"Starting in 2025, the SECURE 2.0 Act allows participants ages sixty to sixty-three to make 'super-catch-up contributions' ... Employers may need to amend their retirement plans by the end of 2024 ... The introduction of super-catch-up contributions will require significant updates to payroll and recordkeeping systems to track different age categories and contribution limits."  MORE >>

"Knowing how the following three provisions influence plan design, administration, and costs can help you better serve your clients. [1] The mandatory automatic enrollment feature will shake up how plans are designed in the future. [2] The long-term, part-time employee change in 2024 gets a reduction in 2025. [3] Participants in their early 60s get a chance to save more for the future."  MORE >>

"SECURE Act 2.0 reduced the three-year requirement to two years and extended the requirement to private sector 403(b) plans. The 2.0 change applies in January 2025 for calendar year plans.... [A]dvisors and providers should redouble their efforts to inform affected employers of the new rules and requirements, and the steps necessary to comply."  MORE >>

"[R]etirement plan document providers developed ... language to ... say that individuals classified as independent contractors by the company are excluded from the plan, even if a court or administrative agency determines that such individuals are common law employees and not independent contractors. This exclusionary language protects the plan from being found to exclude otherwise eligible individuals ... It does not, however, protect the plan from failing coverage testing as a result of the exclusion -- the second and perhaps more complex issue."  MORE >>

"These regulations address a payor's obligation to withhold income taxes when those payments or distributions are made to payees outside of the United States. This guidance applies to deferred compensation plans ... and includes any pension, annuity, profit sharing, stock bonus plan, or other plan that defers the receipt of compensation."  MORE >>

"The [Retirement Savings Lost and Found (RSLF)] being launched is significantly narrower in scope than the Department's initial proposal of April 16, 2024, and is expressly designed to be only a starting point for populating the database.... [T]he RSLF announcement answers important data security and fiduciary responsibility concerns left unanswered by the initial and revised proposal of September 12, 2024."  MORE >>

"Lisa Gomez, assistant secretary of Labor and head of [EBSA], explained ... at a hearing hosted by the ERISA Advisory Council (EAC) that EBSA would be able to use the document for the database.... However, there are downsides to using 8955-SSA, to an extent that it cannot be relied upon, and voluntary data collection will still be required to complement it."  MORE >>

"After studying the effectiveness of qualified default investment alternatives (QDIAs) in retirement plans, the ERISA Advisory Council (EAC) has made recommendations to the [DOL] ... [which] include [1] creating a 'tips document' to help fiduciaries in choosing QDIAs with lifetime income options, [2] improving QDIA guidance, and [3] providing for QDIAs in IRAs."  MORE >>

"Whether it's evaluating 401(k) plan fees or comparing a company's compensation package against its competitors, plan benchmarking is a necessary exercise for sponsors ... [B]efore a plan sponsor even begins the benchmarking process, it is important to take a step back and evaluate the goals of the organization and the outcomes it is looking to achieve with its retirement plan."  MORE >>

"Plan sponsors will increase their focus on evaluating and selecting retirement income solutions within DC plans.... Customized in-plan retirement income options, including hybrid target-date funds and managed accounts, will continue to gain momentum....AI tools will engage participants in a more interactive, personalized planning experience."  MORE >>

"According to survey responses, retirees are less likely to say that they are 'better off than expected' in 2024 compared to the survey conducted in 2021. Other results reveal pre-retirees are increasingly aware of the need to financially prepare for unexpected events compared to previous surveys, yet the amount they can save decreased."  MORE >>

"Some IRA accounts allow check-writing privileges. Checks written to a charity from a 'checkbook IRA' qualify as a valid QCD. However, the custodian may not recognize the distribution until the check is cashed! That could be in early 2025 ... and then we have problems."  MORE >>

"[T]otal U.S. Single-Premium Pension Risk Transfer sales reached $14.2 billion in the third quarter of 2024, marking a 36% increase from 2023.... [T]hrough Q3 of 2024, 530 buy-out contracts were finalized ... setting a record for the highest number of buy-out contracts sold.... In the fourth quarter, insurance carriers reached their capacity limits, prompting them to suspend taking on new transactions for the rest of the year."  MORE >>

"Dear state and local government officials: The $350 billion of Coronavirus state and local fiscal recovery funds from the American Rescue Plan Act of 2021 are spent. You must now pay for the services you provide to your constituents without pandemic windfalls. Luckily, like Dorothy in The Wizard of Oz, you've always had the power to generate funds without taxes. The magic lies within the actuarial finance you use to fund your pension plans."  MORE >>

"[I]ndividuals and businesses in parts of West Virginia that were affected by Post-Tropical Cyclone Helene that began on Sept 25, 2024 ... now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments.... [I]ndividuals and households that reside or have a business in Mercer County qualify for tax relief."  MORE >>

"70% of benefits leaders say they're approached by AI vendors at least once a month.... [These questions] will help you create a shortlist of AI vendors and compare those offerings against each other.... [1] What are your business requirements? ... [2] What is the vendor's expertise level? ... [3] How does the vendor address relevant risk? ... [4] What is the sales process like? ... [5] Will you have the right support during implementation?"  MORE >>

"Employee handbooks and policies ... Review contribution limits ... Evaluate partner and vendor performance ... Plan and prioritize employee communication and education ... [As] of the first day of the plan year beginning on or after January 1, 2024, group health plans are required to expand their internet-based self-service tool to include all covered items, services, and drugs[.]" [Includes a chart of most common deadlines by date.]  MORE >>

"[EBSA protects ] more than 153 million workers, retirees and their families who receive coverage from approximately 765,000 private retirement plans, 2.8 million health plans and 619,000 other welfare benefit plans. Together these plans hold estimated assets of $13.6 trillion.... Last year, with a budget of under $200 million, [EBSA] recovered $1.4 billion for plans, participants and beneficiaries — a return on investment that delivers results for America's workers."  MORE >>

"In the U.S., more than three in four S&P 500 companies (77%) reported in this year's proxies they incorporated at least one ESG metric in their executive incentive plans. That's unchanged from the previous year but up sharply from 52% four years ago."  MORE >>