"It is possible for a plan to charge administrative expenses to terminated participants but not active participants, if the language of the plan document accommodates such a practice. Both the [DOL] and the IRS have concluded that a plan may charge administrative expenses to terminated participants, while not charging active participants, provided the method used meets certain criteria[.]"  MORE >>

"Intuit is one of many companies -- including Amazon, Bank of America, Home Depot and J.P. Morgan Chase & Co. -- whose defined contribution plans have been sued ... by plaintiffs alleging ... that policies on forfeited funds violate ERISA's duty of loyalty ... Intuit was the second company to settle." [Rodriguez v. Intuit Inc., No. 23-5053 (N.D. Cal. Aug. 12, 2024; notice of settlement filed Apr. 29, 2025)]  MORE >>

"[If] you're using the same message across four very different generations, you're probably not getting the traction you could.... Baby Boomers (born 1946-1964): Focus on security and simplicity ... Gen X (born 1965-1980): Focus on control and financial independence ... Millennials (born 1981-1996): Focus on values and empowerment ... Gen Z (born 1997-2012): Focus on tech and trust ... A unified strategy: personalization at scale."  MORE >>

"Twenty-one percent of respondents stated that all employees are immediately eligible for all contributions, while 67.7% stated that all employees (part-time and full-time) are subject to the same service requirements to be eligible for employer contributions. Only 8% of plans have separate stated service requirements for part-time and full-time employees to receive employer contributions and 3% have other requirements."  MORE >>

"7.7 million women who participate in employer-sponsored plans ... change jobs every year. Out of that sum, about 3.1 million of them (41%) will cash out their 401(k) accounts after switching jobs and pay taxes and penalties as a result.... [If] auto portability were to be adopted by retirement plan sponsors and recordkeepers nationwide, the savings of 2 million women would be preserved in the U.S. retirement system every year."  MORE >>

"[R]esearchers have estimated that 42% of Americans older than age 55 eventually develop dementia.... With more participants keeping their assets in-plan after retiring or otherwise terminating employment, these facts will affect those with fiduciary duty, as plan sponsors have a responsibility to oversee participants assets in their later years, when they are more likely to experience cognitive decline and be vulnerable to financial fraud."  MORE >>

"[B]est practices in this area [include] advocacy for multifactor authentication; applying behavioral analytics to detect suspicious activity; and requiring biometric access and cross-channel verification.... Providing layers of protection, as well as boosting training, is a key ... [E]stablishing trusted contacts with new clients is now an essential first step in avoiding problems later"  MORE >>

"The PFS funded percentage increased from 98.5% in FY2023 to 101.1% in FY2024, with the funded status climbing from a $19.9 billion deficit to a $13.8 billion surplus. ... As of FY2024, over half [53] of the plans in the study were funded at 100% or greater; only one plan in the study is funded below 80%. This FY2024 funding improvement was driven largely by the 42-basis point increase in the PFS discount rate (from 5.01% to 5.43%), which lowered the projected benefit obligations (PBO) of these plans from $1.34 trillion to $1.24 trillion."  MORE >>

"[W]hile the number of plans for which the PBGC served as trustee under the Single-Employer Program in FY 2024 were roughly half that of the year before, the amount of revenue involved in claims on the program was higher.... In fact, the amount of money involved in FY 2024 -- even though the number of plans making claims and involved in trusteeship were half of what there were in FY 2023 -- was five times more than the amount of money involved in FY 2023."  MORE >>

"Most TDFs ... are 'Risk On.' They are concentrated in US stocks and bonds, so undiversified, and they're 90% in stocks and bonds at the target date, so risky, especially in regard to sequence of return of risk.... But a few TDFs are 'Risk Off' that is diversified and safe ... This Risk Off TDF group is 'Substantively Prudent' because it protects participants.... Here are up-close comparisons of the 2 groups at the endpoints of their glidepaths."  MORE >>

"WHD will no longer apply the 2024 Rule's analysis when determining employee versus independent contractor status in FLSA investigations. WHD will enforce the FLSA in accordance with Fact Sheet #13 (July 2008), and as further informed by Opinion Letter FLSA2019-6[.]"  MORE >>

"While still in effect for private lawsuits, the 2024 Rule won't be used by WHD in active investigations unless or until further guidance is issued. WHD is back to using the 2008 'economic realities' test. That test, drawn from longstanding Supreme Court precedent, considers multiple factors to determine whether a worker is economically dependent on a business."  MORE >>