Updated Aug. 7, 2023. "The six tables in this guide describe statutory changes and their effective dates, identify whether the changes are mandatory or optional for employers, and provide initial observations, including implementation challenges for which agency guidance would be helpful."  MORE >>

"Sponsors of plans with valuation dates from Oct. 1, 2022, through March 1, 2023, may -- but are not required to -- recalculate their plans' funding target attainment percentage (FTAP) using current market interest rates and market value of assets. If the resulting FTAP is at least 85% (rather than the customary 80%) and certain other conditions are met, the plan won't trigger PBGC 4010 reporting."  MORE >>

"Absent relief from the PBGC, many entities that are not typically subject to 4010 reporting would have been required to submit a filing this year.... To take advantage of the waiver, the filer must notify the PBGC by email no later than 15 days before the 4010 report would otherwise be due."  MORE >>

"[S]elf-directed IRAs ... are advertised as allowing 'almost any type of alternative investment' without much stated about the myriad of rules that apply. Self-directed IRAs are in fact regulated and subject to a wide variety of limitations ... [which] impose sometimes burdensome reporting requirements and restrictions on the types of transactions that can take place with the account owner or related parties."  MORE >>

"[1] Confusion with state & local government plans.... [2] Confusion between 457(b) and 457(f) plans.... [3] Top hat requirement.... [4] Monthly elective deferral rule.... [5] Contributing too much to 457(b) plan."  MORE >>

"Participants sued in December 2021 saying the company and its fiduciaries violated ERISA by charging excessive record-keeping fees and retaining poor-performing investments.... [The District Court judge] rejected the defendants' request to dismiss the record-keeping allegation ... [but did dismiss] the plaintiffs' allegation that fiduciaries failed to adequately review the plan's investments and that the expense ratios for 17 investments were excessive." [Seibert vs. Nokia of America Corp., No. 21-20478 (D.N.J. Aug. 8, 2023)]  MORE >>

"The Securities Industry and Financial Markets Association [SIFMA] filed a lawsuit ... challenging two regulations enacted by the state of Missouri that require additional recordkeeping for advisers and brokers recommending or selecting investments with a 'non-financial objective.' The rules took effect on July 30." [SIFMA v. Ashcroft, No. 23-4154 (D. Mo. complaint filed Aug. 10, 2023)]  MORE >>

24 pages. "Nearly nine out of 10 surveyed sponsors report feeling a 'very high' or 'somewhat high' level of responsibility [for employee financial wellness], up from 74% in 2019 and 59% 10 years ago ... 52% of respondents say they offer automatic enrollment, significantly up from 10 years ago ... The most frequently reported investment menu changes were 'adding an option designed to generate retirement income for retirees' (45%) ... and 'reducing the number of investment options' (35%) ... Only 55% of surveyed sponsors know that they are a plan fiduciary, even though all the respondents have fiduciary responsibilities."  MORE >>

"[A recent report claimed] 'Forgotten 401k accounts grew significantly during 2021 & 2022 and now exceed $1.65 trillion in assets.' [A] trade journal article on this report has generated harsh responses from veteran financial service providers who specialize in the retirement plan market.... It's not that there are no 'forgotten' accounts. The issue appears to be that many ex-employee accounts remain in old plans because those people have a great deal of confidence in their former employer's retirement plan."  MORE >>

21 pages. "ESOPs can pay fair market value for the stock: Stock purchased by an ESOP must be appraised by an independent third party expert working with a trustee for the ESOP who must also be independent from the seller. The ESOP is permitted to pay a negotiated price that is up to full fair market value. If 100% were sold to the ESOP, the seller would typically not bear the Company’s expenses related to the ESOP transaction. Also, no business brokerage or similar fees are typically paid."  MORE >>

"The Ninth Circuit ... has ruled ... that when AT&T contracted with Fidelity ... to add managed account and brokerage link services to its participants, it was a prohibited transaction under ERISA because Fidelity was a 'party-in-interest' to the plan.... The unfair result in this case is exacerbated by the actual fees that plaintiffs claimed were 'excessive.'... This case is a gift to the plaintiffs' bar, as they will now argue that the prohibited transaction exemption is an affirmative defense that cannot be decided on a motion to dismiss." [Bugielski v. AT&T Servs., Inc., No. 21-56196 (9th Cir. Aug. 4, 2023)]  MORE >>

"[T]he 218th open meeting of the [ERISA Advisory Council] will be held September 19-21, 2023.... The purpose of the open meeting is for the ERISA Advisory Council to hear testimony from invited witnesses on the following topics: [1] Long-Term Disability Benefits and Mental Health Disparity, and [2] Recordkeeping in the Electronic Age. Descriptions of these topics are available on the ERISA Advisory Council's web page[.]"  MORE >>

12 pages. "83% of [the] panelists agreed or strongly agreed that at least 10% of employers involved in the gig economy will offer contract workers voluntary payroll-deduction retirement savings mechanisms, such as IRAs, solo 401(k)s, and HSAs by the end of 2026.... 60% agreed or strongly agreed that by year-end 2026, at least 10% of employers in the gig economy will offer voluntary insurance benefits to their contract workers. However, opinions ... began to diverge on topics like voluntary healthcare, voluntary savings programs for contract workers, and future legislation allowing contractors to participate in 401(k) plans."  MORE >>