"Before SECURE 2.0, an employer had to wait until the end of the year to switch from a SIMPLE IRA to a 401(k) plan.... Now, under SECURE 2.0, an employer can replace its SIMPLE IRA with a safe harbor 401(k) at any point during the year. For a mid-year transition, the employer contribution obligation for the year is prorated. Any employee SIMPLE IRA deferrals count toward the 401(k) limit."  MORE >>

"One of the conditions for obtaining the protection of either of those PTEs is an annual retrospective review and report on compliance with the requirements of the exemptions. If a failure is found to satisfy the conditions in the exemption, for example, in the review, it must be corrected."  MORE >>

"[D]ismissals for failure to include appropriate comparator plans are a positive trend for 401(k) plan fiduciaries in the Seventh Circuit, and has gained steam in the Sixth and Eighth Circuits as well. In these jurisdictions, plaintiffs are on notice that their complaints must provide allegations of meaningful comparator plans of similar size that received similar recordkeeping services to the plan at issue. Complaints lacking this specificity may face an early exit from litigation."  MORE >>

"Although PBGC's regulations provide the agency authority to reclaim SFA payments in certain circumstances, PBGC has stated that it lacks the authority to recoup the $127 million at issue. Consequently, the Fund has considered whether it can voluntarily return a portion of the SFA but has concerns that doing so could potentially have severe consequences, including personal liability for the Fund's fiduciaries and the loss of the Fund's tax-exempt status. Therefore, we request formal guidance answering two key questions. [1] Would the Fund violate the exclusive benefit rule under ERISA Section 403 and Code Section 401(a)(2) by returning a portion of the SFA?.... [2] Would the fiduciaries of the Fund violate their duties of prudence and loyalty under ERISA Section 404 by returning a portion of the SFA?"  MORE >>

"The company's move to disband its in-house team and shift the work to NEPC is being driven by the pension system's overfunding.... The overfunded status has soared from just over $100 million at the end of 2019 to about $1.2 billion at the end of 2022, an amount that represents more than half of Kodak's assets. That came as rising interest rates pushed down the present value of its future pension liabilities for the more than 37,000 participants that receive benefits in the long-standing program."  MORE >>

"Even if you currently allow Roth deferrals, you are not required to offer Roth Employer contributions. You can offer this option even if your plan does not offer Employee Roth deferrals. An employee must irrevocably elect Roth treatment for matching and nonelective contributions before they are allocated to their plan account."  MORE >>

"The signing makes California the 44th state to adopt the NAIC model update, which is based on the U.S. [SEC]'s Regulation Best Interest. The model update requires sellers of annuities to act in the consumer's best interest and disclose potential conflicts of interest, but it does not require the seller to act as a fiduciary or to move away from collecting sales commissions."  MORE >>

"HB 481 provides that the investment objectives of a retirement system shall be to provide the greatest possible long-term benefits to its members by maximizing the total rate of return on investment within prudent limits of risk for a retirement fund of its type and consistent with any investment return requirement assumed by the actuaries in determining the present and future soundness of the fund."  MORE >>

"Income annuities provide the owner a steady stream of cash flows for a set period or for the rest of their life. Savings annuities are an accumulation-focused product with an account balance. While all savings annuities allow the owner to convert the account balance into a stream of cash flows, this is rarely done. These vehicles are often referred to as 'deferred annuities'[.]"  MORE >>

An unofficial monthly report of the Moody's Daily Long-term Corporate Bond Yield Averages and Moody's Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).  MORE >>

"{If] given the option for an enhanced benefit, employees expressed a clear preference for increased pay and increased 401(k) match, while employers assume employees would prefer improved health and dental insurance, health savings accounts and charitable contributions. Seven in 10 workers also reported experiencing challenges when it comes to understanding benefits offered by their employer."  MORE >>

"Health insurance premiums account for between 73% and 81% of retirees' annual health care expenses and, for the most part, are predictable and can be paid from monthly income. However, out‑of‑pocket expenses can vary and should be paid from savings. Traditional financial planning principles and basic budgeting can help address many of the financial unknowns about health care costs in retirement."  MORE >>

"By its own words, the court has gone where no Delaware court dared go before, overriding a favorable shareholder vote to find that an executive compensation package was fundamentally unfair.... [H]ere are three general themes of note from the decision.... [1] The moving goalposts of executive compensation ... [2] Fairness and the minority shareholder ... [3] The substance of the process matters."  MORE >>