"While a funding shortfall can be a serious challenge, plan sponsors facing a temporary financial hardship may have options. Relief under IRC Section 412(c) is not automatic, but with proper documentation and timely action, a waiver may help protect both the plan sponsor and plan participants from longer-term harm."  MORE >>

"Participants of the National Rural Electric Cooperative Association's retirement plan filed a complaint against the organization alleging years of financial mismanagement and self-dealing in the administration of NRECA's 401(k) Pension Plan.... The complaint also accuses NRECA of manipulating internal cost-sharing structures to shift an increasing financial burden onto the 401(k) plan, while reducing costs to its other benefits programs." [Mullins v. National Rural Electric Cooperative Association [NRECA], No. 25-0994 (E.D. Va. complaint filed Jun. 11, 2025)]  MORE >>

"Given the Appeals Court's decision that terminated plans are eligible for SFA, there is a significant risk that a majority of the 123 terminated/insolvent plans will apply for SFA, estimated to be $6 billion, that PBGC and other government entities had not anticipated. Further, within these payments several billion dollars in taxpayer funds may be wasted on repayments [from SFA funds] to PBGC [for loans previously granted as traditional financial assistance] ... PBGC also risks approval of plans' applications by default due to the volume and time needed to properly review applications." [Bd. of Trustees of the Bakery Drivers Local 550 and Industry Pension Fund v. PBGC, No. 23-7868 (2d Cir. Apr. 29, 2025)]  MORE >>

"As with the House version of the OBBB that was approved May 22 by a one-vote margin, the draft tax portion of the bill released by Chairman Crapo does not include any provisions that would, for example, curtail retirement plan contribution limits or require taxpayers to make Roth-only contributions."  MORE >>

"Within a plan, compensation is used for at least four different purposes, and the definitions of compensation can be different for each purpose.... Preapproved plan documents will include sections where the various definitions are outlined ... These definitions overlap in many ways.... Advisors should talk with their clients about compensation during the initial plan design process, and the issue should be touched on periodically thereafter with the plan sponsor, in case their typical employee population or compensation practices shift."  MORE >>

"Hardship withdrawals can carry significant long-term financial consequences, especially since funds cannot be paid back to the plan.... By implementing proactive strategies, organizations can help workers build financial resilience while preserving retirement funds."  MORE >>

"In the immediate term, respondents expect the biggest trend to be the continued rise of Registered Index-Linked Annuities (RILAs), but over the next three years, respondents believe that increasing in-plan annuity adoption will become the dominant trend.... [R]oughly 8 in 10 (79%) respondents are viewing in-plan retirement income as a top three priority. Additionally, over half of respondents indicate that they already offer an in-plan solution, while another third say they are actively exploring product development."  MORE >>

"With the 90-day tariff extension closing soon, plan sponsors should act quickly before volatility returns.... Annuity purchase interest rates have risen since last month, leading to a corresponding decrease in annuity pricing. As of now, the average duration-7 rate stands at 4.92%, and the average duration-15 rate is at 5.07% -- marking an increase of nearly 20 basis points since the start of the year."  MORE >>

36 pages. "From 2001 to 2023, the average plan reallocated about 20 percent of its assets from public equity and fixed income into private equity, real estate, hedge funds, and other alternative investments.... When compared to a 'traditional' 60/40 or 70/30 public stock/bond portfolio, the diversified portfolios of public pension plans in the U.S. mostly outperformed following the [Global Financial Crisis of 2008] ... U.S. public plans have largely met or exceeded [their actuarial assumed rate of return] over rolling five- and 10-year periods that correspond with greater diversification and lower actuarial assumed rates of return."  MORE >>

"Public pension systems that ended their fiscal years in June or July of 2024 have been updated. With these additions, the total unfunded public pension liability was $1.61 trillion, up from $1.59 trillion. Correspondingly, the median funded ratio across public pension plans decreased marginally from 76% to 75.8%.... [U]nder a major market shock, defined as a 10% loss, ... unfunded liabilities are now projected to reach $2.29 trillion by 2025, up from [the] previous estimate of $2.16 trillion."  MORE >>

"Under a new law taking effect December 31, 2025, companies, including application-based entities, can voluntarily contribute to a contractor's portable benefits -- like health insurance, retirement savings, and life insurance -- with a win-win tax effect: employers can deduct the cost, and workers don't pay taxes on the value received. This novel approach could reshape how businesses support gig workers and freelancers without risking a misclassification finding."  MORE >>

"The Court engaged in careful statutory analysis of the employee's argument that the term 'competitive activities' in the definition of forfeiture for competition agreement is broader than the phrase 'certain specified activities competitive with' in the definition of noncompetition agreement. Finding it would render the statute internally contradictory, the Court rejected this argument." [Miele v. Foundation Medicine, Inc., SJC‑13697 (Mass. S.J.C. June 13, 2025)]  MORE >>

"[B]oth data providers and market participants report that sidecars have recently been capturing an increasing amount of capital from traditional insurance investors (such as pensions) and from other investors (such as hedge funds and special situations funds) looking to capture returns from the higher property and casualty insurance rates. Since 2019, sidecar transactions have also been implemented to support retrocession of life and annuity risks."  MORE >>

"[T]he 83(b) election provides for potential tax savings, both up-front and in total.... [T]he employee should consider whether they will remain employed at the company meeting performance metrics during the vesting period, if the company's stock valuation is expected to increase, and if the tax liability associated with the election is affordable."  MORE >>