"Although the IRS did not explicitly state the technical logic behind its interpretation, the IRS relied on the fact that Code section 414(v)(1) states that permitting catch-up contributions will not cause a plan to fail to meet any other provision of the Code. It appears that the IRS concluded that regardless of the elimination of the specific reference in Code section 402(g) to catch-up contributions, the overriding language in Code section 414(v)(1) permits catch-ups."  MORE >>

"To assist with implementation, Notice 2023-62 signals future guidance on certain issues that have been raised by plan sponsors, service providers and practitioners: [1] Participants with no prior-year FICA wages.... [2] Plan-designated Roth catch-ups.... [3] Application to plans maintained by more than one employer.... Notice 2023-62 requests comments on one of the critical questions about the SECURE 2.0 provision ... Are plans with affected participants required to offer a Roth feature?"  MORE >>

"[T]he pension funds have argued in their motion that dismissal is appropriate because the plaintiffs face no injury and lack standing and that the plaintiffs have not stated a cause of action." [Wong v. NYCERS, TRS and BERS, No. 652297/2023 (New York County, motion to dismiss filed Aug. 7, 2023)]  MORE >>

"The Court determined that Plaintiffs' breach-of-fiduciary-duty claim under the ERISA 'seeks relief for the [Benefits] plan as a whole,' and that 'the harm (and the recovery) is to the Plan, rather than to plaintiffs specifically.'  ... In turn, the Court concluded that compelling arbitration and enforcing the class action waiver would prevent plan participants from seeking plan-wide remedies conferred by the ERISA statute.... [T]he Parker decision is instructive for employers seeking to implement an enforceable class action wavier and configure arbitration agreements that are best suited to account for the possibility of a class action waiver being nullified." [Parker v. Tenneco Inc., No. 23-10816 (E.D. Mich. Aug. 21, 2023),]  MORE >>

"Specialized retirement plans tailored to the needs of gig workers have emerged ... These specialized plans offer gig workers the flexibility to contribute to their retirement savings on their own terms, accommodating the irregular income streams that are characteristic of gig work."  MORE >>

"It is reasonable for fiduciaries to decide to protect against downside risk in bear markets, with the intentional decision to give up some upside risk.... The irony of the Intel case is that plaintiffs are seeking damages because the Intel plan took less risk to protect investors, but in hindsight there was no need to hedge against market volatility in a ten-year bull market that no rational investor or fiduciary could foresee. " [Anderson v. Intel Corp. Investment Policy Comm., No. 19-4618 (N.D. Cal. Jan. 8, 2022; on appeal to 9th Cir. No. 19-4618)]  MORE >>

"While EBSA is helping users make a gradual transition by allowing users with EFAST2 accounts established before Jan. 1, 2023, to use those credentials until Dec. 31, 2023, the agency reminds all users that they must obtain Login.gov credentials by the December deadline. Users who created new EFAST2 accounts since Jan. 1, 2023, have already been directed to obtain Login.gov credentials."  MORE >>

"The most common outsourced benefit services include: Employee assistance programs (EAPs) -- 80%. COBRA administration -- 79%. Pharmacy benefits administration -- 75%. Flexible spending accounts (FSAs) -- 75%. Retirement benefit payments -- 59%. Health savings account (HSA) administration -- 54%."  MORE >>

"A key factor in retaining top executive talent is offering a nonqualified deferred compensation plan, according to 92% of employers who participated in [a recent study]. However, [the study] found that while NQDCPs are appealing to companies of all sizes, they appear to be underutilized, with eligibility rates outpacing population and few companies planning to make near-term changes."  MORE >>