"The new rules significantly relax restrictions on ESG investing, eliminating special restrictions on ESG investments in defined contribution default investments (such as 401(k) plan target date funds), making the 'tie-breaker' rule -- which allows consideration of non-financial issues in certain circumstances -- more flexible, and eliminating recordkeeping and disclosure requirements with respect to the tie-breaker rule. [This article reviews] the highlights of the new rules, focusing on what changes the 2022 rules make to the 2020 rules."  MORE >>

"[T]he Final ESG Rule moves the ball away from a 2020 DOL rulemaking in this area and toward a position that is more supportive of ESG investing. The Final ESG Rule provides fiduciaries with an interpretation of ERISA’s fiduciary standards that could allow for the consideration of ESG factors without violating those duties."  MORE >>

"To date, 27 states have adopted rules that follow the Suitability in Annuity Transactions Model Regulation issued by the National Association of Insurance Commissioners (NAIC). Recent additions ... include: Hawaii, Maryland, Minnesota, North Carolina, South Carolina, South Dakota and Wisconsin."  MORE >>

"Given the advantages of receiving a favorable determination letter from the IRS, plan sponsors of individually designed 403(b) plans may want to consider filing for a determination letter in accordance with the new program. Reviewing the guidance and examples provided in Revenue Procedure 2022-40 should assist plan sponsors in understanding when they can apply for an initial determination for their plan."  MORE >>

"[This article focuses] on the court's decision and supporting legal analysis, and on the key legal issue: in fee-based ERISA prudence claims, what must a plaintiff plead to survive a motion to dismiss? ... Plaintiff must allege facts showing that comparators are in fact comparable.... A simple comparison of 'net fees' (expense ratio minus revenue sharing) is not, without more, adequate to state a claim.... The Supreme Court's [Northwestern decision] is limited." [Albert v. Oshkosh Corp., No. 21-2789 (7th Cir. Aug. 29, 2022)]  MORE >>

"The decision is notable for delivering defendants a victory in the Third Circuit ... and for citing favorably to recent defendant-friendly opinions from the Sixth, Seventh, and Eighth Circuits." [Krutchen v. Ricoh USA, No. 22-678 (E.D. Pa. Nov. 15, 2022)]  MORE >>

"Though Applebaum argued that she was the valid beneficiary of her husband's 401(k) plan and that its proceeds should have bypassed the probate system, her beneficiary designation, and thus her right to estate property, is in dispute. Because of this, the claim falls within the probate exception to the court's jurisdiction." [Applebaum v. Fabian, No. 22-1049 (3d Cir. Nov. 21, 2022)]  MORE >>

"This Client Action Bulletin looks at key areas -- including administrative compliance issues -- that defined benefit and/or defined contribution plan sponsors should address by December 31, 2022.... [T]he 'Action' section at the end ... includes an update on the waiting game still in play for certain guidance covering those compliance amendments for which the original adoption deadlines have been extended."  MORE >>

"[This 10-page checklist is] broken into three sections: [1] Deadline Tasks -- Summarizes the tasks that must be completed by a specific date; [2] Periodic Tasks -- Summarizes the tasks that may need completed throughout the year; [3] Plan Records -- Summarizes the records to maintain for documentation purposes."  MORE >>

"Among the several different types of retirement plans that are available to self-employed workers, solo 401(k) plans can offer the most flexibility and the ability to contribute the highest amount of tax-advantaged savings.... [T]here are some specific rules and regulations that are unique to solo 401(k) plans, which can add to the complexity of setting up and maintaining a plan. And for advisors who serve self-employed clients, managing a solo 401(k) plan is often a different process than managing other types of investments."  MORE >>

"[T]he letter of the Rule is less provocative than advocates have been implying.... A simple reading of the Rule will tell you that the DOL appears to have removed a major fiduciary roadblock to including ESG-focused investments on retirement plan menus.... The door to the conversation may now be open, but the 800-pound gorilla remains in the room. The onus of fiduciary duty continues to restrain plan sponsors."  MORE >>

"EBSA is proposing numerous changes to the VFCP in an effort to streamline the program and encourage plan fiduciaries to correct breaches and reimburse plan losses.... EBSA reiterated that all welfare and pension plans may use the VFCP if they have a fiduciary breach for which there is an eligible transaction. The proposals would make only minor changes to the eligible transactions for welfare plans -- one of which involves delinquent participant contributions to an insured health plan."  MORE >>