"The relief provided in Notice 2023-54 relates both the required distribution changes brought about by the SECURE Act of 2019 as well as the most recent change in RMD starting age brought about by SECURE Act 2.0.... Recognizing that many providers were unable to adjust their systems and administrative procedures in time to reflect this change, the IRS is providing several forms of relief for distributions involving IRA owners and plan participants who turned age 72 in 2023."  MORE >>

28 pages. "[This submission includes:] [1] Materials ... outlining the state insurance regulations applicable to life insurance companies operating in the United States. The materials focus on the regulatory framework governing solvency requirements, including the establishment of liabilities and required capital for benefit obligations that are the result of a pension risk transfer. [2] An issue brief authored by the Pension Committee of the American Academy of Actuaries focusing on 'buy-out' annuity contract transactions."  MORE >>

"By 2030, the number of jobs shifting to workers older than 55 will reach 150 million worldwide, nearly equal to the entire working population of the U.S. and 10 percentage points higher than in 2011 ... Fewer young people have joined the workforce in the last two decades, and while early retirement has long been the trend, it is now slowly going into reverse ... Among American workers, 41% now expect to work beyond age 65, compared to 12% three decades ago[.]"  MORE >>

"This post delves into Social Security as a foundational source of income for many 403(b) plan participants. It describes how benefits are earned, calculated, and taxed, the Social Security earnings limit, why many public employees are not covered, non-teaching routes (e.g., a second job or sideline business) to earn Social Security coverage, unique benefit formula rules for people whose primary job isn't covered by Social Security, and relationships among Social Security, pension, and 403(b) plan income. It also includes studies about teachers' retirement date timing, as well as three 'need to know' facts and six take-away action steps."  MORE >>

"[A] wide range of private credit opportunities [is] now available to plan sponsors. As these opportunities have expanded, private direct lending (DL) strategies have gained significant traction, providing a stable foundation to private credit programs. Plan sponsors can also access the private loan market through public business development companies (BDCs). BDCs have a comparable underlying strategy to private DL funds, but with important differences. Understanding the key characteristics of both can better enable plan sponsors to choose the strategy best suited to their portfolio."  MORE >>

"Average annuity purchase interest rates increased again, rising 18 basis points for the duration 7 rate and 10 basis points for duration 15 rate since June.... Pension Finance improved last month and annuity purchase rates climbed as well, making it an opportune time to enter the pension risk transfer marketplace.... Insurance carriers have already expressed capacity constraints for September. In anticipation of the upcoming PRT market rush, plan sponsors should act now to secure a spot in 2023."  MORE >>

"The city spends roughly $1 of every $5 on pensions while more than 80 percent of property tax dollars go towards retirement payouts. In November, the city had no junk ratings for the first time since 2015."  MORE >>

"[M]easures that IRI said can be taken as 'next steps on the road to further enhancing and strengthening Americans' retirement security' [include]: [1] The Lifetime Income for Employees Act of 2023 [HR 3942] ... [2] The Retirement Fairness for Charities and Educational Institutions Act of 2023 [HR 3063] ... [3] The General Account Products Clarification Act of 2022 [HR 9515]."  MORE >>

"[W]ill plan sponsors be able to determine whether plan participants will even be able to break-even on a particular annuity, especially if the annuity issuer retains the right to reset the terms? Will plan sponsors be able to understand the difference between an ordinary annuity and an annuity due and provide plan participants with the information on the financial implications of each, e.g., breakeven points?"  MORE >>

"[S]tate insurance regulators have all but abdicated their responsibility to monitor, much less regulate, private-equity-backed group annuity providers, or to protect group annuity beneficiaries.... [A] modernization of the current guidance for plan fiduciaries (IB-95) is urgently needed. Since group annuity beneficiaries lose their ERISA rights once they've been lifted-out of their defined benefit plans in a PRT, it is imperative that plan fiduciaries are able to differentiate between those providers whose core competency is long-term risk management versus those who bill themselves as expert asset managers and spread investors."  MORE >>