"Plan sponsors now have the ability to allow participants who are going through or have experienced a natural disaster, terminal illness, domestic abuse situation or an immediate financial need to take a penalty free distribution from their employer-sponsored retirement plan."  MORE >>

"SECURE 2.0 expands Section 1042 treatment to S corporation shareholders who sell to an ESOP beginning in 2028. This will allow S corporation shareholders to use tax-favored succession planning strategies that are similar to C corporation shareholders.... The WORK Act appropriates $50 million over five years to the Ownership Initiative, which also will support existing state employee ownership programs and, eventually, nonprofits."  MORE >>

"Cornell University's recent victory in a lawsuit alleging retirement plan mismanagement added to the growing debate over whether routine contracts between employers and retirement plan service providers can be challenged under ERISA rules aimed at curbing conflicted and self-interested transactions.... The Second Circuit's opinion ... added to a widening circuit split over how easy it is to challenge these arrangements in court." [Cunningham v. Cornell Univ., No. 21-0088 (2d Cir. Nov. 14, 2023)]  MORE >>

"[1] Regularly update and ensure plan operations are in compliance with current regulations and best practices to remediate areas that might be flagged during an investigation.... [2] Maintain thorough and meticulous records of all plan activities, decisions and rationale.... [3] Ensure that relevant parties are well-trained and updated on the latest in regulations, investigative processes and industry best practices ... [4] Implement robust risk mitigation practices[.]"  MORE >>

"For plan sponsors, having a fully funded plan, or ... one with a significant surplus, opens up a number of ... options. Without the need to outpace the interest rates incorporated in the calculation of liabilities, the plan may move to an investment strategy that trades higher returns for lower risk. Risk may also be transferred out of the plan through a lump sum offer to participants, an annuity purchase from an insurer, or a complete termination, which may involve both."  MORE >>

"[The] Helping Young Americans Save for Retirement Act ... would modify the [ERISA] age threshold from 21 to allow these younger workers to access their employer's defined contribution plans under certain circumstances.... The legislation would also delay ERISA provisions that require employers to conduct mandatory audits if they allow employees younger than 21 years-old to contribute to their plans."  MORE >>

"85.6 percent of eligible employees made contributions, down from 89.2 percent in 2021. ...  Participants contributed an average of 7.4 percent of pay, and companies contributed 4.8 percent average employer contribution. ...  6.4 percent of plans offer an ESG fund, up from 4.2 percent in 2021 and 10.8 percent offer an in-plan lifetime income product, up from 8.1 percent."  MORE >>

157 pages. "The PBGC Single-Employer Program's financial status showed improvement and has been in a positive net financial position, which is projected to grow over the next 10 years. The PBGC Multiemployer Program improved during FY 2023 to a positive net position and is likely to remain solvent for more than 40 years.... As of the end of FY 2023, PBGC had received 135 SFA applications requesting a total of $71.0 billion in SFA and had approved 100 applications for $53.5 billion in SFA"  MORE >>

81 pages. "The financial statements present fairly, in all material respects, the financial position of the Single-Employer and Multiemployer Program Funds administered by the PBGC at September 30, 2023 and 2022 ... PBGC maintained, in all material respects, effective internal control over financial reporting as of September 30, 2023 ... No instances of reportable noncompliance or other matters with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements."  MORE >>

"[I]ncreasing access to HSAs and encouraging investment among HSA account holders can help reduce the cumulative retirement savings shortfall, particularly for demographic cohorts projected to face the largest deficits.... Maximizing HSA enrollment accounts for more than half of the difference in the retirement saving shortfall relative to the baseline with HSA. Maximizing contribution and limiting distribution behavior have minor impacts."  MORE >>

"[EBSA] resources have generally remained unchanged while oversight responsibilities have increased over the last decade.... Although EBSA officials said they use several strategies to manage declining resources, the agency does not have a clear or systematic decision-making process for doing so.... Without [such a] process, EBSA officials may not have adequate information for making informed decisions about how to manage resource reallocations to meet its increased responsibilities." [GAO-24-105667 Published Oct 24, 2023; Released: Nov 16, 2023.]  MORE >>

"[1] Nearly all listed issuers are subject to the new clawback rules.... [2] Misconduct or knowledge is not required for the clawback rules to apply.... [3] Companies cannot indemnify or insure officers against required clawbacks.... [4] There are new disclosure requirements for when a clawback is triggered.... [5] The new rules will likely impact internal investigations related to accounting restatements.... [6] There are exceptions to the clawback requirements, but they are limited.... [7] The compensation could be deemed 'received' and subject to clawback even before payment."  MORE >>

"Ascensus and its subsidiary, Newport Group Inc., have had their nonqualified retirement plan services affected by a cyberattack on business processes firm Infosys McCamish Systems LLC. The platform that Ascensus and Newport use has not been able to update nonqualified user accounts since November 2."  MORE >>