"Participants born in 1951 now have the opportunity to roll over distributions made between January 1 and July 31, 2023, which were originally mischaracterized as RMDs and hence ineligible for rollover.... [Notice 2023-54] allows plans to be administered safely for 2023, knowing that, if the plan does not distribute 'specified RMDs,' neither the plan nor the beneficiary will be penalized. We don't know yet whether the final regulations will require a 'make-up' distribution of the 2021 though 2023 specified RMDs as part of the 2024 RMD."  MORE >>

"[In] the current high-interest rate environment, many employers ... may be vetting a variety of de-risking options (including pension risk transfers) to 'take advantage' of the enhanced funding and decrease balance sheet liability and PBGC premiums in advance of new DOL guidance. While the [DOL's] consultation paper is not law -- or even sub-regulatory guidance -- it might still be helpful to pension plan fiduciaries considering a de-risking option to ensure that those fiduciaries are considering the trends highlighted by the DOL."  MORE >>

"For plan sponsors that have the option to switch from the alternative method to the standard method in 2023, there are significant savings to be seen. However, making this switch locks the plan sponsor into the standard method for the next five years. If interest rates fall over this period, then the savings seen in 2023 could be wiped out by higher PBGC premiums in future years. Given uncertainty about future interest rates, when is the right time for a plan sponsor to switch methods and lock themselves in for the next five years?"  MORE >>

"The auto-portability movement has gained momentum recently, culminating in the 2022 formation of the Portability Services Network [PSN], owned jointly by [Retirement Clearinghouse] and several of the largest U.S. recordkeepers.... Participating recordkeepers bring their plan sponsors to the arrangement, and those sponsors bring the participants.... PSN reaches 63% of the defined contribution marketplace, based on the six original PSN owner/members (Alight, Vanguard, Fidelity, TIAA, Empower and Principal)."  MORE >>

"[This study examines] the PBGC distributions chosen over the last decade and how they vary by age at retirement, sex, months of service, and other relevant variables. Key findings indicate that men are much more likely to choose a joint and survivor annuity compared to female claimants and the difference increases with age. Conditional on selecting a J&S annuity, men are more likely to select a 100% survivor's annuity while women tend to choose a 50% survivor's benefit."  MORE >>

"With overall inflation lower this year, Social Security benefits are on pace for a lower COLA in 2024, with some forecasts around 3%. Here's what to know."  MORE >>

"By July 31, employers that sponsor self-funded medical plans must report and pay their PCORI fee. By July 31, employers that sponsor calendar-year employee benefit plans that are subject to ERISA must file a Form 5500 (unless an exception applies) or request an extension by filing a Form 5558."  MORE >>