"This Issue Snapshot discusses the timing rules of IRC sections 404(a)(6) and 415 and considers how these rules apply to employers who establish a new 401(k) plan after the end of the tax year."  MORE >>

36 pages. "Section 321 of the SECURE 2.0 Act ... directs the Secretary of Labor to [1] review Interpretive Bulletin 95-1 (relating to the fiduciary standards under [ERISA] when selecting an annuity provider for a defined benefit pension plan) and consult with the [ERISA Advisory Council], to determine whether amendments to IB 95-1 are warranted; and [2] report to Congress on the findings of such review and consultation, including an assessment of any risk to participants. [EBSA] is currently in the process of conducting the review required by SECURE 2.0 section 321. This consultation paper is prepared for purposes of the required consultation with the ERISA Advisory Council." [Also available: EBSA Presentation to ERISA Advisory Council: SECURE 2.0 Section 321 -- IB 95-1 Review]  MORE >>

"If you're an IRA beneficiary subject to the 10-year payout period and would have had a 2023 RMD (required minimum distribution), you're in luck. In Notice 2023-54 issued last [July 14], the IRS said it would excuse those RMDs. The IRS also said it would extend the 60-day rollover deadline for IRA (and plan) account owners born in 1951 who received distributions in 2023 that weren't necessary because of the SECURE 2.0 change that delayed their first RMD year from 2023 to 2024."  MORE >>

"Notice 2023-43 pertains only to the EPCRS provisions under the authority of the IRS; it does not address any elements of Sec. 305 of SECURE 2.0 over which the [DOL] has authority. This notice also does not address Sections 301 and 350 of SECURE 2.0, which relate to the recovery of overpayments by administrators of qualified retirement plans and the employer's ability to correct automatic contribution errors in certain plans."  MORE >>

"[W]hile legacy firms ... have filed less cases so far as they digest their high volume of pending cases, new entrants ... have filed the most cases in 2023 year-to-date.... Whereas many historical excess fee filings have used artificially inflated fee data and misleading comparisons ... these firms are filing cases that anticipate plan sponsor defenses and evolving case law, including attempting to address a comparison of services when comparing recordkeeping fees. This is the first significant change in how excess fee claims are filed in recent years."  MORE >>

"The ESOP plan added the clause at issue in 2017. When plaintiffs filed a putative class action in 2019 asserting fiduciary breach and prohibited transaction claims, Defendants moved to dismiss on the grounds that the plan document required arbitration. The district court refused to enforce the ESOP's arbitration clause, finding that mandatory arbitration requires consent. There was no evidence that the plaintiff or plan participants consented to add the arbitration provision in the plan document." [Henry v. Wilmington Trust NA, No. 21-2801 (3d Cir. June 30, 2023)]  MORE >>

36 pages. "Public equity markets have delivered strong returns to retirement savers over the past four decades, supported by a long-term decline in interest rates. Many investment strategists foresee a different interest rate environment going forward, where simply allocating to public stocks alone may not generate the same returns as in the past. As a result, it will be increasingly important for plan sponsors to diversify and optimize the asset allocation of their target date funds."  MORE >>

26 pages. "Slightly more than half (55%) of Gen Xers are participating in an employer-sponsored retirement savings plan.  Fourteen percent of Gen X is covered by a DB plan, and this level is coverage is fairly consistent across gender and race.... The typical Generation X household only has $40,000 in retirement savings in private accounts.... Most Gen Xers, regardless of race, gender, marital status, or income, are failing to meet retirement savings targets."  MORE >>

"[t]he EARNS Program board on July 13 voted unanimously to authorize [the office of THE State Treasurer] to evaluate entering into an interstate partnership or multistate consortium to support the launch and future success of EARNS. The Delaware Treasury ... determined that interstate cooperation could result in lower start-up costs and faster launch times for EARNS, as well as lower initial fees for participants and the possibility of accelerating decreases in program fees."  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 >>

"[T]here is something intangible about this practice area where you first have to know what the dang acronym stands for before you can look up its meaning ... Despite being fairly intelligent and well-read with a Bachelor of Arts in English Lit, my comprehension skills when it comes to the benefits industry are not as good as I would like, but certainly better than your average participant. So, what can you (the retirement plan professionals) learn from my experience with my retirement?"  MORE >>

"Participants whose 401(k) plan accounts are stolen by criminals may never recover their lost benefits.... There is no federal law guaranteeing these benefits, or even requiring that parties who deal with retirement plan data maintain cybersecurity insurance. Criminal charges may be filed if benefits are stolen, but are unlikely to result in recovery. Plan sponsors, recordkeepers and the government can and should do more to protect retirement savings from cybertheft."  MORE >>

"[W]ithin-firm variation accounts for a dramatically lower percentage of total variation in benefits than in wages.... [T]he presence of high-wage workers in unrelated divisions of a firm as well as workers hired in high-benefit local labor markets positively predicts their colleagues' benefits, controlling for occupation, wages, state, and industry.... [F]irms with more generous benefits attract and retain more high-wage workers, but also reduce their reliance on low-wage workers more than low-benefit peers. [These] results suggest that benefits disproportionately matter for worker-firm matching and, hence, compensation inequality."  MORE >>