"The program was simplified and expanded to make it easier to use for less costly corrections.... [A] self-correction feature was added, previously unavailable under the program, for: [1] Delinquent transmittal of participant contributions and loan repayments to employer-sponsored retirement plans; [2] Eligible inadvertent participant loan failures that are self-corrected under the IRS's [EPCRS] ... The effective date of the amended VFC Program is March 17, 2025."  MORE >>

"This Benefits Alert covers the following key provisions of the proposed regulations: [1] Mandatory automatic enrollment requirements; [2] Exceptions to mandatory automatic enrollment requirements; [3] Multiemployer plans, multiple employer plans, and controlled groups; [4] Mergers and spin-offs; [5] Effect of plan amendments on pre-enactment plan status; [6] SECURE 2.0 special rules relating to participant notices; [7] Proposed applicability date."  MORE >>

"These requirements: [1] Require automatic enrollment of employees with elective deferral contributions of at least 3% and no more than 10% in the first year of participation ... [2] Permit participants to withdraw their automatic elective deferrals within 90 days of their first elective deferral contributions being made. [3] If no investment election is made, permit the automatic elective deferrals to be invested in qualified default investment alternatives (QDIAs)."  MORE >>

"The court explained that a claim for breach of fiduciary duty due to misrepresentation accrues when the employee relies detrimentally on the misrepresentations. In this case, the court determined that Miller's claim accrued when she signed the release, not when she later discovered the alleged misrepresentations." [Miller v. Campbell Soup Company Retirement & Pension Plan Admin. Comm., No. 24-1812 (3d Cir. Feb. 6, 2025)]  MORE >>

"Legislation introduced ... in the House [HR 1013] and Senate [S 424] would establish parity for 403(b) retirement plans serving teachers, hospital workers, clergy, and non-profit employees. The bill would provide 403(b) plan participants access to the same cost-efficient investment options already available to all other employer-sponsored retirement plan participants."  MORE >>

"[1] Cost efficiency without full integration ... [2] Simplified administration ... [3] Mitigating fiduciary risk ... [4] Consistent participant experience ... [5] Flexibility for future changes."  MORE >>

"Both RTX and SUNY stand out from other employers in their early adoption of annuity products. Of the 200 largest employers that completed Pensions & Investments’ annual Top 1,000 survey, for example, only 14 reported offering stand-alone retirement income options and/or in-plan decumulation strategies."  MORE >>

"Although the Court has an important role in protecting participant rights under ERISA, ruling for Cornell will not hinder participants with reasons to suspect that nonexempt prohibited transaction may have occurred from suing plan fiduciaries. In fact, it will help courts focus on real violations of ERISA. It is also important to understand that if there is a basis for suspecting wrongdoing, defendants can still be required to show that an exemption actually applied." [Cunningham v. Cornell Univ., No. 21-0088 (2d Cir. Nov. 14, 2023; cert. pet. granted No. 23-1007; oral arg. Jan. 22, 2025, transcript and audio)]  MORE >>

"While the scope of ERISA preemption is exceptionally broad, ERISA does not apply to plans offered by governmental employers or plans sponsored by religious entities unless an election has been made under the Internal Revenue Code to have the plan treated as an ERISA plan. ERISA's reach also does not extend to 'payroll practices,' which the [DOL] has excluded."  MORE >>

"During a declared national emergency, an employer can provide what are referred to as 'qualified disaster relief payments' under Internal Revenue Code section 139. These are tax-preferred payments (e.g., the payments are excluded from gross income, wages and compensation subject to tax) employees can use for reasonable out-of-pocket expenses arising from a qualified natural disaster."  MORE >>

"Are there forms of equity compensation that are tax-advantageous or disadvantageous to employees or employers? ... Does equity-based compensation require registration or notice? Are exemptions, or simplified or expedited procedures available? ... Are there tax withholding requirements for equity-based awards? ... Are inter-company chargeback agreements between a non-local parent company and local affiliate common? What issues arise? ... Are employee stock purchase plans prevalent or available? If so, are there any frequently encountered issues with such arrangements?"  MORE >>