"Although the original intention was to cap taxation of lump sum distributions at either the 20% or 10% tax rate as the case may be, the PR Code included both lump distributions within the computation of the [Alternative Basic Tax (ABT)] ... Pursuant to Act 65-2025, for tax years commencing after December 31, 2024, lump sum distributions from retirement plans that qualify for the preferential tax rate of 10% are exempt from the ABT."  MORE >>

"The recently issued AD 25-03 ... now provides that amendments adopted by sponsors of Puerto Rico qualified retirement plans to incorporate optional or mandatory SECURE 2.0 Act provisions ... are not considered 'Qualification Amendments'. Therefore, if a retirement plan is amended to adopt mandatory or optional amendments of the SECURE 2.0 Act, the retirement plan does not have to request a new determination letter to the PRTD."  MORE >>

"As we progress through 2025, plan sponsors, payroll providers, and administrators face new operational and compliance challenges. This article outlines key provisions and offers insights into navigating their implementation effectively for defined contribution plans."  MORE >>

"As the average pension plan has crept into overfunded territory ... sponsors [are] taking three approaches: holding the surplus as a buffer, funding partial lift-outs or a full termination, or spending it after shifting other benefits into the defined benefit plan. The scale of the surplus is significant: WTW estimates that of the 100 largest U.S. corporate DB plans by obligations, 45 percent are overfunded. Of those, half are funded at more than 110 percent, representing an excess of $63 billion."  MORE >>

"[Variable Annuity Pension Plans (VAPPs)] accrue benefits based on a specified accrual rate (e.g., percent of salary, flat dollar amount, percent of contributions) and provide determinable benefits that guarantee monthly payments for the lifetimes of participants. What differentiates a VAPP from a traditional DB plan is the way annual accruals are adjusted each year based on how the plan's assets perform compared to a pre-defined benchmark return (referred to as the hurdle rate)."  MORE >>

"46% of Gen Zers say they've taken money out of their retirement savings, while 31% of Millennials have dipped into their accounts. Thirty-eight percent of all employees surveyed also report tapping from their retirement funds at some point ... Gen Zers were the top age group to withdraw funds to cover unexpected costs like car and home repairs (37%), while many have paid off debt with the savings (42%). By comparison, only 6% of Millennials, 17% of Gen X, and 0% of Baby Boomers have cited debt repayment as their reason for withdrawing."  MORE >>

"The DOL's opinion, which was requested by Morgan Stanley outside counsel, comes on the heels of a string of arbitration victories for the firm in disputes over deferred compensation. Over the past two years, it has successfully defended at least five consecutive challenges, saving millions of dollars and further solidifying its stance that its plans are lawful and enforceable."  MORE >>

"Plan sponsors can take the following steps ... [1] Review service provider agreements.... [2] Audit cybersecurity program documents.... [3] Conduct cybersecurity training.... [4] Evaluate cybersecurity insurance policies.... [5] Review cybersecurity capabilities in the RFP process."  MORE >>

"While it's a good idea to have a plan for any equity awards, tax planning is especially crucial for incentive stock options (ISOs). The special tax treatment that ISOs offer under the tax code is offset by the tradeoff of risk and more complicated taxation."  MORE >>