"In response to changes to the withholding rules ... the [IRS] updated Form W-4P in 2022 and mandated the use of the new 2023 Form W-4P as of January 1, 2023.... [T]he IRS also imposed stringent content requirements on substitute Forms W-4P. Despite an extended rollout of the new Form W-4P, payors are still wrestling with its implementation and the new rules regarding the use of substitute forms. [This article highlights] some considerations for implementing the 2023 form as well as potential liability for using invalid forms."  MORE >>

"While it is unlikely that HR 4237 will advance out of committee, when considered along with the two lawsuits against the DOL that are still ongoing, it is clear that the 2022 ESG Rule will likely continue to be subject of strong opposition for the foreseeable future. In addition, many Republican-led states have adopted or proposed similar limitations on the investment of their public retirement plans, continuing to feed the debate over how retirement assets may be invested."  MORE >>

"[A] new analysis ... proposes an alternative framework for modeling retirement income that strives to cut something of a middle ground, using a concept known as the 'risk-adjusted coverage ratio.' According to [the author], when selecting an optimal retirement strategy, a retiree may aim to maximize the coverage ratio, which he calls 'a novel metric superior to the failure rate.' "  MORE >>

"[B]aking in 12b-1 fees means your expense ratios are higher.... 12b-1 fees are far from transparent. While each fund's prospectus discloses these fees, it does not reveal who receives the fee.... One of the biggest problems with 12b-1 fees is the built-in conflict of interest.... How can I determine if someone is charging me a 12b-1 fee?"  MORE >>

"Some sponsors are willing and able to settle or mitigate risks all at once, but many others chose a longer-term strategic approach. An approach like this may be accomplished through any combination of matching investments to plan liabilities, offering lump sum benefits to terminated vested or retired participants, or transferring benefit obligations to an insurer via a group-annuity contract. Strategy aligns resources with efficient use when resources are not unlimited."  MORE >>

16 pages. "[T]his issue brief [outlines] considerations to keep in mind and some key processes to follow for a buy-out pension risk transfer strategy, whether through a partial risk transfer via a lift-out or a full risk transfer via plan termination. Ultimately, it is the plan sponsor's responsibility to ensure that what is transferred to the insurer is representative of the plan benefits and ensure that a thorough due diligence is performed to select an insurer that meets the safest available annuity criteria[.]"  MORE >>

"Higher stock prices translated to another good month for pension finance in June, capping a strong first half of 2023 generally. Both model plans ... gained ground last month: [the] traditional Plan A gained 3% and is now up more than 7% for the year, while the more conservative Plan B gained 1% during June, ending the first of half 2023 up almost 2%."  MORE >>

"Only a quarter of civilian workers were offered a traditional pension plan in 2022... This coincides with a trend among employers to shift to defined contribution retirement plans like 401(k)s.... Jobs that offer pensions tend to be clustered in a few specific fields. Government and union employees are especially likely to have access to pension benefits. If you're interested in a defined benefit retirement plan, consider these jobs during your working years."  MORE >>

"[S]urviving spouses of New York public sector retirees: they may be left with no survivor benefits whatsoever, because the default benefit is an annuity during the life of the retiree. The Retirement Equity Act of 1984 (REACT)  ... protects the spouses of 100 million active private sector employees from such tragedies.... This article describes [New York's] proposed Equity for Surviving Spouses Act (ESSA) which would remedy this flaw by following the REACT approach."  MORE >>

"[T]his outcome -- whether it had been after trial to the bench or instead to a jury -- is one more fact showing that the best industry wide approach to these types of claims is to say 'prove it' and force plaintiffs' counsel to do so at trial, without regard to whether it will be tried to the bench or instead to a jury." [Vellali v. Yale Univ., No. 16-1345 (D. Conn. Jun. 28, 2023)]  MORE >>