"Plans that are already subject to the LTPTE rules should already be working with their service providers to be certain administrative processes, if necessary, are in place to ensure compliance ... Plan amendments may be needed to reflect plan operations with respect to the LTPTE rules. Technically, plan amendments are not required until December 31, 2026, but the adoption of plan amendments prior to the final amendment deadline might be prudent.... [P]lans should be maintaining records as to how they are complying with the LTPTE rules."  MORE >>

"The Court's duty of prudence analysis suggests that a plaintiff can sustain a breach claim merely by pointing to some activity of an investment manager not directly related to 'maximizing' financial benefits, and that a plan sponsor erred by not considering that activity when selecting the manager's funds.... Similar issues abound with the opinion's analysis of the duty of loyalty." [Spence v. American Airlines, Inc., No. 23-0552 (N.D. Tex. February 21, 2024) ]  MORE >>

"[T]he defendants demonstrated that flexPATH recommended its own TDFs only after performing an exhaustive analysis of several alternative investments ... [T]he court rejected plaintiffs' contentions that Wood Group ... needed to document the justifications for engaging flexPATH in committee meeting minutes.... These rulings underscore the importance of not just having prudent processes, but also considering how those processes are documented." [Lauderdale v. NFP Corp., No. 21-0301 (N.D. Calif. Feb. 23, 2024)]  MORE >>

"There has been a recent increase in ERISA claims filed against retirement plan advisors ... [T]his article discusses the allegations and the courts' conclusions in selected cases.... The core ERISA fiduciary duties for retirement plan advisors are the duties of loyalty and prudence. Intertwined in both duties is a responsibility to ensure that only reasonable fees are charged for the services and investments recommended or selected by the adviser. "  MORE >>

"On March 7, the House of Representatives voted on an amendment to a larger bill that would allow collective investment trusts (CIT) to be included as menu options in 403(b)s.... If passed, [The Retirement Fairness for Charities and Educational Institutions Act] would ensure that 403(b) plan participants have the same opportunities to invest as other retirement plan participants."  MORE >>

"While the percentage of public-sector participants affected by this mandatory provision is relatively low, the percentage of the public-sector plan sponsors in the database impacted is much higher at 55 percent, as these participants are dispersed across many plans. In other words, 1 in every 2 plan sponsors may be required to make plan administration changes as a result of this provision."  MORE >>

"Dawn made the change based on feedback from employee surveys -- in two successive years -- which showed its 401(k) plan participants were confused by the employer's old formula ... Using Dawn's prior formula, the 401(k) matched 100% of a participant's first 3% of retirement contributions and 50% of the next 2% ... Confused participants were less engaged with the retirement plan and 'more hesitant to come participate,' [Dawn Foods' Brian Coleman] says"  MORE >>

"[O]ne in three current retirees are contemplating a return to work, driven largely by desires for increased social interaction and to alleviate boredom. This trend is reshaping the landscape of employment and prompting a reevaluation of workplace dynamics across generations."  MORE >>

18 pages. "Opponents contend that the GPO is imprecise and can be unfair. Defenders argue it is the best method currently available for preserving the spousal benefit's original intent of supporting financially dependent spouses and for eliminating an unfair advantage for spouses working in non-Social Security-covered employment compared with spouses working in Social Security-covered jobs (who are subject to the dual entitlement rule)." [RL32453, updated Mar. 7, 2024]  MORE >>

"The funded status of the 100 largest U.S. corporate defined benefit pension plans improved by $26 billion during February ... An increase in the benchmark corporate bond interest rates used to value pension liabilities caused these liabilities to drop $30 billion for the month. As of February 29, the funded ratio for the Milliman 100 plans rose to 104.9%, up from 102.8% at the end of January,"  MORE >>

"The evolution of longevity is forcing those in financial advising to rewrite the playbook on retirement planning.... If we will be living longer, investment portfolios must be designed, built and optimized to sustain us over a longer period than previously planned. Beyond sustaining individuals, they need to allow them to continue to thrive, living into our 90s or even beyond. Diversification, risk management and a focus on long-term growth become even more crucial in this new landscape."  MORE >>

"The Department of the Treasury and the [IRS] invite the public to submit recommendations for items to be included on the 2024-2025 Priority Guidance Plan.... The 2024-2025 Priority Guidance Plan will identify guidance projects that the Treasury Department and the IRS intend to actively work on as priorities during the period from July 1, 2024, through June 30, 2025."  MORE >>

"Common areas [for] fiduciary breaches include [1] plan sponsors failing to timely remit employee contributions to the plan, particularly for off-cycle and manually cut checks; [2] plan committees not using best practices to monitor, choose, and remove plan investments and not properly benchmarking performance and fees; and [3] plan fiduciaries relying heavily on third-party administrators to process claims without reviewing the claims letters and/or procedures being used by the third-party administrators."  MORE >>