[P]eriods beginning before January 1, 2021, are not taken into account; the preamble to the regulations explains that this a mandatory requirement, and plan sponsors may not voluntarily credit additional service to employees for purposes of an LTPT employee determination.... ... If a plan sponsor mistakenly did not provide LTPT employees eligible as of Jan. 1, 2024, the opportunity to defer on that date, the plan sponsor may need to take corrective action under [EPCRS]."  MORE >>

"Even though written plan amendments do not have to be made until the end of the 2026 plan year, plan sponsors are required to operate their plans in compliance with these LTPT employee requirements starting with the 2024 plan year. Section 403(b) plans must implement these provisions for plan years beginning in 2025."  MORE >>

"Per [Notice 2023-43], a plan sponsor may self-correct an 'eligible inadvertent failure' if the following conditions are satisfied: [1] The failure was not identified by the Secretary prior to any actions demonstrating a specific commitment to implement a self-correction with respect to the failure. [2] The self-correction is completed within a reasonable period after the failure was identified. [3] The failure is not egregious ... does not directly or indirectly relate to an abusive tax avoidance transaction ... and does not relate to the diversion or misuse of plan assets. [4] The self-correction satisfies all of the provisions applicable to self-correction set forth in Rev. Proc. 2021-30."  MORE >>

"For 2024, the spread between the amount of premiums paid under the standard method vs. the alternative method is only about one-third as large, but this can still translate to millions of dollars for some plans. And, some sponsors who did not (or were unable to) elect the standard method for 2023 may still be able to reduce their 2023 PBGC variable-rate premium in certain circumstances."  MORE >>

"According to surveying done by T. Rowe Price, 100% of large retirement plan advisories are now providing wealth management strategies to plan participants.... [T]hat trend is likely to continue in coming years ... Offering both plan advisory and wealth management services makes sense from several perspectives, including higher profit margins than plan advisory work ... But it is also a growth path for plan advisers[.]"  MORE >>

56 pages. "In its 2023 annual report, the Social Security Board of Trustees ... provided estimates for four hypothetical scenarios -- each using 2023 as a starting point -- that would maintain the trust funds' solvency ... This report examines the potential effects of these four hypothetical changes to Social Security benefits and the payroll tax rate for a set of hypothetical earners of varying earnings levels and birth cohorts." [R47924 Feb. 21, 2024]  MORE >>

"It is way too easy to bring a claim of fiduciary disloyalty, as courts give the benefit of doubt to plan participants who bring these claims. But the Goldman Sachs case shows how a prudent process of engaged and diligent fiduciaries can be used to rebut the unfounded claims of disloyalty and fiduciary imprudence on a summary judgment record. The case hopefully will give support for district court judges to grant summary judgment in more performance cases even when proof of fiduciary prudence is inherently fact intensive." [Falberg v. The Goldman Sachs Group, Inc., No. 22-2689 (2d Cir. Feb. 14, 2024)]  MORE >>

"The law of fiduciary duties in the U.S. and UK are branches of the same tree, with deep shared roots in the English common law.... The divergence between the [recent U.K. Financial Markets Law Committee (FMLC) advisory opinion] and the arguments of the ESG skeptics is not due to differences in UK and U.S. legal precepts. Instead, the difference is due to the basic false premise of the U.S. anti-ESG movement, that incorporation of ESG factors is motivated by social or political goals rather than investment returns. The FMLC opinion stands as another powerful and well-reasoned rejection of that premise[.]"  MORE >>

"Illinois legislator Karina Villa ... is determined to fix a problem unique to K-12 employees: unvetted, exorbitantly priced multi-vendor 403(b) products sold by an army of sales agents with zero fiduciary duty. She has introduced legislation (co-sponsored by Robert F. Martwick) to require K-12 403(b) plan in the state be put out to bid. The bill would forbid the sale of products with loads and surrender charges.... [403bwise spoke] to Illinois legislators last week about the merits of this bill."  MORE >>

"The US retirement system is the envy of the world, thanks largely to the success of defined contribution plans -- such as 401(k)s -- and individual retirement accounts (IRAs). Together with Social Security, employer plans and IRAs have helped build the middle class, giving millions of everyday Americans a financially secure retirement."  MORE >>

"Setting up a step-by-step method for measuring employee engagement with benefits communication helps you keep track of your progress and quickly bring other team members into the process as your team grows or changes. [1] Evaluate past performance ... [2] Benchmark key metrics ... [3] Identify opportunities for improvement ... [4] Act on key insights."  MORE >>