"[The] administration's proposed rule ... encourages consideration of ESG concerns through four significant changes regarding the selection and monitoring of investments and by reviving previous guidance regarding the exercise of shareholder rights."   MORE >>

"[T]he potential downside of a failure to comply with [California Government Code] section 53213.5 -- potential liability for participants' investment losses -- should be enough to cause all California public employers that sponsor participant-directed plans to attempt to comply. Due to the ready availability, and relative comprehensiveness, of the 404(c) Rules, it isn't that difficult for a public agency to attempt to follow the 404(c) Rules and thereby, arguably, comply with section 53123.5."   MORE >>

31 pages. "A typical DB plan has a 49 percent cost advantage compared to a typical individually directed DC plan because of longevity risk pooling, asset allocation, low fees and professional management.... A DB pension plan costs 27 percent less than an 'ideal' DC plan, with below-average fees and no individual investor deficiencies.... In other words, a typical DC plan costs nearly twice as much to provide the same level of retirement benefit as a DB plan, with four-fifths of the difference occurring post-retirement."   MORE >>

"The [DOL's] supplemental statement is a tonal shift rather than a substantive change that reflects the continuing courtship for defined contribution plans and private equity investments.... The Biden tone is unlikely to greatly change the approach plan sponsors are taking to include PE in DC plans by adding options for participants' investments exposures to potentially higher-returning investments."   MORE >>

"Generally, MEPs and PEPs allow more than one employer to participate in a single retirement plan. In contrast, GoPs allow several employers each with their own defined contribution plan to file a single Form 5500 for the collection of plans, if they have the same trustee, named fiduciary, administrator, plan year and investment options."   MORE >>

"New York state investigations ... found that, in 2016 and 2019, the company bid on and won two large transactions with a New York-based sponsor, in violation of state insurance laws.... This enforcement action is the third penalty from DFS against unlicensed insurance businesses that have solicited and engaged in violations connected to PRT businesses. "   MORE >>

"Pension finances improved in December due to higher stock markets and higher interest rates. Both model plans ... gained ground last month: Plan A improved almost 2% in December, ending the year up 11%, while the more conservative Plan B gained less than 1% last month, ending 2021 up 3%. Overall, 2021, was the best year for pensions since 2013 and the second-best year this century."   MORE >>

"The funded status of most U.S. corporate pension plans increased in the fourth quarter, driven by strong asset class returns. With Treasury yields flattening and credit spreads inching higher, estimated plan liabilities based on long-duration fixed-income yields remained stable in the three months ended December 31.... During the fourth quarter, the funded status of a total-return plan increased 4% and the LDI-focused plan funded status rose 4.5%."   MORE >>

"Ratcheting down the sustainable withdrawal rate has major implications for retirement savers. On the positive side, investors who are currently close to retirement age have benefited from favorable market tailwinds over the past three to four decades. But younger investors may need to save considerably more to build up enough savings to sustain withdrawals when they eventually retire."   MORE >>

"If you're planning to retire at the end of 2022, congratulations -- now get ready to get busy. With less than a year to go and counting, you've got more to do than you could possibly imagine in the next 50 weeks or so. With so many T's to cross and I's to dot, you'll have to spread out the load across all 12 months -- this article will show you how."   MORE >>

"The preamble to the DOL's action finalizing its revisions to the 2021 instructions notes that other changes in the September 2021 proposal -- i.e., those with later effective dates -- will be finalized later in one or more separate actions. As a reminder, the informational copies of Form 5500 cannot be used for filing; Forms 5500 and 5500-SF must be filed electronically."   MORE >>

"Within the next few months, the U.S. Supreme Court will weigh in for the first time on the pleading standard for challenges to excessive fees in retirement plans.... At the circuit court level, there were important new decisions in 2021 regarding the enforceability of arbitration agreements and class action waivers under ERISA, and the U.S. Court of Appeals for the Third Circuit agreed to hear an important interlocutory appeal regarding whether defined contribution plan participants can challenge investment options in which they were not invested. And there continues to be a steady flow of health plan-related lawsuits in several areas, including with respect to [COBRA] notices and mental health parity."   MORE >>