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Retirement Plans Newsletter

June 28, 2024

4 New Job Opportunities 4 New Job Opportunities


[Official Guidance]

Text of PBGC Interest Assumptions for Valuing Benefits in Single-Employer Plans, Third Quarter 2024

"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.... This rule amends the regulation to specify the spreads used to determine the 4044 yield curve as of the last days of July, August, and September of 2024."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

[Guidance Overview]

The Retirement Security Rule: Designed for Permanency?

" [T]he DOL believes that, compared to the 1975 regulation, the Final Rule better reflects the text and the purposes of ERISA and better protects the interests of retirement investors by applying itself narrowly to trusted advice relationships."  MORE >>

Trucker Huss

[Guidance Overview]

IRS Issues Guidance on Personal Expense and Domestic Abuse Victim Distributions

"[Notice 2024-55] cites language from Code section 401(a)(11)(B) to clarify that 'defined contribution plans that [1] do not provide 100% death benefits for surviving spouses; [2] provide benefits in the form of a life annuity; or [3] are direct or indirect transferees of a defined benefit or money purchase pension plan' may not offer [Domestic Abuse Victim Distributions]."  MORE >>

Ferenczy Benefits Law Center

[Guidance Overview]

DOL Decides Not to Change Pension Risk Transfer Guidance

"SECURE 2.0 directed DOL to review ... its longstanding guidance regarding fiduciary considerations in the selection of annuity providers in pension risk transfer or 'de-risking' transactions and to report back whether changes are needed. The Report concludes DOL is not prepared to make changes to IB 95-1 at this time."  MORE >>

Groom Law Group

PBGC Analysis of Single-Employer Pension Plan Partial Risk Transfers: 2015-2022 Premium Filing Years (PDF)

24 pages. "The number of plans offering lump sum windows each plan year has decreased materially over the observed period, dropping from 960 lump sum window offerings in 2015 to 94 lump sum window offerings in 2022 (with a slight bump up during 2020 and 2021).... [T]he number of plans purchasing annuities each year has increased from 91 purchases in 2015 to 225 purchases in 2022.... During the entire study period (2015-2022), about 4.1 million participants were removed from single-employer plans due to risk transfer activity."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

Novel 401(k) Plan Lawsuits Over the Use of Forfeitures: Swinging for the Fences or Plausible Claims?

"Although both lawsuits likely have a long way to go before concluding, the analysis by the court in granting HP's motion to dismiss is more sure-footed ... [T]he Hutchins v. HP court concludes in a convincing manner that the participant has swung for the fences and missed, and its observation that the breadth of the participant's theory of liability extends beyond ERISA's bounds may well be prescient." [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 >>

Verrill Dana LLP

Can a TPA’s Exploitation of a Plan Sponsor’s Breach of ERISA Duty Make the TPA a Fiduciary?

"The new theory of liability is that TIAA knew of the plan sponsors’ failure to exercise oversight of TIAA’s sales tactics, a clear breach of fiduciary duty by the plan sponsors. TIAA allegedly knowingly exploited this failure for its own benefit. Therefore, even though the company was a service provider and arguably not a fiduciary under ERISA, this knowing collaboration in the sponsor’s breach brought it within the ambit of the law. It’s a creative argument; it’s convoluted, and it’s one to watch for the future."  [Carfora v. TIAA, No. 21-8384 (S.D.N.Y. May 31, 2024)]   MORE >>

M&A Activity, Healthy Business Growth Are Now Top Triggers for Switching 401(k) Recordkeepers

"[A]verage plan provider tenure is trending lower among Large-Mega plans.... plans holding at least $100 million in assets -- a sign challenger firms are starting to have greater success unseating incumbents within this cohort. The average recordkeeper tenure is 7.5 years among Large-Mega plans, down from 8.4 years in 2022.... Cybersecurity concerns are up significantly from 40% in 2022 to 47% in 2024. In turn, anxieties around underperformance have softened to an extent, from 57% in 2022 to 45% this year."  MORE >>


Did Your Auditors Find an Error During Your Plan Audit?

"Even the most well-intentioned plan sponsors can have a plan error because plan administration is increasingly difficult. Depending on the type of error, it may not be something that the auditors need to report.... But even if the error is not one that needs to be reported on your audit, it should be corrected. "  MORE >>

Bricker Graydon

The Employer/Employee Divide on Financial Wellness

"Nearly half (49%) of employers believe they're supporting employees' financial wellness at the highest level, while only 28% of employees feel completely supported.... [M]ost employers expect to invest more (56%) or the same amount (39%) in financial wellness programs for employees ... While health insurance (54%) and retirement plans (43%) are on the top of employees' lists to have improved, only 12% of employees are interested in improved financial education and planning benefits."  MORE >>

Payroll Integrations


Improving Retirement Outcomes: Demographic Considerations (PDF)

34 pages. "Focusing on the potential disadvantages experienced by racial and ethnic minority groups, women, and the lower-income population, this policy paper explores potential adverse retirement outcomes and means to address them.."  MORE >>

American Academy of Actuaries

Benefits in General

[Official Guidance]

