"As of January 1, 2022, the updated Uniform Life Table for calculating a required minimum distribution (RMD) has now taken effect. To account for the overall increase in current life expectancy, RMD factors have increased, resulting in lower required distributions from tax-deferred accounts in 2022 relative to last year."   MORE >>

"[1] IRS is transitioning this year to mandatory electronic submission of Form 5300 ... [2] No determination letters for PEPs yet.... [3] Adopters of preapproved plans ... must use Form 5307 ... (and not Form 5300) to request a determination on plan amendments intended to satisfy Internal Revenue Code Sections 415 and 416 because the employer maintains multiple plans.... [4] Copies of trust documents no longer required.... [5] Sponsors of plans that are dual-qualified under the US and Puerto Rico tax codes must submit a restated plan document showing compliance with the IRC and applicable Required Amendments List or Cumulative List.... [6] Starting July 1, 2022, [certain] user fees will increase."   MORE >>

"The use of the 5% interest rate is a substantial change from the previous rules and will greatly increase the amount that can be paid under the fixed amortization and fixed annuitization methods."   MORE >>

"The DOL's position is simple ... keep the bands in the grid narrow and the increases in compensation modest for reaching a new band. The thinking is that narrower bands with more moderate increases will be less likely to incent an investment professional to make a recommendation (e.g., a rollover recommendation) that moves the professional into the higher band. That is consistent with the SEC's approach."   MORE >>

"Plaintiffs were participants in Centerra's 401(k) plan who alleged that the defendants breached their fiduciary duties in connection with the monitoring of various investment options that had excessive fees and underperformed.... While plaintiffs sought compensatory damages, a traditionally legal remedy, for their fiduciary-breach claims under ERISA Section 502(a)(2), the court reasoned that monetary relief is considered equitable when sought from ERISA fiduciaries." [ Williams et al. v. Centerra Grp., LLC , No. 20-4220 (D.S.C. Jan. 7, 2022)]   MORE >>

"Current board members should not have been negotiating with or influenced by the chairman in a situation where they may have reasonably feared their jobs were at stake.... Even absent the court's ruling on indemnification, any claims by the settling parties to be indemnified by Kurt could be problematic in the case of a 100% ESOP-owned company."   MORE >>

"The Court reasoned that the allegations in the Northwestern case are similar to that in Tibble  as the participants allege that by continuing to include imprudent investments with excessive fees, they have failed to monitor and remove imprudent investments." [ Hughes v. Northwestern Univ. , No. 19-1401 (S. Ct. Jan. 24, 2022)]   MORE >>

"ERISA attorneys say the new opinion ... while important, is far from earth-shattering when it comes to its likely impact on the pace or character of retirement plan fee litigation." [ Hughes v. Northwestern Univ. , No. 19-1401 (S. Ct. Jan. 24, 2022)]   MORE >>

"[T]here is positive language for plan sponsors and fiduciaries in the unanimous decision that recognizes that fiduciary conduct must be judge in a context specific fashion at the time the challenged conduct occurred and with recognition of what are often competing considerations faced by fiduciaries." [ Hughes v. Northwestern Univ. , No. 19-1401 (S. Ct. Jan. 24, 2022)]   MORE >>

"Going forward, plan fiduciaries should ... [1] Ensure plans include a reasonable number of diversified investment options; [2] Regularly, and carefully, monitor each investment alternative for return and costs; [3] Regularly, and carefully, monitor where the plan stands against peer plans of like sizes in terms of cost to participants; [4] Consider retaining independent experts to assist with, or take on, fiduciary duties relating to investments; and, of course, [5] Keep detailed, written, and contemporaneous records of committee meetings." [ Hughes v. Northwestern Univ. , No. 19-1401 (S. Ct. Jan. 24, 2022)]   MORE >>

"Help them stay calm.... Support them as they ride out the uncertainty storm.... Teach them to play dead.... Remind them that their portfolio is diversified.... Review your investment lineup."   MORE >>

"Instead of investing in the target-date fund that you think best matches your anticipated year of retirement, consider investing instead in the one five years after your anticipated year of retirement."   MORE >>

"This report provides actionable recommendations to help policymakers address pension funding issues and avoid worst-case scenarios. [The authors] provide a simple rating system to help stakeholders better understand the financial risks their plans face, discuss the policy options and mechanisms available to governments whose plans face a solvency crisis, and outline policy options that can help prevent plans from falling into a crisis."   MORE >>

"The objective of this paper is to develop a richer, more comprehensive process for measuring individual preferences that is better suited to the complexities of retirement income planning. The alternative [the authors] define ... is based on six factors that identify distinct retiree preferences: probability-based versus safety-first, optionality versus commitment, time-based versus perpetuity income floors, accumulation versus distribution, front-loading versus back-loading retirement income, and true versus technical liquidity."   MORE >>

"97% of commenters supported the DOL reversing the 2020 rules and clarifying that the use of ESG criteria in investment selection and proxy voting is consistent with fiduciary obligations under ERISA.... Eighty-three percent of institutional letters were supportive of the proposed rule, with some of these recommending modifications ... Individuals submitted over 22,000 comments, an unusually high level of participation ... Of these, 97.4% were in support of the proposed rule, with just 2.6% in opposition."   MORE >>