Rev. Dec. 2024. "What's New: The form and instructions have been updated to include 403(b) plans."  MORE >>

"In rejecting the case as pled, the court relied on the 'context and circumstances of the fiduciary's actions' -- i.e., the plain language of the plan ... for the principle that a theory that 'a fiduciary is always required to choose to pay administrative costs' is flawed because 'it is not limited to any particular circumstances that may be present in this case.' ' [Barragan v. Honeywell Int"l, Inc., No. 24-4529 (D.N.J. Dec. 19, 2024)]  MORE >>

"The retirees ... [allege] that Verizon and SSGA violated their fiduciary duties when they chose to transfer $5.9 billion in pension liabilities to group annuity contracts with Prudential Financial Inc. and Reinsurance Group of America Inc.... The lawsuit is the most recent in a spate of filings over the past year targeting the choice of annuity provider as jeopardizing the retirement savings of participants in employer-sponsored defined benefit plans." [Dempsey v. Verizon Comm. Inc., No. 24-10004 (S.D.N.Y. complaint filed Dec. 30, 2024)]   MORE >>

"Potential parents of Generation Beta, which will include those born between 2025 and 2039, worry about Gen Beta's ability to retire and save for that retirement. More than half (55%) of Americans surveyed ... said Gen Beta would struggle to save enough for retirement. Respondents expect Gen Beta will need $1.88 million in retirement funds."  MORE >>

34 pages. "The study explores how Generation Beta (people born between January 1, 2025, and December 31, 2039) will navigate a future shaped by groundbreaking technological innovations, evolving societal norms, and economic shifts. With the potential to live the longest lives of any generation, Generation Beta is poised to redefine life, longevity, and retirement in ways we can only begin to imagine."  MORE >>

"TDFs gained their status as the de facto investment vehicle for good reason: Their simple 'set it and forget it' approach adjusts participants' risk portfolios over time based on a targeted retirement date.... More and more fund providers are launching personalized takes on the TDF, hoping to satisfy participants' growing desire for products that meet their specific retirement needs."  MORE >>

"In 2005 ... younger participants were more conservative, middle-age participants held the most equities and older participants sharply reduced their holdings. In 2023, the equity allocation of participants sloped downward by age, starting at 88 percent for young workers, declining to 73 percent for those ages 50-54 and then to 45 percent for those 70+. Not only is the pattern very different, but the share of 401(k) assets in equities has also increased markedly."  MORE >>

"WTW examined pension plan data for 361 Fortune 1000 companies that sponsor U.S. DB pension plans and have a December fiscal year-end date. The aggregate pension funded status of these plans at the end of 2024 is estimated to be 100%, just two percentage points higher than 98% at the end of 2023. Pension obligations declined from $1.25 trillion at the end of 2023 to an estimated $1.12 trillion at the end of 2024 due to higher interest rates and pension risk transfer activity."  MORE >>

"Just as the investment landscape looks dramatically different today than it did 20 years ago, the communications landscape has rapidly evolved. But with declining financial literacy rates, growing distrust and scrutiny of government agencies, and increasing opportunities for misinformation to spread rapidly, pension funds face a growing number of obstacles with their communications."  MORE >>

"If you're in Puerto Rico and need a PEP, there's only one place to go -- NPPG.... While well-versed in pooled plans domestically, bringing them to the commonwealth, and its over 47,000 small businesses, created several challenges, most notably the differences in their retirement systems."  MORE >>

"Once you're in your 50s, retirement is no longer an abstraction: It's a life stage you may be entering in the next 10, 15, or 20 years. Fortunately, that time frame still provides an opportunity to increase your savings rate or otherwise rethink your retirement strategy[.]"  MORE >>

"What's New: [1] Preventive care for purposes of qualifying as a high deductible health plan under section 223.... [2] Expenses treated as amounts paid for medical care." [Also see: 2024 IRS Form 8889, draft dated May 30, 2024]  MORE >>

"While the basic functionality of the service may work fine, there may be small features, functions or services you never activated or that fell by the wayside. Questions to guide your review of the agreement include: [1] How did the past year go relative to the technology service? [2] Is the technology working as expected? Is everyone happy with the tool? [2] Is the provider still delivering on the agreement, and does it still meet your needs? [4] Have your processes or other factors changed, creating a need for different services?"  MORE >>