Changes from the Spring 2023 PBGC Regulatory Agenda:

Moved from Proposed to Final Rule stage:

• [1212-AA55] Valuation Assumptions and Methods: Interest and Mortality Assumptions for Asset Allocation in Single-Employer Plans and Mass Withdrawal Liability Determination in Multiemployer Plans

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"Complete Form W-4R to have payers withhold the correct amount of federal income tax from your nonperiodic payment or eligible rollover distribution from an employer retirement plan, annuity (including a commercial annuity), or individual retirement arrangement (IRA)."  MORE >>

34 pages; for use in preparing 2023 returns. "This publication explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. It is prepared through the joint efforts of the [IRS], the Social Security Administration (SSA), and the U.S. Railroad Retirement Board (RRB)."  MORE >>

"LTPT employees may be excluded from non-discrimination and top-heavy testing for all employer contributions, but to do so, this language must be included in the plan document. Employers may still exclude LTPT employees from employer matching contributions, employer non-elective contributions, catch-up contributions, and Roth contributions."  MORE >>

"SECURE 2.0 Changes in Effect Now.... [1] Increase in Required Beginning Date ... [2] Transfers to fund retiree benefits ... [3] Cash balance plan interest crediting rate ... [4]Plan corrections ... [5] Recovery of plan overpayments ... Preparing for 2024 & Beyond ... [1] Lower PBGC variable rate premiums ... [2] Pension de-risking & termination ... [3] Administrative changes."  MORE >>

"A discussion draft containing technical corrections and other clarifications with respect to the SECURE 2.0 Act of 2022, has been released ... The text of the discussion draft is now available for public review and comment. Comments on the legislative language should be sent to Jeanne Wilson of Chairwoman Foxx's staff and Kevin McDermott of Ranking Member Scott's staff.... Full text of the discussion draft can be found here."  MORE >>

"Defined-benefit pension plans have suddenly gained new support ... In addition to the new regulatory environment, the investment world has seen recent changes, as rising interest rates have 'opened up entirely new possibilities' for pensions ... [T]he defined-contribution model of retirement accounts could be seen as shifting more risk and uncertainty onto plan members, who in some cases are now pushing for more security and predictability in their retirement plans."  MORE >>

"According to fiduciary insurance data cited [in a recent report]  ... 40% of excessive fee suits filed in 2022 were related to plans with less than $1 billion in assets, and 20% were related to plans with less than $500 million in assets. [The] report noted several 401(k) plan fees to be aware of, including: administrative fees, investment fees and user-based service fees."  MORE >>

"However, today's Long Credit spreads remain tight to historical averages, and investors are seemingly not being compensated for taking on duration risk with the inverted yield curve. As an alternative, Intermediate Credit may offer an attractive entry point at current spread levels, and the positive carry can further reinforce funded statuses."  MORE >>

"The funded status of the country’s 100 largest corporate defined benefit pension plans decreased by $8 billion during November ... A hefty decrease in the benchmark corporate bond interest rates used to value pension liabilities led to a steep rise in plan liabilities of $82 billion for the month. As of November 30, the funded ratio slid to 103.2%, down from 104.1% at the end of October, and the funded status surplus decreased to $41 billion."  MORE >>

Changes to benefits-related items from EBSA and from the Wage and Hour Division (WHD) from the Spring 2023 DOL Regulatory Agenda:

Added to Prerule Stage:

• [1210-AC23] SECURE 2.0 Reporting and Disclosure

Moved from Prerule to Proposed Rule stage:

• [1210-AC20] Worker Ownership, Readiness, and Knowledge
• [1210-AC21] Exemption for Certain Automatic Portability Transactions

Added to Proposed Rule Stage:

• [1210-AC24] Federal Independent Dispute Resolution Process Fees

Update to Proposed Rule: 

• [1210-AC02] "Conflict of Interest in Investment Advice" changed to "Retirement Security Rule: Definition of an Investment Advice Fiduciary"

Moved from Proposed to Final Rule stage: 

• [1210-AC13] Coverage of Certain Preventive Services under the Affordable Care Act
• [1210-AB64] Adoption of Amended and Restated Voluntary Fiduciary Correction Program

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Changes from the Spring 2023 IRS Regulatory Agenda:

Added to Proposed Rule stage:

• [1545-BQ87] Guidance Under Section 162(m)

Moved from Proposed to Final Rule stage:

• [1545-BQ28] Short-Term, Limited-Duration Insurance; Independent, Non coordinated Excepted Benefits Coverage; Level-Funded Plan Arrangements; and Tax Treatment of Certain Accident and Health Insurance
• [1545-BQ29] Mental Health Parity and Addiction Equity Act and the Consolidated Appropriations Act, 2021
• [1545-BQ57] Requirements in Connection With Coverage of Certain Preventive Services

Added to Final Rule stage:

• [1545-BQ94] Federal Independent Dispute Resolution Fees

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"Most service providers carefully maintain and continuously upgrade their cybersecurity practices and technology, but employers cannot afford to take this for granted. It must be on the employer's checklist to regularly seek satisfactory documentation, from all outside vendors, that plan data is secured as much as possible."  MORE >>

"Publicly traded companies generally file registration statements on Form S-8 to register the offering of the company’s stock pursuant to the company’s equity incentive plans under the Securities Act of 1933 ... This same filing requirement applies under certain circumstances to a company’s nonqualified deferred compensation plans. .... Companies may also consider whether an exemption from Securities Act registration is available ... [S]uch analysis will be highly fact-specific and the exemption could be lost if the eligible group changes over time."  MORE >>