19 pages; 27 questions. "The Treasury Department and the IRS seek to implement Saver's Match contributions in a manner that will minimize costs and administrative burdens for all stakeholders, streamline the process for eligible individuals to claim Saver's Match contributions, and encourage retirement plans and IRAs to accept Saver's Match contributions ... Comments are requested from the perspective of all interested stakeholders, including eligible individuals, volunteer and for-profit tax preparers, organizations that serve and advise eligible individuals, IRA custodians and trustees, and retirement plan administrators, recordkeepers, and sponsors[.]"  MORE >>

"SSA will now allow an electronic signature rather than a wet signature for more than 30 forms, which make up 90% of the most commonly used forms by SSA customers in local field offices. Collectively, these forms represent about 14 million signed forms submitted annually. Furthermore, also this year, SSA has removed the signature requirement entirely for 13 of its most commonly used forms totaling about 1 million submissions in volume annually."  MORE >>

"With the initial 90-day deadline for DOL registration approaching on September 15, 2024, ... managers should ... [1] Register all QPAMs (as well as potential QPAMs) with the DOL.... [2] Implement or strengthen QPAM compliance protocols with respect to foreign affiliates.... [3] Ensure precise contract drafting to make clear that the QPAM retains 'sole responsibility' ... [4] Obtain records of (and implement formal recordkeeping procedures with respect to) any transaction where the QPAM exemption was relied upon."  MORE >>

"Updated [DOL] procedures for handling requests for prohibited transaction exemptions (PTEs) require more detailed disclosures from ERISA plan sponsors. The final rules also enhance the agency's scrutiny of independent fiduciaries and appraisers hired to safeguard plans and their participants. Although service providers may also seek PTEs, this article focuses on aspects of the final rules most relevant to sponsors (including several instances in the final rules that differ from the agency's 2022 proposed changes)."  MORE >>

"Under the Secure 2.0 Act, savers can direct matching contributions to Roth accounts if their employer allows. These matching contributions will not show up as income on the worker's W-2 but on a 1099-R form. Workers generally have two options for paying taxes owed on employer contributions."  MORE >>

"[D]uring the period Jan-Sept. 2021 ... the average monthly opt-out rate from OregonSaves was 32.5%.... The opt-out rate from CalSavers is comparable.... Average balances in participating employees' accounts during the month of July during the period 2021-2024 have been higher among OregonSaves participants than CalSavers. However, the rate by which the average balance grew from year to year have been comparable[.]"  MORE >>

"Of those with a spending spike in the analysis year, 7.0 percent took a new plan loan and 31.7 percent increased their credit card debt, compared with 2.7 percent and 25.9, respectively, of those without a spending spike in that same year.... [L]ike private-sector DC plan participants, public-sector DC plan participants who lack income and cash reserves to support a spending spike are likely to end up with more credit card debt. This higher debt can have a long-lasting impact on retirement security[.]"  MORE >>

"Total U.S. pension risk transfer (PRT) premium was $26 billion in the first half of 2024, 14% higher than prior year results.... Single-premium buy-out premium totaled $9.2 billion in the second quarter, down 37% from prior year's results. There were 183 contracts finalized in the second quarter, 11% higher than prior year."  MORE >>

"Pension finances slipped modestly in August, as lower interest rates pushed up liabilities. Both model plans ... lost ground last month: Plan A lost 1% but remains up 7% this year through August, while Plan B lost a fraction of 1% last month but remains up more than 1% through the first eight months of 2024."  MORE >>

"Once the reserves are depleted, the law limits benefits to incoming revenue, which essentially mandates a 21 percent across-the-board benefit cut for the program's 70 million beneficiaries.... For the first year following insolvency, assuming current law, we estimate inaction would lead to a $16,500 nominal benefit cut for a typical dual-income couple who retired at the time of trust fund depletion, or a $12,400 nominal reduction for a typical single-income couple."  MORE >>

"The IRS has previously issued two similar PLRs that permitted the choice between a defined contribution plan contribution and a retiree health reimbursement arrangement (HRA) contribution. [PLR 202434006] expands on that approach and permits a choice [among] a DC plan contribution, a retiree HRA contribution, a health savings account (HSA) contribution, and a student loan payment under a qualified educational assistance program."  MORE >>

"[PLR 202434006] may be helpful to employers that have or are considering benefit arrangements that allow employees to choose among benefits they want funded. One key requirement seems to be that employees cannot choose to receive amounts in cash or taxable benefits."  MORE >>