"[T]he voluntary program envisioned in the proposal raises several concerns for plan sponsors.... [1] [T]he DOL is seeking voluntary submission of data dating back to the date the plan became covered by ERISA.... [2] It is easy to imagine that the DOL could use the information submitted for the lost and found database to target plan sponsors for enforcement activities relating to missing participants.... [3] it is not clear whether this description of the DOL's security measures is sufficient to comply with the Department's own best practices for plan fiduciaries to consider when entrusting a third party with confidential participant information."  MORE >>

"EBSA issued this report in response to a SECURE 2.0 Act directive to review [Interpretive Bulletin 95-1], consult with the ERISA Advisory Council and determine whether any amendments are necessary.... EBSA found that further consideration should be given to amendments to its guidance that could enhance fiduciary decision-making when selecting an annuity provider."  MORE >>

"Timing differences can make a difference.... No money, no account, right? Maybe not! ... Another wrinkle: initial plan years could show beginning asset balances.... Cash or accrual: audit or no audit -- that is the question!"  MORE >>

"[SECURE 2.0] contains multiple retirement-centered provisions directed at employees in the final decade of their careers, but there are also provisions designed to help people in early and mid-career stages.... This shift is necessary to encourage long-term savings among employees. It also may help reduce financial stress.... The complexity of new features and the need for administrative adjustments can be daunting."  MORE >>

"The Retrospective Review requirement of [PTE 2020-02] is designed to assist in detecting and preventing violations of, and achieving compliance with, the Impartial Conduct Standards and the policies and procedures adopted for compliance with the PTE.... The retrospective review, report and certification must be completed at least annually and no later than six months following the end of the period covered by the review. A review covering calendar year 2023 must be completed by or before July 1, 2024."  MORE >>

"The rule primarily targets financial services firms, such as financial advisers, insurance agents and brokers, asset managers, and defined contribution (DC) plan recordkeepers. Under the new rule, all of these companies could act as fiduciaries when providing some services that previously weren't considered fiduciary acts. While the direct effect on plan sponsors appears modest, plan vendors may decide to modify their service models -- including associated fees -- and sales practices."  MORE >>

"The Qualcomm court finds that the discretionary use of forfeitures to reduce employer contributions does present a colorable violation of ERISA fiduciary rules.  ... [T]he court’s analysis of ERISA’s fiduciary duty of loyalty is both intuitive and straightforward (if somewhat simplistic): ... In a somewhat more complicated analysis of the same issue, the HP court comes to a different conclusion, holding that ERISA’s fiduciary rules cannot be used to create an additional participant benefit not provided for in the plan[.]"  [Perez-Cruet v. Qualcomm Inc., No. 23-1890 (S.D. Calif. May 24, 2024); Hutchins v. HP Inc., No. 23-5875 (N.D. Calif. Jun. 17, 2024)]   MORE >>

"[T]he CFP Board has lent its support to the [DOL's] case in defending the new fiduciary rule. Writing in an amicus, the CFP Board cautions that 'If the Court accepts Plaintiffs' arguments, then this will leave open significant regulatory gaps that allow advisors to recommend financial products, including insurance products, that are not in the best interests of retirement investors, in contravention of [ERISA] mandate to provide a high level of protection for retirement assets.' " [Federation of Americans for Consumer Choice Inc. v. DOL, No. 24-0163 (E.D. Tex. amicus brief filed Jun. 21, 2024)]   MORE >>

"Many funds in retirement plans 'are often not monitored,' by fiduciaries, [Shai Silbermann, of Darrow AI] said, and AI can help lawyers identify such funds without having to manually go through plan Form 5500s.... [Attorney David Levine], who often represents fiduciary defendants, says that the use of AI in this field of law is relatively new, but its use is 'very much a data processing tool,' and little else."  MORE >>

"In 2022, 63.9% of all families who had an active participant in an employment-based retirement plan from a current employer had a defined contribution (DC) plan only. This is up substantially from 37.5% in 1992.... The average [individual account (IA)] account balance of those families owning IA plans increased from $91,881 in 1992 to $334,097 in 2022, including an increase from $299,598 in 2019."  MORE >>

24 pages. "More than half (52%) of new hires are expected to retire from the pension plan. This far surpasses levels of employee retention seen in the private sector ... [S]tates and localities that have made significant changes to their pension plans in recent years have seen a marked increase in the amount of employee turnover.... Many firefighters and police officers, as many as two- thirds by some estimates, don't participate in Social Security through their public safety job[.]"  MORE >>

"The 403(b)ill of Rights ... first appeared around July 4, 2000.... What follows is a refresh. Amendment 12 may be considered radical. Frankly, it's radical that it is even needed."  MORE >>

"[S]tate and local plans have been shifting their portfolios from traditional equities and bonds to alternative assets, such as private equities, hedge funds, real estate, and commodities ... [T]he long-term annualized return for pension funds is almost the same as that of the 60/40 portfolio ... [S]tate and local plans did much better than the index funds before the Global Financial Crisis and much worse post-crisis. This pattern also shows up in [a comparison of] performance over each 10-year period between 2000 to 2023."  MORE >>

"Recovery of erroneously awarded compensation is mandatory, with only limited exceptions ... Companies with nonqualified deferred compensation (NQDC) plans should consider whether erroneously awarded compensation can be recovered from plan benefits, and if so, what NQDC plan amendments would be required to authorize such recoveries. Any such amendments should be crafted after considering potential compliance issues under Internal Revenue Code Section 409A."  MORE >>