"Should I continue to use a pre-approved plan document? ... Or should I switch to an individually designed plan? ... Or should I consider keeping my individually designed plan? ... Are there special document considerations for a church plan? ... What updates will be needed for a pre-approved plan document?"   MORE >>

"The court explained that only plan participants, beneficiaries, fiduciaries, and the Secretary of Labor are entitled to bring claims under ERISA Section 502(a). 'Participant' was the only possible fit for plaintiff but did not apply here because a former employee claiming participant status must have a colorable claim to benefits, not just allege in a conclusory manner, as plaintiff did, that he should have been a participant." [ Alders v. YUM! Brands, Inc. , No. 21-1191 (C.D. Cal. Feb. 1, 2022)]   MORE >>

"The primary allegations in the suit involve the mismanagement of employees' 401(k) retirement plan, the breach of fiduciary duty under [ERISA], and self-dealing through the act of offering more expensive proprietary funds to retirees. The suit also contains allegations that about 60% of the fund options were proprietary funds, which performed poorly and were more expensive than other nonproprietary options." [ Waldner v. Natixis Investment Managers, L.P. , No. 21-10273 (D. Mass. Dec. 20, 2021)]   MORE >>

"Novel recommendations from the council included that the DOL work with the Department of the Treasury and [IRS] to review penalties on involuntary small payments and hardship withdrawals, and to relieve the penalty tax for early distributions of small amounts."   MORE >>

"The burgeoning collective investment trust marketplace is creating new opportunities for retirement plan investors and trust companies alike -- as well as new due diligence requirements for fiduciaries."   MORE >>

"Aided by more than a decade of strong investment returns across most asset classes, the aggregate funded status of U.S. public pension plans [has] improved meaningfully.... [However,] periods of exceptional returns are often followed by leaner years.... [T]he very first funded pension plan in the United States, the U.S. Navy Pension Plan, faced similar challenges in the early 1800s. Their failure to address them skillfully led to full liquidation of the portfolio by 1841.... [S]everal valuable lessons remain applicable today."   MORE >>

"The PBGC Special Financial Assistance program for troubled multiemployer plans weekend update ... [shows] one new plan applying -- Mid-Jersey Trucking Industry and Teamsters local 701 Pension and Annuity Fund out of North Brunswick, NJ, unusual in that the latest 5500 filing reports the plan as being 96.7% funded using plan rates ... Another (Local Union No. 466 Painters, Decorators and Paperhangers Pension Plan) withdrew so [an] updated summary shows 30 plans in the system -- 5 approvals and 25 under review:"   MORE >>

"More than eight months after the [DOL] issued a list of best cybersecurity practices for ERISA practitioners, the department's Inspector General has released a report that found Labor's own IT security seriously lacking.... IG Carolyn Hantz said the department had not conducted annual security control assessments for 30 systems during FY21.... Hantz also said the [DOL] has not instituted an effective supply chain risk management program and has failed to keep an accurate record of computer hardware. The department also did not log or review DOL user accounts."   MORE >>

"[W]orkers are willing to trade off additional income for benefits; after accounting for the tax advantage of benefits, workers are roughly indifferent on average between the two. While there are some trends in valuation, such as higher valuation for pension than for health contributions, the most notable feature of the data is the wide variation across workers in their preferences across benefits types and relative to income."   MORE >>

"Upheaval in the economy and marketplaces presents companies with a mandate -- and a meaningful opportunity -- to discover the value of creating programs that contribute to their employees' financial wellness and, by extension, their mental well-being. With a focus on reimagining employee benefits, employers can make a meaningful difference in the lives of their employees ... now and in the future."   MORE >>