"The Federal Retirement Thrift Investment Board (FRTIB) is amending a regulation to require the Thrift Savings Plan (TSP) record keeper to combine the accrued interest with the outstanding principal when reamortizing a loan."  MORE >>

"The preamble to the direct final rule explains that '[a]lthough the statutory safe harbor did not technically nullify or repeal the regulatory safe harbor, its existence offers an unnecessary and inefficient alternative and may inadvertently be a trap for the unwary.' On a closer read, however, the differences between the safe harbors may in fact be significant and far from noncontroversial. In divergence from the purpose of both safe harbors, the removal of the regulatory safe harbor may create a gap that could have the effect of chilling annuity sales going forward."  MORE >>

"Employers may contribute up to $2,500 per year (adjusted for inflation), on a tax-free basis, on behalf of their employees' dependents or their teenage employees. Contributions in excess of $2,500 will be treated as taxable income to the employee. Employers can claim a tax deduction for such contributions as a business expense. However, employer contributions will require a written plan document, and the program will have to comply with certain rules applicable to dependent care FSA accounts under Code Section 129(d) (e.g., related to nondiscrimination and statement of expenses)."  MORE >>

"[E]ffective as of July 1, 2022, Puerto Rico Act No. 52-2022 amended the Puerto Rico Internal Revenue Code ... [to] allow for the operation of ESPPs in Puerto Rico.... [Some] publicly traded companies doing business in Puerto Rico are now allowing their Puerto Rico employees to participate in their ESPPs. This article summarizes the process that these companies should follow for including their Puerto Rico employees as participants in their U.S.-based ESPPs."  MORE >>

"[W]ithdrawn employers complained that setting assumptions after the valuation date allowed the trustees to 'retroactively' increase their withdrawal liability. The arbitrators agreed with the employers, but the district court reversed ... With the PBGC's support, the [Solicitor General] advised that that case warranted immediate review because even relatively small changes in assumptions can affect withdrawal liability bills by millions of dollars and 'the dueling rules' can 'open any determination of withdrawal liability to challenge.' " [M & K Employee Solutions, LLC v. Trustees of the IAM National Pension Fund, No. 22-7157 (D.C. Cir Feb. 9, 2024; cert. pet. granted Jun. 30, 2025 No. 23-1209)]   MORE >>

"[T]he Court granted certiorari to resolve a circuit split over how to calculate an employer’s withdrawal liability from a multiemployer pension plan. It also invited the US Solicitor General to file a brief in another case about ERISA’s duty of prudence. The Court is waiting to hear from the Solicitor General in response to an invitation the Court issued in April in a case about whether burden-shifting for loss causation applies in ERISA cases." 
[M & K Employee Solutions, LLC v. Trustees of the IAM National Pension Fund, No. 22-7157 (D.C. Cir Feb. 9, 2024; cert. pet. granted Jun. 30, 2025 No. 23-1209;  
Johnson v. Parker-Hannifin Corp., No. 24-3014 (6th Cir. Nov. 20, 2024; cert. pet filed Mar. 26, 2025, No. 24-1030; SG brief req. Jun. 30, 2025);
Pizarro v. Home Depot, No. 22-13643 (11th Cir. Aug. 2, 2024; cert. pet. filed Dec. 3, 2024; SG brief requested Apr. 21, 2025)   MORE >>

"40% of plan sponsors listed decreasing costs as a key focus for the coming year -- a serious decline compared to 2024's 50%. Instead, plan sponsors are shifting their attention towards other opportunities in cybersecurity and artificial intelligence (AI), especially as a growing number of employers fear data hacks and cyberattacks. Seventy percent of all plan sponsors surveyed and 10% of large-mega plans say they've experienced a 401(k)-related data breach in the past year."  MORE >>

"While alternative investments, such as real estate or private equity, are typically illiquid, the higher rates of return offered by such investments may offset the illiquidity-related risks to DC plans and fiduciaries, particularly when a credit facility can mitigate much of the illiquidity concerns.... [The authors] discuss considerations for DC Fund sponsors and lenders in connection with a credit facility to a DC Fund and offer potential structural solutions."  MORE >>

14 pages. "Fixed employer contribution rates provide budget stability for employers but may result in funding shortfalls, depending on actuarial experience. Many so-called fixed-rate plans incorporate strategies such as statutory adjustments, supplemental funding sources, or benefit modifications to maintain actuarial balance. Some plans exhibit characteristics of both fixed and variable contribution policies, challenging traditional classifications and emphasizing the need for adaptable funding strategies."  MORE >>

"Improving individuals' plan experiences and securing their future financial outcomes is (and should be) one of our industry's top priorities. Currently, their plan experience is negatively impacted by the distribution and rollover process. Their future financial outcome is jeopardized by poor decisions without expert help. Auto-portability has limited application in fixing these critical issues. A better solution is to improve the distribution and rollover process through standardization and automation."  MORE >>

"[E]mployers should: [1] Consider design changes to HDHPs for low- or no-deductible telehealth services and direct primary care services. [2] Review transportation fringe benefit plans to address the exclusion of bicycle commuting reimbursements and inflation adjustments. [3] Determine whether to revise educational assistance programs to incorporate the inflation-adjusted amount. [4] Decide whether to amend their DCAPs to allow for increased contributions. [5] Consider whether to establish a plan to make contributions to the new 'Trump Accounts.' [6] If subject to executive compensation limits ... consider changes to compensation structures to avoid tax or loss of deduction."  MORE >>

"The final OBBB does not change or eliminate any tax incentives for employer-provided health coverage or retirement savings plans.... [P]rovisions related to PBMs were removed from the final bill that was signed into law.... The final version of the OBBB did not include any significant changes regarding retirement plans."  MORE >>

"Employee benefit plan audits involve numerous moving parts that extend well beyond meeting filing deadlines, requiring coordinated efforts among HR, accounting, legal counsel and third-party administrators. The complexity of ensuring ERISA compliance and verifying participant eligibility demands that HR professionals often wear multiple hats throughout the process."  MORE >>

"Over 6 in 10 employees say their benefits packages make them more inclined to stay with their current employer, with 41% saying their benefits make them much more inclined to remain. Conversely, 20% of employees feel less inclined to stay, especially if they are dissatisfied with their benefits packages.... One strategy to improve employees' benefits understanding is for employers to offer total compensation statements (see sample). These statements provide the total monetary value of employer-paid benefits."  MORE >>

"Code section 4960 imposes a 21% excise tax on tax exempt organizations ... that pay a 'covered employee' compensation over 1 million dollars in a given year (Threshold). The tax only applies to the compensation in excess of the Threshold.... Compensation ... includes any other compensation not paid in the year in question, to the extent it would be considered vested ... This would include such things as bonuses, severance pay, and benefits under 457 plans."  MORE >>

"Some issuers and advisors argued that current executive compensation disclosures are overly burdensome and costly, while some investors advocated for more transparency ... Certain rules initially prescribed by the [Dodd-Frank Act] in 2010 ... were criticized for requiring significant resources to achieve compliance, especially for smaller issuers, without necessarily providing investors with useful information."  MORE >>

"Questions to ask before RSU vesting ... [1] Tax-withholding trap at RSU vesting ... [2] RSU vesting years: reduce taxable income ... [3] Hold or sell the stock at vesting? ... [4] RSU selling plans impacted by insider-trading rules ... [5] RSU taxes can motivate diversification."  MORE >>