"Until now, 403(b) plans have been able to exclude participants expected to work less than 20 hours a week on their first year of employment and who actually work fewer than 1,000 hours in subsequent eligibility computation periods. It seems that this exclusion will only be available on the first year of service and be overridden by the LTPT rules on the second year of the participant’s employment."  MORE >>

"Despite the many questions that remain, it is important for employers to coordinate with their recordkeepers and payroll providers as soon as possible to ensure that they understand the potential impact of the change, which systems will need to be updated to address it and who will bear that responsibility. Importantly, changes that require payroll and recordkeeping coordination often take many weeks, and even months, to implement and test."  MORE >>

"The [DOL] has published its Spring Regulatory Agenda ... Among the proposed rules ... is one which would address when a person offering employee benefit investment advice, including rolling over 401(k)s, is serving as a fiduciary and is therefore subject to stricter regulations under [ERISA].... The DOL wrote that [EBSA] will also consider prohibited transaction class exemptions and will propose amendments, or create new exemptions, to ensure consistent protection of investors in employee benefit plans and IRAs."  MORE >>

"As of June 1, certain sponsors of individually designed 403(b) plans can apply for an IRS determination letter on the status of their plan documents.... Although IRS established a preapproved plan program for 403(b) plans in 2013, this is the first opportunity for sponsors of individually designed 403(b) plans to seek IRS review of their documents."  MORE >>

"After the passage of PPA, DC plan investment menus expanded exponentially. Now the industry is seeing a trend toward condensed lineups as plan sponsors learn to craft more thoughtful menus that still allow for customization with fewer investment vehicles. While the lineup of the past centered around participant choice, the lineup of the future will likely center around participant needs."  MORE >>

"Vermont is the latest state to enact a law mandating retirement benefits be offered to private-sector employees while Nevada and Pennsylvania have similar bills on the table.... Nevada's law would apply to all private-sector employers with at least five employees that have been in business for at least three years.... The VT Saves Program applies to all businesses in the state, whether for profit or not, that have at least 25 employees and don't already offer a retirement savings plan or haven't in the past two years."  MORE >>

"Average annuity purchase interest rates increased in June for Duration 7 and Duration 15 annuity rates to 4.61%. Insurers see record high participation in Q1 and Q2. Plan Sponsors of well-funded pension plans should take steps towards plan termination to capitalize on today's high interest rate environment. In the first and second quarter, Retiree Carveouts have increased in 2023 compared to 2022."  MORE >>

"[T]he term 'benefits' now encompasses many offerings that support employees' well-being, financial stability, and personal growth.... [T]hese benefits are increasingly being tailored to meet individual employees' unique needs and preferences ... [1] Retirement savings & financial wellness programs ... [2] Insurance coverage ... [3] Flexible work & PTO arrangements ... [4] Professional development ... [5] Health & mental wellness programs ... [6] Family financial assistance ... [7] Housing & legal assistance."  MORE >>

"Because the SEC approved the NYSE's and Nasdaq's amended listing standards, with an effective date of October 2, 2023, all compensation awarded on or after such date must be subject to the listed company's policy. By December 1, 2023, each listed company is required to adopt a compliant policy governing the recovery of erroneously awarded compensation as required by the new listing standards. Companies should take time now to review the new listing standards and their existing clawback policies and implement any necessary amendments by December."  MORE >>