"The July 1-July 30, 2024 interest assumptions will be 5.11 percent for the first 20 years following the valuation date and 4.83 percent thereafter.... This final rule is the last rule that PBGC will publish for the interest assumption using the select and ultimate approach. On June 6, 2024, PBGC issued a final rule ... that changes the structure of the interest assumption for valuation dates on or after July 31, 2024, from the select and ultimate approach to a yield curve approach."  MORE >>

"Essentially, the argument comes down to claiming that the use of plan forfeitures to reduce employer contributions ... 'caused the Plan to receive fewer future employer contributions than it would [have] otherwise received, and depleted Plan assets.' The decision to do so, the suit alleges, was a case of plan fiduciaries placing their interests above the interests of plan participants and beneficiaries." [Matula v. Wells Fargo & Co., No. 24-03504 [N.D. Cal. complaint filed Jun. 11, 2024]  MORE >>

"[Plaintiffs] had contended that, although Humana engaged in requests for proposals for the plan and performed annual benchmarking using reports from third-party consultants, Schwab's recordkeeping costs were unreasonably high.... 'Plaintiffs have no factual support for their position that a $12-$20 recordkeeping fee would have been reasonable for the Plan to pay,' [the judge] wrote. 'Plaintiffs also point to no case law suggesting that a prudent process must involve continuous negotiations with a recordkeeper for lower fees throughout a contract period.' " [Moore v. Humana, Inc., No. 21-0232 (W.D. Ky. May 23, 2024)]  MORE >>

"Plaintiffs have alleged the plan fiduciaries improperly allowed Fidelity Investments, serving as the plan's recordkeeper, to charge unreasonably high recordkeeping fees and claimed fiduciaries failed to review the plan's investment portfolio -- to ensure each option was prudent -- regarding risk and performance." [Jones v. Memorial Health System, No. 24-2105 (S.D. Tex. complaint filed Jun. 4, 2024)]  MORE >>

"SECURE 2.0 certainly has contributed to the 'Rothification' of the 401(k) plan and other retirement plans.... [T]here are still open questions as to how the Treasury Department and IRS will interpret these provisions. Further, payroll providers, recordkeepers, sponsors and others likely will have to make substantial changes to their technology and policies and procedures in order to comply with the regulations and guidance yet to be issued."  MORE >>

"[M]ore than 90% of defined contribution (DC) recordkeepers offer financial wellness services to clients and 71% of 401(k) plan sponsors have adopted a financial wellness program. As such, one would think that financial wellness programs are well poised to help promote and translate the retirement savings environment to DC participants by providing valuable knowledge and actionable recommendations. Yet, these programs currently are either not effective or not widely used by participants[.]"  MORE >>

"According to the survey of 300 annuity owners, 82% said the opinion of their financial professional made them feel more positive about their decision to buy an annuity, followed by the performance of the annuity itself (76%), market performance (70%) and interest rate changes (67%).... 67% of investors said their top motivation for purchasing their annuity was funding their retirement, and 41% said they did so to generate a 'personal pension' that could provide a reliable income stream, in many cases, for life."  MORE >>

11 pages. "Wilshire estimates that the aggregate funded ratio was 95.8% at FYE 2023, which represents a 2.9 percentage point decrease from FYE 2022 (98.7%). Wilshire's estimate of the aggregate funded ratio as of May 31, 2024 is 101.2%. The 5.4% increase from our FYE 2023 measurement was mostly driven by changes in liability values ... Corporate bond yields, used to value corporate pension liabilities, are estimated to have increased by close to 30 basis points since the beginning of the year."  MORE >>

"Given the potential tax benefit for taxpayers whose income is from a specified service business, the goal will be to reduce taxable income below the 20% QBI deduction phase-out threshold.... Tax-qualified retirement plans, both defined contribution (including 401(k) plans) and defined benefit plans (including cash balance plans), represent a potential source of substantial tax deductions for taxpayers."  MORE >>

"If you want to recharacterize your IRA contribution, consider the following rules. [1] Who can make the switch ... [2] What can you switch ... [3] Why make the switch ... [4] Where to make the switch ... [5] When must you make the switch ... [6] How to make the switch ... [7] Tell your tax preparer."  MORE >>

"[The] PEP has commitments for over $50 million of plan assets, with about $50 million more expected by the end of the year ... Alerus will be the 3(16) fiduciary for the PEP, with iJoin providing a default adviser-managed account with investments chosen by SRP as the 3(38) investment fiduciary."  MORE >>

"[PBGC] has approved the application submitted ... by the Arizona Bricklayers' Pension Trust Fund. The plan, based in Phoenix, Arizona, covers 666 participants in the construction industry ... [and] will receive approximately $10.6 million in special financial assistance ... The plan was projected to become insolvent and run out of money in 2041."  MORE >>

"[I]ndividuals and businesses in Arkansas that were affected by severe storms, straight-line winds, tornadoes, and flooding that occurred on May 24, 2024 ... now have until Nov. 1, 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 Baxter, Benton, Boone and Marion counties qualify for tax relief."  MORE >>

"Signed into law on May 17, Senate Bill 24-205 imposes stringent requirements on employers using AI to prevent algorithmic discrimination. Slated to take effect on February 1, 2026, the new law will require employers using 'high-risk' AI systems to implement risk management policies and programs, conduct impact assessments, and provide certain notices and disclosures."  MORE >>