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3 New Job Opportunities
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[Official Guidance]
Agencies Release Informational Copies of 2024 Form 5500 Series
Employee Benefits Security Administration joined the IRS and Pension Benefit Guaranty Corp. in releasing online. The IRS will release paper copies of Form 5500-EZ and instructions for 2024 separately on its website after Jan. 1, 2025. Each form's instructions
include a Changes to Note section highlighting important updates to the forms, schedules and instructions for 2024, including the following changes in Form 5500 and Form 5500-SF: - A new plan characteristics code, 2Y, for pension-linked savings accounts.
- An update to Schedule SB instructions for certain expected benefits payable in annuity form.
Plan administrators should not use informational copies to file a 2024 Form 5500 Series Annual Return/Report. MORE >>
Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL]; Internal Revenue Service [IRS]; and Pension Benefit Guaranty Corporation [PBGC]
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[Guidance Overview]
IRS Releases Interim Guidance on SECURE 2.0 Overpayment Rules
"[Notice 2024-77] provides guidance on the
new SECURE 2.0 Act rules regarding the recovery of inadvertent benefit overpayments (IBOs) from retirement plans.... The new rollover treatment -- i.e., where recoupment is not sought, the IBO will be treated as an eligible rollover distribution ... if the payment would otherwise have been an eligible rollover distribution, and where recoupment is sought, the overpayment may be returned to the plan without adverse tax
consequences -- applies as of December 29, 2022, regardless of when an IBO was made." MORE >>
Willis Towers Watson
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[Guidance Overview]
Long-Term Part-Time Guidance on 403(b) Plan, 401(k) Regs
"Sponsors of 403(b) plans that exclude student employees or employees who normally work less than 20 hours per week from making deferrals should review [Notice 2024-73] and make any necessary updates to the plan's operations and communications ... Due to the complexity of compliance, 403(b) plan sponsors may want to consider allowing employees who normally work less than 20 hours per week to make deferrals without having to satisfy a service requirement." MORE >>
Willis Towers Watson
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[Guidance Overview]
IRS Reminds Employers About SECURE 2.0 Effects on W-2 Reporting
"Although the [new IRS webpage] doesn't provide any new information, it consolidates into one resource previously published
IRS guidance on the W-2 impact of three SECURE 2.0 provisions that took effect soon after the law's enactment." MORE >>
Mercer
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[Guidance Overview]
IRS Intends to Issue Opinion Letters for Pre-Approved 403(b) Plans for the Second Remedial Amendment Cycle
"in Announcement 2024-38, the IRS announced that
it intends to issue opinion letters for pre-approved 403(b) that were: [1] Restated for changes in the Internal Revenue Code Section 403(b) requirements, including those listed in the 2022 Cumulative List. [2] Filed with the IRS for the second remedial amendment cycle (Cycle [2] under Rev. Proc. 2019-39." MORE >>
Thomson Reuters Practical Law
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[Guidance Overview]
DOL Seeks Missing Participant Information for Retirement Savings Lost and Found Database
"The [DOL] has issued a notice that it plans to launch its Retirement Savings Lost and Found Database by Dec. 29, 2024, and requests retirement plan administrators to voluntarily report information to the database." MORE >>
Thomson Reuters Practical Law
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Recent District Court Decision Places Spotlight on Coordination Between DOL and Plaintiffs’ Firms
"[S]hould defense counsel be more concerned about the possibility of the DOL supporting a private plaintiff in pending litigation? And if such support is occurring, are defendants entitled to access all communications between plaintiffs' counsel and the DOL about the matter?
