"On February 1, 2024, PBGC will launch a new and improved e-Filing Portal. Key changes include a new, more secure, login process and a streamlined look and feel across all applications (e.g., 4010 and reportable event filings, certain multiemployer plan filings, SFA applications)."  MORE >>

11 pages; Jan. 8, 2024. "Beginning on December 29, 2022, the 10% additional tax on early distributions will not apply to a corrective IRA distribution.... The additional tax on early distributions doesn't apply to qualified disaster distributions nor does it apply to qualified disaster recovery distribution.... The age restriction for contributions to a traditional IRA has been eliminated." [Also available: Draft 2023 Form 5329 (Dec. 21, 2023)]  MORE >>

"The Question & Answer format addresses a limited number of provisions under SECURE 2.0, and the IRS noted that the Notice is intended to assist plan sponsors in commencing implementation of these provisions rather than provide comprehensive guidance.... Comments for Notice 2024-2 are requested by February 20, 2024, in particular with respect to the de minimis financial incentives."  MORE >>

"Because the late deposit of elective deferrals constitutes a prohibited transaction and is usually unrelated to the plan's tax-qualification, it cannot be corrected through IRS [EPCRS]. The Voluntary Fiduciary Correction Program (VFCP) is the DOL's program for correcting the fiduciary breach associated with certain eligible prohibited transactions.... [In] limited circumstances (including a requirement that all late deposits have been corrected within 180 days of occurrence), the VFCP filing can result in a waiver of the excise taxes that would otherwise have been due."  MORE >>

"The comment period for the proposed regulation and exemptions is over. The DOL now starts the process for finalizing the guidance and determining the effective date.... This article is [the author's] best guess about the timing of the process to complete the DOL's work."  MORE >>

"2023 was a year of significant activity in pending cases, with a record forty-two settlements, a record number of motions to dismiss, summary judgment, and appellate rulings, and at least five cases being tried, including one before a jury. With new plaintiff firms entering the fray, all signs point to a continued high volume of excess fee cases and heightened risk exposure for sponsors of America's large retirement plans, especially jumbo-sized plans."  MORE >>

"A draft bill aims to debug many provisions of the SECURE 2.0 Act ... All changes would apply as if they had been included in SECURE 2.0. Leaders of congressional committees with retirement policy jurisdiction are seeking public input before formally introducing legislation but haven't specified any deadline.... Some provisions in the draft are already addressed by IRS guidance, including recently issued Notice 2024-02."  MORE >>

"A group of 50 U.S. representatives have joined dissenters weighing in on the [DOL's] retirement security rule proposed in October 2023.... In the letter, the lawmakers argued the proposed rule would ultimately harm lower- and middle-income workers by forcing financial professionals who currently operate as insurance agents or registered representatives to act as investment advisers -- thus increasing their fees."  MORE >>

"The funded status of the country's 100 largest corporate pension plans ... experienced a modest improvement in 2023, driven by annual investment returns of 9.94%. Declining discount rates, particularly in the fourth quarter, and the corresponding liability increase of 8.33% served to partially offset the asset gains, resulting in a funded status improvement of $4 billion for the year."  MORE >>

"By overwhelming consensus, financial economists and even a good number of actuaries have understood for decades that traditional expected‐​return discount rates are inconsistent with finance principles. But binding actuarial professional standards ... endorse using unjustifiable expected‐​return discount rates. Federal pension law and accounting standards have forced actuaries to use more appropriate discounting for private sector pensions. But state and local governments ... have held on tightly to the discredited methodology."  MORE >>

"Prudent plan sponsors keep it simple. They comply with ERISA without exposing themsleves to unnecessary risks or potential fiduciary liability exposure.... The only thing that really matters from a risk management and legal liability standpoint, and that is truly in the plan participants best interest, is that the plan sponsor provide them with prudent investment options that are both cost-efficient, and that allow them to properly diversify their plan investments to hopefully reduce the risk of large investment losses."  MORE >>

"The new rule is significant because it attempts to sort out financial services industry titles that are indistinguishable to main street investors but may carry important distinctions within the industry ... The issue boils down to how much investors should trust the advice they're receiving and the obligation of “advisors” to provide advice that avoids conflicts of interest."  MORE >>

339 pages. "[A]fter considering the views expressed by commenters, the Department is finalizing its [October 2022 proposal] with some modifications.... [T]his final rule returns to a totality-of-the-circumstances analysis of the economic reality test in which the factors do not have a predetermined weight and are considered in view of the economic reality of the whole activity."  MORE >>

"The Supreme Court will hear oral arguments on two cases challenging the deference given to federal agencies' interpretations of statutes they are charged with enforcing. If Chevron is overruled or pared back, federal agencies enforcing labor and employment laws will likely face more challenges to their rules and other interpretive guidance. Overruling Chevron may cause agencies to issue fewer new regulations, take more modest positions in the regulations they do issue, or both."  MORE >>

"A s many as half of today's five-year-olds can expect to live to the age of 100 ... This article looks at the implications this change will have on employment, from changing attitudes toward career paths and career development to the physical and cultural environment of the workplace. Considerations include adapting to changing needs in the areas of employee health and well-being, benefits and financial planning."  MORE >>

"If in 2023 an employee exercised an ISO, the Employer must provide the employee with a written information statement by January 31, 2024. Form 3921 should be used for this purpose ... If in 2023 legal title to stock purchased under an ESPP was transferred from the employee to a third party, and such transfer was the first transfer of such shares, the employer must provide the employee with a written information statement by January 31, 2024."  MORE >>

"[A] federal judge granted Morgan Stanley's request to force a group of former Morgan Stanley advisors suing the company over deferred compensation to take their claims to private arbitration. However, in that same order, the judge found that Morgan Stanley's deferred compensation programs are governed by ERISA ... Morgan Stanley [has asked] the judge to reconsider his ruling." [Shafer v. Morgan Stanley, No. 20-11047 (S.D.N.Y. Nov. 21, 2023)]  MORE >>