"[If] the payment would have qualified as an eligible rollover distribution, any portion not recovered can now be treated as such. If the overpayment was rolled over into another plan, that amount may be recovered and transferred back to the original plan. That amount will be treated as an eligible rollover and, regardless of the terms of each plan, both plans will be deemed to have allowed the rollover."  MORE >>

"SECURE 2.0 gives plan sponsors and fiduciaries latitude not to recoup overpayments from participants or other parties. However, corrective contributions may still be required in the following circumstances: [1] The overpayment arose because of a failure to implement benefit limitations under Section 415 or 436 or the salary limitation of Section 401(a)(17). [2] The overpayment arose in conjunction with an underpayment to a different participant.... [3] Payment is required prevent or restore an impermissible forfeiture of vested benefits."  MORE >>

"If the Court adopts too relaxed a pleading standard -- such as the Eighth and Ninth Circuits -- any routine, arm's-length agreement between a plan and a third-party service provider could become the basis of a plausible violation of ERISA section 406(a)(1)(C).... [A]dopting a narrower pleading standard limits the risks of litigation and is less likely to disrupt existing service provider arrangements." [Cunningham v. Cornell Univ., No. 21-0088 (2d Cir. Nov. 14, 2023; cert. pet. granted Oct. 3, 2024)]  MORE >>

"One DOL regulation requires service providers to share information about the fees they receive for providing plan-related services.... A second DOL regulation requires plan administrators ... to provide plan and investment fee information to participants and beneficiaries ... This report addresses: [1] literature and selected stakeholder groups' views on how fee disclosure regulations affected 401(k) fees and investments; [2] selected stakeholder groups' views on the benefits and challenges plan sponsors and service providers experienced as a result of the fee disclosure regulations; and [3] how DOL assisted plan sponsors and service providers with following the disclosure regulations." [GAO-24-107125 Pub. Sep. 27, 2024; Rel. Oct. 28, 2024]  MORE >>

"The IRS does not consider a cash balance plan as a successor plan for a terminated 401(k) plan. Therefore, a business owner could establish a cash balance plan immediately following a 401(k) plan's termination. Before terminating a 401(k) plan, however, the sponsor may want to consider the benefits of maintaining both a 401(k) and cash balance plan."  MORE >>

"NASRA compiled data regarding retirement benefits for judges in each state and the District of Columbia who are newly appointed or elected. Judicial retirement benefits in many states have been modified in recent years, which means that in many states, judges who are currently serving have retirement benefits that differ from those who are appointed or elected today."  MORE >>

"73% of state and local employees are worried they don't have sufficient emergency savings. Workers say higher wages (78%), improved retirement benefits such as employer matches (54%), and better retiree healthcare benefits (50%) would bolster their retirement confidence. Employees indicate that more financial education and planning information is needed, including guidance on how much to save for retirement (65%), what benefits are needed at different career stages (53%), and how defined contribution plans work (47%)."  MORE >>

"Affected taxpayers now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments. The IRS is offering relief to ... the City and Borough of Juneau in Alaska."  MORE >>

"[The FTC has] appealed a Texas federal court's August ruling that blocked nationwide enforcement of the non-compete ban. The non-compete ban will remain blocked during the pendency of the appeal process.... There are three court challenges to the non-compete ban. The status of those challenges (including appeals) is detailed [in this article.] " [Ryan LLC v. Federal Trade Commission, No. 24-0986 (N.D. Tex. Aug. 20, 2024)]  MORE >>

"Private companies considering a near- or mid-term IPO need to take a number of steps in their preparation for that undertaking, including review and development of an executive compensation program, which will help ensure that their IPO is successful and that their management team remains engaged prior to, in connection with, and after an IPO."  MORE >>