"The updated form contains some significant changes for certain retirement plans and is effective for plan years beginning on or after January 1, 2023.... [1] Determining small or large plan status ... [2] Breakdown of administrative expenses ... [3] Consolidation rules for Defined Contribution Groups (DCGs) ... [4] Internal Revenue Code compliance questions ... [5] New disclosures for Multiple Employer Plans (MEPs) ... [6] Electronic filing for the extension of time to file."  MORE >>

"Determining whether a worker is an employee or independent contractor particularly for retirement plan coverage purposes can be tricky. The DOL has a new FLSA employee standard. There's also the IRS definition of employee for tax purposes and Supreme Court rulings. All three of these standards may impact whether a worker is an employee that should be covered under an employer-sponsored retirement plan."  MORE >>

"[T]he SECURE 2.0 rule adjustment does not alter a plan sponsor's obligation to comply with the SECURE Act LTPTE rules for 2024. Consequently, the SECURE Act 'three year' rule will apply for 2024. However, effective for 2025 and into the future, the SECURE 2.0 'two year' rule will apply."  MORE >>

"The amendments describe how advisers should mitigate their conflicts in the PTE's preamble and section on policies and procedures.... The DOL says explicitly that they do 'not require Financial Institutions to categorically eliminate all sales quotas, appraisals, performance or personnel actions, bonuses, contests, special awards, differential compensation, sales contests, quotas, or bonuses.' "  MORE >>

"When quizzed about retirement topics, Americans correctly answered only 40% of the questions, showing the need for improvement in their retirement fluency.... Most failed to recognize that a retirement savings opportunity with an employer match is better than one without the match. Only about half (53%) were aware that buying an annuity could offer guaranteed lifetime income, safeguarding against the risk of outliving retirement savings. ... A vast majority lacked a basic understanding of how long people tend to live in retirement[.]"  MORE >>

"While the pandemic, for the most part, has subsided, mortality rates ... [are] still higher than normal, and may be poised to climb even higher. And while theories abound as to the cause, no one -- from industry analysts to healthcare specialists, to policymakers, to underwriters -- has a handle on this chilling phenomenon."  MORE >>

"Based on Segal's experience with 35 public sector [pension administration system] replacement projects in recent years, on average, the projects took 44% longer than originally planned.... [R]esponding vendors are incentivized to propose an aggressive timeline, to keep their bid low. Furthermore, the vendor likely anticipates they will be evaluated poorly by proposing a longer schedule, even if it more realistic.... Short of structurally changing the procurement process, we don't believe there is a simple way to prevent this situation, but there is a way to manage it."  MORE >>

17 pages. "Periodic cost-of-living adjustments (COLAs) in some form are provided on most state and local government pensions.... Considerable variation exists in the way COLAs are designed ... This brief presents a discussion about the purpose of COLAs, the different types of COLAs provided by government pension plans, and an overview of recent state changes to COLA provisions."  MORE >>

"[F]ollowing a buyout, DB plans are more likely to be frozen or terminated, and defined contribution (DC) plans are not likely to provide sufficient substitutes. Regarding the actuarial assumption and the pension characteristics, [the author finds] an increase in the pension liability discount rate and decreases in the projected benefit obligations (PBO), pension assets (PA), and contributions, but [does] not find significant effects on funding ratio.... [I]nvestment strategies for these plans become riskier ... However, there is no significant effect on realized returns."  MORE >>

"The aggregate funded ratio for U.S. corporate pension plans increased by an estimated 1.1 percentage points in April, ending the month at 110.8% ... This month's change in funded ratio resulted from a 5.2% decrease in liability value partially offset by a 4.2% decrease in asset value. The aggregate funded ratio is estimated to have increased by 5.8 and 10.3 percentage points year to date and over the trailing twelve months, respectively."  MORE >>

"In 2027, the Saver's Match provisioned by SECURE 2.0 will allow for millions of retirement savers in the U.S. to qualify for a match of up to $1,000 per individual from the federal government, depending on income.... The Saver's Match has the potential to help mitigate disparities in 401(k) savings for different groups based on race and gender."  MORE >>

"[N]either ERISA nor fiduciary law requires that annuities, nor any other specific type of investment, be offered within a pension plan. Annuity advocates similarly refuse to acknowledge or address the legitimate fiduciary liability risks inherent in the current versions of most annuities."  MORE >>

16 pages. "This issue brief proposes six policy options for Congress to consider: [1] Lowering the per-person rate of [PBGC] premiums for single- employer plans. [2] Reducing the variable rate PBGC premium. [3] Formally acknowledging risk-sharing plans in statute. [4] Permitting greater flexibility in the use of funding surpluses in DB plans. [5] Allowing pre-tax employee contributions in private- sector DB plans similar to state and local public pension plans. [6] Formally acknowledging in statute that retirement benefits should be fungible for each individual and that transfers from defined contribution (DC) plans to DB plans and conversely in the vein of Revenue Ruling 2012-4 should be allowed."  MORE >>

"[The] main takeaway from the [DOL's] fact sheet, budget, and the stated Enforcement Projects, as well as recent experience with DOL investigations, is that the following areas may be of particular focus during future DOL investigations: [1] Cybersecurity and participant data issues.... [2] Missing participants ... [3] Illiquid and hard-to-value assets, including private equity and alternative investment classes (such as cryptocurrency) in both defined benefit and defined contribution plans.... [4] Mental health parity and MHPAEA enforcement.... [5] Proper use of plan forfeitures.... [5] Evidence of insurability issues[.]"  MORE >>

"The court ... noted that while Section 502(a)(2) claims may be asserted by an individual, they are brought in a representative capacity on behalf of the plan and seek plan-wide relief. Thus, with his Section 502(a)(2) claim, Cedeno was not simply seeking a remedy for losses in his particular account; he was seeking a remedy on behalf of the plan that would affect the accounts of others as well and perhaps lead to non-monetary equitable relief." [Cedeno v. Sasson, No. 21-2891 (2d Cir. May 1, 2024)]  MORE >>

"Within 24 hours of the FTC voting to approve the Final Rule, several entities ... filed lawsuits against the FTC in the Federal Court seeking injunctions to postpone the Effective Date and to invalidate the Final Rule. Additional lawsuits have been filed, and are anticipated to be filed, by other interested parties."  MORE >>

"The trustees project that the reserves of the combined Social Security trust funds will be depleted in 2035 and Medicare's Hospital Insurance (HI) trust fund in 2036. For HI, that's five years later than in last year's report. For Social Security, it's one year later.... The trustees' new projections, like those of the Congressional Budget Office, show a long-run financing problem that needs to be addressed, but the programs are not 'bankrupt,' as some critics charge."  MORE >>

"[1] How the FTC defines noncompetes.... [2] Exceptions to the noncompete ban.... [3] Your state laws may still apply.... [4] Nondisclosure agreements may be restricted too.... [5] Lawsuits enforcing prior noncompetes do not go away.... [6] What your company must tell you.... [7] Legal challenges will severely test the noncompete ban"  MORE >>