"Effective January 1, 2025,the limitation on the annual benefit under a defined benefit plan under section 415(b)(1)(A) of the Code is increased from $275,000 to $280,000....

"The limitation for defined contribution plans under section 415(c)(1)(A) is increased in 2025 from $69,000 to $70,000....

"After taking into account the applicable rounding rules, the amounts for 2025 are ...

• The limitation under section 402(g)(1) on the exclusion for elective deferrals described in section 402(g)(3), which includes elective deferrals made to the Thrift Savings Plan, is increased from $23,000 to $23,500.
• The limitation on deferrals under section 457(e)(15) concerning deferred compensation plans of state and local governments and tax-exempt organizations is increased from $23,000 to $23,500.
• The limitation under section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in section 401(k)(11) or section 408(p) that generally applies for individuals aged 50 or over remains $7,500....
• The threshold used in the definition of 'highly compensated employee' under section 414(q)(1)(B) is increased from $155,000 to $160,000.
• The threshold under section 416(i)(1)(A)(i) concerning the definition of 'key employee' for top-heavy plan purposes is increased from $220,000 to $230,000....
• The annual compensation limitation under sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $345,000 to $350,000."

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"Notice 2024-73 confirms that the statutory exclusion for part-time employees who work less than 20 hours per week is based on service (not classification). As a result, an employer that sponsors an ERISA 403(b) plan must provide the right to make elective deferrals to a part-time employee who also qualifies as an ERISA LTPT employee, unless another statutory exclusion applies, and may continue to exclude part-time employees who do not qualify as ERISA LTPT employees"  MORE >>

"This article shows how ERISA interacts with the Bankruptcy Code in several areas: defined benefit pension plan termination and withdrawal and resulting claims, fiduciary duties in plan administration and termination, and an individual debtor's ability to protect retirement income from creditor claims. In addition, the article addresses how the Code treats top-hat plans, severance, and bonus arrangements."  MORE >>

"The Third Circuit said that it found nothing in ERISA's text supporting the proposition 'that ERISA's anti-alienation language does not apply to retirement plans operated in violation of its commands.' ... The Third Circuit also said that it found no language in the IRC rendering an anti-alienation provision in an ERISA plan unenforceable if the plan was not administered in accordance with the IRC." [In re Gilbert, No. 23-2944 (3d Cir. Oct. 24, 2024)]  MORE >>

"[T]hree things plan sponsors can do to set participants up for success: [1] Enroll them automatically in the DC plan at a default contribution rate. [2] Offer a match (and promote, promote, promote its value). [3] Increase savings every year."  MORE >>

"Customer Identification Program (CIP) rules, intended to prevent financial crime, currently block states from enrolling more than 2 million hard-working Americans into automated retirement savings programs known as auto-IRAs.... [F]ederally qualified retirement plans such as 401(k)s do not need to verify their participants under the CIP. Auto-IRAs, however, are not exempt from CIP rules."  MORE >>

"[PBGC] has approved the application submitted ... by the United Food and Commercial Workers Union and Participating Food Industry Employers Tri-State Pension Plan. The plan, based in Plymouth Meeting, Pennsylvania, covers 29,233 participants in the service industry ... [and] will receive approximately $684.4 million in SFA ... The plan was projected to become insolvent and run out of money in 2028."  MORE >>

"[PBGC] has approved the application submitted ... by the I.B.E.W. Pacific Coast Pension Fund. The plan, based in Tacoma, Washington, covers 3,318 participants in the construction industry. The I.B.E.W. Pacific Coast Fund, which is in critical status, will receive approximately $75.5 million in SFA[.]"  MORE >>

"[PBGC] has approved the application submitted ... by the Pension Plan of the Marine Carpenters Pension Fund. The plan, based in Pleasanton, California, covers 1,198 participants in the construction industry ... [and] will receive approximately $34.6 million in SFA ... The plan was projected to become insolvent and run out of money in 2034."  MORE >>

"Even in 2023 some major investors still seem to be suffering from the 2009 Global Financial Crisis-generated spike in zombie funds. In a survey of 10 major public retirement systems in September, Bloomberg found that on average 4 percent of their private equity holdings were still locked in funds that began investing prior to 2009, with one group's concentration -- the North Carolina state pension fund -- hitting 11 percent."  MORE >>

"While firms are still concerned with helping workers prepare for retirement, firms are expanding the areas they wish to address with their financial wellbeing offerings. Now, in addition to retirement planning, top issues include helping workers deal with high health care costs, high costs of living, financial-related stress, daily living expenses, and budget and money management."  MORE >>

"Under a clawback policy, executives are obligated to repay erroneously awarded incentive compensation even if they did not cause a restatement and had no role or responsibility for financial reporting. They will be required to pay back all the erroneous compensation paid to them, even if such amounts were already subject to personal income taxes. Executive officers can also seek third-party insurance to fund potential recovery obligations as long as the company does not pay for or reimburse the insurance premiums."  MORE >>