"Providers of preapproved qualified DC plans have from Feb. 1, 2024, through Jan. 31, 2025, to submit Cycle 4 plan documents for IRS review.... [IRS] will issue opinion letters to providers whose documents have been approved. Employers may then adopt the plans within a window (usually about two years) announced by IRS. Preapproved 403(b) plans and defined benefit plans have separate cycles and won't be reviewed during this submission period."  MORE >>

"The final amendments: [1] require a QPAM to notify the DOL by email ... that it is relying on the QPAM exemption ... [2] become effective on June 17, 2024 ... [3] increase the financial thresholds necessary for an entity to qualify as a QPAM over time ... [4] require a QPAM to maintain records for six years demonstrating compliance with the exemption."  MORE >>

"[T]his ruling is a big win not only for the Plaintiff in the Qualcomm case, but also for the plaintiffs in the other recently filed forfeiture actions ... [C]opies of the ruling have been filed in four other forfeiture cases in which motions to dismiss are currently pending ... [Employers should consider] whether fiduciary decisions relating to forfeitures could be seen as relieving the employer of an obligation to the plan or as imposing additional costs on participants and whether any particular action should be taken now that might mitigate litigation risks going forward." [Perez-Cruet v. Qualcomm Inc., No. 23-1890 (S.D. Calif. May 24, 2024)]  MORE >>

"Nearly six-in-10 employees (59%) who are not contributing to their 401(k) or other workplace retirement plan think they are ... Three out of every four of those employees (77%) believed they started saving upon becoming eligible to contribute.... Among survey respondents who said they were not contributing to workplace retirement plans, despite being eligible, the top reasons cited for not saving included high monthly expenses (39%), paying off debt (36%), and insufficient income (34%)."  MORE >>

"Plan sponsors can use their DB benefit to support their workers to create a stream of income in retirement, as pension plans have clear, demonstrated value to beneficiaries ... Instead of continuing to de-risk or terminate a pension, by switching their thinking plan sponsors also have opportunity to improve their participants' prospects for generating lifetime income[.]"  MORE >>

"[PBGC] has approved the [SFA] application submitted ... by the Radio, Television and Recording Arts Pension Plan. The plan, based in New York City, New York, covers 516 participants in the entertainment industry.... [The] Plan will receive approximately $63 million in special financial assistance ... [It] was projected to become insolvent and run out of money in 2027."  MORE >>

"[PBGC] has approved the [SFA] application submitted ... by the Maryland Race Track Employees Pension Plan. The plan, based in Laurel, Maryland, covers 1,407 participants in the service industry.... [The] Plan, which is in critical status, will receive approximately $26.8 million in special financial assistance[.]"  MORE >>

"The ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee has requested feedback on ways to modernize federal law to allow independent workers access to portable workplace benefits, such as retirement and health care.... Sen. Cassidy notes that at least 27 million Americans engage in independent work ... [and] would like access to portable workplace benefits"  MORE >>

12 pages. "Although there are some contrary holdings, the great majority of cases hold that state law claims of undue influence with respect to ERISA plans are preempted by ERISA. That a counterclaim involves a dispute over a change of beneficiary form in no way defeats ERISA preemption."  MORE >>

"The case presented a routine estate-planning device for those corporations, which commonly purchase life insurance policies on the principal shareholders. With the proceeds of such a policy, the corporation can purchase the shares of a dying shareholder from the shareholder's estate, ensuring that the corporation remains in the hands of the original family.... The problem here is what to do with the value of those life-insurance proceeds, which flow into the corporation immediately after death." [Connelly v. IRS, No. 23-146 (S. Ct. Jun. 6, 2024)]  MORE >>

"Morgan Stanley asked a federal judge to force the advisors to take their claims to arbitration. Last November, Judge Paul Gardephe granted the company's request. But in the same ruling, he found that Morgan Stanley's deferred compensation programs are governed by ERISA. And that is creating costly headaches for the financial-services giant." [Shafer v. Morgan Stanley, No. 20-11047 (S.D.N.Y. Nov. 21, 2023)]  MORE >>

"Without the right guidance, your generosity could lead to unanticipated tax and corporate governance problems.... [T]he three most common scenarios where employers run into trouble: [1] Giving stock to employees outright or selling it to them at a discount ... [2] Letting employees have stock with no exit strategy ... [3] Letting employees have stock when there's really no need to."  MORE >>