Nov. 5, 2024. "Use Form 8955-SSA to report information relating to each participant who separated from service covered by the plan and is entitled to a deferred vested benefit under the plan but is not paid this retirement benefit.... The SSA no longer processes nonstandard pages [2] Report information about separated participants only on page 2 of Form 8955-SSA. If additional space is needed for separated participants, use additional pages 2 only."  MORE >>

"SECURE 2.0 grants retirement plan sponsors the discretion to allow plan participants greater access to their retirement plan savings in the event of a federally recognized disaster.... A plan sponsor has the discretion to allow qualified individuals to receive 'qualified disaster recovery distributions' of up to $22,000 per disaster. Further, any such distribution is exempt from the 10% early distribution penalty tax that often applies to retirement plan distributions if the recipient is under age 59-1/2."  MORE >>

"Plaintiffs' theory of their action was that John Hancock breached its duty of loyalty by receiving the foreign tax credits and not passing them on to the plans in any way, resulting in a reduction in the value of the plans' assets.... Adopting the logic of the lower court, with a notable exception on standing, the Eleventh Circuit affirmed the lower court's holding that John Hancock was not acting as an ERISA fiduciary with regard to the conduct at issue." [Romano v. John Hancock Life Ins. Co. (USA), No. 22-12366 (11th Cir. Oct. 30, 2024)]  MORE >>

"A former Clorox Co. employee's class action complaint over the company's handling of forfeited 401(k) funds was mostly dismissed, with U.S. District Judge Yvonne Gonzalez Rogers ruling the breach claim under ERISA was 'impermissibly broad'[.]" [McManus v. The Clorox Co., No. 23-5325 (N.D. Calif. Nov. 1, 2024)]  MORE >>

"Compared to last year, 2024 has seen a significant drop-off in state ESG-related legislation, with half the number of bills proposed and a quarter of the number of bills enacted ... This decline might come as a surprise, given that the initiatives motivating last year's wave of activity have not abated -- but a closer look reveals that the battleground has arguably shifted from the statehouse to the courtroom as more of these laws have been challenged for their enforceability."  MORE >>

"[1] Due diligence: Assessing existing 401k plans ... [2] Deciding on the fate of the 401k plans ... [3] 401k plans: Compliance considerations ... [4] Communication with employees ... [5] Handling investment options ... [6] Understanding potential cost implications ... [7] Fiduciary responsibilities post-merger."  MORE >>

"Nearly all employees of state and local government are required to share in the cost of their retirement benefit, a requirement that contrasts with pension plans in the private sector ... By providing a consistent and predictable stream of revenue to public pension funds, contributions from employees fill a vital role in financing pension benefits.... This issue brief examines employee contribution plan designs, policies and recent trends."  MORE >>

"Intuition suggests that smaller amounts taken more frequently should help control key risks, but the findings show otherwise. Assuming similar investment timelines, the more important factors in positive outcomes are withdrawal rates, volatility and taxes."  MORE >>

"Plan sponsors that consider accepting Saver's Match contributions will need to weigh the additional burdens on HR that will be expected to result from such a decision.... [It] will also be important for the program to be very clear that participants (or IRA owners) have sole responsibility for claiming the Saver's Match."  MORE >>

"In November and December, many executives and key employees who participate in nonqualified deferred compensation (NQDC) plans must decide how much of next year's salary to defer. Factors in this decision about nonqualified plans include the IRS limits that apply to qualified retirement plans. The IRS just set the 2025 contribution limits[.]"  MORE >>

"With a hybrid of qualified and nonqualified rules, 457(b) NQ plans are 'eligible' plans subject to specific statutory requirements ... When a 457(b) NQ plan is combined with a 403(b)/401(k) plan, participants and employers can contribute up to the combined maximum annual contribution limit per plan."  MORE >>

"ISS clarified that it would describe a company's clawback policy as 'robust' in the 'Executive Compensation Analysis' section of its research report only if the policy extends beyond the minimum requirements of Dodd-Frank and explicitly covers all time-vesting equity awards.... In reevaluating its clawback policies, companies may wish to consider the ISS update along with the Glass Lewis policy, which also goes beyond the minimum Dodd-Frank requirements[.]"  MORE >>