"The amendment requires each QPAM that relies upon the QPAM Exemption to provide a one-time notice to the DOL ... listing the QPAM's legal name (and any name the QPAM may be operating under). Notice is required only once, unless the legal or operating name of the QPAM is changed ... The amendment also significantly increases the assets under management (AUM) and shareholders' or partners' equity requirements."  MORE >>

"Argent Trust Co. convinced the Seventh Circuit to hear an immediate appeal of a decision allowing an employee stock ownership plan participant to seek plan-wide relief for an allegedly improper transaction, despite being denied class status.... The decision flouted federal class action rules and marked the first time a 'conflicted plaintiff' has been allowed to bring representative claims on behalf of a plan, Argent said." [Argent Trust Co. v. Lysengen, No. 24-8016 (7th Cir. Jun. 13, 2024)]  MORE >>

"[C]lass action lawsuits in California claim that using forfeitures to reduce future employer contributions to tax-qualified retirement plans runs afoul of [ERISA]. These cases have continued to advance despite their central claim seeming to contradict long-standing [IRS] guidance for the permitted use of plan forfeitures.... [H]ow can an employer best use the forfeiture dollars without risking exposure to litigation?"  MORE >>

"[1] Monitor changes in law and guidance.... [2] Track plan amendment requirements and deadlines.... [3] Locate missing participants and beneficiaries.... [4] Timely conduct and review annual testing.... [5] Deadline tracking procedures.... [6] Notice and disclosure preparation and delivery procedures.... [7] Leverage statutory and regulatory relief."  MORE >>

"Committees can be formed in all shapes and sizes depending on the size of the organization and its needs ... Success comes not from following a set list of procedures, but creating the process that will best meet the plan sponsors goals and sticking to it."  MORE >>

"It is not that uncommon to see an employer paying multiple entities for the same services. As a business owner and plan fiduciary, it is imperative to understand your plan responsibilities and who you are paying for which services. This reduces plan fees, your administrative work and general confusion."  MORE >>

"Market momentum continues to build in 2024 as we observed another significant transaction this year with Entergy Corp. offloading $1.16 billion in pension liability. Jumbo transactions drove the sizeable premium growth in the first quarter, but the number of transactions hit a record high as well during the first quarter ... Annuity purchase interest rates slightly decreased this month; however they still rank among the highest seen so far in 2024."  MORE >>

"[The NPF has] agreed to repay more than $8 million in excess funds that it received ... in connection with the PBGC's Special Financial Assistance Program.... [T]he NPF's census erroneously included approximately 371 deceased participants among the more than 30,000 plan participants identified in the plan's SFA application. The erroneous inclusion of deceased participants ... was identified during an audit conducted by the PBGC's Office of Inspector General."  MORE >>

"Anyone interested in protecting the financial well-being of seniors would be well-advised to look closely at pensions established to provide for their retirement security -- particularly the Wild West of state and local pensions which lack any comprehensive regulation, or oversight. The fiduciaries overseeing these massive funds lack any investment expertise, are regarded as 'the dumbest investors in the room,' and are routinely scammed."  MORE >>

"Employers that choose to implement AI should consider including a provision in their employee handbook, or a separate policy, specifically addressing its use.... Specify which employees may use AI, and require prior approval.... Determine which tasks may be performed using AI.... Make employees responsible for outcomes.... Prohibit submission of trade secrets and other confidential information.... Consider requiring use logs and other reporting.... Oversight is essential.... Train employees on permissible AI use, and enforce your policy."  MORE >>

"[In] the 'redemption debt' scenario, Crown C's balance sheet remained unchanged. $3 million in cash disappeared, but the redemption (a purchase and retirement as 'treasury stock' of the redeemed shares) brought Michael's shares into Crown C -- obviously, at the redemption price. Thus, the economic effect of the redemption was not to decrease the value of Crown C but, rather, to increase, dramatically, the value of Thomas' shares, which, post-redemption, represented 100% ownership of Crown C.... [T]he real-world impact of Connelly will likely be a substantial reduction in the use of entity purchase shareholders' agreements funded with life insurance. " [Connelly v. IRS, No. 23-146 (S. Ct. Jun. 6, 2024)]  MORE >>

"Tesla shareholders voted [June 13] to restore CEO Elon Musk's record $44.9 billion pay package that was thrown out by a Delaware judge earlier this year ... The favorable vote doesn't necessarily mean that Musk will get the all-stock compensation anytime soon. The package is likely to remain tied up in the Delaware Chancery Court and Supreme Court for months as Tesla tries to overturn the Delaware judge's rejection."  MORE >>