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New Job Opportunity Today
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Sixth Circuit Holds, Once Again, That Effective Vindication Doctrine Prevents Application of Arbitration Provision
"Circuit courts across the country ... have red-lighted these provisions in cases asserting claims to remedy plan losses and other plan-wide injuries resulting from fiduciary misconduct under ERISA Section 502(a)(2).... The Sixth Circuit did the same last August in Parker v. Tenneco, Inc. ... In an unpublished decision this week, the Sixth Circuit has invalidated a similar arbitration provision[.]" [Fleming v. Kellogg Co., No. 23-1966 (6th Cir. Oct. 21, 2024; unpub.)] MORE >>
Kantor & Kantor
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How Are Plans Handling Missing Participants?
"Small plans are more likely to keep balances from uncashed checks in the plan (60%), whereas large companies are more likely to place those funds in a forfeiture account (71%). Less than half of plan sponsors (43%) have a formal written policy regarding missing participants. A
third of organizations use an outside search provider to help track down missing participants." MORE >>
American Retirement Association [ARA]
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Treasury Report Stresses SECURE 2.0 and Financial Inclusion
"Treasury's report, the National Strategy for Financial Inclusion in the United States, included five areas of focus, along
with sample initiatives to improve each. One area of focus, expanding access to savings and investments, leaned heavily on Treasury working to implement and increase take-up of retirement saving initiatives in the SECURE Act 2.0 of 2022, such as the Saver's Match and emergency savings programs." MORE >>
PLANSPONSOR; free registration may be required
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401(k) Fee Disclosures Have Improved Transparency, Though Clarity Still a Concern
"[Some] stakeholder groups ... suggested participants might come away believing the lowest-cost investments are the best choice, even though that might not be true for their specific situation.... Apart from DOL's efforts to monitor implementation of fee disclosures and
an agency hotline to answer plan members' questions, some commenters suggested employers and service providers can modify the format of their disclosures or supplement them with educational initiatives to enhance financial literacy." MORE >>
InvestmentNews; subscription may be required
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When 401(k) Plans Fail Due to Fees and Taxes
"U.S. companies spend about $250 billion per year on their 401(k) plans, while the federal government forgoes a similar amount in tax revenue. Admittedly, some of that $500 billion is spent on plan fees, but most lands in the pockets of 401(k) participants. The industry
creates far more successful outcomes than failures." MORE >>
Morningstar
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[Sponsor]
Retirement at a Crossroads: Navigating Policy in a Changing Political Landscape During a Challenging Year for Tax Legislation
Join us November 19 for an enlightening discussion on critical retirement legislative issues in the wake of the 2024 presidential election. Preston Rutledge, expert on retirement policy and former Assistant Secretary of Labor for EBSA, will share his insights.
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Illinois Pension Crisis Would Devour 'Millionaire Tax'
"Proponents of a push to scrap Illinois' constitutionally protected flat income tax and add a 3% income tax hike on those earning more than $1 million claim increased revenue could be used for property tax relief.... Analysis shows all new revenue from the tax would
likely be consumed by Illinois' growing pension crisis. That would leave nothing for property tax relief. It would also set up other taxpayers for a much larger income tax hike." MORE >>
Illinois Policy Institute
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[Opinion]
Is It Time to End the 401(k)?
