"Preliminary analysis shows that the new table will reduce lump sums by approximately 1.25% to 1.5% for participants in plans with a normal retirement age of 65. This reduction is significant, but may be lost in the effect of increasing corporate bond rates trending higher than those in place for 2023 lump sums."  MORE >>

"This year ... no amendments are required to comply with [SECURE 2.0] or any other legislative action or Treasury Department guidance. There are also no required changes on the IRS's Required Amendments List or its Operational Compliance List. However, because SECURE 2.0 retroactive corrections require operational compliance, plans are likely to have to implement operational changes in 2024, along with those already applicable in 2023. Even though no amendments are required, some plans may want to make amendments."  MORE >>

"The [DOL] just issued an Advisory Opinion that permits Citigroup to select 'diverse managers' without regard to fiduciary duty if it pays those managers directly rather than through the plan.... On its face, the DOL seems to use the same metric that it earlier employed in its statement on the Fiduciary Rule.... the Advisory Opinion is very precise in what it allows. Citi will have to tread carefully to not cross the line into the realm of fiduciary."  MORE >>

"Despite distinct legislative histories, there has been a move toward harmonizing rules for 401(k) and 403(b) plans. This In Focus provides background on 403(b) plans, highlights areas in which they differ from 401(k) plans, and discusses current legislative developments surrounding 403(b) plans." [IF12518 Oct. 24, 2023]  MORE >>

"Despite ERISA's statutory language, no court has found that ownership alone is sufficient to result in liability. In order to collect, plaintiffs must either establish jurisdiction in a United States court or convince a foreign court to apply ERISA. In both situations, collecting from foreign entities is an uphill battle. The difficulties are illustrated by ... a recent decision in which a U.S. federal court refused to entertain a suit by a multiemployer plan to collect withdrawal liability from a foreign entity." [Holland v. Cardem Ins. Co, Ltd, No. 19-02362 (D.D.C. Sep. 11, 2023)]  MORE >>

"Legislative changes, product development and an enthusiastic industry are opening the gates to annuity products inside retirement plans.... Complexity and availability remain the two biggest hurdles ... Thirty percent of advisors said the products are 'difficult for a sponsor to understand,' while another 28% said 'products are not available on all recordkeeping platforms.' Not surprisingly, better-educated advisors is a big key to connecting lifetime income products with eager plan participants."  MORE >>

"Among the concerns of the Division of Examinations is whether conflicts are adequately disclosed so that investors can provide informed consent. Off-the-shelf disclosures may not have sufficient information to pass that test. The starting point for making an investment recommendation or providing investment advice is to develop a profile of the investor ... Questionnaires and other information-gathering materials should be reviewed to ensure their adequacy for purposes of investors who will regularly withdraw cash for lifelong retirement income from their accounts."  MORE >>

"If you have a SIMPLE IRA, ... [but] want to change to a 401(k) plan in 2024, you need to take action by November 2. That's the date that employers must provide notice to their employees that 2023 will be the last year for the SIMPLE IRA, and that it will be replaced by a 401(k) plan in 2024."  MORE >>

"While the number of governments adopting automatic enrollment or automatic escalation continue to slowly grow, resistance or indifference also persist ... [T]his report considers the current environment for automatic enrollment and automatic escalation and explores their success over time by revisiting case studies from previous reports as well as examining two governments that have more recently adopted them."  MORE >>

"The aggregate funded ratio for U.S. state pension plans decreased by an estimated 3.0% during the third quarter of 2023 to end the quarter at 75.2% ... The quarterly change in funding resulted from a 3.0% decrease in asset value and a 0.8% increase in liability value."  MORE >>

"During its strike, one of the UAW's demands has been that the auto companies restore traditional pensions. Less well-known ... is that the negotiations have also contemplated adding a lifetime income option in their 401(k) plans. It should be a no-brainer for auto companies because numerous lifetime income solutions are available. The auto companies and thousands of other employers should use them."  MORE >>

"The following practices may lead to violations under the DBRA, resulting in failure to pay the applicable prevailing wage rate ... [1] Misclassifying laborers and mechanics for the type of work performed; [2] Failing to obtain prior approval from the [DOL] for unfunded fringe benefit plans; [3] Failing to annualize (or incorrectly annualizing) the hourly equivalent of fringe benefit amounts ... [4] Paying hourly rates and/or fringe benefit amounts pursuant to a Collective Bargaining Agreement (CBA), where the CBA specifies rates lower than those required in the applicable wage determination; and [5] Improperly taking credit towards fringe benefit obligations for certain expenses"  MORE >>