"The RFI's two dozen questions ask stakeholders for input on aspects of current disclosure and reporting requirements for retirement plans ... These questions encompass the ERISA and IRC reporting and disclosure requirements for retirement plans. The agencies explain that in their view, 'disclosure' refers to plans providing information to participants and beneficiaries, while 'reporting' refers to plans providing information to the agencies."  MORE >>

"Although the plaintiff argued that plan executives didn't establish a formal process for selecting and monitoring investments, the district court disagreed -- and so did the appeals court. The investment committee 'followed a rigorous and deliberative process when selecting and monitoring investments,' the appeals court judges wrote." [Falberg v. The Goldman Sachs Group, Inc., No. 22-2689 (2d Cir. Feb. 14, 2024)]  MORE >>

Video of Feb. 15 hearing, with opening statement by Rep. Bob Good (R-VA) and testimony by [1] Doug Ommen, Iowa Insurance Division; [2] Thomas Roberts, Groom Law Group; [3] Joseph C. Peiffer, Public Investors Advocate Bar Association; and [4] Jason Berkowitz, Insured Retirement Institute.  MORE >>

"The remittance of participant deferrals 'as soon as administratively possible' means as soon as possible, not as soon as convenient.... Many administrative errors go on for years, and every year not corrected is another fiduciary breach.... The manner in which hours are calculated, hiring dates, and compensation calculations could be problematic.... Maintaining and following an IPS is of utmost importance.... When detected early by the plan, many ERISA compliance errors can be corrected through voluntary compliance programs to reduce the potential for fines and penalties."  MORE >>

"Unlike the annuity buy-out, assets and liabilities in an annuity buy-in contract continue to be reported in key ongoing plan measures. The market value of the buy-in contract remains an asset of the plan ... Annuity buy-in contracts hedge related risks associated with the corresponding liabilities without transferring assets or liabilities out of the plan, and therefore wouldn't trigger settlement charges. They can be thought of as 'perfect LDI' in helping to solve these concerns."  MORE >>

"The influx of market activity ... in 2023, lead some insurance carriers to revisit their underwriting guidelines -- increasing their minimum transaction size and even requiring more lead time to review placements.... Primarily driven by high annuity purchase interest rates, last year marked a record high with an estimated 700 annuity transactions."  MORE >>

"[Alaska] is closer than ever to reopening [two DB] plans as it faces a recruitment and retention crisis for general employees, teachers and public safety officials.... [One] analysis ... shows the state could save $76 million annually by reopening the DB plans.... [Many employees] are leaving the state to work in the lower 48 where public employees are able to participate in DB plans."  MORE >>

"Generally, a distribution from an IRA is treated as income for the year the amount leaves the IRA. However, an uncashed check could cause different results, depending on who writes the check. If it is the IRA custodian, the tax impact is not affected. But if the IRA owner writes the check and it is uncashed by year-end, that would mean including the amount in income for a different year than planned."  MORE >>

"The removal of the common bond and bad apple restrictions has generated a lot of excitement, particularly among financial services firms. Indeed, PEPs have several potential advantages over the plethora of existing options for small employers. PEPs can reduce the administrative burden, the fiduciary responsibility and -- perhaps -- the cost of offering a plan, while maintaining the ability to select the provider of choice and offer employer matches. Despite the enthusiasm, the initial uptake has been slow and PEPs may have a limited impact on the coverage gap for a number of reasons."  MORE >>

"Two current ERISA hot topics ... are the proposed Retirement Security Rule (the fiduciary rule) and the Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights rule (ESG rule). If the Court abandons or curtails the Chevron deference, ERISA regulations adopted by the [DOL] may be more heavily scrutinized, modified, or vacated by federal courts."  MORE >>

"Requiring HCEs to defer only to the NQDC plan makes it possible for the 401(k) plan to meet its testing requirements while preserving HCEs' ability to defer salary and receive a matching contribution. If HCEs are allowed to defer to both the 401(k) plan and the NQDC plan, deferrals into the NQDC plan can help offset income taxes attributable to any required refunds from the 401(k) plan. Employers can implement NQDC plans without the financial burden of having to make additional contributions to a 401(k) plan."  MORE >>