"Since 2009, most 403(b) plans have required a written plan document, but plan sponsors could not obtain the IRS's opinion that the form of the plan follows the Code's requirements. 403(b) plan sponsors can now obtain an initial determination letter under the IRS program.... Determination letter applications are limited to an initial review of individually designed 403(b) plans (including most long-standing 403(b) plans that could not apply previously) and terminating 403(b) plans."  MORE >>

"When a 401(k) plan excludes the employees of an ASG member, failed coverage testing is often the result. A basic understanding of the ASG rules can help business owners avoid this trouble.The ASG rules are significantly more complicated than the controlled group rule.... Here are the basics."  MORE >>

"Using 401(k) forfeitures to reduce employer contributions is a common practice that's been approved by regulators when done the right way ... Four cases casting doubt on the practice have been filed since September by Hayes Pawlenko LLP, a small employment law firm in California ... Like many ERISA disputes, this legal theory could turn on the language of a given plan document."  MORE >>

"[T]he sponsor fiduciary's responsibility with respect to proxy voting is typically indirect -- generally, some other fiduciary will be directly responsible for proxy voting. In that situation, the sponsor fiduciary's responsibility will be to monitor the conduct of the proxy voting-fiduciary ... And, within a range of plausibility, that duty will be more about process (reviewing/documenting review of the proxy voting-fiduciary's policies and activity) and less about substance (less about, e.g., whether a particular proxy initiative is prudent)."  MORE >>

"A safe harbor design only provides relief from ADP and ACP testing. It does not keep the plan 'safe', or exempt the plan, from other compliance testing requirements such as IRC Sec 410(b) minimum coverage testing, IRC Sec 401(a)(4) general testing or benefits, rights and features testing.... There may be additional costs and administrative complexity with the adoption of safe harbor design, including minimum contributions, minimum vesting, and automatic enrollment requirements. A comprehensive cost-benefit analysis should be performed to evaluate the pros and cons."  MORE >>

"A large portion of 152 global corporate and public pension funds recently surveyed by Apex Partners -- 58 percent -- said they expect allocations to private equity that accounts for environmental, social, and governance factors to rise over the next three years. The trend comes amid a complex investing environment for ESG strategies overall."  MORE >>

"SECURE 2.0 left in place a tax credit structure which limited the tax credit amount to $250 per employee, with a minimum total of $500 ... The RISE Act would increase the minimum credit to $2,500 for businesses with fewer than 10 employees to better compensate businesses for the costs of starting and operating a plan."  MORE >>

"This paper devises a flexible assessment framework of a catalogue of existing retirement income products which include, account-based pensions, group self-annuities and variable annuity contracts.... The key features of the retirement income products which include variable annuities, account-based pension, and group self-annuities, are presented in an easily understandable way for a retiree with common knowledge.... [The authors] also devise a lifetime utility analysis framework for the comparison of lifetime utility from purchasing the products."  MORE >>

"it is critical that Treasury and IRS issue additional guidance as soon as possible to allow plan sponsors, payroll providers, recordkeepers and other service providers to prepare for January 2026. Without that guidance and sufficient time to implement necessary systems, configuration changes, and participant communications, the transition period cannot be used for its intended purpose.... [This letter provides] responses to the specific requests for comments in Notice 2023-62, as well as [other] requests for guidance on SECURE 2.0's Roth catch-up requirement that were not addressed by Notice 2023-62."  MORE >>

"Total rewards preferences among the workforce have always differed somewhat from employers' perceptions.... Regular feedback, whether gathered formally or in real time, allows closer alignment of resource investments with employee preferences ... Data access and analysis provide the clearest window into strategic applications for optimizing the employee experience.... Assessing current employee experience data at regular intervals helps ensure that employers stay tuned to quickly evolving preferences."  MORE >>

"On October 17, 2023, the [IRS] updated its Internal Revenue Manual to fully incorporate ... certain e-signature policies and procedures permitting the use of electronic signatures on certain forms, including elections under section 83(b) of the Internal Revenue Code ... This indefinitely extends the prior temporary relief granted by the IRS that was set to expire on October 31, 2023."  MORE >>