"The deemed approach is the least disruptive to employees, and it affords employers greater flexibility in correcting operational mistakes related to the Roth catch-up mandate.... If the deemed approach is used, [employers should discuss with their] recordkeeper and payroll provider whether it will apply when an employee's contributions reach the 401(a)(30) limit, or only when pre-tax contributions reach the limit."  MORE >>

"The U.S. Senate on Oct. 7 confirmed Janet Dhillon to serve as the Director of the [PBGC]. She will serve a 5-year term. Dhillon was one of 107 nominees whose en banc confirmation for a variety of offices came on the evening of Oct. 7 in a 51-47 vote."  MORE >>

"A federal judge has accepted the recommendations of a magistrate judge in dismissing a suit challenging AT&T's move to transfer pension obligations to a third party, but he also acknowledged that an injury sufficient to bring suit existed." [Piercy v. AT&T Inc., No. 24-10608 (D. Mass. Sep. 30, 2025)]  MORE >>

"Defendants contended that plaintiffs have not missed a benefit and thus they have suffered no harm from the PRT.... The court further identified a separate basis for Article III standing, which was that the PRT diminished the value of their benefits. This was because 'the Athene transaction ejected Plaintiffs from the ambit of ERISA.' " [Doherty v. Bristol-Myers Squibb Co., No. 24-6628 (S.D.N.Y., Sep. 29, 2025)]   MORE >>

"Although the series of suits challenging pension risk transfer (PRT) decisions has to date largely favored fiduciary defendants, a federal judge has ruled that the allegations are sufficient to move past a motion to dismiss.... [T]he ruling here ... alongside the recent decision in AT&T ... will likely spur more such litigation, particularly in view of the increasing trend toward pension risk transfer transactions." [Doherty v. Bristol-Myers Squibb Co., No. 24-6628 (S.D.N.Y., Sep. 29, 2025)]  MORE >>

14 pages. "94% of companies with de-risking goals plan to completely divest all their pension plan liabilities, up very slightly from 93% in 2024. Among the 94% of companies that will divest their pension plan liabilities, 17% of plan sponsors say they will do so in under two years ... 92% say their company is weighing its pension plan's value against the cost of the benefit.... 23% of plan sponsors have already started the PRT process, and 12% surveyed say they have already completed a pension risk transfer transaction."  MORE >>

"89% of defined contribution plan sponsors and providers surveyed indicated that litigation risks are 'very significant' or 'somewhat significant' when they consider improving their services or changing their investment options.... [O]ne-quarter of respondents indicated they decided against providing more benefits to plan participants out of concern of facing litigation. More than 43% chose not to offer lifetime income options, citing the same concerns. "  MORE >>

"Qualified plan amendments to DB and DC plans ... SECURE 2.0 -- related year-end action items for DC plans ... Annual participant notices, disclosures, and benefit statements for calendar year plans ... Other operational action items affecting single-employer retirement plans."  MORE >>

27 pages. "This paper looks at each of these risks based on the now-extensive research that is available on all of these issues. The data show that: [1] ESOP plan participants fare far better than com- parable employees in comparable companies in terms of retirement security ... [2] The default rate on ESOP leveraged transactions is close to zero.... [3] While ESOP firms do fail, they do so at a far lower rate than non-ESOP companies. [4] While litigation risk is a legitimate concern, only an average of about 17 cases per year make it to court, and the settlements are generally under $15,000 per participant."  MORE >>

"While many employees focus on the upside possibilities, few understand in detail how ISOs function or the critical role that taxes play in shaping their real take-home value. Advisors are uniquely positioned to help clients navigate these complexities, especially since poor planning around ISO exercises can create a substantial tax liability without generating the liquidity to pay it, thereby jeopardizing other aspects of the financial plan."  MORE >>