"The new guidance provides much-needed clarity around several key issues related to the treatment of long-term, part-time employees. However, with that new rule effective for 401(k) plans beginning January 1, 2024 ... it is imperative that employers review their existing eligibility-tracking processes as soon as possible to determine if changes are needed."  MORE >>

"Plan sponsors must ensure they have practices and procedures in place reasonably designed to facilitate compliance with the qualified plan rules. Failure to do so will prevent the plan from being eligible for SCP.... [P]lan sponsors who take advantage of the expansion of self-correction should be careful to properly document the dates when defects were discovered, all corrective actions taken, and when they occurred."  MORE >>

2-page calendar lists notable deadlines for retirement plans with calendar-year plan years.  MORE >>

"The [IRS] today reminded people born before 1951 of the year-end deadlines to take required minimum distributions (RMDs) from funds held in individual retirement arrangements (IRAs) and other retirement plans, and noted new requirements under the law beginning in 2023."  MORE >>

"[T]he court of appeals considered and rejected Markham's argument that Variable Life acted as a fiduciary in refusing to waive the [surrender] fee, which it had the contractual discretion to do.... The court concluded, contrary to the argument of the [DOL], that because Variable Life was not providing services to the plan when it contracted for the surrender fee, it was not a party in interest when it collected that fee." [D.L. Markham DDS, MSD, Inc. 401(K) Plan v. Variable Annuity Life Ins. Co., No. 22-20540 (5th Cir. Dec. 14, 2023)]  MORE >>

"The Department is making available video recordings and informal computer-generated transcription of each day of the public hearing, in advance of posting the hearing transcript prepared by the court reporter. Only the court reporter's signed hearing transcript will contain the official record of the hearing."  MORE >>

"While every circuit court to consider the issue ... has recognized that claims under ERISA are generally arbitrable, there is a split ... on whether plan-wide claims for breach of fiduciary duty under ERISA Section 502(a)(2) can be forced into arbitration. ... Plans and plan sponsors deciding whether to include an arbitration provision in their plans should weigh the possible pros and cons carefully."  MORE >>

"Did the plan sponsor acquire any new entities in the past year? ... Did any of the plan sponsor's employees who served on a plan's administrative and/or investment committees terminate employment or change job titles? ... Did the plan sponsor move?"  MORE >>

"Designate someone at the Plan Sponsor as being in-charge and responsible for the audit.... Set up a calendar of key dates ... Provide minutes from meetings plan oversight committee.... Keep a summary list of key plan amendments and changes during the year.... Were there any plan testing failures? ... Were there any changes in the TPA, custodian, recordkeeper, or payroll provider during the year under audit?  ... Timeliness of the remittance of participant contributions."  MORE >>

"Average annuity purchase interest dropped this month, with the average duration 7 rate at 4.93% and average duration 15 rate at 4.92%. In the fourth quarter, insurance carriers hit capacity constraints leading them to withdraw from transactions for the remainder of the year.... High stock market returns are offsetting the impact of falling interest rates."  MORE >>

"Wilshire estimates that the aggregate funded ratio was 75.6% at FYE 2022, which represents a 10.4 percentage point decrease from FYE 2021 and reverses last year's gains. Wilshire's estimate of the aggregate funded ratio as of September 30, 2023 is 72.9%. The 2.7 percentage-point decrease from [the] FYE 2022 measurement is due to a third quarter decline of 3.3% ... due to interest rate hikes instituted by the Fed to fight inflation."  MORE >>

"The Senate on [December 18] voted 50-11 to confirm former Maryland Gov. Martin O'Malley as commissioner of the Social Security Administration, ending a drought of more than two years in which the embattled agency lacked a permanent leader at the helm.... Over the past several years, the Social Security Administration has struggled on several fronts, including long wait times both in person at field offices and over its customer service phone line as well as a backlog of pending disability determinations."  MORE >>

"A suite of Iron Workers fringe benefit funds persuaded the judge to order jail for the President and CEO of an employer that refused to submit to an audit.... Based on the court’s power to sanction for civil contempt, the judge ruled that incarceration was a proper remedy in the case, giving the President and CEO the option of complying with the required audit or go to jail." [Regional Local Unions Nos. 846 v. LSRI, LLC, No.  22-1473 (D. Ore. Dec. 1, 2023)]  MORE >>