"[E]xpected lifetimes under the IRS mortality tables for 2024 are generally shorter than those under the IRS mortality tables for 2023. Depending on the plan's demographics, this will roughly translate to a decrease in the funding target liability of about 1.0% to 2.5% and a decrease in the target normal cost of about 0.5% to 2.5%. However, plans with younger demographics could see increases in the liability and normal cost when changing from a static table to the generational mortality table."  MORE >>

"[T]he final rules include new and welcome flexibility for DB plan sponsors to change Section 417(e) rates used for other purposes. The changes are generally optional and unlikely to have a significant effect on participant benefits. Accordingly, many plan sponsors may simply decide to leave plan administration unchanged. However, certain contributory plans and plans that haven't been treating Social Security level-income options (SSLIOs) as subject to Section 417(e) may need to change procedures."  MORE >>

"The Senate Health, Education, Labor, and Pensions (HELP) Committee ... will hold a hearing on Wednesday, February 28 at 10:00 a.m. ET titled, 'Taking a Serious Look at the Retirement Crisis in America: What can we do to expand defined benefit pension plans for workers?' " [The hearing will be livestreamed on the Committee's website.]  MORE >>

"Expect more emphasis on participant services ... [L]ifetime income within defined-contribution plans on the rise  ... 403(b) plans will continue influencing 401(k) plans ... [C]hanges in plan design."  MORE >>

"The rise in aggregate funding is largely the result of investment gains ... plus continued special financial assistance (SFA) under the American Rescue Plan Act. As of year-end 2023, 69 plans in total have received nearly $54 billion in SFA funding, including $45 billion paid during 2023. Without the SFA program, the aggregate funded percentage ... would be approximately 83%."  MORE >>

"While it's true younger generations manage substantial student loan debt while working to establish careers and families, they have also made more progress in retirement saving than prior generations had at the same stage of life. Thanks to the increased prevalence of 401(k)s and other defined contribution retirement plans offering automatic enrollment and an attractive lineup of diversified investments, the long-term financial outlook for younger generations is promising."  MORE >>

"[Regarding the] Section 414A requirement, [Notice 2024-02] left significant questions unanswered -- particularly information necessary for an employer to accurately determine whether its plan is subject to the EACA mandate and guidance on how to comply with the mandate when an employer maintains a plan before the arrangement becomes subject to the mandate.... [T]he Notice provides that a de minimis financial incentive may only be offered to an employee who does not have a deferral election in effect. This interpretation is far too restrictive, as the statutory language itself is not so narrow."  MORE >>

"If Chevron is overturned or significantly weakened, new DOL and US Department of the Treasury regulations featuring aggressive statutory interpretations (like the fiduciary rule) are likely to become rarer and more vulnerable to challenge.... [B]ecause employee benefits cases challenging agency actions have only rarely reached the Supreme Court, employee benefit cases may be especially affected by how lower courts apply the result of Loper Bright and Relentless, which in turn may vary by federal circuit and district court." [Loper Bright Enterprises, Inc. v. Raimondo, Sec. of Comm., No. 22-451 (S.Ct. transcript of oral argument Jan. 17, 2024); Relentless, Inc. v. Dept. of Commerce, No. 22-1219 (S. Ct. transcript of oral argument Jan. 17, 2024)]  MORE >>

"The monetary results reflect the breadth of the DOL's civil enforcement actions, with just over half of recoveries relating to terminated vested defined benefit plan participants and the rest (over $415 million) from other plan investigations. The specific mention of results relating to mental health reflects that this topic is currently a high priority for the DOL."  MORE >>