"The new rules reduce the number of participants in individual account plans that must be counted, which is significant as more plans will qualify for the small plan exemption, allowing them to use the short form for reporting and waive the audit requirement, including the required accountant report. This will result in significant savings for qualifying plans. These rules will primarily impact 401(k) and 403(b) plans[.]"  MORE >>

"Now we have the final text, and it is more neutral than the version the DOL originally proposed.... With any luck, a more neutral ruling will give some regulatory certainty to this area and unlock the potential of ESG products to find their way into more investment menus.... [S]tate-based developments are keeping the topic of a fiduciary's responsibilities in the context of ESG investments in flux as party control has the potential to oscillate regularly."  MORE >>

"Connecticut employers that do not already offer an employer-sponsored retirement plan must register for the MyCTSavings program on the state's website. [The] program establishes individual Roth IRAs for each employee, which are funded through employee payroll contributions. Employers will receive notices that must be provided to employees. Employers must then enroll their current employees, who will have the choice to opt-out within 30 days."  MORE >>

"The [DOL] filed its notice of appeal ... of a ruling that struck down its guidance pertaining to a fiduciary duty regarding rollovers. 'The notice of appeal is in line with what we expected,' ERISA attorney Jason Roberts, CEO of the Pension Resource Institute, said. 'Regulators do not like to cede ground and leave opinions challenging their interpretations hanging out there.' " [American Securities Association v. DOL, No. 22-0330 (M.D. Fla. Feb. 13, 2023; notice of appeal filed Apr. 14, 2023)]  MORE >>

"During oral arguments, at least two of the three judges on the Second Circuit panel appeared skeptical that they could force individual arbitration on an individual's rights under ERISA to seek relief for the entire plan in the form of a representative action under Section 502(a)(2)." [Cedeno v. Argent Trust Company, No. 21-2891 (2d Cir., on appeal from S.D.N.Y. No. 20-9987)]  MORE >>

"[This article provides] a very brief summary of 'technical' SECURE 2.0 retirement policy issues requiring clarification."  MORE >>

"Fiduciary committees should be sure to ask all current service providers about their procedures for monitoring cybersecurity and potential fraud and should include questions about cybersecurity procedures in RFPs ... Fiduciary committees should monitor service providers on an ongoing basis by requesting information on any updated cybersecurity procedures, ... Recordkeepers should be on the lookout for 'red flags' ... Recordkeepers may wish to institute procedures providing for a delay between the time a participant changes his contact information on file and the time the recordkeeper processes a distribution[.]"  MORE >>

"Where the annuity contract had been previously purchased and (and held) by the plan as an investment, the subsequent distribution of the annuity as a QPDA ... [merely transfers] ownership of the contract ... from the plan to the former plan participant. Therein lies the rub for the Independent Qualified Public Accountant (IQPA), which audits the books of the plan: there does not appear to be a well developed, standardized protocol in the auditing process under which the QPDA distribution can be verified as compliant with auditing standards."  MORE >>

"The aggregate funded ratio for U.S. state pension plans increased by an estimated 2.8% during the first quarter of 2023 to end the quarter at 76.4%[.]"  MORE >>

"[Y]our employee benefits plan could account for as much as 30% of your total compensation.... [Q]uestions to get the most from employee benefit plans: [1] Has your family situation changed? ... [2] How much are you contributing to your retirement plan? ... [3] How much do you typically spend on medical expenses? ... [4] Are you protecting your future (and your family's)? ... [5] Are you leaving any benefits on the table?"  MORE >>

"Amid a red-hot job market and the Great Resignation ... employers touted a plethora of benefits offerings as they tried to sway potential workers to their organizations.... [T]he number of job postings advertising benefits ... has flattened in recent months ... The slowdown is especially prevalent in low-wage sectors[.]"  MORE >>