"The law requires that most Maryland employers offer employees some form of retirement savings ... or the newly established WorkLife Savings Account (an employee-funded Roth IRA) through MarylandSaves. The legislation applies to all Maryland employers who have been in business for at least two years, have at least one W-2 employee, and use a payroll system. The MarylandSaves program launched state-wide on September 15, 2022."  MORE >>

"[T]he district court issued four decisions resolving disputes between the parties about the methodology Cigna would use to calculate the reformed pension benefits. A year later, Plaintiffs moved for sanctions and other relief against Cigna, which the district court denied. The Plaintiffs appealed ... The [Second Circuit] dismissed Plaintiffs' appeal from the Methodology Orders due to untimeliness. It affirmed the Sanctions Order on the merits and affirmed the district court's order denying Plaintiffs' motion for an equitable accounting." [Amara v. Cigna Corp., No. 20-202 (2d Cir. Nov. 10, 2022)]  MORE >>

"[S]ince it is more likely now than ever your plan (or your client's plan) will be sued, this column aims to take a fresh look by: [1] Reviewing a recent case and its key arguments; and [2] Advising plan sponsors how they can be less attractive targets."  MORE >>

"When defined contribution plans seek to dismiss ERISA complaints, 45% of the motions to dismiss are denied in full or in part by federal court judges, according to research by Callan LLC. The consulting firm examined 165 ERISA complaints against DC plans filed between 2019 and mid-August 2022, covering plans with assets of $175 million or more."  MORE >>

"[T]he ability to recognize higher compensation, benefits and contribution amounts in qualified DB and DC plans could increase the cash cost and/or accounting expense for these plans.... For DB plans, the increase in limits may have an impact on the plan's funded status.... Plan sponsors should also consider the potential impact of the 2023 limit increases on their plan's ability to pass nondiscrimination testing requirements."  MORE >>

"[T]hese changes are proposed to be retroactively effective, so you may have a statutory requirement to restate your DB plan valuations after December 31, 2021 ... [1] Cash balance ('hybrid') plans interest crediting rate cap (RISE & SHINE Act [S 4353]).... [2] Statutory mortality improvement rates (EARN Act [S 4808]) ... [3] PBGC variable rate premium percentage freeze (RISE & SHINE Act)."  MORE >>

"The fast fall of FTX, which caused a related drop in mainstay cryptocurrencies such as bitcoin, came to a head [November 11] with Bahamas-based FTX filing for Chapter 11 bankruptcy. No matter the outcome of the proceedings, ... financial and retirement advisers may be chilled on recommending the asset[.]"  MORE >>

"Income projection tools can generate a specific retirement balance based on participants' current situations, allowing them to better understand any changes they need to make -- but only a handful of firms offer tools that integrate detailed decumulation analysis.... [A]lmost half of firms fall short of the mark by failing to offer standalone calculators covering income planning topics."  MORE >>

"How do severance plans comply with ERISA? ... Does ERISA apply to my severance plan? ... What are the benefits of an ERISA severance plan? ... What are the risks of not complying with ERISA? ... Watch out for the 'accidental' retirement plan ... Internal Revenue Code Section 409A may also apply to severance plans ... Where do plan fiduciaries go from here?"  MORE >>

"[T]he SEC's final rules do not permit listed issuers to condition clawback in any way on the fault or culpability of an affected executive officer regarding the accounting restatement, to implement de minimis thresholds for clawbacks or recoverable amounts of erroneously awarded incentive compensation, or allow for boards of directors to exercise broad discretion in connection with determining whether certain compensation should be clawed back in light of the circumstances."  MORE >>