"The district court held that John Hancock did not violate a fiduciary duty of loyalty under ERISA or engage in a prohibited transaction under ERISA by engaging in [foreign tax credit (FTC)] transactions authorized by the federal tax code. The court held that John Hancock had no obligation under ERISA to provide its customers with rebates for the FTCs it used because it was not an ERISA fiduciary to the plan and the FTCs were not plan assets." [ Romano v. John Hancock Life Ins. Co. , No. 19-21147 (S.D. Fla. May 9, 2022)]   MORE >>

53 pages. "Americans remain optimistic about living a comfortable retirement.... [A]lmost 4 in 10 workers and 2 in 10 retirees say they don't know who to go to for financial and retirement planning advice ... More than 4 in 5 workers who are offered a workplace retirement savings plan are satisfied with the benefit ... [W]orkers envision (or hope for) a gradual retirement transition to retirement and work for pay in retirement, which doesn't match the experience of most retirees."   MORE >>

"As you add alternative investments to a portfolio or platform, the amount of due diligence increases exponentially. As a Plan Sponsor you must thoroughly check the asset manager's background, operations, valuation and reporting policy, and compliance policy. Review for the different types of alternative assets is unique and more involved than traditional or passive investments, bringing with it more risk, more documents and more agreements to monitor."   MORE >>

"Plan sponsors may see more cryptocurrency investment options available to plans in the future. The hope, of course, is the Department will continue to evolve its guidance around this growing trend -- especially as it relates to [self-directed brokerage accounts (SDBAs)]. But, for now, there is much for a plan sponsor to weigh and discuss with its advisors when it comes to offering cryptocurrency investment options and determining the proper level of oversight associated with implementing or maintaining an SBDA."   MORE >>

"SECURE 2.0 would reclassify all catch-up contributions as Roth-only in 2024, increase catch-up contributions to $10,000 only for ages 62 to 64, optionally treat employer matching contributions as Roth contributions, and offer a new safe harbor correction for auto-enrollment plans' unintentional administrative flaws."   MORE >>

"58% believe their business is too small to qualify for one, 32% say they can't afford a match and 24% believe 401(k) plans are too expensive to set up and manage.... Among the small businesses with a plan, a large majority (71%) started their 401(k) because they felt a personal responsibility as a business owner to provide one.... 47% say they thought it helped their business attract and retain employees; 26% wanted to receive the tax benefits of a 401(k); and 21% wanted to save for their own retirement."   MORE >>

"[Unlike other state-run IRA programs,] Hawaii's bill will allow employees to decide whether to participate rather than automatically enrolling them. Employers are also not be required to contribute or match contributions to the accounts ... The bill does set aside $25 million for a $500 match for the first 50,000 participants[.]"   MORE >>

"TSP is a defined contribution retirement plan for the civilian federal workforce and the uniformed services, similar to the 401(k) plans sponsored by many private-sector employers. TSP provides individual accounts that serve as a source of income in retirement to participants and their beneficiaries. As of March 2022, there were more than 6.5 million total participants in TSP and $817.7 billion in total assets." [IF12110, May 17, 2022]   MORE >>

"This In Focus provides a brief description of the Social Security program, its projected financial shortfall, and an overview of the annual COLA. It then addresses how the COLA is financed and how the COLA affects the projected financial status of the Social Security programs." [IF12109, May 17, 2022]   MORE >>

"[W]hile Monte Carlo incentivizes clients to achieve higher and higher probabilities of success, actually working to achieve the 'best' success probability of 100% may push clients toward outcomes that are out of line with their goals for spending, giving, and leaving behind assets during their lifetimes.... [W]hat makes Monte Carlo simulation so powerful for clients is the ability to visualize how they can impact their plan's long-term outcome through the actions they take."   MORE >>

"[PBGC] has approved the application submitted to the Special Financial Assistance (SFA) Program by the Iron Workers Local 17 Pension Fund. The fund, based in Cleveland, Ohio, covers 1,900 participants in the construction industry. On February 1, 2017, the Iron Workers Local 17 Fund implemented a benefit suspension under [MPRA]. The fund reduced benefits of about 950 participants.... PBGC's approval of the SFA application enables the plan to restore benefits suspended under the terms of MPRA and to make payments to retirees to cover prior benefit suspensions.... The plan will receive $48.9 million in SFA, including interest to the expected date of payment to the plan."   MORE >>

"[T]he DOL, within its [ERISA] and [FERSA] roles, can: ... [1] [P]rovide guidance that will ensure plan fiduciaries have substantive processes and procedures that enable them to recognize, anticipate and mitigate the potential impact of climate-related financial risks.... [2] Use existing forms (the 5500 and the Summary Annual Report (SAR)) to collect, monitor, and disclose fiduciaries' activities in this area.... [3] Engage the decision-makers and stakeholders in pension plans and the affected communities to ensure a proper balance is maintained between the actions that plan sponsors will be asked to undertake and the value of the information requested[.]"   MORE >>

"Given the disagreement among district courts as to the propriety of ERISA plans' relief-limiting provisions, plan sponsors that wish to maximize the enforcement potential of their arbitration provisions should ensure that the language does not preclude relief available under ERISA, and severability provisions should authorize courts to sever only those portions of a plan that are unenforceable or contrary to law."   MORE >>

"The U.S. Chamber of Commerce opposes Title VII 'The Employee and Retiree Access to Justice Act of 2022' of HR 7780  ... Contrary to its name, by effectively prohibiting arbitration in ERISA claims and prohibiting discretionary clauses, this provision would limit recovery amounts, increase the costs of claims for benefits, and increase the time for courts to resolve claims for benefits, including time sensitive claims such as disability and severance."   MORE >>