"[A] request to the DOL by several trade organizations to extend the comment period by another 60 days was denied. As such, comments on the proposed regulation are still due by Jan. 2, 2024, as originally proposed. In addition, the response letter to the joint trades indicates that the public hearing will take place starting on Dec. 12, 2023 -- 39 days from the date the proposal was published in the Federal Register."  MORE >>

"[Advisory Opinion 2023-01A] did not address the potential impact of [recent US Supreme Court decisions] ... which held that race-conscious admissions policies ... violate the Equal Protection Clause of the Fourteenth Amendment.... [In] early August 2023, the American Alliance for Equal Rights filed a race discrimination lawsuit ... [alleging that an] asset manager's grant program, which sought to support Black female business owners, violates Section 1981 [of the Civil Rights Act of 1866 (which prohibits discrimination in contracting)]." [American Alliance for Equal Rights v. Fearless Fund, No. 23-3424 (N.D. Ga. complaint filed Aug. 2, 2023; 11th Cir. No. 23-13138 injunction granted Sep. 30, 2023)]  MORE >>

"In expanding the types of recommendations covered, the Proposed Rule significantly alters certain requirements of the Five-Part Test that, in the DOL's view, have resulted in investment professionals avoiding fiduciary status in situations in which retirement investors would reasonably expect them to act in their best interests."  MORE >>

"An increasing number of employers ... are exploring whether to offer annuity payment options within their defined contribution plans.... SECURE 2.0 did not mandate that defined contribution plans include a lifetime annuity distribution option, but the law nevertheless included incremental enhancements to three annuity distribution rules that might make defined contribution annuity distribution more attractive."  MORE >>

"[1] Notify and remind your employees about their retirement benefits ... [2] Audit employee 401(k) information ... [3] Send required 401(k) plan information ... [4] Make sure you've deposited 401(k) contributions by the required deadlines ... [5] Collect your plan's documents and records ... [6] Consider profit sharing ... [7] Review plan fees you and your employees have paid this year ... [8] Review your retirement plan to see if it still fits your current needs."  MORE >>

"The SECURE 2.0 Act's creation of an online searchable lost and found database at the [DOL] to help American workers find lost retirement savings benefits has moved one step closer to becoming a reality. Image: The Technology Modernization Fund ... announced that it is investing nearly $3.5 million at the DOL to help establish the online registry."  MORE >>

"The base text of the DOL funding bill [HR 5894] would prevent the DOL from implementing the ESG fiduciary final rule ... Republicans have also proposed amendments ... that would block the new retirement security proposal that redefines the terms of being a fiduciary adviser ... The budget proposal would allocate $152.88 million to EBSA ... EBSA was funded with $233.87 million in 2023."  MORE >>

"Earlier this month, the [PBGC] Office of Inspector General (OIG) published a report disclosing that the PBGC overpaid the Central States fund by $127 million after the plan included 3,479 dead participants in its bailout request ... In a letter sent to [Teamsters President Sean O'Brien], Cassidy urged the Central States Pension Fund to fulfill their commitment to return the $127 million overpayment to American taxpayers and requested information as to how the union will prevent this kind of poor mismanagement in the future."  MORE >>

"A third straight month of declines in financial markets during October 2023 lowered the estimated funded status of the 100 largest U.S. public pension plans from 73.2% as of September 30, 2023, to 71.4% as of October 31, 2023 ... During October 2023, the deficit between the estimated plan assets and liabilities increased from $1.636 trillion at the beginning of the month to $1.750 trillion at the end of the month."  MORE >>

"[IBM's frozen defined benefit plan] is overfunded for minimum funding purposes and likely has enough assets for IBM to terminate the plan ... Instead, the company has moved in the other direction.... The 6% of pay maximum [401(k) plan] employer contribution ... is being eliminated. In its place, IBM is giving ... an ongoing 5% pay credit in a cash balance [plan] account.... IBM may very well have set the stage for the next step in the evolution of the private sector retirement system in the U.S."  MORE >>

"At first glance, an executive's nonqualified plan benefit may seem like a tempting source of funds to satisfy his or her clawback obligation.... [C]ompanies should proceed with caution before attempting to satisfy a clawback obligation by deducting the amount from an executive's nonqualified plan benefit (or any other amount subject to Code section 409A). However, there are situations where such a clawback is permissible."  MORE >>