"A longstanding vehicle for worker company ownership among retirement savers presents a wide range of compliance concerns for participants and employers, while federal agencies have let questions linger on how to properly appraise shares.... If the [DOL] puts forth clear regulations, it could result in even more viable ESOP transactions and fewer exceptional cases, but there is also room for growth when it comes to public policy around employee ownership overall."  MORE >>

"BAE Systems' 401(k) plan document expressly provided that forfeitures 'shall' be used to [1] restore the accounts of participants who forfeited employer contributions ... and [2] reduce future employer contributions. The plaintiff argued that ... forfeitures should have been used to pay administrative expenses or been credited to participants' individual accounts. The Court squarely rejected plaintiff's argument, concluding that the plan language did not provide the fiduciary any choice with respect to how to use forfeitures." [Naylor v. BAE Systems, Inc., No. 24-0536 (E.D. Va. Sep. 5, 2024)]  MORE >>

"[A recent decision from] the U.S. Bankruptcy Court for the District of Delaware ... addressed objections to 11 multiemployer pension funds' withdrawal liability claims totaling $6.5 billion, where those plans received billions in taxpayer-funded Special Financial Assistance (SFA) ... that was not included in plan assets for purposes of the withdrawal liability assessments ... The bankruptcy court upheld PBGC's regulations ... relying in large part on Loper Bright." [In re Yellow Corp., No. 23-11069 (Bankr. Del. Sep. 13, 2024)]  MORE >>

13 pages. "This dramatic shift from DB to DC plans has been welcomed by many, but there are some critics of the DC system as well.... This paper will outline how DC plans have improved retirement saving and investing; it will also address some of these criticisms and offer suggestions to help enhance DC plans in ways that aim to improve retirement outcomes for all Americans."   MORE >>

15 pages. "[The authors] provide a detailed review of the major annuity offerings ... review the tradeoffs among available annuity options, which participants benefit most from annuities (as well as those which do not), when to purchase an annuity, and how much to annuitize ... provide a framework for comparing and evaluating various annuity products against one another over various time horizons, and ... [review how] these solutions will be offered within DC plans, including steps plan sponsors can take to prepare."  MORE >>

"The [SEC's] Investor Advisory Committee will host a panel discussion on the topic of who is required to serve in the client's best interest during a public meeting in Washington D.C. on [September 19].... The panel discussion [is] titled, 'Investment Advice: A History and Update on Who is Required to Serve in Your Best Interest.' "  MORE >>

"IRAs lack consumer protections and should be regulated by ERISA, former EBSA head Phyllis Borzi says. Preston Rutledge, another former DOL official, says policymakers need to focus on the decumulation phase. Borzi and Rutledge agreed that state IRA plans have been a success."  MORE >>

"One area is using AI tools to 'minimize everyday inefficiencies,' Schroen says. That could be using AI to help complete client requests for proposal, to analyze fee disclosure documents or to run in the background of customer relationship management systems and generate meeting agendas or create prompts for follow-up."  MORE >>

"As the consulting / advisory market has consolidated, larger advisory firms fueled by outside capital from private equity and the public markets are pressing recordkeeping organizations to provide more to the advisors or risk losing market share and being excluded from client RFPs. It's easy to see the risks this creates for all involved, but plan sponsors must act to avoid them.... [T]he pressure for data sharing by conflicted advisors is raising significant concerns about conflicts of interest and participant data security."  MORE >>

"It's good news that Vanguard plan members have increased their contributions and that their plans have expanded coverage. Unfortunately, the Vanguard study doesn't reflect the reality that the U.S. retirement system isn't working for most Americans. Instead, many who are approaching their post-career years are finding that retirement financial security is becoming an elusive pipedream."  MORE >>

"[T]he 224th open meeting of the Advisory Council on Employee Welfare and Pension Benefit Plans (also known as the ERISA Advisory Council) will be held via a teleconference on Tuesday, October 22, 2024.... The purpose of the open meeting is for the members of the ERISA Advisory Council to discuss potential recommendations for the Secretary of Labor on the issues of: [1] Claims and Appeals Procedures, and [2] Qualified Default Investment Alternatives (QDIAs) -- Start to Finish, Default to Payout"  MORE >>

"This paper will explore how ERISA welfare funds can help their participants through the provision of an employee housing assistance benefit. Starting with the early efforts asking how pension plans might help create housing assistance in the form of direct mortgage loans, the paper will then discuss the 1990 amendment to Taft-Hartley and the structural challenges ERISA plans have in providing housing assistance and how, with legislative and/or agency assistance, ERISA benefit plans might work in conjunction with federal, state and local government initiatives to create housing that is affordable, climate resilient, and energy efficient for low- and moderate-income workers."  MORE >>