"The Amendment requires that investment advisers operating as QPAMs in reliance on the Exemption maintain records for six years ... demonstrating compliance with the Exemption. These records must be available for examination by the DOL as well as plan fiduciaries and plan participants with respect to investing plans (Plans) ... This checklist is intended to provide a framework for analyzing compliance with the recordkeeping requirement with respect to transactions to which the general conditions of Part I of the Exemption apply."  MORE >>

"The new SECURE 2.0 mid-year termination rules for SIMPLE IRA plans provide greater flexibility to buyers and sellers seeking to terminate a SIMPLE IRA plan mid-year in connection with a corporate transaction, and those rules may prove useful for fully integrating continuing employees onto the buyer's benefits platform immediately or soon after the closing of the M&A transaction."  MORE >>

"One of the more interesting rules from the 2022 IRS proposed regulations requires spouse beneficiaries in some situations to take RMDs before doing a spousal rollover. The IRS calls these RMDs 'catch-up' or 'hypothetical' RMDs.... [It] is clear the IRS was trying to close a loophole that spouse beneficiaries could use in very limited situations to avoid RMDs."  MORE >>

"[T]he court ruled that, even though the particular Treasury regulations cited by defendants were not applicable to the Plan, those same regulations and other sources demonstrated a 'settled understanding of Congress and the Treasury Department' that forfeited amounts could be used to reduce employer contributions[.]" [Hutchins v. HP Inc., No. 23-5875 (N.D. Calif. Jun. 17, 2024)]  MORE >>

"[T]he PBGC's proposed rule ignored the critical issue of whether the selection of an interest rate that ignores the statutory reasonableness and best estimate requirements satisfies other provisions of ERISA, such as Section 4221(a)(3)(B)(i).... Any final regulation promulgated by PBGC that follows the proposed regulations would inevitably be challenged and resolved under the less-deferential standard established under Loper Bright. "  MORE >>

"Open court filings against the DOL are already raising questions as to whether the decision will play a role ... The courts ... may still side with regulators, but it is also likely that differences will emerge across districts, states and appellate circuit courts, further complicating the picture for plan fiduciaries.... To the extent that plan fiduciaries are concerned about litigation risk, they may be less inclined to adopt an optional standard with a high likelihood of being challenged[.]"  MORE >>

"Wrapping up a three-day hearing before the ERISA Advisory Council, Bonnie Treichel of Endeavor Retirement and Tom Clark of the Wagner Law Group shared their perspectives on ... the use of retirement income solutions (RIS) as part of a qualified default investment alternative (QDIA) ... Treichel suggested having consistent language and education to assist the retirement plan industry with prudent selection, alongside implementation and adoption of RIS. ... [Clark] suggested this is no different from a litigation perspective than from other difficult decisions that plan fiduciaries must make."  MORE >>

"This analysis of public-sector defined contribution plan participants' asset allocation ... yields several findings: [1] Large-cap funds dominate ... [2] Asset allocations are also concentrated in stable value ... [3] The youngest participants in supplemental plans may not have appropriate equity allocations ... [4] Females use target-date funds more than males -- but otherwise assume less equity risk.'

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"Investors may prioritize pre-tax and Roth elective deferrals before electing after-tax contributions because the deferrals (pre-tax and Roth) are generally eligible for matching contributions.... Both Roth deferrals and after-tax contributions are made with post-tax money.... [T]hey differ on how the investment earnings are taxed.... [P]lans offering after-tax contributions may cap the amount an employee can make for the year below the $69,000 Annual Additions Limit."  MORE >>

"[PBGC] has approved the application submitted ... by the American Federation of Musicians and Employers Pension Plan. The plan, based in New York City, New York, covers 49,180 participants in the entertainment industry [and] will receive approximately $1.5 billion in special financial assistance[.]"  MORE >>