"Although Phase III has been described as the final round of revisions to Forms 5500 and 5500-SF, certain elements of the September 2021 proposal are being deferred for further consideration and could be implemented at a later date."  MORE >>

"[F]or plan years beginning on or after January 1, 2023, an employer need only count people who have account balances. The DOL estimates that this change will reduce the number of plans that must prepare audited financial statements by 19,400. ... [E]mployers whose 401(k) plans are near the 100-participant large plan limit will want to be sure to avail themselves of [SECURE 2.0's] cash-out dollar increase to aid in keeping the plan under the limit."  MORE >>

"The adoption period for plan sponsors to restate their plans using a 3rd cycle document began on April 1, 2023 and ends on March 31, 2025.... [T]he submission window for the 4th RAC has not yet been opened. [The authors] anticipate an announcement later this year, setting the on-cycle submission window for plan providers from February 1, 2024, through January 31, 2025."  MORE >>

"The preamble to [FAB 2023-01] acknowledges that the guidance does not address all questions that may arise, and states that absent further guidance, plans complying with the FAB will be considered to have followed a reasonable, good faith interpretation of the AFN requirements of ERISA section 101(f). It also recognizes that plans receiving SFA may have already issued AFNs prior to the release of the FAB, and such plans should consider whether it is appropriate to provide participants with additional information in light of the FAB."  MORE >>

"While most provisions will take affect within the next two years, it is important for plan sponsors and service providers to become familiar with the 2025 and later provisions so potential operational roadblocks can be addressed and changes can be quickly implemented when the deadline approaches."  MORE >>

"401(k) plans are moving away from serving as voluntary retirement savings vehicles and towards a future where plans are mandatory and serve as a financial backstop to more than just retirement."  MORE >>

"In prior rulings, the SBA had required an equity infusion of at least 10% when an ESOP bought a company. That is an impractical requirement in most ESOP transactions. The SBA eliminated this requirement on May 9 in Procedural Notice 5000-846607. In the new May 9 guidance, the SBA also said that personal loan guarantees in ESOPs will apply only if the ESOP is buying less than a controlling interest, easing some prior ambiguity."  MORE >>

"[T]he court concluded that the plaintiffs' expert was not qualified to testify competently regarding the 2015 RFP because he admitted he had never conducted an RFP, had not responded to an RFP in nearly 40 years, and acknowledged that he would have to rely on the expertise of a consultant to determine how the defendants should have conducted the RFP process." [Huang v. TriNet HR III, Inc., No. 20-cv-2293 (M.D. Fla. Apr. 26, 2023)]  MORE >>

"[P]recarious working conditions, family caregiving responsibilities, poor health, and age discrimination make it difficult or impossible for many to work into their late 60s and beyond.... [The authors'] findings suggest that working longer is set in motion long before one's 60s; it is structured by a life course history of working steadily through one's 50s.... [P]olicies affecting work and policies affecting retirement are two sides of the same coin and must be considered together."  MORE >>

"Getting on track will likely require a combination of ensuring the qualifications of plan fiduciaries responsible for investing, holding fiduciaries accountable for acting in accordance with fiduciary principles, limiting the ability of nonfiduciaries to undermine and interfere with fiduciaries, and separating the fiduciary function of investment management from settlor functions like setting funding policy and determining benefit levels."  MORE >>