A recent federal court ruling ... suggests the answer is 'yes' to both questions." [Harrison v. Envision Mgmt. Holding, Inc. Board of Directors, No. 21-0304 (D. Colo. Sep. 11, 2024)] MORE >>
Thompson Hine
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Supreme Court Asked to Repudiate Effective Vindication Doctrine
"Should the Supreme Court grant Tenneco's petition, it would have the opportunity to upend established precedent approving of the effective vindication doctrine in the Second, Third, Sixth, Seventh, and Tenth Circuits in favor of a position only the Ninth Circuit
reached ... Further, the Court could significantly narrow the scope of relief available in many courts under Section 502(a)(2) for claims of fiduciary breach." [Parker v. Tenneco, Inc., No. 23-1857 (6th Cir. Aug. 20, 2024; cert. pet. filed Nov. 15, 2024)] MORE >>
Miller & Chevalier
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Expect SECURE 3.0 and a Major Tax Bill Next Year
"A tax bill will likely be fast-tracked since Republicans control the White House and Congress, former Labor official Preston Rutledge says. Expect a clamor for revenue-raisers to offset the $4.5 trillion renewal of the 2017 tax cuts. Efforts to derail the DOL fiduciary rule will
likely not be part of the budget process." MORE >>
ThinkAdvisor
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Private Equity for Pension Plans? Evaluating Private Equity Performance from an Investor's Perspective
"Plans invest in PE funds with higher average risk-adjusted performance. This is mainly due to access to successful PE managers, not superior selection skill. Decomposing returns into risk-compensation and 'alpha', [the authors] find that some plans obtain higher PE
returns by taking more risk without earning higher, and in some cases earning lower, risk-adjusted returns, broadly consistent with agency problems within plans." MORE >>
National Bureau of Economic Research [NBER]; purchase may be required for full document
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[Opinion]
It's Likely the ESG Rule Is Dead Under Trump, But Does It Matter?
"Despite the dramatic, and at times apocalyptic, rhetoric on the DOL's regulatory scheme on ESG, was the gap between the Trump administration and the Biden administration so wide on this issue? Most ERISA attorneys say the differences were relatively
small." MORE >>
Plan Sponsor Council of America [PSCA]
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Benefits in General |
Essential Employee Benefit Trends for Small Businesses in 2025
"Small businesses are increasingly offering financial education programs, debt management assistance, and employer-sponsored savings plans.... In 2025, many are turning to innovative [health plan] solutions like level-funded plans and captives to help contain costs while
enhancing the benefits offered to employees.... Comprehensive mental health coverage not only supports employee well-being but also reduces absenteeism and increases productivity." MORE >>
OneDigital
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Employee Benefits Jobs
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Selected New Discussions |
Sole Prop Deferral Election After Year End
"Under SECURE, sole-prop can adopt a 401k plan after year end and prior to 4/15 (as far as I know, no extension in filing allowed) How about changing deferrals for an existing plan? Do they need to be done by 12/31 or can be done by 4/15 following?"
BenefitsLink Message Boards
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Distribution Approval: Security and TPA Liability
"Record keeping platform sends approval notification to the TPA for review an approval. Does anyone attempt to confirm that it is truly the participant who is initiating the distribution request? If so, what do you do? A TPA review/confirmation certainly opens the TPA to some
liability. I'd like to get some specific control ideas from the group. We've never had a fraud incident in 30 years but just a few days ago, someone tried. Thank you!"
BenefitsLink Message Boards
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Press Releases |
Optimatum Launches New White Paper Revealing Hidden Opportunities in Vendor Management for Employer Sponsored Healthcare
Optimatum
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The Cerrado Group Announces Changes at the Top: Ann Slotwinski Retires and Theresa Conti Takes Over as Executive Director
The Cerrado Group
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Webcasts and Conferences (Retirement Plans / Executive Compensation) |
The Latest Litigation Impacting DC Plans
December 11, 2024 WEBINAR
PSCA [Plan Sponsor Council of America]
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Testing the Waters: A Deep Dive into ADP/ACP Testing
February 4, 2025 WEBINAR
ASPPA [American Society of Pension Professionals & Actuaries]
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Last Issue's Most Popular Items |
Text of IRS Announcement 2024-38: Second Remedial Amendment Cycle for §403(b) Pre-Approved Plans -- Issuance of Opinion Letters, Plan Adoption Deadline, Opening of Determination Letter Program, and Related Issues (PDF)
Internal Revenue Service [IRS]
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Guide to Governmental Defined Contribution Plans
National Association of Government Defined Contribution Administrators [NAGDCA]
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Correcting 401(k) Auto-Enrollment Failures
planadviser
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BenefitsLink® Retirement Plans Newsletter, ISSN no. 1536-9587.
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