PBGC has posted a new SFA frequently asked question that provides guidance for multiemployer plans that receive SFA. The new SFA FAQ explains what types of derivative exposure, outside of permissible fund vehicles, are permissible in portfolios of SFA assets and provides examples. PBGC also has posted an updated FAQ on examples of permissible investment grade fixed income (IGFI) securities to clarify when fixed-to-float securities are permissible IGFI securities.  MORE >>

"The limits that increased for 2025 are shown [in a chart], and include small increases in the 415 and 402(g) limits. [The chart] also includes the new limits for the additional catch-up contributions for participants ages 60-63 and the deferral limits for Starter 401(k) Plans."  MORE >>

"Although the mandatory deadline to adopt required amendments to qualified retirement plans remains December 31, 2026 for most plans, plan sponsors will find that amending plans to reflect any required or selected optional provisions when those provisions become effective can help avoid errors in administration ... Some of the provisions in recent pension legislation will require support from the plan's recordkeeper or third-party administrator, and coordination will likely be necessary before implementing any plan design changes."  MORE >>

"[SECURE 2.0 requires that ] newly implemented 401(k) and 403(b) plans include an automatic enrollment and, in most cases, an automatic employee deferral increase provision.... [P]lans that are subject to this provision are required to add automatic enrollment beginning in plan years after December 31, 2024. Plans that were in existence prior to the date the SECURE 2.0 Act was signed into law are generally exempt from this provision, though acquisitions and disposition transactions could create newly eligible plans."  MORE >>

"Under SECURE 2.0, beginning in 2025, individuals ages 60 to 63 will be eligible for increased catch-up contributions in their retirement plans. This applies to 401(k), 403(b), and governmental 457(b) plans that currently offer catch-up contributions."  MORE >>

"This article provides a summary of the rules governing partial plan terminations and considerations for plan sponsors.... Tax-exempt organizations with a 403(b) plan are not subject to partial plan terminations under Internal Revenue Code Section 411(d)(3)."  MORE >>

"RMDs have always had to be taken before any Roth IRA conversion. The difference now is that ALL of a person's total aggregated IRA RMDs must be withdrawn prior to a conversion -- not just the RMD on the account being converted. Be careful here as this new rule flies in the face of how many RMDs and conversions have been processed in the past."  MORE >>

39 pages. "This report provides an overview of pension investment issues across state and local pensions, federal pensions (with a focus on TSP), private sector pension plans, and IRAs. For each of these types of pensions or retirement accounts, this report explains relevant federal authorities (if any), relevant federal oversight (if any), and administrative issues.... This report also identifies and synthesizes key pension investment issues for Congress, many of which have received regulatory and congressional responses or have involved legislative activity in the 118th Congress. " [R47996 updated Nov. 4, 2024]  MORE >>

"The IRS will not permit plans to require all participants to make catch-up contributions on a Roth basis to simplify plan administration. Those earning less than $145,000 must have the option of making traditional catch-up contributions, per conversations with IRS staff."  MORE >>

"[As] of October 2024, more than $69 billion in Special Financial Assistance has been approved for 98 multiemployer pension plans whose participants faced reductions in retirement benefits averaging 41 percent.... [T]he American Rescue Plan already has provided more than $1.6 billion in restorative payments and ongoing benefit payments to more than 121,000 retirees, an average of about $13,600 per retiree. Almost half of the $1.6 billion reversed retirees' previous benefit reductions."  MORE >>

"[O]nly 22% of savers manage to roll over an account without assistance, and 42% reported that the process took them two or more months to complete. Compounding the issue, 54% of savers weren't originally sure where their old 401(k) was located."  MORE >>

"By effectively taxing investment returns at a zero rate, tax deferral removes that inherent disincentive to save.... Eliminating tax deferral would likely unravel the entire employer plan system.... In the end, current and future workers will still have to pay to bring Social Security finances into balance -- either by paying higher taxes or receiving lower benefits -- while also having a much harder time supplementing those benefits in retirement."  MORE >>