70 pages; Feb. 6, 2024. "What's New: [1] Qualified tuition program rollover to a Roth IRA.... [2] Distributions to victims of domestic abuse.... [3] Excise tax relief for certain 2023 required minimum distributions."  MORE >>

"[This article provides] a question and answer explanation intended for employers and employees who want to know all the related details ... [and] a two-page notice to explain the rules to employees. There is no legal requirement that the notice be given to employees.... [E]mployers and others in the retirement services community [are encouraged] to give out the notice in order to promote retirement savings by eligible employees."  MORE >>

"As companies increasingly encounter dialogue regarding environmental, social, and governance (ESG) factors, they and their investors and other stakeholders face the task of navigating the sometimes-contradictory web of regulations governing the world of ESG investing. In the United States, ESG-related regulatory risk primarily originates from three key sources: the [SEC], the [DOL], and state legislatures and agencies. This article provides a summary discussion of the regulatory framework impacting ESG investing in these three areas."  MORE >>

"[SECURE 2.0] created a new type of automatic enrollment 401(k) plan called the 'starter 401(k) deferral-only arrangement'  ... meant to be an entry-level option for small businesses who do not already offer a retirement plan. A starter plan is not subject to annual testing like a traditional 401(k) plan or mandatory employer contributions like a safe harbor 401(k) plan. The trade-off is lower contribution limits for plan participants. Small businesses can adopt a starter 401(k) plan starting January 1, 2024."  MORE >>

"In an unusual move, the DOL held a hearing regarding their proposed rules before the comment period had ended and received more than 19,000 comments during the comment period, which ended Jan. 2, 2024.... Many expect that, if the proposed rules are finalized, there will be challenges to the rules under the Administrative Procedures Act due to this unusual procedure."  MORE >>

18 pages. "More than 70% of plan sponsors say they find managing the details of their retirement plan a distraction from their core business ... Legislative compliance and fiduciary responsibilities rank high among chief retirement plan challenges ... More than 50% of plan sponsors use a professional fiduciary to outsource plan governance and oversight ... Plan sponsors judge retirement plan success by assessing participant success ... Nearly 40% of plan sponsors ensure plan success by using professional fiduciary resources ... More than 50% of plan sponsors employ a total benefits outsourcing approach."  MORE >>

"Ted Benna, the 'Father of the 401(k),' is pushing a new incentive plan employers could offer rank-and-file employees.... [M]oney put into it, exclusively by employers, would grow tax-deferred much like a 401(k).... Employers would reward workers a flat-dollar amount or a percentage of compensation to the account ... [T]he minimum amount that can be withdrawn is $500 and only one withdrawal per year is permitted."  MORE >>

" 'The [PBGC] represents some of the worst of the Biden administration's incompetence and misuse of taxpayer dollars,' said Chairman Good. 'Its failure to implement standard controls and verification procedures has resulted in millions of dollars in inaccurate payments -- at least $127 million of which was sent to fund pensions for dead participants. This hearing will shine a much-needed light on PBGC's mismanagement and ineffectiveness.' "  MORE >>

"In February, pension plan sponsors experienced higher liability discount rates amid a rise in interest rates.... NEPC's hypothetical total-return pension plan experienced an improvement of 3.8% in funded status compared to an increase of 1.9% for [the] LDI-focused plan."  MORE >>

"Since late 2022, interest rates have risen to levels not seen in more than 15 years. Over that period, most pension plans have become more demographically mature, which makes them more vulnerable to risk factors such as investment return volatility and changing interest rates. The current interest rate environment provides opportunities to reduce pension plan risk that may have been untenable when interest rates were lower"  MORE >>

"Promote the usage of target date funds (TDFs)  ... Provide retirement income planning tools and resources ... Establish emergency cash accounts ... [E]ncourage their employees to: Meet with a financial planner and use retirement income planning tools ... Develop a contingency plan ... Revise timing of retirement ... Ensure adequate insurance coverage during retirement for healthcare, long-term care and life insurance."  MORE >>

"These proposed regulations would remove the physical presence requirement for formal continuing professional education programs required for active enrolled actuaries and the physical location requirement from course certifications. These proposed regulations also would modify the continuing professional education requirement for certain actuaries who seek to return to active enrollment from inactive status due to their failure to timely satisfy the renewal requirements in the first enrollment cycle after their initial enrollment cycle. Finally, the proposed regulations would add a requirement that certificates of instruction for continuing professional education courses include the number of hours counted towards the required number of hours for formal programs."  MORE >>

"[P]laintiffs contend that Section 42's 'equivalent benefits' provision is preempted by ERISA because it 'relates to' their employee benefit plans by having a 'connection with or reference to' those plans. The court agreed ... The [Illinois DOL] objected, arguing that Section 42's cash alternative allowed the law to escape preemption because it enabled the plaintiffs to comply without involving their benefit plans. The court rejected this argument[.]" [Staffing Servs. Ass'n of Ill. v. Flanagan, No. 23-16208 (N.D. Ill. Mar. 11, 2024)]  MORE >>