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Qualified Retirement Plans Agenda (PDF)

"Although the mandatory deadline to adopt required amendments to qualified retirement plans remains December 31, 2026 for most plans, plan sponsors will find that amending plans to reflect any required or selected optional provisions when those provisions become effective can help avoid errors in administration, as well as help communicate those changes to plan participants and beneficiaries. Some of the provisions in recent pension legislation will require support from the plan's recordkeeper or third-party administrator, and coordination will likely be necessary before implementing any plan design changes."

2025 Deadlines Approach to Furnish Incentive Stock Option and Employee Stock Purchase Plan Information Statements and Returns

"Section 6039 of the Internal Revenue Code requires a corporation to furnish a written statement to any employee or former employee who either [1] exercised an incentive stock option ... or [2] in 2024 first transferred legal title to shares acquired under the corporation's employee stock purchase plan ... The corporation must furnish these statements on Forms 3921 and 3922 to affected participants no later than January 31, 2025."

IRS Announces 2025 Retirement and Benefit Plan Limits, SSA Announces COLA Adjustment

"On November 1, 2024, the [IRS] announced cost-of-living adjustments (COLAs) to the dollar limits on benefits and contributions in retirement plans for 2025. These adjustments are in addition to previously announced increases in limits to other employee benefit plans. In addition, the Social Security Administration (SSA) recently announced the COLA to the Social Security wage base for 2025."

Legislative Developments Affecting Tax-Qualified Retirement Plans (PDF)

"Although the mandatory deadline to adopt required amendments to qualified retirement plans remains December 31, 2026 for most plans, plan sponsors will find that amending plans to reflect any required or selected optional provisions when those provisions become effective can help avoid errors in administration ... Some of the provisions in recent pension legislation will require support from the plan's recordkeeper or third-party administrator, and coordination will likely be necessary before implementing any plan design changes."

Final Fiduciary Rule Advances DOL's Goal of Expanding Scope of ERISA Fiduciary

"From a practical perspective, the new transaction-based approach will create a facts-and-circumstances test where investment professionals will need to be noticeably clear as to the nature of the customer interactions to avoid claims for breach of fiduciary duty or claims that the professional engaged in a prohibited transaction."

DOL Makes Major Changes to QPAM Exemption Through Final Amendment

"Current QPAMs and asset managers who anticipate relying on the QPAM Exemption in the future are advised to review their existing compliance procedures to determine whether they will continue to satisfy the QPAM Exemption's requirements (including the updated financial thresholds and notice requirement), create or revisit their existing recordkeeping policy to align with the six-year required maintenance of records and accessibility for examination, [and] prepare to notify the DOL of their intent to continue to act as a QPAM[.]"

California Poised to Extend COVID-19 Supplemental Paid Sick Leave Requirements

"If signed, AB 152 will extend the COVID-19 SPSL requirements through December 31, 2022 -- three months beyond the current expiration date. The bill would not increase the amount of leave employees may take, but it would give employees an additional three months to use any SPSL for which they may be eligible. The Governor has until September 30, 2022 to sign or veto the bill. If the bill is not enacted, SPSL will expire as currently scheduled."

Supreme Court Remands Excessive Fee Case to Seventh Circuit to Determine Pleading Standard

"At minimum, the language of the Hughes decision gives plan fiduciaries additional arguments to support their motion to dismiss. However, because the parameters of the pleading standard remain unsettled, litigants remain adrift." [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022)]

Deadlines Approach to Furnish ISO and ESPP Information Statements and Returns

"Section 6039 of the Internal Revenue Code requires a corporation to furnish a written statement to any employee or former employee who either [1] exercised an incentive stock option ... during 2021 or, [2] during 2021, first transferred legal title to shares acquired under the corporation's employee stock purchase plan ... This requirement applies to both privately held and publicly traded corporations. The corporation must furnish these statements on Forms 3921 and 3922 no later than January 31, 2022."

IRS Increases 2022 Flexible Spending and Transportation Benefit Plan Limits

"Action items for employers: [1] Update any plan documents that identify the annual limitations. [2] Update participant communications as the limits may impact important benefit elections for 2022. [3] Update Human Resource Information Systems (HRIS) and/or payroll systems ... [4] Ensure all vendor data feeds are updated[.]"