"[If] the adviser or an affiliate of the adviser has discretion over other non-retirement investments of a retirement investor, the DOL's proposal says that the adviser is already in a relationship of trust and confidence with the retirement investor, and therefore any advice given to the retirement investor about retirement assets would be fiduciary advice."  MORE >>

4 pages; rev. Nov. 2023. "This publication explains the significance of a favorable determination letter, points out some features that may affect the tax status of an employee retirement plan and nullify the determination letter without specific notice from us, and provides general information on the reporting requirements for the plan."  MORE >>

"The changes relevant to 401(k) plan reporting are: [1] a new Schedule DCG for defined contribution group reporting entities; [2] a new Schedule MEP for multiple employer retirement plan information and additional data items relevant to MEPs on Form 5500; [3] changes to how defined contribution plan participants are counted for small plan reporting purposes; and [4] new compliance questions for tax-qualified retirement plans."  MORE >>

"[FEMA has] issued a disaster declaration ... for Illinois excessive rainfall, for the incident period of September 17- September 18, 2023.... Employers with qualified retirement plans may allow participants to take hardship distributions if they have incurred expenses and losses because of a FEMA-declared disaster, and their principal residence or place of employment at the time of the disaster is located in an area designated by FEMA as eligible for individual disaster assistance."  MORE >>

"Defendants argued that certification was inappropriate given the failure of class members to exhaust their administrative remedies. The court ... [concluded] that the fiduciary breach and Section 510 claims did not require exhaustion, the Plan itself did not mandate that workers exhaust an internal review process before filing suit, exhaustion would be futile given defendants' application of a uniform interpretation that precluded granting the benefits, and unnamed class members should not be required to exhaust or should be given a flexible time frame in which to do so." [Cockerill v. Corteva, Inc., No. 21-3966 (E.D. Pa. Nov. 17, 2023)]  MORE >>

"The SEC announced.... that it has charged ... an online crypto platform) with a litany of securities registration failures and other wrongdoing ... Those statements read like a primer on the subject of SEC-required registrations.... Is it a prudent decision to offer unregistered securities through unregistered vehicles to plan participants who are not likely to be sophisticated investors?"  MORE >>

"Spending aggressively can make sense for older retirees who have relatively short life expectancies, but it is not appropriate for those in their 60s.... Perhaps, though, one could apply the strategy flexibly. That is, rather than automatically withdrawing the same inflation-adjusted amount ... adjust spending according to the stock market's results. If equities perform well, stay on track. If they do not, pull back."  MORE >>

"[T]he new rule would replace the current bright-line, five-part test for fiduciary advice with a muddier standard that is often dependent on the specific factual circumstances and based on the reasonable -- and arguably subjective -- expectations of retirement investors. This level of uncertainty might be acceptable for a regulator seeking to maximize its enforcement tools, but it is a tough pill to swallow for an industry that needs clear rules so it can efficiently distribute retirement products and services at scale."  MORE >>

"Only the person required to file electronically can sign Form 8508. A transmitter cannot sign Form 8508 for the issuer unless a power of attorney has been established. If you have a power of attorney, attach a copy to this form."  MORE >>

"A recent district court case highlights the importance of following the terms of the plan document in making determinations on benefit claims.... After reviewing minutes from the committee meeting at which the claim was decided, the court found the committee’s decision was based on an immaterial point and not the proper standards outlined by the terms of the plan." [Franke v. Fifth Amended & Restated Newfield Exploration Company Change of Control Severance Plan, No. 21-2234 (D. Colo. Oct. 20, 2023)]  MORE >>

"[L]isted companies must seek to recover erroneously awarded incentive-based compensation received by covered executives on or after October 2, 2023.... [L]isted companies have ... until December 1, 2023, to adopt a compliant policy.... [This article includes a side-by-side] comparison of the NYSE and Nasdaq notice and cure provisions for failure to adopt a compliant policy or to comply with the clawback requirements:"  MORE >>

"A cybersecurity breach affecting thousands of nonqualified compensation accounts is being resolved, but participant accounts remain days away from updates and coming back online."  MORE >>