"The guidance helpfully explains the IRS's interpretation of the new QSLP match provision in the SECURE 2.0 Act. Plan sponsors will have to consider whether they want to add this feature to their defined contribution plans, what certification process will be used, who will administer the certification requirements and which ADP testing method will be more appropriate."  MORE >>

"The IRS interim guidance seems at times to permit the receiving of a match when repaying a student loan that was taken for someone else's benefit, but only in very limited circumstances.... Though the guidance says that payments made to repay a dependent's student loans, provided the payor has a legal obligation to do so, may qualify for a match, it does not spell out what dependent means for this purpose."  MORE >>

"[If] an insurance producer happened to be a fiduciary, the recommendation would need to satisfy ERISA's prudent person rule and duty of loyalty and the conditions of the existing PTE 84-24, which are much less demanding than PTE 2020-02, which applies to other rollover recommendations. However, ... it is unlikely that an insurance producer would be a fiduciary. As a result, the standard of conduct would be established by state laws and regulations. By and large, those rules are based on NAIC Model Regulation #275."  MORE >>

"To mitigate the risk of data breaches, pension administrators can implement several strategies: [1] Strict data security protocols ... [2] Vendor due diligence ... [3] Employee training ... [4] Regular security audits ... [5] Disaster recovery plan ... In the aftermath of a data breach, pension administrators may consider seeking external assistance. However, it's crucial to choose advisors who prioritize the members' best interests."  MORE >>

"Employers face fiduciary risk when selecting and monitoring in-plan solutions.... Employers may be hesitant to add complexity to their plans without assurance that participants will value the option.... Annuities are often perceived as expensive due to high commissions.... One potential solution is to use out-of-plan annuities alongside a DC plan"  MORE >>

"The Social Security Fairness Act (HR 82) ... would repeal Social Security's windfall elimination provision and government pension offset.... According to the lawmakers, the windfall elimination provision affects the Social Security benefits of roughly 2 million former government workers, while the GPO impacts nearly 800,000 retirees."  MORE >>

"Wilshire estimates that the aggregate funded ratio was 76.4% at FYE 2023, which represents a 0.8 percentage point increase from FYE 2022. Wilshire's estimate of the aggregate funded ratio as of June 30, 2024 (i.e., the most recent quarter-end as of this publication) is 83.5%."  MORE >>

"[O]nly around 10 percent of households would tap a (hypothetical) auto-IRA account to cover a $400 emergency expense.... Framing the accounts as easily accessible alleviates some concerns about taxes and improves respondents' subjective financial well-being; nevertheless, many are still worried about the tax implications of withdrawing funds. These results suggest that uncovered workers may be more likely to participate in auto-IRAs if they better understood the program's Roth design."  MORE >>

18 pages. "This report critically examines the prevalent narrative that the United States faces a 'retirement crisis,' indicating a significant degree of under-saving by a substantial share of households.... Contrary to the crisis narrative, the report highlights significant improvements in retirement preparation and income security among American retirees, including increased access to retirement plans, higher contributions and savings, and rising labor force participation among older workers."  MORE >>

"Since 2023, all major software companies integrated AI into their core software offerings.... Yet such integration creates vulnerabilities in their software.... Addressing the data security threats AI poses requires a multifaceted approach that combines technical solutions, clear governance and organizational readiness."  MORE >>

"Despite this emerging circuit split concerning the final rule, the nationwide injunction imposed by the federal court in Texas ... prevents the final rule from going into effect on September 4th.... [E]mployers that have been preparing the notices required by the final rule will no longer need to comply with this requirement for the immediate future." [Ryan LLC v. Federal Trade Commission, No. 24-0986 (N.D. Tex. Aug. 20, 2024)]  MORE >>