"[FEMA] has issued Major Disaster Declarations: ... Florida Hurricane Helene, for the incident period of September 23, 2024 and continuing; ... North Carolina Tropical Storm Helene, for the incident period of September 25, 2024 and continuing.... South Carolina Hurricane Helene, for the incident period of September 25, 2024 and continuing.... [1] Hardship distributions from employer plans ... [2] Qualified disaster recovery distributions ... [3] Recontribution of qualified home purchase distribution ... [4] Employer plan loan relief ... The IRS may also issue relief related to this disaster for certain tax-related deadlines."  MORE >>

"Unlike 401(k) plans, 403(b)s plans do not have to conduct non-discrimination testing of employee deferrals; instead, 403(b) plans that have a salary deferral feature must permit deferrals for all employees, with a few permissible exclusions."  MORE >>

"In addition to providing an overview of the Thermo Fisher decision, this article also discusses the recent complaint filed against Knight Smith as well as a similar forfeiture complaint filed by the [DOL] in 2017. Unlike the facts alleged in other forfeiture complaints, the Knight Smith and DOL pleadings allege that the plan documents required forfeitures to be used to pay plan expenses first before they could be used to reduce employer contributions. We wonder if this new type of forfeiture allegation is a harbinger of future lawsuits." [Dimou v. Thermo Fisher Scientific, No. 23-1732 (S.D. Calif. Sep. 19, 2024); Sievert v. Knight-Swift Transportation Holdings, Inc., No. 24-2443 (D. Ariz. complaint filed Sep. 16, 2024)]  MORE >>

"Employers are hesitant to roll out this component of their retirement benefits package due to additional complexities posed by the task of proving plan participants have made eligible student loan repayments, given the IRS emphasis on self-certification, according to benefits lawyers. Meanwhile, there's indication from student loan advisors that workers welcome the new option, but are wary of using it given the government's pursuit of potential loan forgiveness."  MORE >>

"This guide will discuss the difference between QACA and traditional Safe Harbor 401(k) plans. [It will] also explore the requirements, benefits, and potential drawbacks of QACA safe harbor plans."  MORE >>

"[P]ersonalization for DC plans continues to be a moving target. In speaking to defined contribution investment specialists, personalizing for the individual often depends on how much work goes into the plan design to meet the needs of its participants. That is no small task when dealing with diverse participant pools, first-mover trepidation and a continued focus on low fees."  MORE >>

"The most recent restatement window concluded June 30, 2020 ... [T]he next restatement window for preapproved 403(b) plan sponsors to restate their documents is expected to open on January 1, 2025, and conclude on December 31, 2026."  MORE >>

"ERISA allows a plan to designate a person or entity as a directed trustee of the plan, as opposed to an ordinary or discretionary trustee. While ERISA does not employ the directed trust terminology, the concept of a directed trust is set forth in ERISA Section 403(a) ... [W]hether a trustee is a directed trustee begins with the language of the plan document. If the trustee is a directed trustee, then the trust and/or plan establishes the parameters of the directed trustee's duties."  MORE >>

"As of the 2023 fiscal-year end for each pension system, total unfunded public pension liabilities (UAL) reached $1.59 trillion, with state pension plans carrying the majority of the debt. The median funded ratio stood at 76%, but stress tests suggest that another economic downturn could increase the UAL significantly, potentially raising the total to $2.71 trillion by 2025."  MORE >>

"[F]rom a potential litigation standpoint, the basic issue would be whether 'guaranteed retirement income' justifies the fact that the plan sponsor chose to offer an annuity which was structured in such a way as to make it unlikely that the plan participant would ever break even on the investment. Even worse in terms of fiduciary loyalty and prudence, an argument could be made that as a result of the plan sponsor's choice of the annuity, the product's design increased the likelihood that a third part (the annuity issuer) would eventually benefit at the expense of the plan participant[.]"  MORE >>

"Here's the real conundrum faced by 401k plan sponsors: They realize they don't have the expertise to administer the plan. So, what do they do? Well, when they don't have the internal personnel to handle any other aspect of their business, they hire a third party. It's only natural they do the same thing for their retirement plan. The trouble is, not all third parties are created equal. But does the average plan sponsor know this?"  MORE >>

"Groom mourns the passing of our dear friend and colleague, Ian Lanoff, on September 29, 2024.  Ian had a long and prolific career in both public service and private practice. As Administrator for Pension and Welfare Benefit Programs at the [DOL] during the Carter Administration, Ian played an important role in the implementation of ERISA, and his work laid the foundation for decades of jurisprudence. Ian also represented some of the nation's largest public and private benefit programs, helping to protect the benefits for millions of workers and retirees."  MORE >>

"DOL is too focused on marginally relevant ESG investments, and the investment advice fiduciary rule for IRA rollovers when they lack authority under ERISA Title II to regulate IRAs. By not focusing on the key issues where they actually have legislative authority, they are allowing plaintiff lawyers to regulate the key fiduciary duties for retirement and health plans in America.... Recognizing that the government is not going to help us restore fairness, plan sponsors need to work together to combat the litigation abuse. "  MORE >>

"The holding in Connelly likely extends to all closely held businesses, including corporations, partnerships and LLCs. This means that all closely held business owners can face increased estate tax liability where life insurance proceeds are payable to the company at the death of an owner." [Connelly v. IRS, No. 23-146 (S. Ct. Jun. 6, 2024)]  MORE >>