"Advisors who recommend plan-to-IRA rollovers -- even if they aren't 'existing' plan fiduciaries -- should consider using a process consistent with the conditions in PTE 2020-02, since compliance with SEC requirements will require similar steps in any case. Advisors who receive conflicted compensation as a result of an IRA-to-IRA transfer recommendation should consider complying with PTE 2020-02."  MORE >>

"Even before the LTPTE rules, the IRS expressed skepticism of job classification exclusions that may impose impermissible service conditions. Now, with the LTPTE rules and increased emphasis on expanding retirement plan eligibility, these types of exclusions are likely to be under heightened scrutiny."  MORE >>

"[A] provision in the SECURE 2.0 Act allows employers to make contributions to an employee's retirement plan account that match the student loan repayments made by that employee each month or year. This allows the employee to both continue to make timely payments to reduce and pay off their student loan debt and grow their retirement accounts (through their own and employer matching contributions) at the same time."  MORE >>

"On appeal, the plaintiffs, supported by the Secretary of Labor as amicus curiae, argued that once a plaintiff shows that a fiduciary breached the ERISA duty of prudence and that the plan suffered a loss, the burden shifts to the fiduciary to prove that the loss was not caused by its breach.... The Eleventh Circuit rejected the plaintiffs' argument, finding ERISA imposes no such burden-shifting requirements and holding that plaintiffs bear the burden of proof on all elements of their ERISA claims, including loss causation." [Pizarro v. Home Depot, No. 22-13643 (11th Cir. Aug. 2, 2024)]  MORE >>

"Following denial of motions to enforce arbitration provisions, defendants in cases pending in the Tenth and Third Circuits petitioned for review by the Supreme Court in 2023. The Supreme Court declined to certify either petition, leaving enforceability in flux."  MORE >>

"Practitioners advocate the establishment of a written policy covering how records are maintained, reviewed, updated, preserved and discarded.... Review record retention policies of service providers that prepare or maintain plan records. When changing service providers consider any possible interruption in retrieving records held by the former provider that were not transferred to the new provider."  MORE >>

"[C]ollective investment trusts have been gaining traction across the target-date landscape. At the end of 2023, they had USD 1.7 trillion, or 49%, of target-date assets. Now, as target-date assets swelled to about USD 3.8 trillion as of June 2024, CITs inched past mutual funds with about USD 1.9 trillion, or 50.5%, of target-date assets. This left mutual funds with 49.5% of the target-date market share, down from 71.0% in 2015."  MORE >>

"[A] 65-year-old retiring this year can expect to spend an average of $165,000 in health care and medical expenses throughout retirement. [This] 2024 estimate is up nearly 5% over 2023 and has more than doubled from its inaugural estimate in 2002."  MORE >>

"Employers should take the following steps well in advance of the scheduled September 4, 2024, effective date ... in the event that the noncompete ban withstands legal challenge: [1] Identify a designated individual or individuals to speak on behalf of the company ... and develop consistent messaging to workers; ... [2] [R]eview agreements with current and former workers to determine which agreements would fall within the noncompete rule; ... [3] [C]raft the notice that must be sent to affected workers on or before the effective date; and ... [4] [R]eview agreement forms to assess potential changes to those forms for use after the effective date."  MORE >>

"[S]ince the Texas court decision will likely be released the Friday before Labor Day weekend, just two business days before the effective date of the rule, it would be prudent for employers to do the following: [1] audit existing agreements so that they understand what agreements exist (with both current workers and former workers whose noncompete provisions are still in effect), and [2] consider drafting a notice to those workers, so it is ready to send if the rule takes effect on September 4th."  MORE >>