"Since plans are not required to permit catch-up contributions, can employers eliminate the ability to make catch-up contributions only for participants who hit the $145,000 threshold in the prior year? Can employers require all catch-up contributions to be made on a Roth basis? How does the $145,000 wage requirement work for mid-year hires?"  MORE >>

"[T]he American Airlines lawsuit is the first that focuses on the use of ESG factors by investment managers in a defined contribution plan. Both highlight the need for companies to pay attention to the evolving ESG legal landscape in order to mitigate risk." [Spence v. American Airlines, Inc., No. 23-0552 (N.D. Tex. complaint filed Jun. 2, 2023)]  MORE >>

34 pages. "This report examines a series of megatrends that can impact the future of retirement and retirement plans, as well as the macro forces that will shape those trends. The first section ... will set the context with a broader understanding of how the future is changing. Subsequent sections will then highlight sociocultural, economic, technological, health and long-term care, and environmental trends that can redefine the landscape and have a major impact on the future of retirement. The final section will assess strategic implications for both the public and private sectors[.]"  MORE >>

"[1] Additional accruals ... [2] Transferring excess assets to other benefit plans ... [3] Using the excess to achieve HR objectives ... [4] Retiree cost-of-living adjustments ... [5] Subsidizing derisking actions ... [6] Phased retirement ... [7] Paying bonuses through the plan ... [8] Paying executive sign-on bonuses through the plan ... [9] Adding ancillary benefits ... [10] Adding a temporary pre-65 annuity."  MORE >>

"The termination process can be lengthy -- in some cases, exceeding a year from start to finish. Additionally, the total amount of funds required to terminate the plan will be unknown until a few days before the final payments are made. Those payments include the amount needed to purchase annuities from an insurer and the amount required to deliver lump sums to participants who choose to receive them. All during this lengthy process, maintaining the funded position as best as possible is important to avoid unintended consequences."  MORE >>

"[D]etermining how the IRA is to be distributed when the beneficiary dies before claiming the account is clear. The assets do NOT go to the contingent beneficiary.... During a normal transition period, the beneficiary determines what options she has.... [If] this first beneficiary dies prior to claiming the inherited dollars -- and prior to naming a successor beneficiary -- there are definitive 'next steps' to follow."  MORE >>

"Offering a NQDC plan can amplify your ability to attract, retain, and reward highly compensated and executive talent. These plans are especially attractive to HCEs as a result of the statutory limits on annual deferrals and contributions to qualified plans like the 401(k). In fact, NQDC plans generally have no limits on the amounts that can be contributed. In addition, they may offer more flexibility than qualified plans."  MORE >>