"When added to a defined contribution plan, PLESAs can allow non‑highly compensated employees to contribute to short‑term 'side car' accounts for use in financial emergencies. Although PLESAs are intended to encourage greater plan participation and retirement savings among lower‑income workers, plan sponsors have thus far been reluctant to add the feature over questions on implementation and administration."  MORE >>

"[T]he DOL recently issued guidance regarding PLESAs in the form of FAQs. There are no earth-shattering revelations ... but there are a few nuggets to glean ... Although this guidance is welcome, it is unclear whether employers will embrace PLESAs given the administrative burden associated with them and the difficulty of explaining them to participants."  MORE >>

"The court's decision sets a low bar for plaintiffs alleging ERISA claims based on alleged ESG investments in at least two ways ... [1] [T]he court accepts as sufficient plaintiff's allegations that some analyses have found that ESG investments underperform other investments.... [2] [W]hat constitutes an 'ESG fund' apparently can be based on public statements made by investment managers, regardless of whether those statements resulted in actions with respect to any funds at issue or whether any actions actually caused investment underperformance." [Spence v. American Airlines, Inc., No. 23-0552 (N.D. Tex. February 21, 2024) ]  MORE >>

"Ignoring clear precedent requiring factual support for a plausible inference of liability, the court simply accepted the plaintiff's conclusory assertions that ESG-related proxy voting is harmful to investment returns and motivated by social agendas. This conclusion turns a blind eye not only to the established standards for what is required for a viable pleading, but also to another recent decision of the same district court acknowledging that ESG considerations further financial goals." [Spence v. American Airlines, Inc., No. 23-0552 (N.D. Tex. February 21, 2024) ]  MORE >>

"Litigation that involved a multiple employer plan (MEP), merging plans, a 3(38) investment advisor, a plan sponsor -- and at one point an advisor (NFP) -- has been resolved in favor of the fiduciary defendants, while reminding us of the value and importance of a prudent process in target-date fund selection." [Lauderdale v. NFP Corp., No. 21-0301 (N.D. Calif. Feb. 23, 2024)]  MORE >>

"The Committee on Education and the Workforce is continuing its investigation into the [PBGC's] failure to safeguard taxpayers' money by overpaying $127 million to a multiemployer pension plan corresponding to deceased participants.... PBGC's February 9, 2024, response both failed to address these concerns and to provide responsive materials. With this letter, we insist that PBGC provide information responsive to the Committee's investigation."  MORE >>

"Before a plan sponsor decides to choose a new provider for their retirement plan there are a myriad of possible decisions and topics to review. A potential transition provides an opportunity to do things like review plan design, verify that the plan is being administered according to the plan document and verify who will need to formally sign off on any proposed changes.... There are proven success factors that if adhered to will ensure a quality and seamless transition."  MORE >>

"While all kinds and sizes of businesses may participate, each PPP is likely to have its own acceptance criteria, PEP features, and operational rules.... [An] employer is well advised to compare prospective PEPs carefully before joining one.... [E]mployers need to understand what a PEP can do for them and what remains the employer's responsibility."  MORE >>

"New plan designs for generating lifetime income, such as variable annuity pension plans and, to a lesser extent, cash balance plans, can be designed to provide a lifetime of guaranteed income in a way that is much more sensitive to the financial risks associated with defined benefit plans. Modern plan designs and investment policies can allow plan sponsors to be intentional about which risks are borne by the plan (and which are spread across the individual participants), and how to manage those risks."  MORE >>

"A recent 2023 survey ... of young public sector workers (aged 35 and under) reveals that less than a quarter (23%) ranked retirement benefits among the top three factors attracting them to public sector jobs ... [J]ob security, work-life balance, and access to health insurance were the most appealing ... Job satisfaction, salary, and engagement in meaningful work also ranked higher than retirement benefits in factors young workers said initially attracted them to public sector jobs."  MORE >>

"Expect to hear some 401(k)-bashing and pining for a return to defined benefit plans from some big-name politicians, economists and lobbyists during a couple of back-to-back events in Washington D.C. this week -- with considerable crossover between the two. The separate events are scheduled for Tuesday and Wednesday in the form of a one-day conference and a Senate committee hearing -- but a few people will be in front of the microphone at both events."  MORE >>

"[An] acquisition target's qualified retirement plans, health plans, executive compensation arrangements, and benefit programs can all be a source of significant liabilities.... In order to avoid any complications and liabilities, the parties need to understand the best deal structure based on the benefit programs requirements and perform due diligence to carefully address any issues under both [ERISA] and the Internal Revenue Code early in the transaction."  MORE >>

"[1] What are 'Plan Documents'? ... [2] Which plan documents should be kept? ... [3] How long should plan documents be retained? ... [4] Can the plan documents be retained in electronic form? ... [5] What should a plan sponsor do to be in plan document retention compliance?"  MORE >>

"Legislation introduced in the California Assembly would require the Occupational Safety and Health Standards Board to adopt a standard requiring employers to continue pay and benefits for workers who are excluded from the workplace for COVID-19 -- related reasons. The bill would require the Standards Board to adopt regulations by February 3, 2025. The bill appears to be based on outdated state and federal health agency advice that has since been updated."  MORE >>

"On February 21, 2024, the IRS announced a new initiative to audit large corporate taxpayer use of corporate jets, as part of a larger initiative focused on tax compliance of large corporations and high-income taxpayers. The audits, which will use Inflation Reduction Act funding, will focus significant IRS attention on both corporate deductions and individual taxation related to personal flights for the first time in a decade."  MORE >>