403(b) plans rose almost 24% year-over-year from 4.6% in 2020 to 5.7% of gross annual pay in 2021 ... An average of 79.4% of eligible employees made contributions to their plans in 2021, an increase from 77.2% in 2020."  MORE >>

"The final rule, which was issued in July 2022, changed the method used to compute SFA, including the assumed rate of return. It also changed the type of assets in which pension plans may invest SFA, which changes the expected rate of return and risk profile of those investments. CBO anticipates that the changes in the final rule will increase the total amount of SFA that plans will receive. The agency estimates that the amount of assistance will total $90.4 billion over the 2022-2032 period, which is $4.5 billion, or 5 percent, more than the $85.9 billion estimated in CBO's May 2022 baseline budgetary projections, which were based on expectations consistent with the July 2021 interim final rule."  MORE >>

"More than 1 in 3 of plan participants withdraw part or all of their retirement plan assets following a job change, with lost savings amounting to between $60 billion and $105 billion per year. Decoupling retirement plans from individual employers could alleviate job-change-induced retirement savings loss.... State automatic individual retirement account programs can help workers save even when they don't have a workplace savings plan.... Workers should be able to easily take their retirement savings as they move from one job to another."  MORE >>

"Victims of Hurricane Ian that began September 23 in Florida now have until February 15, 2023, to file various individual and business tax returns and make tax payments.... Individuals and households affected by Hurricane Ian that reside or have a business anywhere in the state of Florida qualify for tax relief."  MORE >>

"More than 14 months after her nomination, the Senate on [September 29] confirmed Lisa M. Gomez as assistant secretary of labor for the Employee Benefits Security Administration [EBSA] in a 49-36 vote."  MORE >>