"If permitted under the [457(b) plan's] document, an employer can allow a participant to make a voluntary, one-time small balance distribution while employed, if certain conditions are satisfied ... [S]ince rules pertaining to 457(b) governmental plan de minimis distributions cross-reference the IRC section updated by SECURE 2.0, the maximum amount for de minimis distributions from a 457(b) plan was also raised by SECURE 2.0 to $7,000, effective Jan. 1, 2024."  MORE >>

"[M]any advisors will need the protection provided by [PTE 2020-02] in order to receive the conflicted compensation resulting from the fiduciary advice. The DOL amended PTE 2020-02 at the same time as the new fiduciary rule; however, the effective date for some of the PTE's conditions are delayed."  MORE >>

"What is the Fiduciary Rule and what are the PTE amendments? ... What is going to change? ... What types of recommendations and transactions are in scope? ... When does it go into effect? ... Who is a retirement investor? ... How do I comply?"  MORE >>

"Qualcomm has been ordered to defend its 401(k) forfeiture practices. This case marks the first substantial ruling in a series of new ERISA cases targeting how large companies handle forfeitures in their 401(k) plans.... [A]nother 401(k) forfeiture case out of California was sent to arbitration.... Ensuring that a plan's language aligns with the plan sponsor's intent and practices will be helpful in mitigating the risks posed by this new line of cases." [Perez-Cruet v. Qualcomm Inc., No. 23-1890 (S.D. Calif. May 24, 2024); Yagy v. Tetra Tech, Inc., No. 24-1394 (C.D. Calif. May 17, 2024)]  MORE >>

11 pages. "Consider a focus on retirement plan enrollment during the annual benefits election period.... Consider the power of personalized communications to alert non-contributing employees that they're not actively participating -- especially when so many think they are.... Help find the balance between saving and debt[.]"  MORE >>

"In addition to maintaining sound internal control policies and procedures, plan sponsors can add a layer of verification through a self-audit or an agreed-upon-procedures engagement performed by an independent accountant or specialized professional."  MORE >>

"With many plan sponsors concerned about market volatility and interest rates falling in 2024, now is the ideal time to review your pension plan's de-risking strategy and evaluate implementing a lump sum window. Use [this] checklist to guide you through some of the key questions[.]"  MORE >>

"S 4398, the Retirement Investment in Small Employers (RISE) Act ... is intended to encourage small businesses with no more than 10 employees who received at least $5,000 of compensation in the prior year to adopt retirement plans."  MORE >>

"44% of advisors are only somewhat (28%) or not confident at all (16%) in their retirement plans.... A third of advisors surveyed (33%) admitted they do not have a succession plan for their practice in place -- and even those who do (77%) are not necessarily updating it in real time. More than 42% say they need to add details or refresh it altogether."  MORE >>

"The Humana case cries out for a more stringent pleading standard to weed out meritless excessive fee cases that are based on misleading and unreliable circumstantial evidence, instead of a reliable, national benchmark study of comparable fees. Courts must stop ruling that unverified fee comparisons to a few random plans meets the plausibility pleading standard." [Moore v. Humana, Inc., No. 21-0232 (W.D. Ky. May 23, 2024)]   MORE >>

"[1] Facilitate lifetime income.... [2] Right-size PBGC premiums.... [3] Expand and encourage permissible risk-sharing plan designs.... [4] Allow pre-tax employee contributions to DB plans.... [5] Allow pooled DB plans.... [6] Modify DB pension funding rules."  MORE >>

"[I]ndividuals and businesses in parts of Massachusetts affected by severe storms and flooding that began on Sept. 11, 2023 ... now have until July 31, 2024, to file various federal individual and business tax returns and make payments. ... [I]ndividuals and households that reside or have a business in Bristol and Worcester counties qualify for tax relief."  MORE >>

"Consistent with commentary to the Rule, the main thrust of the FTC's response argues it has authority to issue the Rule pursuant to the Federal Trade Commission Act's directive that Congress 'empowered and directed' the FTC to prevent the use of unfair methods of competition through rulemaking. The FTC also devotes significant briefing to dispelling the application of the 'major questions doctrine' to curtail its regulatory ability." [Ryan LLC v. FTC, No. 24-0986 (N.D. Tex. response to motion for stay filed May 29, 2024)]  MORE >>

Health Issues include: [1] Proposed Mental Health and Substance Use Disorder parity regulations; [2] No Surprises Act (NSA) implementation; [3] Electronic delivery rules and other guidance for providing applicable notices and making participant elections; [4] Streamlining employer reporting requirements under the ACA; [5] High-Deductible Health Plans (HDHPs) and Health Savings Accounts (HSA) modernization.

Retirement and Compensation Issues include: [1] Matching contributions for student loan payments and other account contributions; [2] Catch-up contributions; [3] Clarify the automatic enrollment mandate exemption for existing plans; [4] De minimis financial incentives; [5] Overpayments and self-correction; [6] Optional Roth match; [7] Notice and disclosure; [8] Missing participants, including guidance on uncashed checks.  MORE >>

"Although most executives and employers will never be involved in situations with these dollar figures, the issues under Sections 409A and 457(f) of the Internal Revenue Code implicated by these scenarios are also implicated in many common executive compensation arrangements. The arrangements provide an interesting window for employers and executives to refresh their knowledge of common issues that can arise in their own executive compensation arrangements."  MORE >>