IRS Disaster Relief Notice MS-2024-11, for Taxpayers in Mississippi

"[I]ndividuals and businesses in Mississippi that were affected by severe storms, straight-line winds, tornadoes, and flooding that began on April 8, 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 Hancock, Hinds, Humphreys, Madison, Neshoba, and Scott counties qualify for tax relief."  MORE >>

Internal Revenue Service [IRS]

[Official Guidance]

IRS Disaster Relief Notice IA-2024-08, for Taxpayers in Iowa

"[I]ndividuals and businesses in Iowa that were affected by severe storms, flooding, straight-line winds, and tornadoes that began on June 16, 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 Buena Vista, Clay, Dickinson, Emmet, Lyon, O'Brien, Osceola, Plymouth, and Sioux counties qualify for tax relief."  MORE >>

Internal Revenue Service [IRS]

Supreme Court Ends Judicial Deference to Federal Agency Expertise

"Chief Justice John Roberts said the 1946 Administrative Procedures Act dictates that the judiciary, not federal agencies, resolve questions of law according to their own judgment. He said courts can still consider agency interpretations, particularly if Congress specifically writes into statute that an agency must determine how to define particular terms, but judges are not required to defer to them. 'Perhaps most fundamentally, Chevron's presumption is misguided because agencies have no special competence in resolving statutory ambiguities,' Roberts wrote. 'Courts do.' " [Loper Bright Enterprises, Inc. v. Raimondo, Sec. of Comm., No. 22-451 (S. Ct. Jun. 28, 2024)[  MORE >>

Government Executive

Employee Benefits Jobs

View job as Retirement Plan Consultant - 401(k) and/or DB for Compensation Planning Inc.

Retirement Plan Consultant - 401(k) and/or DB

Compensation Planning Inc.

Remote / Warwick RI

View job as Retirement Plan Consultant - 401(k) and/or DB for Compensation Planning Inc.

View job as Defined Contribution Compliance Consultant for Loren D. Stark Company

Defined Contribution Compliance Consultant

Loren D. Stark Company


View job as Defined Contribution Compliance Consultant for Loren D. Stark Company

View job as Retirement Plan Compliance Analyst for FuturePlan, by Ascensus

Retirement Plan Compliance Analyst

FuturePlan, by Ascensus


View job as Retirement Plan Compliance Analyst for FuturePlan, by Ascensus

View job as Regional Sales Director for Definiti

Regional Sales Director



View job as Regional Sales Director for Definiti

Selected New Discussions

Waiver of QJSA by New Spouse in Favor of a Participant's Former Spouse

"[A number of] cases hold that if a divorced Participant has remarried and retired before a QDRO has been perfected, Federal law holds that the Participant's new spouse vests in the right to receive the survivor annuity and the former spouse (prospective Alternate Payee) irrevocably(?) loses the right to receive that survivor annuity.... But I come across statements from time to time that if the new spouse consents to waiving her right to survivor annuity benefits (how that happens is never addressed), then a QDRO can be effective to restore survivor annuity benefit to the former spouse. I also have contemplated what would happen is the new spouse predeceased the Participant, or if the Participant and the new spouse divorced, whether not a new QDRO could restore QJSA rights to the former spouse? Any ideas? Case law? Statutory references?"

BenefitsLink Message Boards

Settlement Agreement Calls for No Company Contribution

"Legal settlement agreement calls for (among many things) no company contribution to a (now) former employee and plan participant. Covers what would have been a short plan year for the former employee. The employee did make some 401(k) contributions, and would be eligible for safe harbor plus profit sharing company contributions. Simple question -- can this be done?"

BenefitsLink Message Boards

401(K) Match Eligibility Based on Scheduled Hours?

"Can a 401(k) plan require its participants to be scheduled to work at least 20 hours a week to receive an employer match? Employees are eligible to enter the plan on their hire date, but I'm wondering whether a plan could restrict the match to only those employees who are scheduled to work at least 20 hours a week."

BenefitsLink Message Boards

Press Releases

EPIC Announces Key Leadership Appointments


OneAmerica Financial℠ Now Offering Non-Qualified Compensation Plans


IRI Announces Changes to Executive Committee, Board of Directors

Insured Retirement Institute [IRI]

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Overfunded US Pensions: Uses and Benefits of Surplus Pension Assets


Pensions & Investments

ERISA Fiduciary Risk and Best Practices: What Benefits Professionals Need to Know

July 11, 2024 WEBINAR

Smith, Gambrell & Russell, LLP [SGR]

Workshop to Address SECURE 2.0 Plan Changes

July 16, 2024 in PA

SPARK Institute

Benefits of QDIA Re-Enrollment Using Managed Accounts

July 23, 2024 WEBINAR


Last Issue's Most Popular Items

What Is a 'Mega' Backdoor Roth Contribution?

Manning & Napier

401(k) Assets Caught in Limbo: Plan Sponsor Bankruptcy Explained

Bloomberg Law

Changes to ERISA's QPAM Exemption and Fiduciary Rule: Action Items for Asset Managers

Schulte Roth & Zabel LLP

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BenefitsLink® Retirement Plans Newsletter, ISSN no. 1536-9587.

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