"Generally, distributions from retirement plans (IRAs, qualified plans, section 403(b) plans, and governmental section 457(b) plans), insurance contracts, etc., are reported to recipients on Form 1099-R."  MORE >>

"The Proposal includes a new Self-Correction Component of VFCP (SCC), but it is very limited, and unlike self-correction under the IRS's procedures [EPCRS], it requires that a notice be provided to the DOL for the self-correction to be valid. Further, the DOL emphasizes repeatedly in its new procedure the ways in which plan sponsors, fiduciaries, and others are not fully protected under VFCP and SCC ... The Proposal and the amended PTE are not effective and cannot be used until approved by the [OMB] and finalized by the DOL. The DOL is asking for comments from the public about the Proposal and the PTE by January 17, 2023."  MORE >>

"These changes represent the first modifications to the Program in over 15 years. DOL is soliciting comments on the changes to the VFCP program despite its position that the amendments to VFCP are a change in enforcement policy that in DOL's view does not require the DOL undergo the notice and comment process. Interested persons may submit comments on the VFCP revisions and the proposed amendments to PTE 2002-51 by January 20, 2023."  MORE >>

"While the Final Rule takes a more permissive stance on the consideration of climate change and other ESG factors in investment decisions by plan fiduciaries than the 2020 Rule, the DOL cautioned that a plan fiduciary should not subordinate the interests of plan participants and beneficiaries to any collateral benefits (i.e., ESG objectives)."  MORE >>

"The RA List does not cover discretionary plan amendments, which generally must be adopted by the end of the plan year in which discretionary plan design or operational changes are implemented ... [E]mployers that decide to offer certain types of disaster relief under their plans may need to amend their plans before the deadlines set by disaster-specific IRS guidance, even though disaster-related amendments are not included on the RA List."  MORE >>

"The suits -- one involving Capital One Financial Corp., the other involving Booz Allen Hamilton -- were both dismissed by [the District Court judge] following oral arguments, reportedly rejecting the arguments that the BlackRock funds could be compared with the so-called 'comparator' funds without considering different strategies, glidepaths and investments." [Tullgren v. Booz Allen Hamilton Inc., No. 22-0856 (E.D. Va. Dec. 1, 2022; Hall v. Capital One Financial Corp., No. 22-0857 (E.D. Va. Dec. 1, 2022)]  MORE >>

"[TIAA] convinced the Second Circuit to undo the certification of a class of thousands of retirement plans in a lawsuit challenging the company's plan loan program ... The district judge who granted the class status failed to adequately weigh the factual differences between the various loans in the plan or the effects of certain statutory exemptions in [ERISA], the court ruled." [Haley v. TIAA, No. 21-805 (2d Cir. Dec. 1, 2022)]  MORE >>

"Both of these stock-drop cases involved allegations that plan fiduciaries -- who were corporate insiders privy to nonpublic information about the sponsor -- breached their ERISA duties by failing to take appropriate action based on that information. In each case, the court ruled that plaintiffs hadn't meet the pleading standard set by the Supreme Court in Fifth Third Bancorp v. Dudenhoeffer (573 U.S. 409 (2014))." [Perrone v. Johnson & Johnson, No. 21-1885 (3d Cir. Sep. 7, 2022); Burke v. The Boeing Company, No. 19-2203 (7th Cir. Aug. 1, 2022)]  MORE >>

Developments and implications for plan sponsors.  Topics:  [1] Retiree concerns provide a roadmap for new plan initiatives; [2] DOL issues proposed rule on independent contractors; [3] Addressing employee financial wellness concerns; [4] 2023 IRS benefit plan limitations; [5] U.S. Courts raise legal bar for alleging excess investment and administrative fees; [6] Consideration of ESG factors in investment selection process; [7] DEI Benefits of adding retirement income options to 401(k) plans; [8] Qualified Life Annuity Contract (QLAC) primer.

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"78% of funds focusing on ESG principles fell more than 15 percent below their benchmarks.... [J]ust 3% of the 166 US-listed ESG stock funds reported having positive returns as of September. These funds were once booming, nearly doubling their assets from 2019 to 2021.... [T]ech firms that ESG funds tend to invest in have been hampered by soaring inflation and rising interest rates. Companies that support oil and gas, however, have been booming amid the ongoing war in Ukraine."  MORE >>

"The average account balance for all participants in the Schwab Personal Choice Retirement Account® (PCRA) was down by 19.84% to $273,412 from $341,068 a year ago, and down 3.55% from $283,485 last quarter. Trading volumes were lower from last quarter, at an average of 10.6 trades per account from 11.2 last quarter and lower to trades from a year ago."  MORE >>

"[PBGC] has approved the application submitted to the [SFA] Program by the Teamsters Local 966 Pension Plan.... The plan, based in Cresskill, New Jersey, covers 2,356 participants in the transportation industry. The Teamsters Local 966 Plan will receive approximately $54.1 million in Special Financial Assistance ... The plan was projected to run out of money in 2023."  MORE >>