"Shlomo Benartzi, professor emeritus at UCLA Anderson School of Management ... has -- in a Wall Street Journal op-ed --
effectively backed the notion of creating big government-run pools of retirement savings -- where ALL retirement savings would be put.... Ultimately, however, it's a solution in search of a problem." MORE >>
Nevin Adams, via American Retirement Association [ARA]
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[Opinion]
Pension Rights Center Comments to ERISA Advisory Council on QDIA and Lifetime Income (PDF)
"[PRC believes] it is premature to endorse [the incorporation of lifetime income features in a plan's QDIA] because of the many critical issues and unanswered questions concerning the efficacy of defaulting participants into a lifetime income strategy through the various
proposed mechanisms. Indeed, challenges remain even for plans that wish to offer participants elective insured or partially insured lifetime income options at the end of a participant's career." MORE >>
Norman Stein, for The Pension Rights Center [PRC]
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Benefits in General |
[Official Guidance]
Draft of 2025 IRS Publication 15-A: Employer's Supplemental Tax Guide (PDF)
"What's New: [1] Social security and Medicare taxes for 2025.... [2] Moving expense reimbursements.... [3] No federal income tax withholding on disability payments for injuries incurred as a direct result of a terrorist attack directed against the United
States.... [4] Electronic submission of Forms W-4 and W-4P.... [5] Electronic submission of Forms W-4R, W-4S, and W-4V." MORE >>
Internal Revenue Service [IRS]
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Supreme Court Urged to Resolve Split on ERISA Standing Requirements in Excessive Fee Cases
"Three benefit companies recently requested that the U.S. Supreme Court review a decision by the U.S. Court of Appeals for the Fifth Circuit regarding the proper standard for determining Article III
standing in excessive fee class action cases brought under [ERISA].... The Fifth Circuit's decision ... widens the split among the circuit courts regarding the proper test for determining constitutional standing in class actions, particularly in the plan service provider industry." [Chavez v. Plan Benefit Servs., Inc., No. 22-50368 (5th Cir. July 15, 2024; cert. pet. filed Sep. 24, 2024)] MORE >>
Holland & Knight
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First Circuit Says Massachusetts Non-Compete Agreement Enforceable in California Despite State’s Ban
"The case arguably stands for the proposition that an employee cannot escape an otherwise enforceable non-compete agreement by simply moving to (and working in) a state with different laws. Therefore, when hiring an employee from out-of-state, an employer should pay close
attention to whether the employee is subject to a non-compete agreement that originates in another jurisdiction." [DraftKings Inc. v. Hermalyn, No. 24-1443 (1st Cir. Sep. 26,
2024)] MORE >>
Saul Ewing LLP
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Beyond Pensions: How RHRAs Can Enhance Retirement Readiness
"[A] retiree who is 65 years old in 2024 will need, on average, $165,000 saved to cover their healthcare and medical expenses throughout retirement. Focusing company benefit dollars in this direction could help address this barrier to retirement. And many of the traditional
objections to -- and challenges presented by -- retiree medical in its historical form can be overcome through careful design of Retiree health reimbursement arrangements (RHRAs). Compared to DB or DC plans, RHRAs are more flexible[.]" MORE >>
Fidelity
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Employee Benefits Jobs
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Selected New Discussions |
Withholding Requirement for Disaster Relief Distributions
"Are the Federal Disaster distributions under SECURE 2.0 subject to the 10% withholding that normally applies to retirement plan distributions that are not eligible for rollover?"
BenefitsLink Message Boards
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Rollover Contribution Before Plan Effective Date
"Someone had setup accounts at the recordkeeper and allowed an inbound rollover to hit in mid-December before the plan went live January [1] There is no guidance on this issue because it should never happen, but here it is. My thoughts tell me this would call for a 5500 in
the year the plan first received any monies. The part I'm not sure about would be the trust and plan effective date being after that first rollover hit. There was technically no plan in place at that point. An amendment wouldn't really make sense here either. Has anyone ever heard of this situation before?"
BenefitsLink Message Boards
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Missed Auto-Enrollment Contributions
"We have a client who inadvertently failed to start auto-enrollment contributions for several employees. I just want to make sure what the correction is for this type of mistake? Do they catch up the missed contributions via the next payroll and pay them interest for the missed
contributions? For the interest, what's the best way to calculate?"
BenefitsLink Message Boards
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When Does Auto Enrollment Apply to LTPT Employees?
"It doesn't seem to me that the guidance specifically addressed whether the 2025 auto enrollment requirements must apply to LTPT employees? In the absence of a regulatory dispensation, it seems like the safest procedure would be to have auto-enrollment apply to them, as
ridiculous as that seems. Thoughts on this issue?"
BenefitsLink Message Boards
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Press Releases |
Alvarez and Marsal, Inc Establishes A&M Private Wealth Partners to Serve Ultra-High-Net-Worth Clients
Alvarez & Marsal
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Financial Finesse Acquires the OfColor Business
Financial Finesse
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Webcasts and Conferences (Retirement Plans / Executive Compensation) |
Artificial Intelligence Revolution: What You Need To Know for Your Benefit Plan
RECORDED
WithumSmith+Brown
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SECURE 2.0: Plan Documents in a SECURE World
November 19, 2024 in MA
ASPPA Benefits Council [ABC] of New England
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Ethics (2024)
December 5, 2024 WEBINAR
ASC
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Last Issue's Most Popular Items |
SECURE 2.0: What Should Defined Benefit Plans Be Doing Now? (PDF)
GRS
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Questions Answered About Social Security
The CPA Journal
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Things to Worry About: Automatic Enrollment
FredReish.com
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BenefitsLink® Retirement Plans Newsletter, ISSN no. 1536-9587.
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