"Pre-approved defined benefit plans are currently in the middle of their restatement cycle and must be restated for the third remedial amendment cycle no later than March 31, 2025.... [T]he current Form 5500 now requires plans to report if they are using a pre-approved plan, including the serial number for that plan. Any plan sponsor that has not yet addressed this responsibility should reach out to their plan providers soon to ensure they can meet this deadline."  MORE >>

"The arbitration procedure [in this plan] bars representative or class arbitrations and mandates only individual arbitration.... [T]he Sixth Circuit explained that ERISA Sections 409(a) and 502(a)(2) ... allow participants to sue on behalf of a plan for remedies that accrue to the plan.... The court made clear that it was not holding that Sections 409(a) and 502(a)(2) are incompatible with the arbitral forum, only that this arbitration provision, which is non-severable, limits statutory remedies that bar effective vindication of statutory rights." [Parker v. Tenneco, Inc., No. 23-1857 (6th Cir. Aug. 20, 2024)]  MORE >>

"Once again, clear, documented evidence of a prudent process was ultimately sufficient to prevail at court -- and once again, a federal judge refused to 'Monday morning quarterback' decisions that resulted from that process." [Luckett v. Wintrust Financial Corp., No. 22-3968 (N.D. Ill. Aug. 14, 2024)]  MORE >>

"Several judges have proven receptive to workers' arguments that using their 401(k) forfeitures to reduce administrative expenses could be an [ERISA] violation ... Many preexisting 401(k) excessive fee suits are now seeking court approval to amend their complaints to tack on forfeiture-related claims. Their successful addition to many fee suits could help employees' cases, especially following the judge's decision to let the Qualcomm litigation proceed."  MORE >>

"Recent developments spotlight issues with forfeiture and other unallocated accounts in defined contribution retirement plans, such as 401(k) plans: The IRS has set the deadline for plan forfeiture use. Participants in retirement plans have brought legal challenges to plan sponsors exercising discretion to use forfeitures to reduce employer contributions. Some plan providers are improperly mixing forfeitures with other unallocated funds."  MORE >>

"The retirement landscape in the United States is a pressing concern, with policymakers and industry leaders urgently seeking solutions to ensure financial security for Americans in their later years. Two pieces of proposed legislation, the Automatic IRA Act of 2024 (HR 7293) and the Retirement Savings for Americans Act (HR 6065/S 3102) have sparked intense debate and raised crucial questions about the future of retirement savings in the country."  MORE >>

"There are retirement plan challenges that are specific to certain types of industries ... [1] Government contracting firms ... [2] Healthcare ... [3] Law firms ... [4] Professional service firms ... [5] Fast growth / capital constrained companies ... [6] Nonprofits."  MORE >>

"[T]hose who started phasing into retirement at age 59 expect to work nine more years.... Most workers who are currently phasing have reduced their work hours (61%) or job responsibilities (41%). Slightly fewer numbers of employees want to change to a different role or job in their industry or change where or how (more or less remote) they work."  MORE >>

56 pages. "[This] 'white paper' provides guidance to actuaries, policymakers, and other interested parties on the development of actuarial funding policies for public pension plans. It develops a principles-based empirically grounded Level Cost Allocation Model (LCAM) to be used as a basis for funding policies of public pension plans throughout the U.S. "  MORE >>

"[1] Missing your RMD deadline ... [2] Misapplying the RMD aggregation rule ... [3] Failing to adjust your fair market value ... [4] Having insufficient funds to cover your RMD."  MORE >>

"For now at least, state law continues to govern the enforceability of restrictive covenants.... An already-signed non-compete covenant, may be still enforceable, if valid under state law.... [E]mployers should already be reviewing their existing practices on non-compete covenants, as well as their non-solicitation agreements, to confirm that they are narrowly tailored to support a legitimate business interest." [Ryan LLC v. Federal Trade Commission, No. 24-0986 (N.D. Tex. Aug. 20, 2024)]   MORE >>

"[1] Create core values to stand by regardless of location.... [2] Benchmark to understand how far your budget will go ... [3] Know how 'standard' benefits differ from country to country ... [4] Get specialized support when needed "  MORE >>

"[T]he Supreme Court ruled that life insurance proceeds received by a company to buy or redeem an owner's shares must be included in the company's value for estate tax purposes, and that redemption obligations do not reduce the company's value for estate tax purposes. This situation can cause unintended or adverse tax consequences for a business owner's estate as occurred in this case. The outcome underscores the need for careful structuring of these policies and agreements, which for some this may mean changing the policy owner and listed beneficiary." [Connelly v. IRS, No. 23-146 (S. Ct. Jun. 6, 2024)]  MORE >>