"The summary tables [in this article] are organized by SECURE 2.0 provisions affecting only DB plans (color coded in blue), those affecting both DB and DC plans (color coded in green), and a DC provision which may impact combo DB/DC plans (color coded in yellow). Each table includes the background, the change under SECURE 2.0, the effective date of the change, and the analysis or practitioner considerations[.]"  MORE >>

"Though not as far-reaching as the SECURE 1.0 changes, SECURE 2.0 increases -- again -- the age at which RMDs must begin. The new law also contains several provisions allowing defined contribution plan participants to take some or all of their account balance as an annuity[.]"  MORE >>

"[T]he Proposed Regulation makes permanent the ability for spousal consents to be witnessed by a notary public or plan representative remotely, subject to certain conditions. The IRS had declined to allow this in the 2006 Regulation ... [but noted at that time] that 'in the future, technology could exist that would provide the same safeguards as the physical presence requirement.' That day has apparently arrived for the IRS."  MORE >>

"The Puerto Rico Treasury Department recently issued Circular Letter 23-01 announcing the 2023 benefit limits for defined benefit (DB) and defined contribution (DC) retirement plans qualified under the Puerto Rico tax code.... Plan sponsors of dual-qualified plans and plans qualified solely in Puerto Rico should update their administrative processes and systems to reflect the 2023 limits."  MORE >>

"he court stressed that the issue is not the arbitration provision's prohibition on class actions that is the problem, it is the prohibition on any form of relief that would benefit anyone other than Harrison that directly conflicts with the statutory remedies available under ERISA." [Harrison v. Envision Mgmt. Holding, Inc. Bd. of Directors, No. 22-1098 (10th Cir. Feb. 9, 2023)]  MORE >>

"A U.S. District Court judge [has] dismissed a lawsuit against Microsoft Corporation claiming that the BlackRock LifePath Index Funds suite of target-date funds was an imprudent investment choice for Microsoft's retirement plan participants.... [The judge agreed] that the plaintiffs did not prove that comparative TDFs outperformed BlackRock's suite, and that it is not clear the plaintiff would have invested in a different TDF if other options had been given." [Beldock v. Microsoft Corp., No. 22-1082 (W.D. Wash. Feb. 7, 2023)]  MORE >>

"Although the panel agreed the protection clause covers more than just the payment of pension money, it said past Illinois Supreme Court rulings invoking the clause involved benefits that 'directly impacted the participants' eventual pension benefit' ... But being able to vote for board members, or have a local board control investments ... 'is not of the same nature and essentiality as the ability to participate in the fund, accumulate credited time, or receive health care, disability and life insurance coverage.' " [Arlington Heights Police Pension Fund v. Pritzker, No. 2-22-0198 (Ill. App. 2d Feb. 7, 2023)]  MORE >>

"Accounting for DB and DC wealth lowers the Gini coefficient in 2019 from 0.88 to 0.83 and reduces the share of wealth held by families in the top 10 percent of the distribution from 80 percent to 72 percent.... [T]he shift from DB to DC retirement coverage modestly affected wealth concentration overall. Between 1989 and 2019, that shift accounted for about a fifth of the increase in the Gini coefficient and a fifth of the increase in the share of wealth held by families in the top 10 percent of the wealth distribution.... Overall, estimates of retirement wealth and its effect on measures of wealth concentration are marginally sensitive to alternative modeling choices."  MORE >>

11 pages. "In a fixed rate plan, the retirement system usually invests the assets and administers the benefits but has no direct control over either the contributions or the benefit levels.... [O]ver time, when investment returns vary, either contributions or benefits need to adjust ... The role of the retirement board ... is to indicate when the equation is out of balance and by how much.... [T]his practice note is intended to serve as a guide to actuaries who advise retirement boards."  MORE >>

"The Social Security full retirement age (FRA) is the age at which workers can first claim full (i.e., unreduced) Social Security retired-worker benefits.... Benefit adjustments are made based on the number of months before or after the FRA the worker claims benefits. The adjustments are intended to provide the worker with roughly the same total lifetime benefits, regardless of when he or she claims benefits, based on average life expectancy." [IF12323 Feb. 9, 2023]  MORE >>

"[EBSA Interpretive Bulletin 2022-01 specifies that] employee benefit plan sponsors can engage an independent auditing firm immediately after the accountant disposes of the publicly traded securities of the plan sponsor."  MORE >>