"[W]ithdrawing the appeal could be an indication of DOL's future priorities.... A fiduciary rule published during the Obama administration was tossed out by the Fifth Circuit Court of Appeals, so DOL regulators are likely taking extra time to craft rules that are sure to end up in court again.... But the DOL is running out of time to complete all the steps required to get a fiduciary rule on the books[.]" [American Securities Association v. DOL, No. 22-0330 (M.D. Fla. Feb. 13, 2023; stipulation as to voluntary dismissal filed May 16, 2023; 11th Cir. No. 23-11266)]   MORE >>

"The American Securities Association says the [DOL] voluntarily dropped its appeal of a Florida court's decision striking down DOL guidance making rollover advice fiduciary.... [T]he change in the DOL's direction hardly means that it's going to abandon a higher fiduciary standard ... Most likely, it hints that the agency is racing to issue a new fiduciary rule proposal[.]"  MORE >>

"These were two of the dozen or so suits[i] filed in federal courts across the country alleging the same basic breaches of fiduciary duty, simplistically characterized as 'imprudently selecting, retaining, and failing to appropriately monitor the clearly inferior BlackRock TDFs.' Somewhat ironically, considering the focus of the recent spate of excessive fee suits, these claimed that the plan fiduciaries elected to chase low fees, alleging that they did so sacrificing performance."  MORE >>

"[Request] insight from your recordkeeper on their capability plans to handle the new provisions ... The next step is to determine which of these optional provisions are aligned with your outlook on the employee benefit plan.... [P]lan your employee communication carefully.... [Assess] the costs associated with implementing the new provisions, such as technology upgrades or additional administrative tasks."  MORE >>

"Worker attendance at educational sessions about 401(k) plans and other financial topics reached new heights in 2022, with virtual live and on-demand sessions driving the most participation ... Participant attendance was up by 5.4% year-over-year, with virtual live meetings accounting for 65% of attendance, while 28% of participants went to on-demand meetings and 7.4% attended in person."  MORE >>

"The pension risk transfer (PRT) market has surged as sponsors look to cut costs, de-risk, and move liabilities off their balance sheets, transferring them to insurance companies that are accustomed to generating guaranteed income from investments. Perhaps predictably, a swelling tide of insurers are discovering that they're not particularly well-suited -- or technologically equipped -- to manage these portfolios while also administering the pension and keeping thousands of participants happy. Fortunately for them, a growing variety of outsourcing solutions are joining the marketplace."  MORE >>

"The National Association of Government Defined Contribution Administrators [NAGDCA] has again [asked the IRS] for greater leniency in implementing some SECURE 2.0 Act of 2022 provisions for government plans.... The letter suggests that some plans may have to drop catch-ups altogether, something Congress presumably did not intend, until they can update their plan administration to accommodate Roth contributions."  MORE >>

"Tax-exempt, nonprofit organizations can offer a 401(k), a 403(b), or both. Recent regulatory changes are making nonprofit 401(k)s even more popular among many tax exempt organizations. 401(k) plans are often significantly cheaper for both employers and employees 401(k) plans provide greater flexibility with eligibility and features designed to drive high participation rates."  MORE >>

"Most states tax at least a portion of the income from many types of retirement benefit plans.... However, some states don't tax pension income no matter your age or how much money you have.... Some states might not tax Social Security (opens in new tab) retirement benefits but will tax 401(k) and IRA distributions."  MORE >>

"On February 24, 2023, [EBSA] published a final rule on annual reporting requirements under Title I of [ERISA] This document contains two technical changes to the regulations: it changes the operational date of the final rule amendments to the regulations ... [and] corrects a typographical error in the lettering of a paragraph in the regulations.... This final rule is effective May 31, 2023. The operational date of the amendments ... is changed from April 25, 2023, to May 31, 2023."  MORE >>

"77% of major companies across North America and Europe include ESG metrics in their executive incentive plans, an increase from 68% last year.... In Europe and North America, ESG metrics are used by more than three-quarters of companies when determining executive incentive compensation, ranging from 69% in the U.S. to about 90% in Europe and the U.K."  MORE >>