"[If] the proposed regulation is passed as written, the funding tables included in IRS Notice 2022-22 would be replaced. This change would apply for both small plans and large plans.... [P]lan sponsors should monitor activity to ensure the Base Table used in funding calculations match those published in final regulations.... The Applicable Mortality Table for 417(e)(3) calculation purposes would not change since it was not explicitly mentioned in the proposed regulation."   MORE >>

"The Treasury Department and the IRS are currently reviewing the stakeholder comments to determine whether to retain the physical presence requirement without modification or to propose to modify the requirement. If the Treasury Department and the IRS decide to propose to modify the physical presence requirement, they will do so only through the regulatory process, which will include the opportunity for further comment."   MORE >>

"Under Notice 2022-27 , from July 1, 2022, through December 31, 2022, participant elections that are required to be witnessed may be witnessed remotely by a notary public or plan representative using live audio-video technology, if certain requirements are met. The IRS does not expect to extend the temporary relief beyond 2022."   MORE >>

"[T]he DOL's guidance in [ PTE 2020-02 ] does not apply to rollover recommendations to participants in government plans.... [T]he SEC regulates rollover recommendations by broker-dealers and investment advisers to both private sector and government plan participants."   MORE >>

"Almost any workplace retirement plan defined in the Internal Revenue Code will satisfy the exemption requirements, including plans that do not offer the opportunity for payroll deduction employee contributions.... [T]hese plans do not qualify for the exemption for a calendar year if no contributions were made in the previous calendar year ... If an Employer currently has no Qualifying Plan in place and would like to add such a Plan for the sole and exclusive purpose of avoiding the Program, the following Plan designs would be a starting point[.]"   MORE >>

"The $140 million class action ERISA lawsuit was assigned to Judge Grimberg on March 4 of this year only after Judge William M. Ray II, who had previously presided over the case, recused himself because he was about to inherit Home Depot stock. This is the fourth re-assignment sought by the plaintiffs." [Pizarro v. The Home Depot, Inc., No. 18-1566 (N.D. Ga. motion for recusal filed Apr. 15, 2022)]   MORE >>

"Section 116 of the bill accelerates to two years (from three years) the number of years a plan sponsor must track long-term, part-time employees for eligibility to start paycheck deferrals to the employer savings plan. If this bill becomes pension law (and early handicapping suggests it could be enacted in 2022) plan sponsors and governance boards will need to assess the impact of this mandatory eligibility change for their retirement programs as they emerge from the complexities of two years of pandemic-related disruption in business operations and workforce management."   MORE >>

"Actively managed building blocks within target date portfolios provide diversification potential that may not be possible to achieve with passive components.... [S]killed active management has the potential to generate meaningful outperformance, improving investors' ability to reach retirement objectives. Fiduciary duties do not require plan sponsors to select passive vehicles. An array of options, including actively managed funds, can be appropriate offerings."   MORE >>

"The average cumulative return per participant in S corporation ESOPs from 2002 through 2019 was over $300,000, for a compound annual growth rate of 12.1%, which is approximately one-third higher than returns from the S&P 500 over this time period.... The average S corporation ESOP account balance was over $100,000 in 2019. The average increased 100% from 2002, and the average S corporation ESOP account balance was higher than any previous point in the last 15 years."   MORE >>

"The average Annuity Purchase Interest rates are the highest [the authors] have observed, with the average duration 7 rate at 3.75% and average duration 15 rate at 3.76%.... As interest rates continue to climb, strong demands from Plan Sponsors requesting annuities continue to increase as well. Annuity Purchase Costs dropped significantly since the beginning of the year. The cost for Annuity Plan 1 and Annuity Plan 2 dipped roughly 15% and 24% respectively."   MORE >>

"[PBGC] has approved the application submitted to the Special Financial Assistance (SFA) Program by the Management-Labor Pension Plan Local 1730 ILA (Longshoremen Local 1730 Plan). The plan, based in Mastic, New York, covers 478 participants in the transportation industry. The Longshoremen Local 1730 Plan became insolvent in November 2020.... The plan will receive $59.1 million in SFA, including interest to the expected date of payment to the plan."   MORE >>

"[T]he RFI asks for information in response to questions about whether the [DOL] should take actions or impose requirements on private-sector retirement plans in the context of climate-related financial risk.... [N]ew requirements are simply not warranted in this context.... ERISA's general fiduciary duties already protect participants, and new requirements emphasizing climate-related risks have the potential to confuse plan fiduciaries. Finally, imposing specific new obligations in this context could spiral in the future, presenting costly new burdens."   MORE >>

"[T]he Council has a number of concerns regarding the potential agency actions ... and questions raised in the RFI that could lead to substantially increased burdens and uncertainty for plan sponsors, adversely affect markets in a way that is harmful to participants, and impose requirements and limitations that are not consistent with ERISA[.]"   MORE >>

"The Department's efforts to comply with the Executive Order should focus on ensuring that ERISA plan fiduciaries have prudent processes in place for analyzing all financial risks, including climate-related financial risk, if relevant. The Department should not require ERISA plans to report information relating to climate-related financial risk because it has not explained its rationale or expectations for how doing so would support its mandate to supervise and enforce ERISA, and it will increase administrative burdens on plans and service providers."   MORE >>

"[A] 65-year-old couple retiring this year can expect to spend an average of $315,000 in health care and medical expenses throughout retirement. The 2022 estimate for single retirees is $150,000 for men and $165,000 for women.... This year's estimate is up 5% from 2021 ($300,000) and has nearly doubled from its original $160,000 in 2002. "   MORE >>

"Nearly six-in-10 (57%) Baby Boomer (ages 58-76 years old) respondents incorrectly think a person can elect to enroll in Medicare at age 62 and receive reduced benefits.... More than four-in-10 Baby Boomer respondents (41%) ... incorrectly ... assume there are out-of-pocket limits for Medicare Coverage.... Among Baby Boomer respondents, 40% ... incorrectly ... think Medicare will pay for them to stay in a nursing home when they can no longer take of themselves (e.g. feed/dress/bathe)."   MORE >>

"While they are rare and while we might be too early in the economic cycle for them, stock option repricings remain a possible [talent retention] tool in the toolkit for both public and private company issuers. [This article summarizes] a few key repricing and exchange concepts for both public company and private company repricings or exchanges[.]"   MORE >>