"[Notice 2023-43] addresses how plan sponsors and [IRA] custodians should apply the act's new standards for self-correction under EPCRS until [Rev. Proc. 2021-30] is updated in response to the changes mandated by the act. However, the notice does not address other EPCRS-related changes dictated by the act, such as those regarding the correction of overpayments."  MORE >>

"[A] plan sponsor that uses self-correction should retain documents that substantiate that correction so the sponsor can produce them in the event of a plan audit. Proper substantiation includes documents that: [1] identify the failure, the years of occurrence, the number of employees affected and the date the failure was discovered; [2] both explain how the failure occurred and demonstrate those practices and procedures in effect at the time of the failure that were designed to promote and facilitate compliance; [3] identify and substantiate the correction method applied and the date the correction was completed; and [4] identify any changes made to the practices and procedures to prevent recurrence of the failure."  MORE >>

"It is hard to see plaintiffs prevailing in any of these cases based on the statements in their complaints, though the district and appeals courts in Texas tend to go their own way on many issues. Here are some of the reasons plaintiff in the American Airlines case may have an uphill battle." [Spence v. American Airlines, Inc., No. 23-0552 (N.D. Tex. complaint filed Jun. 2, 2023)]  MORE >>

"The participants sued the union and plan fiduciaries in October 2022. They argued that the plan's size gave it bargaining power to reduce fees and expenses ... The participants are seeking class-action status." [McLachlan v. International Union of Elevator Constructors, No. 22-4115 (E.D. Penn. Jun. 7, 2023)]  MORE >>

"Over the past several years, the majority of recoveries came from helping to collect benefits for terminated vested or missing participants in defined benefit plans. While only $542 million was recovered for such participants in 2022 -- compared to $1.5 billion recovered in 2021 -- the results clearly show the DOL's continued interest in its missing participants program."  MORE >>

"The three-year freeze on student loan payments ends August 29, and plan sponsors have an opportunity to help relieve employees' financial stress by offering student loan benefits.... SECURE 2.0 offers employers an optional retirement plan provision to make retirement plan contributions to 401(k), 403(b), 457(b) and SIMPLE IRA accounts if the participant elects to pay down student loans instead of contributing to a retirement plan."  MORE >>

"[W]ith the yield curve significantly inverted and interest rates at multi-year highs, ... there are modest changes sponsors should consider for their hedging portfolios including: [1] Hedging liabilities across the curve by adding intermediate bond exposure; [2] Exploring completion management for more precise hedging; [3] Managing credit spread risk exposure Modestly increasing portfolio liquidity."  MORE >>

"In March 2022, 15 percent of private industry workers had access to defined benefit retirement plans, and 11 percent participated in these plans. Among private industry workers participating in defined benefit plans, 37 percent participated in plans that were open to new employees. In establishments with fewer than 50 workers, 57 percent of participants were in plans open to new employees; in establishments with 500 workers or more, 27 percent of participants were in plans open to new employees."  MORE >>

"Streamline employer reporting requirements under the [ACA] ... Promulgate regulations updating electronic delivery rules and other guidance for providing applicable notices and making participant elections ... Matching contributions for student loan payments ... Catch-up contributions ... Emergency savings for working Americans ... Clarify the automatic enrollment mandate exemption for existing plans ... Overpayments and self-correction ... Optional Roth match ... Notice and disclosure ... Missing participants, including guidance on uncashed checks ... Remote witnessing ... In-service distributions ... Paid leave."  MORE >>

"[If] the listing standards are approved by the SEC (as expected to happen this week), the clawback rules would be effective on October 2, 2023, and public issuers would be required to adopt compliant policies within 60 days after the effective date, i.e., no later than Friday, December 1, 2023."  MORE >>