"This rule amends the [PBGC's] regulation on Allocation of Assets in Single-Employer Plans by substituting a new table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination with valuation dates falling in 2025. This table is needed to compute the value of early retirement benefits and, thus, the total value of benefits under a plan. This rule also provides the mortality assumption for use with PBGC's missing participants program for determination dates in 2025."  MORE >>

"The marginal tax rate tables and examples in Form W-4R have been updated to include inflation adjustments for 2025. ... Updates to Form W-4P include updates to the deduction worksheet for inflation adjustments for 2025."  MORE >>

"The DOL notes that it has worked closely with the IRS and the Social Security Administration to gather information needed to populate the database, but that additional efforts are needed to meet the required timeframe. The inclusion of fiduciary and plan asset guidance may be intended to encourage compliance by alleviating plan administrators' concerns on those issues."  MORE >>

"The case was moving toward trial after a judge denied UHG's motion for summary judgment, noting that the plaintiff presented sufficient evidence that UHG had 'its hand in the cookie jar.' Facing a costly trial that they were unlikely to win, UHG chose to settle. Based on the alleged actions of UHG and their committee, this announcement of one of the highest ERISA litigation settlements is no surprise." [Snyder v. UnitedHealth Group, No. 21-1049 (D. Minn. proposed settlement filed Dec. 13, 2024)]  MORE >>

"The Retirement Simplification and Clarity Act ... seeks to empower individuals with options and straightforward information for securing their financial futures.... [The Act] would implement recommendations from the [GAO] to reform the complex 402(f) Notice process."  MORE >>

"The Senate voted to end debate on the Social Security Fairness Act [HR 82 / S 597], which would repeal the WEP and the GPO, on [December 18] by a vote of 73-27. The final vote could take place this week. Since the bill advanced in the Senate by a large margin and passed the House in November 327-75, its chances for final passage in the Senate and signature by President Joe Biden look favorable."  MORE >>

"Distributions taken under a [substantially equal periodic payment (SEPP)] program must follow a strict set of rules, including withdrawing only the required amount each year. Breaking the rules could lead to disqualification of the program, causing a retroactive assessment of the 10% additional tax plus interest. [T]his article ... highlight[s] the rules that determine SEPP amounts and the strategies that can help to provide the best results."  MORE >>

"Around 58% of US pension plan managers surveyed say their funded status has improved over the past year including 6% who say it has improved dramatically. Around a third (30%) say their funded status is unchanged over the past 12 months and only 12% say it has deteriorated. However, the pension plan managers questioned say there is a possibility they will increase contributions and bolster their assets for the coming year."  MORE >>

"This post provides a 2024 recap of 20 personal finance topics and a preview of 2025 changes.... This post concludes with a summary of several 2024 personal finance research studies, three 'need to know' facts, and six take-away action steps."  MORE >>

"[T]here has been a continuing tension between the many legitimate excessive fee class actions brought against plan sponsors and fiduciaries, on the one hand, and the costs of defending those actions in circumstances where the claims have little merit on the other.... [P]lan sponsors and fiduciary liability insurers [should] uniformly and consistently try these actions to verdict. While perhaps expensive in the short run in terms of the costs of litigation, experience shows that over the long run, this will separate the wheat from the chaff, leading to fewer, but more meritorious, cases being brought."  MORE >>

"The GAO report argues that investors risk losing 'tens of thousands of dollars' by purchasing mutual funds through brokers. In particular, the report claims that actively managed mutual funds that compensate brokers ('bundled funds') have lower gross returns (returns before fees) than actively managed funds that do not compensate brokers ('unbundled funds').... ICI voiced skepticism about the GAO's results, surmising that any differences in gross performance across funds had little to do with whether they were bundled or unbundled."  MORE >>

"What's New ... The social security tax rate is 6.2% each for the employee and employer. The social security wage base limit is $176,100. The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2024. There is no wage base limit for Medicare tax.... Reminders ... Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments, was redesigned for 2022.... Electronic submission of Forms W-4 and W-4P.... Electronic submission of Forms W-4R ... Sick Pay Reporting."  MORE >>

"[Health plans] must attest annually that their contracts do not contain a gag clause.... The deadline to submit the gag clause attestation [to CMS] is December 31, 2024.... By December 23, 2024, group health plans must revise their HIPAA privacy policies ... Starting January 1, 2025, LTPT employees who work at least 500 hours, but less than 1,000 hours, in two consecutive plan years must be eligible to make salary deferrals to a 401(k) Plan.... New 401(k) (and 403(b)) plans established on or after December 29, 2022, must satisfy automatic enrollment and deduction requirements for plan years beginning after December 31, 2024."  MORE >>