"[IRS Notice 2023-62] addresses confusion over an apparent drafting error in the Act that could be read to eliminate catch-up contributions altogether. The Notice clarifies that eligible participants over age 50 may continue to make catch-up contributions, regardless of income."  MORE >>

"Noting that 'where ERISA is concerned, nationwide uniformity isn't just an ideal -- it's an imperative,' ... AT&T states that 'in a 'watershed moment' for ERISA plans and plan sponsors, the panel decision violated that imperative -- departing from Supreme Court precedent and splitting with the Third and Seventh Circuits.' They go on to state that a 'rehearing is needed to resolve these conflicts and restore uniformity on an important, recurring issue of ERISA law.' " [Bugielski v. AT&T Servs., Inc., No. 21-56196 (9th Cir. Aug. 4, 2023; pet. for rehearing filed Sep. 1, 2023)]  MORE >>

"Fee pressures continue to be a dominant force in shaping the future of target date solution ... Study results depict plan sponsors as evolving from an exploratory mindset to a more decision-oriented posture on in-plan retirement income solutions.... [H]alf (50%) of respondents cite poor performance as influencing their evaluation of DC plan fixed income offerings ... [A] majority (71%) of study respondents identify ESG integration ... as the best path forward to incorporating ESG factors in DC plan investments[.]"  MORE >>

"Understanding the available options to satisfy repurchase obligation can ensure the plan sponsor is using the appropriate strategy in the current life cycle of their ESOP. Working through a repurchase obligation study can not only educate a new or old ESOP company to understand the ins and outs of repurchase liability, but it also gives them a sense of comfort they have done their due diligence as a plan sponsor to ensure the sustainability of the ESOP and the current plan design is supporting their corporate goals."  MORE >>

"[PBGC] has approved the application submitted ... by the Local Union No. 863 I.B. of T. Pension Plan. The plan, based in Mountainside, New Jersey, covers 2,487 participants in the transportation industry ... [and] will receive approximately $334 million in special financial assistance ... The plan was projected to become insolvent and run out of money in 2024."  MORE >>

"Applying the Meiners principles to this case, the court concluded that the complaint failed to state a plausible claim for breach of the duty of prudence. The court agreed with the district court that 'the FAC failed to plausibly state a breach of the duty of prudence based on the allegedly higher investment management fees because [1] the FAC 'misstate[d] expense ratios of Plan funds' and [2] the FAC 'ma[de] 'apples to oranges' comparisons that d[id] not plausibly [permit the court to] infer a flawed monitoring and decisionmaking process.'' Because this claim fails, the duty to monitor claim also fails." [Matney v. Barrick Gold of N. Am., No. 22-404 (10th Cir. Sept. 6, 2023)]  MORE >>

"The Massachusetts Supreme Judicial Court upheld the fiduciary duty standard of care imposed on broker/dealers by the Commonwealth of Massachusetts on August 25, 2023. [This article explains] the practical implications of the recent court opinion and highlight why the United States Supreme Court should grant a Writ of Certiorari and vacate the Massachusetts' fiduciary duty standard." [Robinhood Financial, LLC v. Secretary of the Commonwealth, No. SJC-13381 (Mass. Aug. 25, 2023)]  MORE >>

"SECURE and SECURE 2.0 did some amazing things to enhance and improve 401k plans. It will be years before we are able to truly understand and evaluate the impact of the various provisions on retirement accounts, but on the surface, all of these provisions are welcome improvements to 401k plans.... [Here are] few proposals to continue to improve the benefits participants will receive from their 401k accounts."  MORE >>