"If an LTPTE is only eligible to make deferrals, then one would logically conclude that the compensation of the LTPTE is not taken into account when calculating the deduction limit.... In [PLR 201229012], the IRS concluded that the compensation taken into account only includes participants who have allocations, other than elective deferrals, for the year."  MORE >>

"[T]he change affects the maximum survivor percentage allowed under the minimum distribution incidental benefit (MDIB) requirements for death benefits from a defined benefit (DB) pension plan when a participant elects a joint and survivor annuity with a non-spouse beneficiary. ... [T]he younger the non-spouse beneficiary is than the participant, the smaller the allowable survivor annuity percentage, so that a greater actuarial amount of the joint and survivor annuity would be paid during the participant’s lifetime."  MORE >>

"Plan administrators should review their 2024 annual funding notice against the model notice and determine whether their plan's 2024 annual funding notice is compliant. Use of the model notice is optional. However, using the model notice will ensure 'a reasonable, good faith interpretation' of the requirements under Section 101(f), as amended by Secure 2.0."  MORE >>

"[Y]ou now must tell participants that the PBGC may pay more than the guaranteed amount upon plan termination. In this guidance, the DOL provides model language for that disclosure.... Relief for reporting the most recent plan year-end funding level ... Relief for reporting most recent plan year-end demographics ... Two methods for determining 'average return on assets' ... No at-risk disclosures"  MORE >>

"The new amendments to VFCP require that notice of self-correction be filed with the DOL and include brief information about the plan, the plan sponsor, the error, and the number of impacted participants. Applicants who submit the notice will receive confirmation of the DOL’s receipt but need not wait on DOL approval."  MORE >>

"[T]he best near-term hope is if district courts ... take the strong encouragement from the Alito concurrence (and the more moderate encouragement from the main opinion) to consider the Reasonable Compensation Exemption at the motion to dismiss stage ... In addition to the alternatives recognized by the Court, the [DOL] could possibly take steps to address the potential for meritless excess fee cases discouraging employers from continuing plans." [Cunningham v. Cornell Univ., No. 23-1007 (S.Ct. Apr. 17, 2025)]  MORE >>

"While the 10th and 11th U.S. Circuit Courts of Appeals placed the burden of proof on participants, the 1st, 4th, 5th and 8th circuits ... held in a variety of cases that once a plaintiff has proven a breach of fiduciary duty and a related loss to the plan under [ERISA], the burden of proof shifts to the fiduciary. The Supreme Court announced [April 21] an invitation for Solicitor General John Sauer to file a brief 'expressing the views of the United States.' " [Pizarro v. Home Depot, No. 22-13643 (11th Cir. Aug. 2, 2024; cert. pet. filed Dec. 3, 2024; Solicitor General brief requested Apr. 21, 2025)]   MORE >>

"The Court held that dissolved corporations retain the capacity to sue and be sued under Kentucky law, and thus there was no basis for Sheets’ contention that the Court lacked personal jurisdiction over it. The Court also held that ERISA preempted any limitations period under Kentucky’s dissolution statutes." [Central States, Southeast & Southwest Areas Pension Fund v. Sheets Enterprise, No. 24-2277 (N.D. Ill. Feb. 19, 2025)]  MORE >>

"With many plans now fully funded and liabilities representing a smaller portion of company market levels, many plan sponsors are opting to retain their plans and manage risk themselves. Despite the recent market volatility, [the authors] do not anticipate a meaningful deterioration in funded status levels as many plans remain well hedged.... [T]he current environment presents an opportunity to rebalance or potentially even de-risk further.... [M]aintaining discipline around strategic asset allocation targets will be beneficial over the long term to plan sponsors."  MORE >>

10 pages. "For most public employees, the type of retirement plan that is provided and requirements for participating are largely consistent across states. Retirement benefits available to state legislators, by contrast, vary widely.... [T]he type of retirement plan that is available to legislators and the standards for legislator participation differ markedly relative to other groups of public employees."  MORE >>

"The Court acknowledged the 'serious' practical implications of its holding but suggested that a variety of procedural mechanisms may be available to discourage meritless lawsuits from being filed, including limited discovery, fee shifting, Rule 11 sanctions, and Federal Rule of Civil Procedure 7(a)(7)." [Cunningham v. Cornell Univ., No. 23-1007 (S.Ct. Apr. 17, 2025)]   MORE >>

"[E]mployers often provide enhanced benefits for employees losing their employment as part of a group termination.... What are the impacts to our 401(k) plan for a group termination? ... What about severance? ... What happens to health coverage for employees who are terminated? ... How are outstanding stock options or other equity incentive plan awards treated? ... Will the company need to make payments on deferred compensation plans?"  MORE >>

"The Court sanctioned Schlichter's position that an ERISA prohibited transaction claim can be filed with bare-bones allegations that an employee benefit plan entered into a service provider contract -- something that is essential to run every modern plan.... [N]ow all excessive fee lawsuits, including the new genre of excessive fee lawsuits against health plans, will be recast as prohibited transaction claims to avoid a motion to dismiss. This distorts ERISA beyond any possible legislative intent." [Cunningham v. Cornell Univ., No. 23-1007 (S.Ct. Apr. 17, 2025)]  MORE >>

"In a start-up or early-stage company where the value of the company's stock often starts off low but has the potential for significant future appreciation, founders can potentially save taxes by making an 83(b) election.... If the restricted shares are forfeited (for example, because the employee quits before the vesting date) or the shares decrease in value, the employee may be limited in their ability to recoup the taxes already paid when the 83(b) election was made[.]"  MORE >>