"After receiving significant adverse comments, [EBSA] announced that it will not remove the safe harbor guidance concerning the selection of annuity providers for individual 401(k) account plans ... EBSA also announced that it will no longer remove guidance that addresses the definition of 'plan assets' for purposes of insurance company general accounts after receiving significant adverse comments."  MORE >>

"To be exempt from certain compliance testing requirements, safe harbor plans must be established three months prior to the plan year-end date. This means eligible employees must be able to make salary deferrals starting no later than their first pay date on or following October 1."  MORE >>

"[L]ifetime income investment strategies, such as longevity risk pooling, are also described as alternative assets, potentially opening the door to the development of a new class of investments designed specifically to address retiree income from 401(k) plans."  MORE >>

"[T]he order does not require the DOL to consider the use of direct stand-alone alternative investments. It directs the DOL only to provide guidance on selecting funds that include alternative assets.... Absent more expansive guidance, plans considering alternative investments generally can focus on collective investment trusts (CITs) or other professionally managed accounts."  MORE >>

"The prospect of relief from litigation risk may help plan sponsors to get comfortable offering alternatives within their 401(k) plans, even if any changes will not be finalized for some time.... While safe harbors are not by definition necessary to comply with the law, they can provide comfort to asset managers and plan fiduciaries."  MORE >>

"The new rules are effective for qualified disaster declarations made after the date of enactment, July 24, 2025. The longer 120-day window and postponement authority for state-level disaster declarations apply prospectively to new disaster declarations -- previous disasters remain subject to the 60-day rule unless the IRS issues separate guidance."  MORE >>

"If the ESOP owns 100% of the S corporation, the company effectively pays no federal income tax. If the ESOP owns less than 100%, the tax benefits are prorated ... For business owners, this creates an opportunity to redirect dollars that would otherwise go to taxes into company growth, employee benefits, or strategic investments."  MORE >>

"The purpose of the anti-abuse rules is to permit S corporation ESOP tax benefits ... but eliminate abusive ownership and equity arrangements.... [T]he anti-abuse rule is not a test performed by most qualified plan software programs. ...  Whether you pass the test may depend on the dynamics of the S corporation’s equity structure and non-ESOP compensation arrangements, which may change year to year and during the year."  MORE >>

20 pages. "Actuaries use many assumptions when calculating the liability for a pension plan. The liability measurement depends heavily on those assumptions. A gain/loss analysis quantifies the financial effect of the difference between the plan's anticipated experience and actual experience for the previous year."  MORE >>

"Prudent plan sponsors would be best served by totally ignoring the President's executive order ... Since neither ERISA not any any laws/regulations require a plan to offer such potentially liability ridden investments, the obvious question from a fiduciary risk management standpoint -- 'Why go there? ... [F]ew plan sponsors have the experience or skill to properly investigate and/or evaluate alternative investments."  MORE >>

"The intent behind the Roth mandate may be noble -- getting more tax revenue now, simplifying retirement income later -- but implementation is another story. Without clarity, we're going to see a lot of errors, a lot of compliance risk, and a lot of unhappy plan sponsors. This isn't about dodging the Roth rule. It's about making it administrable."  MORE >>

"The ERISA Industry Committee (ERIC) and coalition allies filed an amicus brief [urging the Fourth Circuit] ... to dismiss ... [a] putative class action by former employees [which] targets a 'pension risk transfer' (PRT) in which Lockheed Martin Corporation's defined benefit pension plan purchased annuity contracts ... making the insurer liable for the employees' pension benefits." [Konya v. Lockheed Martin Corp., No. 24-0750 (D. Md. Mar. 28, 2025; on appeal to 4th Cir. No. 25-180)]  MORE >>

"If you plan to live longer than your life expectancy when determining the present value of your essential expenses, however, you should consider buying or investing in lifetime income products instead of buying bonds because acquiring lifetime income will generally increase the present value of your Floor Portfolio assets and your Funded Status, all things being equal."  MORE >>

"Employers and employees agree modern benefits should be up to date, new, and different. However, employers focus on the types of benefits offered, while employees are more concerned with how benefits address their individual challenges. Today's employees expect more than just a benefits package. They seek flexibility, financial support, and a workplace that prioritizes their overall well-being, including stress management programs and paid leave for various life events."  MORE >>