"[L]iabilities will typically decrease one to two percent as a result of changing from the 2023 static mortality to the 2024 updated generational mortality.... The ability to pay benefits under certain payment options may be affected by the proposed changes.... For plans that might otherwise be under restrictions, a decrease triggered by the new mortality table could increase the plan's AFTAP above one of the thresholds that trigger a benefit payment restriction."  MORE >>

"One of the most significant changes in the proposed regulation is to identify certain relationships ... in which the retirement investor may have a reasonable expectation that the investment advice fiduciary is acting in his or her best interest.... [T]he proposed rule shifts the regular basis test from whether the investor starts a relationship for the advisor to whether the advisor provides investment advice on a regular basis. This aspect of the rule will likely be the subject of future litigation[.]"  MORE >>

"[IRS Notice 2023-62] addresses the two most critical questions: [1] can we make catch-up contributions next year? YES, and [2] do I need to comply with the Roth catch-up rule for 2024? NO, the IRS provided a two-year grace period to implement the new rule.... [T]he Notice previewed the IRS' initial thinking on a number of open issues that plan sponsors and recordkeepers have been asking all year."  MORE >>

"The firms were ordered in August 2022 to pay [$1.5 million] because the district court judge said they 'recklessly proceeded to trial in violation of their duty to objectively analyze their case.'... The law firms represented plaintiffs in several sponsors' retirement plans against Empower ... saying allegedly excessive record-keeping fees and investment fees violated ERISA.... The sponsors were not defendants." [Obeslo v. Empower Capital Mgmt., Nos. 22-1291, 22-1292 (10th Cir. Oct. 31, 2023)]  MORE >>

"Stakeholders in the retirement, insurance and investment industries published an open letter to the DOL [on November 8], calling on the department to double the comment period for a new fiduciary rule proposal from 60 days to 120.... The industry letter also points out that previous iterations of the proposal, in 2010 and 2016, had 90-day comment periods with extensions."  MORE >>

"If a broker or insurance agent making a rollover recommendation receives any compensation ... they would be subject to ERISA enforcement provisions, which include a private right of action ... Both [the brokerage and insurance] industries have enjoyed exemptions from the fiduciary standard of ERISA, but many of those exemptions have been removed in the agency's latest proposed package."  MORE >>

31 slides from presentation to 2023 SOA Annual Conference. "[1] What's new in the 2023 Trustees Report (released March 31) regarding Social Security's actuarial status? [2] What options can be considered for closing the financing gap? [3] How do Social Security and Medicare ('entitlements') figure in the fiscal status of the federal government and the economy?"  MORE >>

230 pages.  Tax Exempt and Government Entities Subgroup Report begins at page 113, and includes:  [1] Recommendations on self-correction guidance for employee plans; [2] Recommendations for the non-bank trustee program; [3] Recommendations for more effective engagement between IRS and exempt organizations.  MORE >>

"Nearly 90 percent of eligible employees had an HSA in 2022 with 80 percent making contributions to it, up from 72.8 percent in 2021.... Three-quarters of employers make contributions to the HSA. Most provide a set amount per coverage level.... Sixty percent of responding organizations offer investment options for HSA contributions, though most participants choose not to use this option -- 70 percent of all HSA assets remain in cash."  MORE >>

"Courts continue to disagree over the enforceability of mandatory arbitration provisions containing class action waivers set forth in benefit plans governed by [ERISA]. In the absence of U.S. Supreme Court resolution, uncertainty will persist ... Plan sponsors should expect to see more litigation over the arbitrability of ERISA Section 502(a)(2) claims in the near term, and thoughtfully drafted arbitration provisions are key to minimizing the risk of potential class action litigation.'

[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. denied Oct. 16, 2023); Merrow v. Horizon Bank, No. 22-123 (E.D. Ky. Oct. 24, 2023)]  MORE >>