"There are two methods of correction ... [E]ither conform the terms of the Plan to the operations that actually occurred (via an amendment) or conform the operations of the Plan to the terms that were in place at the time of the failure (by returning the improper amounts).... There are times when a company may want to choose Option Two. One situation would be when so many employees were permitted to enter the plan early that the matching contribution was much larger than could be afforded by the plan sponsor. Another situation would be if the included participants are not U.S. citizens, so that their deferrals may create out-of-country tax impact."  MORE >>

"Employees would contribute to these accounts on a Roth basis and could make withdrawals as frequently as monthly. Agency guidance is needed to address a variety of key implementation issues."  MORE >>

"There have been a series of cases filed against fiduciaries of 401(k) plans that offer BlackRock target date funds as investment options to plan participants. Since last August, district courts have dismissed these BlackRock complaints with prejudice, in cases against Booz Allen Hamilton, Capital One and Microsoft, saying the plaintiffs had failed to allege any facts about the plan fiduciaries' process for selecting and monitoring the BlackRock TDFs."  MORE >>

"When interest rates were near historic lows during 2019 and 2020, many plan sponsors changed their methodology for calculating these premiums to reduce their tax obligation to the federal government. Although it appeared like a good idea at the time, that decision is now resulting in adverse consequences for many.... [P]lans of most types, sizes, and funded status using the Alternative Method premium calculation can potentially reduce their PBGC premiums and simplify the pension risk management process ... [by] using the Full Yield Curve approach to calculate their discount rate."  MORE >>

"The actuary is engaged on behalf of the plan to make their best estimate of future events that will determine benefit payments resulting from the promises made.... That estimate requires a number of assumptions regarding the behavior of the participants ... This note addresses some of the assumptions made and looks at actual experience among a segment of the plan population. It highlights the uncertainty of prediction in the group studied, and notes the rationale for making simplified assumptions."  MORE >>

"The funded status of the 100 largest corporate defined benefit pension plans improved by $21 billion during June ... The funding surplus rose to $30 billion, primarily due to asset gains during June.... As of June 30, the funded ratio grew to 102.2%, up from 100.7% at the end of May. The mid-year funded ratio is just slightly ahead of the 101.9% funded ratio seen at the start of 2023."  MORE >>

"The programs in California, Oregon and Illinois have increased by 3 percent the likelihood that the residents in these states work for a firm that offers its own retirement plan and by 33 percent the probability individuals are saving in those employer plans.... [These] early results in California, Oregon, and Illinois are promising, and auto-IRAs may be an effective way to expand participation in employer-based savings plans."  MORE >>

"[PBGC] has approved the application submitted to the Special Financial Assistance (SFA) Program by the Automotive Industries Pension Plan. The plan, based in Dublin, California, covers 23,687 participants in the transportation industry. The Automotive Industries Plan will receive approximately $1.1 billion in special financial assistance ... The plan was projected to become insolvent and run out of money in 2033."  MORE >>

"[PBGC] has approved the application submitted to the Special Financial Assistance (SFA) Program by the Retail Clerks Specialty Stores Pension Plan. The plan, based in Concord, California, covers 1,279 participants in the service industry. The Retail Clerks Plan will receive approximately $60.4 million in special financial assistance ... The plan was projected to become insolvent and run out of money in 2024."  MORE >>

"[PBGC] has approved the supplemented application submitted to the Special Financial Assistance (SFA) Program by the Western Pennsylvania Teamsters and Employers Pension Plan. The plan, based in Pittsburgh, Pennsylvania, covers 21,110 participants in the transportation industry.... The Western Pennsylvania Teamsters Plan will receive about $279.6 million in supplemented SFA, which is in addition to $715 million in SFA approved for the plan in July 2022 under the interim final rule."  MORE >>