"There are interesting parallels between the DOL's views in [Advisory Opinion 2023-01A ] and its most recent position on [ESG] factors with respect to investment decision-making involving ERISA plan assets. In both scenarios, fiduciary investment decision-making can comply with ERISA even when indirect financial or other benefits may flow to non-participants or the public-at-large, but fiduciaries must base their decisions on financial factors and a risk/return analysis that benefit the plans and their participants."  MORE >>

"Employers, recordkeepers, payroll providers, consultants, and legal counsel will need to work closely in conjunction to implement and ensure plans are operating in compliance with the SECURE Act changes, and plan sponsors will need to educate and inform plan participants regarding these changes. Certain provisions may require manual workarounds as some service providers may not have an automated platform available or still need to update software programs to accommodate the changes. It is important that service providers have an operational checklist to assist plan sponsors in documenting and tracking elections until the plan amendment is signed."  MORE >>

"Existing ERISA investors in plan asset vehicles [should] review, confirm and document that the Plan Asset Manager's investment policy statement and proxy voting policies are consistent with Title I of ERISA. To the extent the Plan Asset Manager retains a proxy voting service for the voting of proxies, it must undergo a similar review and document that such proxy voting service's voting policies are consistent with Title I of ERISA."  MORE >>

"The U.S. Supreme Court has declined to hear two cases concerning the enforceability of mandatory arbitration and class action waivers in plan documents.... Both cases alleged that private equity in employee stock ownership plans was improperly valued at the expense of the participants.... In both circuit court outcomes, the defendants' moves to force individual arbitration and prevent a class action remedy were denied." [Harrison v. Envision Mgmt. Holding, Inc. Bd. of Directors, No. 22-1098 (10th Cir. Feb. 9, 2023; Argent Trust Co. v. Harrison, No. 23-30, cert. denied Oct. 4, 2023); Henry v. Wilmington Trust NA, No. 21-2801 (3d Cir. Jun. 30, 2023; cert. pet. denied Oct. 16, 2023)]  MORE >>

"Two more suits in two different California federal district courts have just challenged the use of plan forfeitures to offset company contributions as not being in the best interests of plan participants.... The suits acknowledge the discretion to do so, but position that decision as having “consistently chosen to utilize the forfeited funds in the Plan exclusively for the Company’s own benefit, to the detriment of the Plan and its participants, by using these Plan assets solely to reduce Company contributions to the Plan.”" [(McManus v. Clorox Co., No. 23-5325 (N.D. Cal. complaint filed Oct. 18, 2023)]  MORE >>

"Since the rule was delivered to the OMB in early September, organizations from the Securities Industry Financial Markets Association [SIFMA] and Financial Services Institute to the Institute for the Fiduciary Standard and the Consumer Federation of America, have held meetings with OMB and DOL officials concerning the new rule ... At the heart of the disputes between these advocacy groups is whether the [SEC's] Regulation Best Interest and National Association of Insurance Commissioners' best interest rule for annuity recommendations negate the need for a revised DOL fiduciary rule."  MORE >>

"[EBSA] on Oct. 18 notified the White House Office of Management and Budget (OMB) that it intends to begin consulting with stakeholders -- including participant representatives, employers sponsoring ERISA retirement plans, and retirement plan service and investment providers -- to explore alternatives for improving the understandability and effectiveness of such plan disclosures."  MORE >>

14 pages. "[1] 401(k) plans represent the largest share of DC plan assets.... [2] Most 401(k) plan participants receive plan contributions from their employers.... [3] Equities figure prominently in 401(k) plans, especially among younger 401(k) investors.... [4] 401(k) plan participants have concentrated their assets in lower-cost funds.... [5] Fewer than one in five 401(k) plan participants have loans outstanding."  MORE >>

"These final regulations amend existing regulations relating to user fees for enrolled actuaries. The final regulations increase both the enrollment and renewal of enrollment user fees for enrolled actuaries from $250 to $680."  MORE >>

"Benefits decision makers cited high costs of living as the top issue to address with financial wellness initiatives, supplanting retirement preparedness for the first time ever. While retirement preparedness remains an important area of focus for employers as the second-most cited area to address, issues such as health care costs, budgeting and money management and daily living expenses rounded out the top five, perhaps signaling an increase in employers' concern for their workers' day-to-day finances."  MORE >>

"Year-end is a key time for financial and tax planning with stock options, restricted stock and RSUs, employee stock purchase plans, and the acquired company shares.... [These resources] can help you identify areas in your equity comp picture where you can take meaningful action before the end of 2023."  MORE >>