"Although the new rules seem straightforward, there are many open questions that will need to be addressed. For example: What alternatives might be available for employers that do not track actual hours? Does the new rule apply to employees who are excluded from participating as a member of an excluded classification not based on service but who nonetheless complete at least 500 hours of service? For 403(b) plans, what is the effect on universal availability and the student employee exclusion?"  MORE >>

"The proposal would scrap the traditional five-part test for determining if an adviser is acting in a fiduciary capacity and replace it with a three-part test in which satisfying any one of the three conditions would make the adviser a fiduciary.... [T]he proposal would assert the DOL's authority under ERISA over any retirement account and any annuity purchase made with plan assets, and recommendations in these spaces would be subject to ERISA fiduciary standards."  MORE >>

"A pillar of the proposed rule is making virtually anyone who recommends investments to a 401(k) plan a fiduciary, which the Biden administration said is necessary to close a loophole in the [SEC's] Regulation Best Interest.... [An] exemption that has been in place since 1977 that allows investment fiduciaries to recommend open-end mutual funds sponsored by an affiliate may no longer apply, unless the advisor has full investment discretion ... And, similar to a question raised by the 2016 version of the DOL fiduciary rule, there are questions about the use of model portfolios[.]"  MORE >>

"Given the framing of the Advisory Opinion, the biggest issue is the 'inherently factual' one of whether Citi, as sponsor, in furtherance of its own business purposes -- having Citi 'viewed favorably by its employees, the general public, its shareholders, potential customers, business partners, and other interested parties' -- has (despite its representations) tried to influence committee decisions."  MORE >>

"The main barriers to offering a plan are concerns about the stability/size of the firm and the perceived costs of a plan. Concerns about costs are driven by misperceptions; many firms are unaware of lower-cost options for employers and tax credits. The survey results also suggest that state auto-IRA programs do not deter firms from offering a plan and may even encourage it."  MORE >>

"A PEP is required to have a pooled plan provider (PPP) that is designated by the terms of the plan as a named fiduciary and plan administrator.... Joining a PEP does not completely exonerate each employer from its fiduciary responsibilities.... [A] PEP is effectively an open MEP because it is not subject to the common interest requirement that applies to other MEPs. As such, PEPs are considered a single plan for both IRS and ERISA purposes."  MORE >>

"New comparability plans work because of cross-testing. Rather than gauge whether a profit share is discriminatory on the face value of the contribution, cross-testing uses a benefit accrual rate, which projects the future value of an individual's retirement portfolio when the individual reaches retirement age. In many cases, NHCEs will have accrual rates that are similar or even higher to their high-earning peers, even if their current profit sharing allocations are significantly less."  MORE >>

"If Congress has not acted by 2034, we will be faced with an automatic 20% cut in benefits to people already receiving benefits, the need to immediately increase Social Security taxes by 25%, or some combination of benefit cuts and tax increases."  MORE >>

An unofficial monthly report of the Moody's Daily Long-term Corporate Bond Yield Averages and Moody's Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).  MORE >>

"Plaintiff lawyers are pursuing theories of liability that have no basis in ERISA. They are biased prosecutors that are not acting in the best interests of plan sponsors or participants. This is particularly true when lawsuits allege imprudence with claims that attempt to stretch or change ERISA fiduciary liability. This includes lawsuits based on disfavored outcomes that ignore fiduciary process -- the lynchpin of ERISA fiduciary liability.... Let's apply some of their rules from recent litigation, and see how America's workers are somehow better off."  MORE >>

"The fact that annuity issuers typically reserve the right to change cap and/or participation rates has potentially serious fiduciary liability implications for plan sponsors and other investment fiduciaries.... [T]his is clearly a material fact that a plan sponsor knows or should know as a result of the plan sponsor's required investigation and evaluation.... [T]he practice and its impact on plan participants should automatically preclude any consideration of such an annuity in any ERISA plan."  MORE >>

"This unnecessary, redundant, and harmful proposal will have a significant adverse impact on the ability of lower- and middle-income workers to access professional retirement planning assistance and affordable retirement planning products, including guaranteed lifetime income products such as annuities[.]"  MORE >>

"The Chamber is disappointed that the [DOL] has spent its time and resources resurrecting a rule that has previously been invalidated by the courts, is outside of its rulemaking authority, and, most importantly, does nothing to promote retirement security and savings."  MORE >>

"IRS announced that it will allow taxpayers to make and file Section 83(b) elections with a digital signature. This decision makes permanent a practice that the IRS temporarily allowed during the COVID-19 crisis. [This article provides] a refresher of certain requirements and considerations when making a Section 83(b) election."  MORE >>