Rev. May 18, 2023. "What's new: The form and the instructions have been updated to include 403(b) plans."  MORE >>

Rev. May 19, 2023. "The form and instructions have been updated to include individually designed 403(b) plans."  MORE >>

"Based on surveys, small employers do not offer plans because they are worried about the cost and administrative complexity of setting up and operating plans. To allay that concern, Congress created, in SECURE 2.0, a new type of plan that is simple and low cost: 'Starter' 401(k)s and 'Safe Harbor' 403(b)s. The purpose of this new plan design is to encourage small employers to set up plans that enable their workers to save for retirement through deductions from their paychecks."  MORE >>

"[P]laintiffs in a Texas lawsuit challenging the [DOL's] investment advice rule filed a new brief ... reminding the court that the Biden administration is walking away from a similar lawsuit in Florida." [Federation of Americans for Consumer Choice v. DOL, No. 22-243 (N.D. Texas motion to dismiss filed Sep. 2, 2022; amended notice of authority filed May 17, 2023)]  MORE >>

"A lawsuit by a small 401(k) plan against its former record keeper over a $20,703 surrender charge has erupted into a battle between the [DOL] and retirement industry trade organizations ... Industry groups say the DOL's interpretation of ERISA's prohibited transactions rules would unleash more lawsuits and impair the relationship between plan sponsors and service providers. The DOL says its approach affords greater protection to sponsors against transactions that may not be in the best interest of participants."  MORE >>

"Annuities can be a useful tool in wealth management and financial planning ... On the surface they may sound like retirement plans, but while annuities share some things in common, they're not the same.... Buying an annuity: Basic types ... How an annuity pays out ... Should I buy an annuity?"  MORE >>

"[T]he Milliman 100 PPFI funded ratio rose from 74.5% at the start of the month to 74.8% as of April 30, improving the plans' funded status by a modest $10 billion.... Combined, the plans added approximately $34 billion in market value in April, offset by a net negative cash flow of $9 billion. The number of plans below 60% funded (24 plans) or above 90% funded (17 plans) remained unchanged compared to March."  MORE >>

"[S]ince Congress did not adopt automatic adjustments to keep the system in (or near) actuarial balance and because system trust funds continued to grow, no action was taken, and we now face the accumulated cost of Congressional inaction over the past 35 or so years. This cost is now significantly higher than the additional cost ... estimated for the level cost in 198[.]"  MORE >>

"Some employers secure the support of a consultant to design, sort and score requests for proposals and requests for information, while others use consultants more narrowly for pricing or because they offer access to proprietary systems for evaluating benefit providers."  MORE >>