"Effective for force out distributions to Automatic Rollover IRAs made after December 31, 2023, the new limit will be $7,000. This change will be helpful to all plan sponsors, but especially those at or just over the 100-person participant count for purposes of plan audit requirements.... A few things to note about the new $7,000 cap and what to do if your plan wants to take advantage of it."  MORE >>

"By rejecting Oshkosh, and a similar Third Circuit ruling ... the court suggested that amending a service provider contract or even hiring an outside firm to help deliver benefits at all could be a prohibited transaction.... It's possible that the court's broad language could also encompass new contracts with new service providers, but the 'best reading' of the opinion is that it applies only to amended contracts with existing providers[.]" [Bugielski v. AT&T Servs., Inc., No. 21-56196 (9th Cir. Aug. 4, 2023)]  MORE >>

"AT&T contended that ERISA's prohibited transactions provision was not intended to include 'arm's-length service transactions,' but the Ninth Circuit was unmoved. The court emphasized that the statute was broadly written, and thus must be broadly interpreted.... The court further noted that its interpretation was supported by the [DOL], which had issued an advisory opinion involving 'remarkably similar' facts." [Bugielski v. AT&T Servs., Inc., No. 21-56196 (9th Cir. Aug. 4, 2023)]  MORE >>

"The lawsuit accuses TIAA of recklessly maintaining the plaintiff's personally identifiable information, or PII, saying the information was kept on the company's computer network in a condition vulnerable to cyberattacks. It also claims the company neglected to encrypt the highly sensitive information and that it failed to comply with the data security practices of the Federal Trade Commission." [Jentz vs. Teachers Insurance and Annuity Association of America, No. 23-6944 (S.D.N.Y. complaint filed Aug. 7, 2023)]  MORE >>

"The first lawsuit over the use of ESG in a 401(k) has a few gaping holes -- most notably that the lead plaintiff in the proposed class action wasn't invested in any of the funds in question, defendant American Airlines said. In a motion to dismiss ... the airline also noted that the investment options at the center of the complaint are not on the $27 billion plan's menu -- they are only available through a self-directed brokerage account." [Spence v. American Airlines, Inc., No. 23-0552 (N.D. Tex. motion to dismiss filed Aug. 4, 2023)]  MORE >>

"72% or employees indicated they are experiencing moderate to extreme financial stress.... 64% of employees are not adequately prepared for an emergency.... Nearly half of Survey respondents would like a one-on-one meeting with an advisor or financial consultant.  ... [E]mployees have questions about how the [retirement] plan works, how much to save, how to invest, and how to track their progress toward goals."  MORE >>

"Bank of America retirement plan participants' hardship withdrawals rose 36% year-over-year in Q2 to 0.52% of participants ... Participants also contributed 23% less to retirement plans on average in the year's second quarter as compared to Q1, the average contribution rate in Q2 was $1,460, down from $1,880 in Q1. While lower for the year, the contribution rate was in line with the same quarter in 2022, which had an average of $1,440."  MORE >>

"A hybrid QDIA solution that transfers participants from a TDF into a managed account can be a hard sell ... but there is traction among smaller plan sponsors with less litigation risk."  MORE >>

"Despite the volatility of asset values over this period, the 2023 funded status of state and local pension plans is about 78 percent, which is 5 percentage points higher than in 2019. Of course, the numbers for 2023 are estimates based on plan-by-plan projections, but these projections have an excellent track record."  MORE >>

"If you don't have to rely on your RMD to cover your cost of living and other routine expenses in retirement, there are a few strategies that could help you start using it to accumulate generational wealth that you can one day hand down to your heirs."  MORE >>