Rev. Aug. 21, 2024. "What's New: [1] Automatic rollover amount increased.... [2] Certain corrective distributions not subject to 10% early distribution tax.... [3] Designated Roth nonelective contributions and designated Roth matching contributions.... [4] Distributions for emergency personal expenses.... [5] Distributions to a domestic abuse victim.... [6] Distributions to terminally ill individuals.... [7] Disaster tax relief.... [8] Increase in required minimum distribution (RMD) age."  MORE >>

"It is not common for 401(k) plans to require spousal consent for distributions, but if a plan does have this requirement, it should either be amended to remove the spousal consent requirement before adopting the domestic abuse victim distribution option or should not adopt this provision."  MORE >>

"In part, the district court based its finding on a distinction that appears not to have been previously addressed within the Eleventh Circuit: whether the 'government plan' exemption from ERISA applies to a pension plan that was 'established or maintained' by a government entity (as defined in ERISA, Title I), as opposed to requiring that the plan be both established and maintained by a government entity to qualify for the exemption (as defined in ERISA, Title IV). The district court held that because this matter involved ERISA, Title I, the plan need only have been 'established' by a government entity to qualify for the exemption. Because the plan was established by a government entity, ERISA did not apply." [The Cobb Foundation v. Hart County, Georgia, No. 24-0053 (M.D. Ga. Aug. 14, 2024)]  MORE >>

"[Take] steps beforehand to be better able to later offer relief to affected participants ... [The IRS] provides a webpage ... to help those who have lost some or all their records during a disaster.... [If] a plan's recordkeeper is not functioning because of a disaster ... an employer or plan sponsor should 'take reasonable steps' to put the funds it would have provided to the recordkeeper or trustee in a separate account for the participants until normal functions can be resumed."  MORE >>

"[E]ight major industry groups have written to Congress urging it pass the bill as soon as possible to ensure the affected provisions can be implemented on a timely basis. The groups' letter highlights several provisions they believe Congress needs to address quickly, including special tax treatment for distributions to terminally ill plan participants and automatic enrollment as it relates to multiple employer plans and pooled employer plans."  MORE >>

11 pages. "The roadblocks to participation are: [1] Eligibility can be misunderstood. [2] Saving for retirement is confusing. [3] Debt, salary, and expenses.... Ways to boost retirement plan participation among employees ... [1] Carve out time to address enrollment ... [2] Communication best practices ... [3] Help find the balance between saving and debt ... [4] Plan design can address most participation challenges."  MORE >>

"[T]wo 2024 Variable Annuity Industry Experience Studies, which analyze policyholder behavior across 22 companies spanning 16 years ... indicate that surrender behavior for contracts without income benefits are highly sensitive to changes in interest rates while contracts with [guaranteed lifetime withdrawal benefits (GLWBs)] don't exhibit the same sensitivity to changes in interest rates."  MORE >>

"[H]alf of non-retired Americans (51%) report they are 'concerned' or 'very concerned' about outliving their assets in retirement.... Forty-three percent plan to take Social Security before age 67  ... and just 1 in 10 plan to wait until at least age 70 -- the age at which an individual reaches their maximum monthly benefit.... 74% of non-retired investors are aware that waiting longer earns higher payments."  MORE >>

"[T]he ruling reaffirms the enforceability of properly drafted non-competes in the employment context in states that permit them.... [W]hile the Court's decision precludes the Rule's intended near-total prohibition on non-competes in the employment context, it does not mean all employee non-competes will be enforceable.... [E]mployers should be aware that this decision could spur state or federal lawmakers to enact statutory limitations on non-competes, as some states have already done." [Ryan LLC v. Federal Trade Commission, No. 24-0986 (N.D. Tex. Aug. 20, 2024)]  MORE >>

"Plaintiff argued that the Program is subject to ERISA since ERISA covers any program, established or maintained by an employer, that by its express terms results in a deferral of income by employees for periods extending to the termination of covered employment or beyond.... The court explained that just because some payments under a plan may be made after an employee has retired or left the company does not result in ERISA coverage.... Plaintiff could use the excess benefit payment at his total discretion annually throughout his employment. Just because some employees received deferred retirement income does not make the entire Program covered by ERISA. " [Weller v. Linde Pension Excess Program, No. 23-1293 (3d Cir. Aug. 21, 2024; unpub.)]  MORE >>