"The interim final rule modifies the Special Terminal Report for Abandoned Plans (STRAP) that QTAs file with the DOL and creates an optional online method used to file the STRAP and other notices. The DOL also expands the Abandoned Plan Program to include individual pension plans covered by [ERISA], whose sponsors are under Chapter 7 bankruptcy."  MORE >>

"Both new exceptions [to the additional 10% tax]: [1] are optional ... [2] may be documented by written certifications from the participants, [3] may be drawn from any combination of elective deferrals, matching contributions, or other employer contributions in the participant's account balance, [4] are not considered 'eligible rollover distributions' or subject to the mandatory 20% income tax withholding requirement, and [5] are effective January 1, 2024."  MORE >>

"Rhode Island Secure Choice will provide retirement plan coverage for eligible employees age 18 and over who work for an employer with five or more employees that does not offer a plan. The program also will provide education, counseling, and objective employee-specific plan advice to participants."  MORE >>

"Both Utah and the DOL have filed documents with the appeals court referencing the Chevron deference case. The former said the Supreme Court's decision means the appeals court should overturn the lower court's decision on the 401(k) rule. The latter said it never cited the Chevron deference case even before the Supreme Court scrapped the standard." [Utah v. Su, No. 23-0016 (N.D. Tex. Sep. 21, 2023; on appeal to 5th Cir. No. 23-11097)]  MORE >>

"The Supreme Court's majority opinion said scrapping the Chevron deference would create more predictability for businesses because they wouldn't be whipsawed by the changing policies of changing political administrations -- an assertion that ERISA attorney Stephen Rosenberg said is misguided.... [Attorney Carol I. Buckmann] acknowledged that overturning Chevron deference could reduce the regulatory flip-flopping that accompanies changes in political administrations. 'The question is whether that outweighs the negative factors,' she said." [Loper Bright Enterprises, Inc. v. Raimondo, Sec. of Comm., No. 22-451 (S. Ct. Jun. 28, 2024)]  MORE >>

"At a minimum, regardless of the outcome of the trial, this action demonstrates the potential risk plans may face if they are committed to ESG principles, and could cause fiduciaries of ERISA plans to pause before pursuing ESG strategies or even invest in vehicles that utilize ESG." [Spence v. American Airlines, Inc., No. 23-0552 (N.D. Tex. February 21, 2024; order setting trial date filed Jun. 5, 2024)]  MORE >>

"[F]or an error to be eligible for self-correction, the practices and procedures must be designed to facilitate compliance in both 'form and operation.' They also must have been in place when the error occurred.... If a policy document is adopted, it should be implemented operationally, updated regularly, and utilized to conduct retrospective reviews of operations. The policy document should provide high-level guidelines and avoid being too specific or technical."  MORE >>

"[A]dvancements in DC investment systems may further the potential for private investments to make it into qualified plan ... [As] a plan fiduciary there must be a careful assessment of the risk for participants who are being defaulted into their savings, he notes."  MORE >>

"The U.S. Small Business Administration (SBA) has issued procedural guidance ... providing that a valuation done for an ESOP trustee to obtain a fair market value for shares purchased by the ESOP in a leveraged transaction using an SBA loan guarantee under the Main Street Employee Ownership Act of 2018 will satisfy the SBA's requirement for a valuation of the stock. Before this guidance was issued, SBA officers could and often did ask for a separate valuation to be performed following SBA standards."  MORE >>

"Pension finances ended June on a positive note, capping an excellent six month start to 2024. Both model plans ... enjoyed positive experience again in June, as higher stock markets more than offset the impact of lower interest rates. Plan A improved a fraction of 1% last month, ending June up more than 8% this year, while Plan B also gained a fraction of 1% in June and is now up 2% through the first half of 2024[.]"  MORE >>

"Chicago's unfunded pension liability rose by another 5.2% in 2023 -- from $35.4 billion to $37.2 billion -- thanks to 'changes in pension assumptions and legislation,' according to the certified annual financial report for 2023 by the accounting firm of Deloitte & Touche."  MORE >>

"Largely overshadowed by the recent U.S. Supreme Court decision rejecting the Chevron doctrine's judicial deference to federal agencies, another 6-3 decision has thrown the door open for more litigation.... [T]he majority held that 'An APA claim does not accrue for purposes of Section 2401(a)'s 6-year statute of limitations until the plaintiff is injured by final agency action.' " [Corner Post v. Bd. of Gov. of the Federal Reserve System, No. 22-1008 (S. Ct. Jul. 1, 2024)]  MORE >>

"ERISA and other employee benefits statutes often involve complex and ambiguous provisions. Without Chevron deference, the [DOL] and other agency interpretations of these ambiguities may face heightened challenges in court, creating a period of uncertainty as new judicial precedents are established." [Loper Bright Enterprises, Inc. v. Raimondo, Sec. of Comm., No. 22-451 (S. Ct. Jun. 28, 2024)]  MORE >>

"For heavily-regulated employee benefit plans and health insurance, the Loper Bright decision could have significant impacts both in terms of cabining agency flexibility, requiring Congressional action for the imposition of additional regulatory requirements, and creating uncertainty as finalized rules may face greater odds of being overturned." [Loper Bright Enterprises, Inc. v. Raimondo, Sec. of Comm., No. 22-451 (S. Ct. Jun. 28, 2024)]  MORE >>

"When your restricted stock units vest or you exercise stock options, you may have a sudden big spike in your taxable income for the year. To reduce your taxable income and therefore stay out of a higher tax bracket, one technique ... is to create a donor-advised fund (DAF) ... A DAF lets you make both smart tax-planning decisions and charitable donations to causes you care about."  MORE >>