"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"  MORE >>

"For plan years starting after Dec. 31, 2023, employees in plans that offer this benefit will be able to receive the match, even if they don't contribute to the plan. Although some employers started offering student loan benefits under their DC plans before SECURE 2.0, those benefits aren't true matching contributions and create administrative complications that SECURE 2.0 largely alleviates.... [A]gency guidance is needed to implement the new student loan match provision."  MORE >>

"[E]ven if self-correction is available under this expanded program, a plan sponsor may prefer to submit a VCP application. Waiver of an applicable excise tax or additional tax, if any, may only be granted through the VCP (or, if the tax cannot be corrected through the VCP, through the Voluntary Closing Agreement Procedure). Plan sponsors deciding to apply through the VPC should be aware of a significant backlog in the IRS's review of submissions and should be prepared for the process to take longer than as has been typical in the past."  MORE >>

"The lawsuit is one of 11 filed against different sponsors, making the same claim that the BlackRock LifePath Index Retirement Funds target-date series should have been removed from investment lineups due to alleged poor performance and excessive fees.... Federal judges have dismissed similar complaints twice each against Microsoft Corp., Booz Allen Hamilton Inc. and Capital One Financial Corp." [Anderson v. Advance Publications, Inc., No. 22-6826 (S.D.N.Y. Jun. 13, 2023)]  MORE >>

"[Plaintiffs allege that] ESOP co-trustee defendants -- Alerus Financial, Andrew LaVelle, Anne Sortwell, Peter Sortwell and Neil Woolner ... orchestrated for their benefit the 2020 stock sale of Arborwell LLC's predecessor entity, Arborwell Inc., by the Arborwell Inc. ESOP to CI Quercus, for less than fair market value." [Arborwell, LLC v. Alerus Financial, N.A., No. 23-2770 (N.D. Cal. complaint filed Jun. 5, 2023)]  MORE >>

"As of May 2023, [the authors] estimate that there are 29.2 million left-behind or forgotten 401(k) accounts holding approximately $1.65 trillion in assets, up from 24.3 million and $1.35 trillion in May 2021. This represents 25% of all 401(k) plan assets, up from 20% in May 2021. The number of forgotten 401(k)s increased by over 20% since May 2021, driven by a period of heightened job switching with 3.8 million and 4.4 million accounts left behind in 2021 and 2022 respectively. The potential consequences of forgotten 401(k)s continue to be significant[.]"  MORE >>

"A staggering 56% of Gen Xers said they have less than $100,000 saved for retirement, and 22% said they have yet to save a single cent. While the desire to retire may be there, the money just isn't. A whopping 64% of respondents said they stopped saving for retirement not because they don't want to but because they simply can't afford to."  MORE >>

"Offering a lump sum window may provide an opportunity for plan sponsors to reduce risk and cost at a reasonable price in 2023.... Today's new challenging investment risk environment appears to call for a review of investment strategy.... Volatility makes it difficult to determine when to move away from a successful return-seeking strategy to a more conservative allocation. Understanding the four phases of defined benefit economics can help plan sponsors time the jump."  MORE >>

"The proposed CIT's securities law exemptions also will permit 403(b) plans to purchase interests in non-registered annuity variable accounts. In the past, these investment accounts did not enjoy the exemptions enjoyed under 401(a) plans.... [This] proposed statutory change will make available to 403(b) plans what could be the one of the most cost-effective (and flexible) equity asset pooling vehicles available to unrelated employers in the retirement plan market."  MORE >>

"FIAs with a [guaranteed lifetime withdrawal benefit (GLWB)] improve projected retirement outcomes, but only if they are used properly. This typically entails buying the product before retirement and delaying withdrawals for about 10 years. To state the obvious, it also means that the purchaser has to stay in the contract throughout retirement. Owners of an FIA with a GLWB who exit their contract early are ultimately paying for a guarantee that they did not use to the full extent."  MORE >>

"AI can transform EBP procedures that improve participant outcomes, elevate efficiency, and improve data reconciliation. However, worries about data privacy and security risks underscore the substantial obstacles to obtaining the advantages.... AI systems are dynamic and necessitate providers' total commitment to enhancing their adaptability and robustness. Continued monitoring of AI-enabled services begins with knowing where that technology exists in vendors' offerings and whether it's accommodated in their data security policies and practices."  MORE >>