"The amendment includes a number of new requirements for entities seeking to rely on the QPAM Exemption, as well as additional categories of crimes and misconduct that could result in the loss of the exemption."  MORE >>

"Under the Proposed Rule, an advisor who recommends that an investor roll over ERISA plan assets to an IRA would be considered a fiduciary under ERISA subject to the ERISA duties of prudence and loyalty. And, because a rollover recommendation inevitably results in compensation that the advisor would not have received absent the rollover ... the advisor and the advisor's firm would need to comply with PTE 2020-02. "  MORE >>

"The Proposed Rule aims to better reflect changes across the retirement landscape that have happened since 1975, specifically the major shift from defined benefit plans to defined contribution plans. The proposal revamps the current Five-Part Test, expanding the rule to fill gaps that exist in the regulatory structure of investment advice fiduciaries. Overall, the proposal would make it harder to avoid fiduciary status, enhancing the trust and confidence of plan sponsors and participants."  MORE >>

This article summarizes state and city retirement initiatives for private-sector workers and rounds up relevant resources. The latest updates cover a recently enacted state-run multiple-employer plan for small employers in Missouri and a new auto-enrollment IRA program in Washington state.  MORE >>

"[The authors] developed this one-of-a-kind resource to provide a practical desk reference for corporate counsel faced with defending ERISA class action litigation.... Given the massive class action settlement figures in 2022 and 2023 (a combined total of $113 billion), coupled with the ever-developing law, corporations can expect more lawsuits, expansive class theories, and an equally if not more aggressive plaintiffs' bar in 2024."  MORE >>

"In evaluating the plausibility of excessive fee claims, courts have held plaintiffs to pleading standards focused on [1] the requisite specificity of alleged excessive fees; [2] whether comparisons used of such fees are appropriate 'apples-to-apples' comparisons; and [3] whether fees are truly excessive compared to the services rendered. In addition, lack of standing remains an important ground for potential dismissal."  MORE >>

"There are various funding options available to companies that are considering an ESOP, including internal funding and external financing. And while plans vary from company to company, there are general ESOP funding rules to follow. ESOP funding rules are designed to ensure the plans benefit employees fairly and broadly."  MORE >>

"In their letter, the lawmakers ask the Solicitor of Labor 'what advice and legal interpretations' she and her office provided to the PBGC 'regarding its legal authority to recapture these overpayments from both before and after DOL's (guidance).' The lawmakers also wrote that they're 'interested in how (the office of the solicitor) helps to guide PBGC in providing information to the committee and other interested parties.' "  MORE >>

"The funded status surplus improved to $73 billion from $68 billion at the end of February 2024, due to strong investment returns that offset rises in plan liabilities incurred during March. Plan liabilities increased due to a decline in the benchmark corporate bond interest rates used to value pension liabilities. As of March 31, the funded ratio rose to 105.6%, from 105.3% at the end of February."  MORE >>

"[C]ash balance plans are most popular among smaller, well-established firms that have significant and consistent cash flow ... Generally, they also work well for older small business owners who are no longer making heavy investments in their businesses, and have significant amounts of pass-through income, resulting in high tax bills."  MORE >>

"A meaningful benchmark in an excess recordkeeping fee case would be a reliable, national benchmark of what all similarly-sized plans pay for services -- not fees from a few random plans. And any such benchmark would show that $29 is a reasonable recordkeeping for a jumbo defined contribution plan. The U.S. Bancorp case is yet another excess imprudence fee case against a plan with a low-cost investment and administrative fee structure. It is an excess fee case against a plan without excess fees." [Dionicio v. U.S. Bancorp, No. 23-0026 (D. Minn. March 21, 2024)]  MORE >>

"The article introduces the proposed Equity for Surviving Spouses Act (ESSA) which would change that result prospectively by giving rights to surviving spouses of New York public employees that are similar to those that have been provided for many years to surviving spouses of retired federal employees, of private employees, and of employees most other states."  MORE >>

"[I]ndividuals and businesses in parts of Maine affected by severe storm and flooding that began on Jan. 9, 2024 ... now have until July 15, 2024, to file various federal individual and business tax returns and make tax payments.... [I]ndividuals and households that reside or have a business in Cumberland, Hancock, Knox, Lincoln, Sagadahoc, Waldo, Washington, and York counties qualify for tax relief."  MORE >>

"[I]ndividuals and businesses in Rhode Island that were affected by severe storms and flooding that began on Dec. 17, 2023 ... now have until July 15, 2024, to file various federal individual and business tax returns and make tax payments.... [I]ndividuals and households that reside or have a business in Kent, Providence and Washington counties qualify for tax relief."  MORE >>

"[I]ndividuals and businesses in parts of Rhode Island affected by severe storms and flooding that began on Jan. 9, 2024 ... now have until July 15, 2024, to file various federal individual and business tax returns and make tax payments.... [I]ndividuals and households that reside or have a business in Kent, Providence and Washington counties qualify for tax relief."  MORE >>

"Here are some ways multinationals can navigate compensation and benefit challenges in their foreign operations: [1] Employment shell selection ... [2] Package development ... [3] Overcoming lack of critical mass ... [4] Diverse employee benefits ... [5] Flexible design and delivery ... [6] Global vendor networks."  MORE >>

"[1] New Form 5500 compliance questions for retirement plans.... [2] Corporate transparency act compliance for ESOP-owned companies.... [3] Keeping tabs on affiliated employers ... [4] Recent lawsuits hint at broadening scope of ERISA class actions topics."  MORE >>