"The appeals court reversed the [district court] decision that the arbitration clause in the Kellogg Co.'s plan's document prevents the plaintiff ... from bringing his breach of fiduciary duty lawsuit on behalf of the plan, stating that the plan's language 'has the practical effect of blocking a whole class of claims.' " [Fleming v. Kellogg Co., No. 23-1966 (6th Cir. Oct. 21, 2024)]  MORE >>

"Since last fall, plaintiffs have filed at least twenty ERISA class actions claiming violations of fiduciary duties related to the use of 401(k) plan forfeitures.... Two conclusory decisions that allowed so-called forfeiture claims to proceed are fueling the trend; however, two recent decisions -- one focusing on fiduciary discretion, the other on the bounds of ERISA -- add thoughtful discussion to the debate." [Naylor v. BAE Systems, Inc., No. 24-0536 (E.D. Va. Sep. 5, 2024); Dimou v. Thermo Fisher Scientific, No. 23-1732 (S.D. Calif. Sep. 19, 2024)]  MORE >>

"The Court determined that the [two PBGC] regulations implement Congress' specific directive in the Rescue Act that the plans should only use the special financial assistance funds to pay plan benefits and costs, and that the regulations prevent the funds from being used to reduce employers' expected withdrawal liability." [In re Yellow Corp., No. 23-11069 (Bankr. Del. Sep. 13, 2024)]  MORE >>

"Both the [IRS] and [DOL] have rules that provide some basic guidance on record retention. Both agencies impose these requirements directly on plan sponsors; so even though service providers may store certain records as a convenience, sponsors remain legally obligated to hold on to all relevant records."  MORE >>

"[1] Totaling fees should be simple, but revenue sharing complicates it ... [2] Revenue sharing can lead to overpaying for services ... [3] Revenue sharing can limit access to prudent investments ... [4] Revenue sharing can create unfair fee distribution ... [5] Revenue sharing limits your ability to reduce taxes "  MORE >>

"A majority of workers (64%) say their employers have taken action to help them manage financial stress, a 12% increase over last year. More workers report feeling very good about their financial health (24%) compared to last year (20%), but about half of workers say their financial health has not changed and one in five say it has worsened. Gen Z (37%) and Millennials (35%) are more likely than Gen X (28%) and Boomers (21%) to say their financial health has improved."  MORE >>

"[This] survey of American workers reveals how different generations are juggling their finances while preparing for a longer retirement.... Many Americans feel they're behind on saving, paying off debt, and understanding the basics of investing -- which may be pushing their retirement goals out of reach.... [The authors] developed profiles for every generation, highlighting their barriers to financial resilience and their feelings about retirement."  MORE >>

"For those looking to implement or improve an optional defined contribution retirement plan to go alongside an existing public pension, several key policy decisions are important: [1] Contribution rates must be adequate to achieve the committed retirement goals. [2] There must be options for guaranteed retirement income. [3] Proper benefit education must be provided to new members making the choice. [4] The benefit selection period must be ample. [5] The default option set must work for the particular workforce. Each one of these policies can have an enormous ripple effect."  MORE >>

"[F]or investments made over a full working career, from age 25 to 65, IRA/401(k) accounts improve the final aftertax value of the study's assets by 17% for a no-dividend portfolio, 30% for a stock market index fund, and 44% for a low-turnover balanced fund.... [T]hese numbers reflect a 40-year holding period, and that the advantage for IRA/401(k) accounts declines sharply over time."  MORE >>

"[PBGC] has approved the application submitted ... by the Midwestern Teamsters Pension Plan. The plan, based in Oak Brook, Illinois, covers 615 participants in the transportation industry. The Midwestern Teamsters Plan will receive approximately $23.6 million in SFA ... The plan was projected to become insolvent and run out of money in 2032."  MORE >>