"Section 415 of the Internal Revenue Code (“Code”) provides for dollar limitations on benefits and contributions under qualified retirement plans. Section 415(d) requires that the Secretary of the Treasury annually adjust these limits for cost-of-living increases. Other limitations applicable to deferred compensation plans are also affected by these adjustments under section 415.

• Effective January 1, 2023, the limitation on the annual benefit under a defined benefit plan under section 415(b)(1)(A) of the Code is increased from $245,000 to $265,000....
• The limitation for defined contribution plans under section 415(c)(1)(A) is increased in 2023 from $61,000 to $66,000....
• The limitation under section 402(g)(1) on the exclusion for elective deferrals described in section 402(g)(3) is increased from $20,500 to $22,500.
• The annual compensation limit under sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $305,000 to $330,000.
• The dollar limitation under section 416(i)(1)(A)(i) concerning the definition of “key employee” in a top-heavy plan is increased from $200,000 to $215,000....
• The limitation used in the definition of “highly compensated employee” under section 414(q)(1)(B) is increased from $135,000 to $150,000.
• The dollar limitation under section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in section 401(k)(11) or section 408(p) for individuals aged 50 or over is increased from $6,500 to $7,500."

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24 pages. "[T]his alert [describes] the state initiatives adopted to date, as well as other initiatives, including those undertaken by the American Legislative Exchange Council, State Financial Officers Foundation and the [DOL]."  MORE >>

"The 7th Circuit's decision in this case extends a growing trend of federal appeals courts expressing skepticism toward some of the most common allegations in many ERISA excessive fee lawsuits since the high court's Northwestern ruling." [Albert v. Oshkosh Corp., No. 21-2789 (7th Cir. Aug. 29, 2022)]  MORE >>

"Attorneys for the plaintiffs have alleged that the plan's recordkeeper, Mass Mutual, charged between $95 and $125 per participant -- from 2016 to 2020 -- for recordkeeping and administration services. The complaint argues, as a 'jumbo' plan, fiduciaries for the union plan should have been able to negotiate lower recordkeeping costs, ranging from $14 to $30 per participant." [McLachlan v. International Union of Elevator Constructors, No. 22-4115 (E.D. Penn. complaint filed Oct. 13, 2022)]  MORE >>

"The Court found that the statute makes clear that producers must act in the best interest of the consumer. As to the term 'best interest' itself, the Court explained that the regulation employs standard legal terms to explain exactly what a producer needs to do to discharge this duty and held that 'following these steps does not require producers and insurers to identify the single best policy for a consumer. It simply requires them to reasonably recommend a suitable policy that will benefit the consumer, while refraining from considering their own financial gain.' " [In the Matter of Independent Insurance Agents and Brokers of New York, Inc. v. New York State Department of Financial Services, No. 73 (N.Y. Ct. App. Oct. 20, 2022)]  MORE >>

"403(b) PEPs are going to be enabled through changes to 403(b), and not by simply including them in the definitional sections of 413(e), and through changes to ERISA's PEP language under Sections 3(43) and 3(44). This is critically important because had Congress chosen to simply amend 413(e), it would have opened a Pandora's box of details which would have demanded clumsy (and perhaps extensive) regulatory fixes."  MORE >>

"Just as the [DOL] gets set to release a final regulation allowing the use of [ESG] factors by fiduciaries when selecting plan investments, another bill has been introduced in Congress that seeks to dial that back. The Safeguarding Investment Options for Retirement Act (HR 9198) ... would amend ERISA and the Internal Revenue Code to limit fiduciary consideration of so-called 'non-pecuniary factors' in investment decision-making for defined contribution plans."  MORE >>

"Unlike target-date funds, which build investment portfolios based solely on a participant's age, managed accounts factor in things like a participant's outside assets and other personal information, creating what managed account providers contend is a stronger, more detailed investment portfolio. For all the purported benefits, these accounts are fraught with issues for employers. The chief worry is cost."  MORE >>

"Overall confidence in being on track for retirement is lower than a year ago due to inflation and market volatility, but Gen Z has the highest share of share of savers who feel like they're getting it right. Among older generations (millennials, Gen X and baby boomers), the average retirement-savings rate is 12% of income, compared with 14% among Gen Zers."  MORE >>

"Amid rising economic uncertainty, higher interest rates and inflation, the U.S. pension risk transfer (PRT) market has returned to pre-pandemic annual growth rates. More insurers have entered the market, and others are willing to take on larger or more complex risks. The added competition is leading insurers to adapt and evolve."  MORE >>

"How does an ESOP buy stock if it has no revenue? ... How can an existing shareholder sell stock to an ESOP? ... Can a selling shareholder help finance a sale? ... Where is the tax advantage for the selling shareholder? ... What good is section 1042 if the selling shareholder helps finance the deal?"  MORE >>

"Except for some COLA designs and potential investment impacts, periods of high inflation generally do not have a direct, immediate impact on public pensions. Typically, the effect is delayed and is based on other factors related to inflation; and may not have as great an impact on plan costs as the prices of goods and services."  MORE >>

"[It] is critical to name the right beneficiary -- while you are still alive.... It's also important to name contingent beneficiaries.... [If] you made post or after-tax contributions to a traditional IRA, file Form 8606 to account for that contribution.... There is more than one table to calculate your IRA required minimum distribution."  MORE >>