"Notice 2024-77 makes clear that plan sponsors may continue to seek recoupment of inadvertent benefit overpayments from participants and beneficiaries. Unfortunately, the Notice does not address ERISA Section 206(h), added by Section 301(a) of SECURE 2.0, which imposes certain conditions on the recoupment of inadvertent benefit overpayments from participants or beneficiaries."  MORE >>

"[1] Plan provisions for employer sponsored plans can be more restrictive than general [RMD] rules provided in the 2024 Final Regulations, which may ease administrative issues.... [2] Availability of the 'Stretch' IRA that applied before SECURE Acts has been significantly curtailed ... [3] The 2024 Final Regulations and 2024 Proposed Regulations provide the greatest flexibility and planning opportunities for surviving spouse beneficiaries ... [4] SECURE 2.0 makes several additional changes to the RMD requirements to promote lifetime income options for defined contribution plan participants ... [5] The deadline to amend most plans for the SECURE 1.0 and SECURE 2.0 Acts changes to the [RMD] rules has been extended to December 31, 2026 "  MORE >>

"The court found that Fleming's ERISA claims are representative actions brought on behalf of the Plan since he seeks to redress a shared injury suffered by the Plan. Under Section 502(a)(2), Fleming can only act in a representative capacity on the Plan's behalf. The court further found that Kellogg's arbitration provision does not allow Fleming to proceed in a representative capacity, and therefore, it infringes on the remedies available under ERISA." [Fleming v. Kellogg Co., No. 23-1966 (6th Cir. Oct. 21, 2024)]  MORE >>

"At first blush, the pension funds appear to have received a windfall: billions of dollars in bailout money plus withdrawal liability calculated as if they hadn't received a cent. Bailout money is clearly a plan asset, regardless of the PBGC's limitations on how that asset is valued in the withdrawal liability calculation. However, [there are] important points -- both good and bad -- for employers to keep in mind." [In re Yellow Corp., No. 23-11069 (Bankr. Del. Sep. 13, 2024)]  MORE >>

"[F]our draft recommendations ... show the [ERISA Advisory Council's] early thinking in terms of QDIA requests and recommendations it may send to the DOL.... [1] Decumulation guidance ... [2] QDIA guidance and education ... [3] Automatic rollover safe harbor ... [4] [E]nsure participants have 'actual knowledge' of the QDIA investments into which they are allocated[.]"  MORE >>

"As qualified retirement plan sponsors evaluate the various new distribution options available under SECURE 2.0, it is worth asking: What is your company's retirement philosophy? The answer to this question will help guide plan sponsors in determining what changes, if any, they'd like to make to their plans.... [1] Retirement accounts are for retirement.... [2] Participants can make their own choices.... [3] Pick and choose."  MORE >>

"Ensuring that the pension transfer is in the best interest of plan participants can be complex and requires transparency. It's important to ensure that the insurer you are using is financially healthy and can meet ongoing payment obligations.... [S]tate insurance guaranty associations can protect annuitants and may guarantee some or all benefits.... Clear communication and a well-executed transaction will help keep reputations intact and minimize the risk of unhappy participants and potential litigation."  MORE >>

"Employers need to know that even though withdrawal liability laws are challenging, mounting defenses can limit exposure. The Segal Blend is just one of several approaches multiemployer plans routinely take to enhance collections, warranting review when a withdrawal takes place.... [E]ven though a fund makes a withdrawal liability demand, the amounts claimed are not always justified. Review of pension fund demands should always be undertaken to ensure that amounts claimed are actually owing."  MORE >>