"DOL's proposal focuses mostly on how auto-portability providers can satisfy SECURE 2.0's conditions for relying on the PTE. However, the proposal also highlights several considerations for employers that participate in these arrangements. [1] Decision to participate in auto-portability arrangement is a fiduciary act.... [2] Sponsors would need to designate a plan official to monitor transfers.... [3] Update to summary plan description (SPD) required."  MORE >>

"[P]lan sponsors may want to consider actions such as ... [1] Ask existing managers (and in the future, new managers) to confirm if they will continue to qualify as a QPAM and be able to rely upon the QPAM Exemption as amended ... [2] Inquire (and adding, in the future, a process to inquire) about the manager's compliance with certain of the new QPAM requirements ... [3] Evaluate existing relationships and contracts to confirm if amendments are needed to any existing QPAM contracts and contract representations."  MORE >>

"Qualcomm Inc. must defend how it manages 401(k) assets forfeited by former employees, a California federal judge said in the first substantial decision addressing a new series of ERISA cases targeting several large companies." [Perez-Cruet v. Qualcomm Inc., No. 23-1890 (S.D. Calif. May 24, 2024)]  MORE >>

"The insurance organizations have argued that the added fiduciary obligations are unnecessary, as annuity sales are already regulated by many states, and investment advice is generally guided by the [SEC's] Regulation Best Interest rules. More broadly, the firms have argued that the fiduciary obligations would be costly, restrictive, and ultimately limit retirement advice to people with fewer assets who cannot afford long-term financial advisers." [ACLI v. DOL, No. 24-0482 (N.D. Tex. complaint filed May 24, 2024)]  MORE >>

"The Third Circuit found that Plaintiffs stated a claim under ERISA that the Defendants breached their duty of prudence ... by alleging that the Plan's fiduciary did not negotiate a fee cap or solicit bids even though revenue sharing rates fell on a percentage basis, the asset-based fee structure caused the Plan's fees to rise when there was no corresponding increase in services, and similarly situated fiduciaries requested proposals and negotiated with recordkeepers to keep fees reasonable." [Mator v. Wesco Distribution, Inc., No. 22-2552 (3d Cir. May. 16, 2024)]  MORE >>

"In two-thirds of plans, employer contributions ... are highly concentrated, with 44% of dollars accruing to the top 20% of earners.... The majority (59%) of employer contributions accrue to the 41% of employees who save more than the match cap, suggesting they would have saved just as much without the match.... [A] range of plan features, including the default contribution rate as well as eligibility and vesting requirements, may interact with or help determine the equity, efficiency, and costs associated with employer contributions."  MORE >>

"Over a thousand participants in the Walmart 401(k) Retirement Plan were exposed to a data breach by recordkeeping provider Merrill Lynch, after an employee accidentally revealed private information that included names and Social Security numbers to an unauthorized user."  MORE >>

"[A table] provides the calculation of the Social Security COLA using both the CPI-W and the R-CPI-E. The December 2023 COLA using the R-CPI-E (4.0%) would have been 0.8 percentage points higher than the COLA using the CPI-W (3.2%)."  MORE >>

"[PBGC] has approved the application submitted ... by the UFCW Regional Pension Fund. The plan, based in Mount Laurel, New Jersey, covers 4,605 participants in the service industry across the Mid-Atlantic region primarily in Delaware, Pennsylvania, and New Jersey. The UFCW Regional Fund, which is in critical status, will receive approximately $54.6 million in special financial assistance, including interest to the expected date of payment to the plan."  MORE >>

"[This] filing makes a convincing case that the DOL's fiduciary-only regulation suffers from the same legal defects as the DOL's failed 2016 rule. It exceeds the DOL's authority under federal law, is arbitrary and capricious, and is unconstitutional. Moreover, it ignores recently enhanced federal and state standards for financial professionals who work with retirement savers. However, the DOL's biggest failing is its inability to learn from past mistakes." [ACLI v. DOL, No. 24-0482 (N.D. Tex. complaint filed May 24, 2024)]  MORE >>

"Was the 401(k) plan a mistake? ... Are defined benefit plans viable alternatives? ... 401(k) plan are covering more employees and becoming more like defined benefit plans.... Automatic enrollment will be required for new plans.... 'Do it for me' investment options are becoming more popular.... Outsourced fiduciary responsibility.... Participant education.... Other reforms would help."  MORE >>