"Many firms gearing up to comply with the [DOL's] embattled 401(k) investment advice rule have opted to change course on compliance since two federal courts paused the regulation that was originally scheduled to begin taking effect [September 23].... The halting of the rule.... leaves 401(k) service providers relying on a set of older standards, including a five-part test for fiduciary advice dating back to 1975 and older iterations of prohibited transaction exemptions."  MORE >>

"Current QPAMs must send a one-time email notice to the DOL no later than December 14, 2024, in order to rely on the Exemption ... QPAMs must now maintain records demonstrating compliance with the Exemption for six years from the date of any transaction relying on the Exemption and must make these records available to various regulatory agencies and certain benefit plan fiduciaries, contributing employers, and plan participants upon request. "  MORE >>

"To be a QSLP, the employee-participant must be legally obligated to make the payment of the loan to pay for attendance at an educational institution by the employee, employee's spouse, or employee's dependent. [Notice 2024-63] states that a co-signer is legally obligated but a guarantor is only legally obligated when the primary borrower defaults. The employee must certify the payment is a QSLP."  MORE >>

"Since 1984, beneficiaries with income above certain statutory thresholds are subject to federal income taxation on up to 50% of their Social Security benefits. Since 1993, beneficiaries with income above a higher set of statutory thresholds are subject to federal income taxation on up to 85% of their Social Security benefits.... The overall share of Social Security benefits paid as federal income taxes rose from 2.2% in 1994 to 6.6% in 2022." [IF11397 Sep. 23, 2024]  MORE >>

"[T]he Central District of California found in favor of the defendants after a bench trial on breach of fiduciary duty claims related to the monitoring of recordkeeping expenses and selection of investments ... This decision is another example of district courts across the country rejecting excessive recordkeeping fee and imprudent investment claims after trial. It also provides a notable rejection of the testimony from certain experts that the plaintiffs' bar has used in recent years to support these types of claims." [In re Prime Healthcare ERISA Litig., No. 20-1529 (C.D. Calif. Aug. 22, 2024)]  MORE >>

"Although the costs of retirement benefits have generally decreased due to fee compression, smaller plans are still at a disadvantage. Smaller plans pay more per participant due to fixed costs, while larger plans benefit from economies of scale even with greater total costs.... Providers might also be more inclined to reduce variable costs for larger plans, or for plans with higher balances and fewer participants since they perceive a higher chance of cross-selling and other sources of revenue."  MORE >>

"SEC Chair Gary Gensler remarked that 'Gatekeeper provisions provide an essential function.' Commissioner Hester Peirce joined in, saying that a 'principles-based approach is at the heart' of the matter. The committee in the morning session of its [September 19] meeting featured a panel discussion on regulatory activity concerning investment advice and an update on who is required to serve in clients' best interest -- and what that means."  MORE >>

"Because of significant fee compression and the need to serve both corporate clients and individuals as well as leverage the convergence of wealth, retirement and benefits at the workplace, RPAs have been forced to become better business and people managers."  MORE >>

"[W]hile it is a company (i.e., settlor) decision to transfer plan liabilities to a third-party insurer, the implementation of such decision and the selection of an annuity provider are fiduciary decisions, which raise significant fiduciary considerations.... Fiduciaries should evaluate a potential annuity provider's creditworthiness, risk of bankruptcy or default and ability to pay claims.... Fiduciaries should also evaluate the features of the annuity contract, such as surrender charges[.]"  MORE >>

"The bipartisan effort to advance [the Social Security Fairness Act (HR 82)] that would repeal a pair of controversial tax rules that negatively impact some federal workers' retirement income took another step forward last week as the bill's sponsors compiled the 218 signatures needed to force a House vote on the measure."  MORE >>

"As companies grow and evolve, they begin awarding additional equity, known as equity refresh grants, to execs who've supported that growth.... [This article breaks] down the essentials of equity refresh grants, why they matter, and considerations through different company valuation stages."  MORE >>