"According to the guidance, Trump Accounts ... and employer contribution arrangements to them generally will not be considered employee pension benefit plans under [ERISA], provided that employers maintain a limited role and meet specific conditions. The clarification removes a potential compliance concern for employers weighing whether to offer contributions to the accounts as a workplace benefit, particularly for employees' children."  MORE >>

"The letter... concludes that annuity buyouts involving employees who remain employed generally should not be counted when determining whether a defined benefit plan has experienced an 'active participant reduction' reportable event under [ERISA]. In explaining that conclusion, the agency also reiterated that once pension liabilities have been transferred to an insurer, the PBGC no longer bears responsibility for paying benefits if that insurer later fails."  MORE >>

"All employers with 100+ covered employees must set up a Minnesota Secure Choice Employer Account by June 30, 2026, and either enroll their workers in the state's payroll‑deduction IRA program or certify their exemption by the required date. Noncompliant employers face graduated fines of up to $500 per employee after an initial warning period."  MORE >>

"While the judge dismissed one count of the complaint for alleged breach of the duties of prudence and loyalty under ERISA regarding the reasonableness of 401(k) plan fees, he allowed the other four counts to proceed.... The proposed class alleges that Lockheed and its investment management subsidiary breached their fiduciary duties of prudence and loyalty under ERISA by selecting and retaining the TDFs despite their poor performance." [Fezer v. Lockheed Martin Corp., No. 25-0908 (D. Md. Apr. 16, 2026)]  MORE >>

"One major type of Defined Contribution (DC) systems are provident fund systems.... [P]rovident fund systems are very inexpensive, while private pensions are costly due to administrative costs (like DB systems) and due to high levels of profit taking. Members of provident fund systems can invest money themselves.... [P}rovident fund systems are the most efficient and cost-effective social security system available, apart from different kinds of (smart or blind) universal benefit systems."  MORE >>

"The OBBBA significantly expanded Code Section 4960 for taxable years beginning after Dec. 31, 2025, broadening the scope of employees that tax-exempt organizations must evaluate for potential excise tax exposure.... Tax-exempt organizations should review compensation arrangements, deferred compensation plans and compliance processes before the new rules take effect, particularly where compensation may approach or exceed the $1 million threshold."  MORE >>

"Notice 2026-36 clarifies that the amended definition of covered employee applies to individuals who were employees of an ATEO in any tax year beginning after December 31, 2016 and on or before December 31, 2025, if the individual was a covered employee for the tax year under the prior law, and any individual who is an employee of an ATEO in any tax year beginning after December 31, 2025 (unless an exception applies). The Notice also indicates that the forthcoming proposed regulations will include exceptions to the definition of covered employee, including limited hours and nonexempt funds, similar to the exceptions under the TCJA regulations."  MORE >>