"The Office of the Advocate works directly with participants in defined benefit plans to ensure that they receive benefits that they are entitled to from PBGC. The Office of the Advocate also assists plan sponsors in resolving disputes and other issues with PBGC. The Advocate works independently of the PBGC Departments and reports directly to the PBGC Board of Directors.... Due to an impending vacancy, the Advisory Committee is seeking nominations for the Participant and Plan Sponsor Advocate position."  MORE >>

"Plan sponsors that are interested in retaining the pre-SECURE age 70½ required beginning date, regardless of a participant's birth date, can continue to require commencement at age 70½.... [The rule] requiring beneficiaries subject to the new 10-year rule to receive annual payments during the 10-year payment period (i.e., both the 10-year rule and the 'at least as rapidly' rule apply when the employee dies on or after their required beginning date) ... will add significant complexity to the RMD process for defined contribution plans (and IRAs)."  MORE >>

"The final regulations address certain ambiguities regarding interpretation of the RMD provisions in SECURE and SECURE 2.0, including: [1] RMD beneficiary rules set forth in SECURE apply to 457(b) plans sponsored by nongovernmental entities ... [2] The exclusion of Roth amounts under a 401(k), 403(b), or governmental 457(b) plan to satisfy RMD during the participant's lifetime includes designated Roth amounts, in-plan Roth conversions, and in-plan Roth rollovers.... [3] Aggregation of 403(b) contracts to satisfy the RMD rules continues to be allowed[.]"  MORE >>

"New Jersey businesses with at least 25 employees will soon need to prove they are providing their employees company-sponsored retirement savings plans or will need to register for a state-administered retirement savings program.... New Jersey businesses with 40 or more employees must comply by September 15, 2024. Businesses with 25 to 39 employees must comply by November 15, 2024. Businesses will receive notification by RetireReady NJ when their deadline is approaching."  MORE >>

" '[T]he 2024 Fiduciary Rule conflicts with ERISA in several ways, including by treating as fiduciaries those who engage in onetime recommendations to roll over assets from an ERISA plan to an IRA,' [Judge Jeremy Kernodle] wrote. The judge also wrote that the DOL's related amendments to [PTE 84-24], which allows insurance agents to receive commission for the sale of annuities, 'are also unreasonable and arbitrary and capricious.' "
[FACC. v. DOL, No. 24-0163 (E.D. Tex. Jul. 25, 2024)]   MORE >>

"In ordering the stay, United States District Judge Jeremy D. Kernodle explained that 'the 2024 Fiduciary Rule suffers from many of the same problems' that were found in the version vacated by the Fifth Circuit back in 2018.... [He] noted that, 'Ultimately, DOL contends that Chamber is wrong and unduly limits the agency's authority. But that is an argument for the en banc Fifth Circuit or the Supreme Court. The balance of the factors necessary to issue a stay, moreover, weigh in Plaintiffs' favor here' -- and ordered that 'the effective date of the 2024 Fiduciary Rule and amended PTE 84-24 is STAYED until further order of the Court.' "
[FACC. v. DOL, No. 24-0163 (E.D. Tex. Jul. 25, 2024)]  MORE >>

"Effective governance requires clear delineation of roles and responsibilities, regular training for fiduciaries on their duties and obligations, and robust processes for monitoring and overseeing plan operations. Employers should consider establishing committees, such as a retirement plan committee, to oversee plan governance, ensure compliance, and monitor the performance of plan service providers."  MORE >>

"Modeling [emergency withdrawals, catch-up contribution changes, and automatic enrollment and the Saver's Match] together shows an increase in the [Retirement Readiness Rating™] of 1.6 percentage points, from 59.9 percent to 61.5 percent.... The youngest cohorts have the most improvement due to the compounding of any additional contributions and more time to be exposed to the effects of the SECURE provisions."  MORE >>

"[E]ven as 42% hope to see a long retirement spanning 20 or more years, only 41% feel like they are on track for retirement, and 24% are unconvinced they've saved enough.... [J]ust 17% understand the amount of monthly income they'll need for later years, with four in 10 estimating needing between $3,000 to $5,000 a month."  MORE >>

"Jersey City Mayor Steven Fulop has announced plans to invest a portion of the city's pension fund in Bitcoin exchange-traded funds (ETFs) ... Jersey City is the second largest city in the state of New Jersey. The move follows a similar decision by the Wisconsin Pension Fund, which allocated 2% of its $156 billion in assets to Bitcoin ETFs in the second quarter."  MORE >>

"This strategy involves making non-deductible contributions to a traditional IRA and then converting those funds to a Roth IRA. But you must carefully follow these steps."  MORE >>

"The costs of defending these types of cases are large and, over the years, defense and settlement decisions have been driven more by the interests and views of plan sponsors.... [It] is past time for insurers to take more control over these types of cases and to manage these types of cases as insurance exposures, rather than predominately as business risks faced by plan sponsors."  MORE >>

"From a regulatory perspective, this decision means federal agencies (for example, the EEOC, IRS, DOL, and HHS) will need to adhere more closely to the plain language of applicable legislation.... [A] separate case ... allows challenges to agency regulations within six years after the regulation first has an effect on a company (instead of six years after the regulation is final). This could mean that agency regulations that have been in existence for a while could be challenged by new employers that come into existence."
[Loper Bright Enterprises, Inc. v. Raimondo, Sec. of Comm., No. 22-451 (S. Ct. Jun. 28, 2024); Corner Post v. Bd. of Gov. of the Federal Reserve System, No. 22-1008 (S. Ct. Jul. 1, 2024)]  MORE >>

"The July 31, 2024 un-extended Form 5500 due date for calendar year employee benefit plans is fast approaching. Careful review of the Form 5500 with your professional advisors prior to signing under penalty of perjury and filing is advised. [This article provides] some reminders and observations relative to those reviews."  MORE >>

"NQSOs have several potential advantages as an incentive compensation vehicle ... [1] There is a possibility of large gains ... [2] NQSOs are generally easy to understand ... [3] The option holder can elect when to recognize taxable income by choosing the time of exercise once the NQSO is vested.... Some potential disadvantages to NQSOs include ... [1] NQSOs have no value to the option holder unless stock value increases above the exercise price.... [2] Upon exercise, the spread of the NQSO is taxed as ordinary income."  MORE >>