"This article provides an overview of three significant SECURE 2.0 changes taking effect in 2025: [1] higher catch-up limits for employees who reach ages 60 to 63, [2] a one-year reduction in the service requirement for long-term, part-time employees, and [3] required automatic enrollment for newly established 401(k) and 403(b) plans."  MORE >>

"[EBSA] will begin collecting limited data to populate the Lost and Found plan database.... This request is narrower than what the DOL initially proposed and focuses on those nearing retirement.... Chantel Sheaks, the vice president of retirement policy at the Chamber of Commerce, says that the time it takes to create and validate an account with the Lost and Found will likely dissuade participants from using the service."  MORE >>

"The Code now allows for corrections of automatic enrollment errors if a plan sponsor: [1] Timely corrects. [2] Implements the automatic enrollment feature going forward. [3] Provides the employer match, if any, the employee would have received had the automatic enrollment been implemented correctly ... [4] Adjusts the employer match for investment earnings. [5] Identifies any similarly situated employees that need to be corrected.; and [8] Provides notice to the employee of the correction within 45 days of correct deferrals beginning[.]"  MORE >>

"The IRS recently issued final regulations ... regarding proper elections out of federal income tax withholding for certain qualified plan payments that are not eligible rollover distributions.... Specifically, this guidance is focused on payments made outside the United States ... [and represents] the closing chapter in an area IRS has been working on for over 35 years."  MORE >>

"In general, the final regulations provide that the beneficiary, including eligible designated beneficiaries, must continue to take annual RMDs after the death of the taxpayer. The IRA must be fully distributed by the tenth anniversary of the taxpayer's death. The final regulations apply to calendar years beginning on or after January 1, 2025."  MORE >>

"In [its] petition, the company said lower courts have offered conflicting arbitration vs. trial rulings in ERISA cases. Tenneco said due process protections for plan fiduciaries 'would be obliterated' if the Supreme Court allows a pro-participant federal appeals court ruling to stand. Tenneco argues that some lower courts have used 'judge-made' interpretations to allow ERISA to trump guidelines in the Federal Arbitration Act." [Parker v. Tenneco, Inc., No. 23-1857 (6th Cir. Aug. 20, 2024; cert. pet. filed Nov. 15, 2024)]  MORE >>

"Capital One Financial Corp. and its board of directors are facing a lawsuit brought by former employees over the usage of 401(k) plan forfeitures, joining more than 20 other companies that have been sued over forfeitures this year." [Singh v. Capital One Financial Corp., No. 24-8538 (S.D.N.Y. complaint filed Nov. 11, 2024)]  MORE >>

"An attitude of fostering a client-centric culture is of key importance ... [U]nderlying mindset is a critical factor in communicating with clients and potential clients ... Panelists provided a close look at how their firms employ technology to reach and serve clients."  MORE >>

"The DOL is a phone call away from a former employee and ... the DOL will investigate, whether their gripes over your 401(k) are legitimate or not.... It is certainly more difficult to handle the distribution of notices to former employees than to current employees....Limiting liability for participant direction of investment is dependent on providing enough information to participants to make informed investment decisions."  MORE >>

"Plan administrators and counsel should review key issues with respect to employee benefit plans and executive compensation arrangements, confirm actions to be taken before the end of 2024, and focus on what to expect for 2025. [These checklists] address plan amendments, notices, and other considerations for qualified retirement plans, welfare plans, and stock-based and performance-based plans."

• Plan Administrators
• Corporate Counsel
• Plan Administrators of Governmental and Church Plans
• General Counsel of Tax-Exempt and Governmental Entities

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"The first case represents a challenge to the practice of 'pension risk transfer.' ... The second case involves an Illinois statute requiring staffing agencies to pay temporary employees who work at a particular site for more than 90 days within a year either 'equivalent benefits' as the lowest paid, comparable employee or the hourly cash equivalent. The case has the potential to set a precedent for how courts apply ERISA's express preemption provision." [Bueno v. General Electric, No. 24-0822 (N.D.N.Y. amicus brief filed Nov. 13, 2024); Staffing Services Ass'n of Illinois v. Flanagan, No. 23-16208 (N.D. Ill. amicus brief filed Nov. 15, 2024)]  MORE >>