"GE is accused of failing to meet the [DOL] standard for selecting [the] safest available insurer when transferring pension assets and liabilities to an insurance company.... [T]he plaintiffs are challenging GE's [choice of] Athene as its insurance provider for the PRT deal, claiming that Athene is a 'highly risky private-equity controlled insurance company with a complex and opaque structure.' " [Bueno v. General Electric Co., No. (N.D.N.Y. complaint filed Jun. 28, 2024)]  MORE >>

"Before SIFMA and FSI joined, legal challenges had been led by the insurance industry ... SIFMA ...represents broker/dealers, investment banks and asset managers; FSI represents independent financial services firms. The brief filed by SIFMA and FSI ... argues that the rule 'is materially indistinguishable from the 2016 Rule,' ... which was finalized in 2016 and vacated by the U.S. 5th Circuit Court of Appeals in 2018." [ACLI v. DOL, No. 24-0482 (N.D. Tex. intervenors' complaint filed Jun. 28, 2024)]  MORE >>

"Using W-2 compensation, which represents wages received, as the accrual basis eligible compensation for plan purposes, even when the employer accrues compensation for wages earned but not yet paid, is a seemingly self-contradictory statement or proposition that when investigated or explained may prove to be well founded and true."  MORE >>

"The DOL has issued a report to Congress on Interpretive Bulletin 95-1 (IB 95-1), the DOL's guidance governing pension buyouts by annuity providers. While the DOL concluded that IB 95-1 continues to identify broad factors that are relevant to a fiduciary's prudent and loyal evaluation of an annuity provider's claims-paying ability and creditworthiness, the report's ultimate finding is that the DOL 'has not concluded that changes in the IB are unwarranted.' "  MORE >>

"Slated to begin operation with the 2027 tax year, both the promise and the challenges of the Saver's Match program are coming more sharply into focus. While research is still ongoing, the picture being revealed is one of massive potential to increase retirement savings and to help close the minority wealth gap. However, these benefits may not come easily."  MORE >>

"The aggregate funded ratio for U.S. corporate pension plans increased by an estimated 1.1 percentage points in June, ending the month at 102.3% ... Although the aggregate funded ratio is estimated to have decreased by 1.1 percentage points over the trailing twelve months, it is estimated to have increased by 6.5 and 2.6 percentage points year-to-date and in the second quarter, respectively."  MORE >>

"In essence, any new business can challenge federal rules regardless of how long the rules have been on the books.... After overruling a landmark precedent on government authority, the Supreme Court ruled Monday to expand the time frame businesses have to challenge federal government actions." [Corner Post v. Bd. of Gov. of the Federal Reserve System, No. 22-1008 (S. Ct. Jul. 1, 2024)]  MORE >>

"Little doubt exists that challenges to regulatory and sub-regulatory guidance in the ERISA, employee benefits and executive/equity compensation space will ramp up. However, courts sympathetic to the DOL's, IRS', SEC's or PBGC's views can still invoke Skidmore deference to rule in favor of the agency. The real issue is likely to be, at least initially, the scope of injunctive relief obtained by those litigants challenging the guidance." [Loper Bright Enterprises, Inc. v. Raimondo, Sec. of Comm., No. 22-451 (S. Ct. Jun. 28, 2024)]  MORE >>

"While the Court explained that when a statute delegates authority to an agency to interpret it, courts must continue to respect the delegation, it noted that courts must still ensure that the agency acts within its constitutional limits. As such, it is likely that there will be more litigation challenging rules and regulations promulgated by the Departments that affect employee benefit plans." [Loper Bright Enterprises, Inc. v. Raimondo, Sec. of Comm., No. 22-451 (S. Ct. Jun. 28, 2024)]  MORE >>

"[M]ore employers are looking to leverage freelance workers, and many employers are looking to provide benefits to these workers. For carriers and other benefits providers, this will have an impact on things like product design and who is eligible for benefits.... Over half (55%) of employers said [in the past two years] their company negotiated with providers for better terms, lower premiums, fees, etc., to better manage costs. Yet almost half (45%) said they added one or more benefits to remain competitive."  MORE >>