38 pages. "The purpose of this RFI ... is to inform future action by the Department on the following SECURE 2.0 mandates related to ERISA's reporting and disclosure provisions. The Department invites comments, including relevant data, if available, from all interested stakeholders. The RFI includes questions about a number of distinct SECURE 2.0 provisions. Commenters need not answer every question, but are encouraged to identify, by number, each question addressed."  MORE >>

"In its current compliance efforts, the IRS has identified numerous issues, such as valuation issues with employee stock; prohibited allocation of shares to disqualified persons; and failure to follow tax law requirements for ESOP loans causing the loan to be a prohibited transaction. Additionally, the IRS has seen promoted arrangements using ESOPs that are potentially abusive.... Over the next year, the IRS will continue to use a range of compliance tools, including education, outreach and additional examinations to address compliance issues associated with ESOPs."  MORE >>

"Notice 2023-43 clarifies what eligible inadvertent failures may be self-corrected and addresses limitations on self-correction. The following are some of the key provisions in the Notice: ...  perhaps most importantly, the Notice states that an eligible inadvertent failure may be self-corrected on or after December 29, 2022 (the date that SECURE 2.0 was enacted) even if the failure occurred before that date."  MORE >>

"The Inflation Reduction Act of 2022 (IRA) provides generous tax credits for certain clean energy investments (e.g., 50% of the applicable basis in wind and solar farm projects).... [T]he proposed regulations essentially require direct ownership of the green energy project in order to receive Direct Pay tax credits, but ERISA funds generally must use indirect investment vehicles ... in order to avoid prohibited transaction and fiduciary burdens.... The proposed regulations do not provide a mechanism by which investing ERISA funds and tax‐exempt entities may receive Direct Pay IRA tax credits when they invest indirectly."  MORE >>

"The Court rejected defense arguments to deny certification of one large class in favor of smaller sub-classes based on differences in the investment choices and resulting injuries of putative class members. Instead, the Court concluded that allegations that the asserted injuries were caused by Defendant's common conduct warranted class certification without regard to such differences." [Goodman v. Columbus Regional Healthcare System, Inc., No. 21-0015 (M.D. Ga. Aug. 2, 2023)]  MORE >>

"While there are just three categories of fees for retirement plans, there are levels and layers within these categories that increase the complexity of retirement plan costs. As a result, many employers do not understand the full extent of the fees that can be charged, and they -- and their plan participants -- may be paying too much."  MORE >>

"Universities sponsoring 403(b) retirement plans must realize that under ERISA they likely will be met with allegations that they are plan fiduciaries, responsible for demonstrating prudence in selecting and monitoring the plan's service providers, making sure that the plan is operated in accordance with its terms, assuring that the plan's expenses are reasonable, and prudently monitoring and managing the investment choices offered to plan participants."  MORE >>

"More than 60 U.S. corporate 401(k) plans in 2022 made changes in their investment options lineups, down from over 100 plans the previous year. Slightly less than 8% of 11-K filings showed plans that made at least one investment option change during the year, with the majority affecting individual equity options[.]"  MORE >>

"Although many plan sponsors excel in providing foundational knowledge about retirement plans, the critical role of comprehending the risks inherent in financial decision-making is often undervalued and overlooked. This doesn't represent a setback but, rather, a significant opportunity. By integrating risk literacy into participant education, plan sponsors can arm their participants with the tools to make wiser, more comprehensive financial choices."  MORE >>

"[T]his study looks specifically at how well Social Security's progressive benefit formula protects older Americans in high-cost cities. Having to pay high housing expenses will put workers who are currently in their mid-50s at only a slight disadvantage when it comes to Social Security benefits in retirement."  MORE >>

"The [IRS on August 9] issued a statement suggesting a greater focus in the next year on S-Corp ESOPs and tax compliance, particularly for companies with a parent holding or management company structure and certain owner finance arrangements. While very short on specifics, the IRS communication appears to be driven by aggressive marketing of ESOP plans by some, although the IRS provides no specific examples of where an ESOP has been used in the manner they suggest."  MORE >>

"Since the needs and preferences of employees vary significantly across different regions and cultures, a perfect international benefits package is actually a myth.... Crafting a locally customizable benefits plan involves tailoring employee benefits to align with local market practices, cultural norms and legal requirements. It requires a deep understanding of the specific country's labor laws, social security systems, healthcare systems and cultural expectations."  MORE >>