"SECURE 2.0 allowed mid-year conversions from a SIMPLE IRA to a safe-harbor 401(k) starting in 2024 if a few rules [are] followed ... [M]any current SIMPLE IRA plan sponsors recognize that a conversion to a safe-harbor 401(k) may be beneficial to both the business and its employees."  MORE >>

"In [Judge Kacsmaryk's] latest decision to grant summary judgment in favor of the DOL, he stated that the demise of the Chevron standard changed how courts should interpret statutes -- not how they review agency decisions for unreasonableness -- and that Loper Bright 'did not disturb the arbitrary and capricious review standard.' As a result, he rejected the plaintiffs' request to expand the scope of the 5th Circuit's limited remand and to interpret Loper Bright to 'affect standards it does not effect.' " [Utah v. Micone, No. 23-0016 (N.D. tex. Feb. 14, 2025]  MORE >>

"Benefits of offering a 401(k) plan ... Step-by-step process to open a 401(k) ... Costs and financial considerations ... Common challenges and how to overcome them."  MORE >>

"The hybrid approach to retirement savings blends the options and strengths of the DC model with a CB-defined benefits strategy.... [T]oday's robust risk management tools, higher interest rates, and improved funded status have created ideal conditions for plan sponsors to explore this new, balanced solution."  MORE >>

12 pages. " ... Default investment acceptance declines with age and income levels and appears to be higher for female participants, holding other demographic factors constant.... There was notable variation in default acceptance in the year 2020 (i.e., a period of heightened market volatility) among older DC participants.... Default investment acceptance is higher for public DC participants than 401(k) participants when controlling for age and income."  MORE >>

"In January, defined benefit pension plan sponsors likely experienced an increase in funded status fueled by gains in global equities. The Treasury yield curve and credit spreads remained mostly unchanged from the end of December. NEPC's hypothetical total-return pension plan saw an increase of 2.1% in funded status compared to an increase of 1.4% for our LDI-focused plan."  MORE >>

"[M]ore than one third of respondents said they were not sure they could retire this year due to the economic environment and high cost of living.... When considering what work they would prefer to do in their so-called retirement years, 83% of respondents said something temporary and perhaps in retail, hospitality, or business support."  MORE >>

"[T]he amount you need depends on several factors, including your lifestyle, expected expenses, and other income sources like Social Security or pensions.... [1] Income replacement ratio ... [2] Detailed expense analysis ... [3] The 4% rule & guardrails approach."  MORE >>

"The sustainability of Social Security and the adequacy of retirement income are pressing concerns that SECURE 3.0 might address. A major anticipated component of any future SECURE 3.0 is an increased emphasis on lifetime income solutions.... While defined contribution plans like 401k plans have largely replaced defined benefit pensions, some policymakers are pushing for a middle ground incorporating features of both systems.... The new legislation could also focus on accessibility and simplicity in retirement plan management."  MORE >>

"AEP contended, and the district court agreed, that the severance plan was a top hat plan.... the court agreed with the district court that the plan provided 'deferred compensation,' was not subject to ERISA's fiduciary rules, and thus the fiduciary exception to the attorney-client privilege did not apply." [Kramer v. American Elec. Power Exec. Severance Plan, No. 24-3174 (6th Cir. Feb. 10, 2025)]  MORE >>

"While there was some initial reluctance to apply the unclean hands doctrine to enforcement suits brought under ERISA, 'because its application would significantly harm innocent parties, namely, participants and beneficiaries,' federal courts have considered and applied the doctrine of unclean hands to bar a plaintiff's recovery in an ERISA action. If a claim is equitable in nature under ERISA Section 502(a)(3), the unclean hands doctrine is available as a defense. "  MORE >>

"Unlike a valuation for a sale or potential investment, 409A valuations focus on the current fair market value (FMV) of a company's equity.... A 409A valuation determines a private company's FMV which is then used to set the strike price for employee stock options or the baseline value of synthetic equity awards."  MORE >>