"MEPs and PEPs enable many employers to participate in one plan, which not only creates economies of scale that permit even small employers to avail of lower fees, but which also shifts certain fiduciary duties from the participating employer to the plan provider.... Originally viewed with suspicion by regulators, who were concerned about potential abuses in the structure, MEPS have finally become fully instituted as viable plan products."  MORE >>

"[T]he conditions in Amended PTE 84-24 are an alternative that allows independent insurance producers who work with multiple insurance companies to receive commissions from an insurance company with respect to the sale of non-security annuities to retirement investors.... The amendments to PTEs 75-1, 77-4, 80-83, 83-1 and 86-128 remove relief in those exemptions for the receipt of transaction-based compensation resulting from nondiscretionary investment advice provided to retirement investors."  MORE >>

"In Judge Freeman's view -- and at this stage in the pleadings -- the plaintiff was NOT attacking the decision to reallocate, but rather the implementation of that decision ... [S]he concluded that the 'Plaintiff's theory of liability has broad reach, and it is the theory's breadth that makes it implausible.' ... In other words, ERISA's purpose was to protect the benefits promised by the plan -- but does not require a fiduciary to resolve every issue of interpretation in favor of plan beneficiaries.' " [Hutchins v. HP Inc., No. 23-5875 (N.D. Calif. Jun. 17, 2024)]  MORE >>

"Although it can feel a bit incongruous to include a plan provision in the SPD or SMM before the plan document has been amended, such protracted amendment deadlines may warrant earlier action. Fiduciaries have a duty not to miscommunicate to or mislead plan participants. Additionally, in order for many plan provisions to be considered 'effectively available' to participants -- as required for certain nondiscrimination testing -- all participants must have the same information available to them."  MORE >>

"A pair of new studies ... find that stock market gains in recent years have helped bolster retirement savings for most, but the savings gap between upper-income earners and those at the bottom has grown. And while retired Boomers generally appear to be a contented lot, most have a heavy reliance on Social Security as a critical income source."  MORE >>

"Low current tax rates and big federal budget concerns put the traditional IRA in a precarious position. Congress has already made traditional IRAs less attractive from a tax perspective, and it could get worse. Most if not all clients should be using more Roth-style accounts, IRA expert Ed Slott argues."  MORE >>

"As of today, the first 20.96% of each year's unfunded accrued liability contribution is paid by local school districts, and any amount required above that is paid by the state (for 2023, that amounted to around a 7% state contribution). The proposals aim to manage the Michigan Public School Employees' Retirement System's [PSERS's] $29 billion in unfunded pension liabilities by adjusting the caps, which would have a major impact on the budgets of the state and local school districts."  MORE >>

"The [Chamber] is supportive of the concept of a system that allows participants to locate the plan administrator of a plan where an individual has a deferred vested benefit. However, we are concerned with DOL's overreach in requesting information that is beyond Section 303 and unnecessary to effectuate the system. We also are concerned with DOL's suggestion that it would investigate plan administrators who do not voluntarily provide the information in the ICR."  MORE >>

"On Thursday, June 27, at 10:15 a.m., the Subcommittee on Health, Employment, Labor, and Pensions ... will hold a hearing titled Examining the Policies and Priorities of the Employee Benefits Security Administration.... 'Instead of advancing initiatives to strengthen and improve employer-sponsored health care plans, the Employee Benefits Security Administration's (EBSA) imprudent regulatory efforts have saddled American workers with higher costs, fewer benefits, and less flexibility,' said Chairman [Bob Good (R-VA)]. ... The hearing will be live-streamed on the Committee's YouTube page."  MORE >>

"Section 83(b) of the Code ... allows the service provider to elect to include the value of the restricted equity in income and pay the tax in the year the restricted equity is granted, even if it is unvested, provided certain conditions are met.... [T]here are some risks associated with making the election and some important steps that must be followed to make it effective."  MORE >>

"For businesses, especially closely held entities, this decision underscores the importance of understanding how life insurance proceeds used for share redemptions are treated for estate tax purposes. In certain situations, this answer could decrease the amount passed to your heirs by up to 40% of the total life insurance proceeds." [Connelly v. IRS, No. 23-146 (S. Ct. Jun. 6, 2024)]  MORE >>