"[T]his article reviews recent cases] claiming that ESG investments/investment decisions violated duties of prudence and loyalty under ERISA ... and under state and common law ... Wong is not an ERISA case. Moreover, divestment of an entire asset class (or sub-asset class) in a pension fund is clearly different from (and more problematic than) simply offering ESG investment funds, along with non-ESG funds, in a 401(k) plan. But a decision in Wong (if we get one) is likely to add to the discussion of what sorts of ESG investment policies will be tolerated by the courts." [Spence v. American Airlines, Inc., No. 23-0552 (N.D. Tex. complaint filed Jun. 2, 2023); Wong v. NYCERS, TRS and BERS, No. 652297/2023 (New York County, complaint filed May 11, 2023)]  MORE >>

"The [DOL's] ESG rule is needed to correct the 'chilling effect' a previous Trump administration rule placed on those environmental, social and corporate governance investment options, U.S. attorneys argued ... The ESG rule 'reaffirms, consistent with ERISA's statutory text, that fiduciaries' exclusive purpose must be to secure financial benefits for plan participants and beneficiaries, and that this purpose may never be subordinated to unrelated goals,' the new brief explained.' [Utah v. Su, No. 23-00016, (N.D. Tex. defendant"s reply brief filed Jun. 2, 2023)]  MORE >>

"[T]here is a better approach to consider that can keep contributions (and deductions) more predictable. Enter the 'market return cash balance' (MRCB) plan. Instead of designing a cash balance plan with a fixed interest rate, MRCB plans are designed to credit accounts with the actual investment return in the plan's trust. This can make a huge difference in funding stability[.]"  MORE >>

"If an employer meets all three of the following criteria ... contributions for the HCEs [can be] significantly larger than under other traditional contribution methods. [1] The company has at least 12 to 20 employees eligible for a qualified plan ... [2] The average age of the HCEs is at least 8 to 12 years above that of all other eligible employees. [3] There are no HCEs among the youngest third of all eligible employees."  MORE >>

"A new study finds that the ongoing economic environment continues to heighten pressures for employees, who are turning their attention to their employer benefits for educational support.... What topics should be covered for employees? ... How should education and wellness be delivered to participants?"  MORE >>

"The new MBTA Retirement Fund Actuarial Valuation Report shows the fund's balance as of Dec. 31, 2022, was $1.62 billion -- about $300 million less than what it was just 12 months earlier. Its liability -- the amount it will owe current and future T retirees -- is over $3.1 billion, meaning the fund is about 51 percent funded. In 2006, it was 94 percent funded. A 'death spiral' generally accelerates when retirement system funding dips below 50 percent."  MORE >>

"Theoretically, how might you address the difference between the best retirement income stream and the one you're stuck with because you didn't save enough money during your career?"  MORE >>