"[T]he IRS confirmed that most beneficiaries must take annual RMDs throughout the 10 years, with the account fully depleted by the end of the tenth year. This applies specifically to cases where the original account holder had already started taking RMDs before they passed away."  MORE >>

"Beyond the confirmation of the general post-death RMD rules, the 260-page Final Regulations document offers a slew of other regulatory guidance for specific circumstances ... [A] new set of Proposed Regulations ... fill in rules around the SECURE Act's new provision allowing surviving spouses of retirement account owners to elect to be treated as the decedent for RMD purposes ... As a whole, these regulations introduce significantly more complexity to the process of tax planning around retirement accounts[.]"  MORE >>

"[O]ne of the more important items in the final regulations is the clarification of whether a beneficiary (who is not an eligible designated beneficiary) of an individual taking RMDs must either: Take RMDs yearly. Only receive distribution of the entire benefit by the end of the tenth year after the participant's death."  MORE >>

"[T]he Fifth Circuit's new decision backtracked slightly from its ruling last year, but in the end it arrived at a similar place. The plaintiffs' class action remains certified, although narrowed in basis to Rule 23(b)(3) only." [Chavez v. Plan Benefit Servs., Inc., No. 22-50368 (5th Cir. July 15, 2024)]  MORE >>

"The suit was filed by ... a nonequity partner at the firm, against the firm's retirement and savings plan and former partners who acted as plan fiduciaries. The suit claims that the plan was supposed to be funded with mandatory deferred compensation, but the money was wrongly commingled with the firm's general assets in 2022 and 2023 despite known financial difficulties." [Bennett v. Schnader Harrison Segal & Lewis LLP, No. 24-0592 (E.D. Penn. Jul. 22, 2024)]  MORE >>

"An employer [should] be able to eliminate this type of claim by amending the plan prospectively to specify how forfeitures must be used.... The plan document could, for example, provide an ordering rule where forfeitures will be used to pay plan expenses only to the extent any forfeitures remain after first being used to offset employer contributions or for other permitted purposes ... [T]he plan administrator cannot be faulted for making a choice it does not have[.]"  MORE >>

"Cash balance pension plans offer the best of defined benefit and defined contribution plans. They provide the guaranteed retirement benefits that traditional pension plans are known for along with the transparency and flexibility more commonly associated with 401(k) plans. Cash balance plans offer significant tax benefits and predictable costs for employers/owners, as well as the opportunity for participants to accelerate retirement savings."  MORE >>

"43% of workers think they are very likely to achieve their retirement savings goals compared to 37% in 2023. Inflation and stock market volatility continue to be the biggest obstacles to saving for a comfortable retirement, though workers are slightly less concerned about both factors in 2024."  MORE >>

17 pages. "Stable value funds represent over $882 billion in 401(k), 457, and 403(b) retirement plan assets. ... [E]ight in 10 DC plan sponsors (82%) currently offer stable value as a capital preservation option ... 84% of plan sponsors say stable value was recommended as a capital preservation option by their DC plan's investment or financial advisor vs. 78% of plan sponsors who say money market was recommended by their DC plan's investment/financial advisor."  MORE >>

"If choosing between the two options, plan sponsors would rather improve returns, while maintaining the current level of volatility (61%) than reduce volatility, while maintaining the current level of returns (39%) ... Advisors, however, would rather reduce volatility, while maintaining the current level of returns (58%) than improve returns, while maintaining current level of volatility (42%)."  MORE >>

"[PBGC] has approved the application submitted ... by the Pension Plan of the Moving Picture Machine Operators Union Local 306 [which is] based in New York City, New York, covers 542 participants in the entertainment industry. [The] Plan will receive approximately $20.7 million in special financial assistance ... [It] was projected to become insolvent and run out of money in 2026."  MORE >>

"[B]ecause the case was decided on procedural standing grounds, the court was not required to address the underlying merits of the plaintiffs' claims.... As the plans made clear in public statements, the divestment decision was driven by consideration of financial risks posed to fossil fuel companies by climate change ... following lengthy analysis of the impact of these risks on portfolio returns. Pension plans considering divestment ... still have this important defense available in the event of future litigation." [Wong v. NYCERS, TRS and BERS, No. 652297/2023 (NY Cty. Sup. Ct. Jul. 3, 2024)]  MORE >>

"In a sharp departure from her Texas judicial counterpart, Judge Hodge concluded that a preliminary injunction would be improper because the plaintiffs in the Pennsylvania case had not demonstrated that they would suffer any irreparable harm in the absence of such relief.... Judge Hodge also opined that the plaintiffs in the Pennsylvania proceeding are unlikely to succeed in their substantive challenge to the Final Rule." [ATS Tree Services, LLC v. Federal Trade Commission, No. 24-1743 (E.D. Penn. Jul. 23, 2024)]  MORE >>

"[1] AI can be a great antidote for writer's block ... [W]hile AI can provide an excellent starting point, it lacks nuance and emotion.... [2] For employee questions, a chatbot offers answers in a conversational, straightforward way.... The tool is only as helpful as the data used to build it.... [3] Some organizations use AI to analyze their population's HR data to effectively target messages.... Some organizations have limited the use of AI due to privacy or copyright concerns."  MORE >>

"Despite the growing politicization of ESG issues in the United States, the majority of the 100 largest public companies continue to include ESG goals aimed at promoting environmental stewardship, social responsibility and robust governance frameworks in their incentive compensation plans."  MORE >>