No changes from the Spring 2024 PBGC Regulatory Agenda.  MORE >>

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"  MORE >>

"Service Organization Control (SOC) reports outline the service providers' internal controls over financial reporting, as well as show the results of tests of those controls for operating effectiveness.... As a plan sponsor, to properly assess and manage the risks associated with delegating common 401(k) plan tasks to outside service providers, you need to review their SOC reports. SOC reports also help you evaluate whether service providers meet necessary control standards when selecting them as vendors in the first place."  MORE >>

"The settlement amount is believed to be the largest ever of an ERISA case stemming from poorly performing investment options in a 401(k) plan.... The Wells Fargo Target Fund Suite was one of the worst-performing target date options in the entire market, [plaintiffs claim,] and the Complaint alleges that UnitedHealth's decision to keep the Suite as the default investment for the Plan for over a decade violated fiduciary duties of prudence and loyalty under ERISA." [Snyder v. UnitedHealth Group, No. 21-1049 (D. Minn. proposed settlement filed Dec. 13, 2024)]  MORE >>

"As other suits in this genre have claimed, this one states that 'defendants selected Athene, which is substantially riskier than numerous traditional annuity providers.' ... [T]he suit notes that when a PRT transaction occurs, affected pensioners lose both their ERISA and their PBGC protections and are instead only protected by state guaranty associations -- which are not pre-funded like the PBGC, and thus, 'offer substantially less protection compared to the PBGC.' " [Maneman v. Weyerhaeuser Co., No. 24-2050 (D. Wash. complaint filed Dec. 12, 2024)]  MORE >>

"Pension funds are intricately tied to a diverse network of third-party vendors, relying on them for a broad array of services, from investment management and actuarial consultations to data processing and IT support. This dependence significantly exposes pension funds to various risks, notably data breaches, which can arise from inadequate cybersecurity measures at any point in the vendor chain. Additionally, compliance failures with financial and privacy regulations can lead to severe legal and financial repercussions."  MORE >>

"Because the ERISA definition of 'party in interest' includes every plan fiduciary, every plan employee, and every plan service provider, the Eighth Circuit approach allows a prohibited transaction lawsuit for any services provided to a plan, even services that the plan needs to comply with ERISA. The Supreme Court should reject the Eighth Circuit approach and affirm the Second Circuit's decision in Cunningham." [Cunningham v. Cornell Univ., No. 21-0088 (2d Cir. Nov. 14, 2023; cert. pet. granted Oct. 3, 2024)]  MORE >>

"Federal regulators are finally addressing an unconscionable fiduciary breach by the U.S. pension system -- the failure to track $1.65 trillion saved by workers, mostly in orphan 401(k) accounts. The [DOL] is launching a database for employees to find old 401(k) plans -- and reclaim them -- something the law prevented until passage of the 2022 SECURE 2.0 Act.... [L]ost 401(k) accounts are not just a fiduciary issue -- it is clearly in a client's best interest to gain access to lost investments -- but also a business opportunity."  MORE >>

"Unlike typical Monte Carlo models, the Actuarial Financial Planner (AFP) can accommodate most of the granular aspects of retirement spending including: [1] non-recurring expenses  ... [2] classification of essential expenses vs. discretionary expenses; [3] different rates of future increases for different types of expenses, and [4] reduction in expenses upon the first death within the household. It is this granularity that makes the AFP a superior tool for use in the dynamic process[.]"  MORE >>

Changes to benefits-related items from the Spring 2024 DOL Regulatory Agenda:

Moved from Prerule State to Proposed Rule Stage:

• Plan Reporting for Retirement Savings Lost and Found [1210-AC19]
• Review of Pension Risk Transfer Interpretive Bulletin 95-1 [1210-AC22]

Added to Proposed Rule Stage:

• Enhancing Coverage of Preventive Services under the Affordable Care Act (CMS-9887-P)[1210-AC25]
• Requirement to Provide Paper Statements in Certain Cases -- Amendments to Electronic Disclosure Safe Harbors [1210-AC27]
• Notice and Disclosure Requirements with Respect to Lump Sums [1210-AC28]
• Cost Sharing Under the Affordable Care Act [1210-AC29]

Moved from Proposed Rule Stage to Final Rule Stage:

• Exemption for Certain Automatic Portability Transactions [1210-AC21]

Added to Final Rule Stage:

• Performance Benchmarks for Multi-Asset Class Investments [1210-AC26]

MORE >>

Changes from the Spring 2024 IRS Regulatory Agenda:

Added to Proposed Rule stage:

• Collectively Bargained Welfare Benefit Funds [1545-BL40]
• Guidance on Rules Applicable to IRAs Under Sections 408 and 408A [1545-BL98]
• Requirements for Employee Stock Ownership Plans [1545-BM32]
• Rules Relating to Employer-Provided Meals and Employer-Operated Eating Facilities [1545-BO29]
• Definition of Church Plan [1545-BO31]
• Safe Harbor Rules Relating to Required Distributions, Missing Participants, and Uncashed Checks [1545-BR34]
• Enhancing Coverage of Preventive Services under the Affordable Care Act [1545-BR35]
• Cost Sharing Under the Affordable Care Act [1545-BR38]

Moved from Proposed Rule stage to Final Rule stage:

• SECURE 2.0 Updates to Required Minimum Distribution Rules [1545-BQ66]

Added to Final Rule stage:

• Guidance on the Timing of the Use or Allocation of Forfeitures in Qualified Retirement Plans [1545-BO98]
• Application of the Employer Shared Responsibility & Certain Nondiscrimination Rules to HRAs and Other Account-Based Group Health Plans Integrated With Individual Health Insurance Coverage or Medicare [1545-BP17]

   MORE >>

"A recent federal case suggests that a covenant not to sue performs extra work, above and beyond a release, at least in the context of preventing unwanted ERISA class actions." [Esquivel v. Whataburger Restaurants LLC, No. 24-0310 (W.D. Tex. Nov. 8, 2024; notice of appeal filed Dec. 9, 2024)]  MORE >>