"Qualified retirement plans determine contributions in relation to compensation, based upon a definition of taxable compensation or a variation thereof.... What if the compensation is a really small amount? What if it isn't cash? How do deferrals get made from non-cash compensation?"  MORE >>

"The court explained that had the plaintiffs alleged that the services purchased were sufficiently similar to render the comparisons valid, their claims might have been plausible. The court also explained that the plaintiff's other allegations rely on aggregate data from the Investment Company Institute, but this data does not identify the cost structure of individual plans, just the overall costs.' [Barrett v. O"Reilly Auto., Inc., No. 23-2501 (8th Cir. Aug. 29, 2024)]  MORE >>

"[T]he BAE Court concluded that the facts before it were distinguishable from the factual predicates underlying the other cases in which other courts have issued rulings on motions to dismiss. In the eyes of the BAE court, the particular language in the BAE plan did not provide plan fiduciaries with discretion to apply forfeitures to pay plan expenses ahead of employer contributions ... The district court also rejected arguments that the Plan's use of forfeitures to fund employer contributions violated ERISA's anti-inurement provisions." [Naylor v. BAE Systems, Inc., No. 24-0536 (E.D. Va. Sep. 5, 2024)]  MORE >>

80 pages; Aug. 30, 2024.  Cumulative list of PBGC court cases, with summaries, organized by topic.    MORE >>

"[G]roup participants saw the concept as appropriate for 'less savvy' investors whose potential vulnerability to predatory financial institutions might be offset by employer vetting. The product appeared better for younger, less disciplined investors rather than for themselves, said most group participants.... [G]roup participants mentioned pensions with fondness, and some participants noted a social safety net is 'good for society' with employer scrutiny being key. "  MORE >>

"As the TPA industry increasingly shifts to remote operations, maintaining strong relationships poses new challenges. Effective navigation of these challenges requires a deep understanding and clear communication of the value that TPAs bring to advisors across five critical areas."  MORE >>

"There are practical deadlines that could influence the timing of any change. Those deadlines can be different depending on the nature of the service provider.... Of the several factors that can expose recordkeepers, cost may be their greatest Achilles' Heel.... It's not just fees, it's also service.... Perhaps a leading indicator of a pending service failure is the state of the technology used by the recordkeeper ... Just as poor technology can be the downfall of the recordkeeper, it can also represent an obstacle to replacing the recordkeeper."  MORE >>

"There is no magic retirement savings number that fits everyone. There are, however, metrics to make educated estimates about what you need to save ... This post describes ten retirement savings 'enough' metrics ... It concludes with a summary of research about the amount of money Americans think they need to save for a comfortable retirement, three 'need to know' facts, and six take-away action steps."  MORE >>

"[PBGC] has approved the application submitted ... by the Pension Plan Private Sanitation Union, Local 813 I.B. of T. The plan, based in Long Island City, New York, covers 3,349 participants in a range of industries including transportation, private sanitation, demolition, rental cars, and funerals. The Sanitation Union Local 813 Plan, which is in critical status, will receive approximately $106 million in special financial assistance[.]"  MORE >>

"[PBGC] has approved the application submitted ... by the Teamsters Local Union No. 469 Pension Plan. The plan, based in Hazlet, New Jersey, covers 1,490 participants in the transportation industry. The Teamsters Local 469 Plan will receive approximately $107.7 million in special financial assistance ... The plan was projected to become insolvent and run out of money in 2028."  MORE >>

"[PBGC] has approved the application submitted ... by the Local Union No. 226 International Brotherhood of Electrical Workers Open End Pension Trust Fund. The plan, based in Topeka, Kansas, covers 1,210 participants in the construction industry. The IBEW Local 226 Fund, which is in critical status, will receive approximately $24.8 million in special financial assistance[.]"  MORE >>

"Without ERISA, we see a massive increase in the percentage of workers who are projected to be at risk of experiencing retirement shortfalls ... [T]he probability of Gen X households running short of money in retirement would increase from 47% under the status quo to 59% in the counterfactual simulation with no individual account retirement plans. Millennials would have a worse situation, with the aggregate probability increasing from 44% to 69%, while the Gen Z households would be faced with the prospect of an increase from 37% in today's environment to a devastating 72% without individual account retirement plans."  MORE >>

"[I]ndividuals and businesses in Connecticut that were affected by severe storms, flooding, landslides, and mudslides that began on Aug. 18, 2024 ... now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments.... individuals and households that reside or have a business in Fairfield, Litchfield, and New Haven counties qualify for tax relief."  MORE >>

"[I]ndividuals and businesses in New York that were affected by severe storms and flooding that began on Aug. 18, 2024 ... now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments.... individuals and households that reside or have a business in Suffolk County qualify for tax relief."  MORE >>

"[T[he DOL issued a new Compliance Assistance Release to clarify that its cybersecurity guidance applies to all employee benefit plans subject to ERISA, including health and welfare and pension plans.... The Compliance Assistance Release focuses on three areas: tips for hiring service providers, cybersecurity program best practices, and online security tips for plan participants."  MORE >>

"While the conclusion reached by the court in Guy is consistent with well-established public policy, state appellate courts in Ohio and Oregon found the ruling in Egelhoff meant that state slayer laws were preempted because they related to employee benefit plans.... [T]his issue could be resolved in one of two ways -- either the Supreme Court can issue a definitive opinion on ERISA preemption that clears up the confusion, or Congress could pass a federal slayer statute since ERISA preemption applies only to state law." [Standard Insurance Co. v. Guy, No. 21-5562 (6th Cir. Aug. 19, 2024)]  MORE >>