"[Notice 2024-02] generally provides that to self-correct under the Act, employers would follow the rules under the expired safe harbor of EPCRS. However, [the Notice] provides guidance on: [1] the effective date of the Act's safe harbor correction; [2] how to self-correct for failures relating to terminated employees; and [3] when corrective matching contributions must be made."  MORE >>

"The changes, which must be applied to annuity starting dates in October 2024 or later, finalize PPA changes to the interest rates and mortality tables used to value lump sums and certain other accelerated distributions, and address the treatment of preretirement mortality discounts and social security level income (SSLI) options."  MORE >>

"In valuing a benefit that is paid before normal retirement age, the final rule ... requires that the plan take into account the probability of pre-retirement mortality ... In the case of a benefit that includes a component resulting from employee contributions, the total lump sum is equal to the present value of the employer-provided component reflecting the mortality discount plus the present value of the employee-provided component without reflecting the mortality discount."  MORE >>

"[To] evaluate reasonableness, advisors should consider whether the compensation reflects the value of services provided to the Retirement Investor as determined by the competitive marketplace.... The proposed amendments to PTE 2020-02 require that the Retirement Investor receive a pre-transaction disclosure about the right to receive information regarding costs, fees and compensation."  MORE >>

"What happens when the drafter of an ERISA plan makes an innocent error (a 'scrivener's error') that unintentionally increases benefits to plan participants by more than $1.6 billion?.... [Two] federal court decisions highlight the tension between the need to protect plan participants and the potential unfairness of allowing participants to receive a windfall just because of an innocent mistake, as well as the difference between correction by retroactive plan amendment under EPCRS and reformation of a plan document by a court under ERISA."  MORE >>

"Senator Bob Casey (D-PA) and several co-sponsors have introduced S 3716, the 401Kids Savings Account Act. A companion bill, HR 7162, has been introduced ... in the House.... The accounts would be established for all newborns and kids under age 18, and could accept individual contributions of up to $2,500 per year (subject to COLAs) on top of any State contributions."  MORE >>

"America is entering a historic surge, with more than 4.1 million Americans retiring each year through 2027.... [A] significant portion of the Peak 65® generation lacks sufficient protected income, putting them at risk of outliving their savings."  MORE >>

"[Notice 2024-02] provisions on de minimis incentives and terminally ill distributions also received some pushback from the industry.... The 'grab bag' notice, issued in FAQ format, sought to clarify various provisions including: automatic features, de minimis incentives, tax credits, Roth matching contributions, and distributions to the terminally ill."  MORE >>

14 pages. "[T]he SPARK Institute is providing comments regarding the following sections of SECURE 2.0: [1] Section 101 (expanding automatic enrollment in retirement plans); [2] Section 113 (small immediate financial incentives for contributing to a plan); [3] Section 326 (exception to the additional tax on early distributions from qualified plans for individuals with a terminal illness); [4] Section 501 (provisions relating to plan amendments); and [5] Section 604 (optional treatment of employer contributions or nonelective contributions as Roth contributions)."  MORE >>

"Under Q&A A-3 ... it appears that if a single-employer plan that includes a pre-enactment qualified CODA is merged into a pooled employer plan (PEP) or other multiple employer plan (MEP) that was established on or after December 29, 2022, the single-employer plan loses its status as having a pre-enactment qualified CODA. Thus, that employer's part of the PEP or MEP will become subject to the automatic enrollment requirements of Code Section 414A.... [The Council believes] that this result [1] is technically incorrect, and [2] will have very adverse policy effects."  MORE >>

"Retaining key management at a distressed company in the midst of an out-of-court restructuring can be necessary for the success of the restructuring. To realign incentives, private credit lenders need to consider reloading and restructuring equity awards, retention bonuses and change in control payments to maximize the possibility of recouping their investment and promoting future profitability."  MORE >>