"What's New: [1] Distributions to victims of domestic abuse.... [2] Distributions for emergency personal expenses.... Reminders: [1] Certain corrective distributions not subject to 10% early distribution tax.... Qualified disaster distributions.... Maximum age for traditional IRA contributions."  MORE >>

"The [DOL] has launched a new online portal for retirement plan administrators to voluntarily report information about separated vested participants ages 65 and older who are still owed a benefit. An accompanying final information collection request ... announces a fiduciary safe harbor and nonenforcement policy aimed at placating filers' concerns about potential liability for cybersecurity breaches and compliance with state privacy laws. DOL also confirms it won't use information provided in response to the ICR for plan audits."  MORE >>

"This article analyzes the origins and purposes of the Sole Responsibility Requirement and how it applies in the context of arrangements between banks and investment advisers with respect to CITs. It suggests that, provided certain basic guidelines are followed, the Sole Responsibility Requirement can be reconciled and be consistent with the Bank Maintained Requirement. Consequently, banks and their advisers that adhere to certain basic guidelines consistent with the intent and purposes of the Exemption generally should be entitled to rely on the Exemption for transactions with parties in interest of plans participating in their CITs."  MORE >>

"The amendments on the 2024 RA List pertain to provisions from the [SECURE Act] of 2019, the Bipartisan American Miners Act of 2019, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Taxpayer Certainty and Disaster Tax Relief Act of 2020, and the SECURE 2.0 Act of 2022."  MORE >>

"UnitedHealth Group Inc. agreed to pay $69 million to settle a class action challenging the use of Wells Fargo & Co. target date funds in its $15 billion 401(k) plan. The deal is 'the largest-ever ERISA settlement alleging breach of fiduciary duty for failure to remove underperforming investment options,' according to a motion ... seeking its approval." [Snyder v. UnitedHealth Group, No. 21-1049 (D. Minn. proposed settlement filed Dec. 13, 2024)]  MORE >>

"[U]nder certain circumstances, the employer's owners, their spouses, and affiliated companies may also be subject to withdrawal liability. Whether withdrawal liability may attach is a very fact-intensive analysis ... Employers should keep in mind that what appear to be unrelated businesses owned by the spouses of company owners can be deemed to be "trades or businesses" under common control and as a result be responsible for the payment of withdrawal liability." [Local No. 499, Board of Trustees of Shopmen's Pension Plan v. Art Iron, Inc., Nos. 22-3925, 22-3926 (6th Cir. Sep. 26, 2024)  MORE >>

"[1] [S]end required notifications to all participants, including fee disclosures, benefit statements, and the summary annual report.... [2] [S]end out a personalized communication to plan participants, reminding them of the good things the plan is doing for them.... [3] Audit employee information.... [4] Ensure required deposits are made by the deadline.... [5] Keep well-organized records.... [6] Review plan fees for competitiveness."  MORE >>

"By understanding how behavioral finance tendencies influence employee behavior ... and utilizing this understanding in plan design, plan sponsors can encourage higher participation and contributions by employees and assist them in their savings objectives."  MORE >>

"The ERISA Advisory Council has made recommendations to the DOL regarding qualified default investment alternatives (QDIA), including creation of a 'tips document' to help fiduciaries in choosing QDIAs with lifetime income options, improving QDIA disclosure, and providing for QDIAs in IRAs."  MORE >>

"[Researchers studied] a hypothetical couple from age 25 until death who saved and invested using three different strategies: [1] [100% in equities, with one-third in U.S. stocks and two-thirds in international stocks], [2] a 60/40 portfolio and [3] a target-date fund (TDF).... Investors following their optimal one-third/two-thirds investment strategy and saving 10% of their income each year can achieve the same financial benefits in retirement ... as a couple using a balanced [60/40] strategy who saves 19.3% of their income ... [A] couple using a TDF would need to save 16.1% of their income[.]"  MORE >>

"Over 500 U.S. corporations with pension plans transferred liabilities to insurance companies during the first nine months of 2024, a new record ... Total dollar volume for pension buyout and buy-in transactions for the quarter ended Sept. 30 was $14.2 billion, up from $10.4 billion during the third quarter of 2023.... Year to date, there have been 530 buyout contracts sold, a new record for the nine months ended Sept. 30[.]"  MORE >>

"[PBGC] has approved the application submitted ... by the Teamsters Local 11 Pension Plan. The plan, based in North Haledon, New Jersey, covers 2,012 participants in the transportation industry. The Teamsters Local 11 Plan, which is in critical status, will receive approximately $29.3 million in SFA[.]"  MORE >>

"[T[he Joint Committee on Taxation released its estimate of federal tax expenditures for fiscal years 2024 through 2028, claiming defined contribution plans will deny government coffers $1.4 trillion of revenue over 10 years.... industry advocates ... say the method and duration on which the analysis is based (cash flow over 10 years) overstates the long-term revenue effects of deferred proposals like retirement plans, arguing that present-value estimates more accurately reflect their true cost."  MORE >>

"Under a best-case scenario, the additional cost of this pension proposal would be just north of $800 million over the next 30 years."  MORE >>

"Sponsors of benefit plans that are subject to ERISA need to ensure they comply with all applicable reporting and disclosure requirements of these federal agencies: [DOL, CMS, IRS, and PBGC] ... The [50 page] guide is organized by plan type, regardless of agency: [1] All plans; [2] Health and welfare plans; [3] All retirement plans; [4] DB retirement plans; [5] DC retirement plans."  MORE >>