"While [ Notice 2023-43 ] has provided some initial guidance, much more is needed.... [G]uidance on the parameters of the necessary practices and procedures that must be in place to even qualify the failure as an eligible inadvertent failure is critical. Additionally, the coordination between the existing Self Correction Program under EPCRS (SCP) and the self-correction of eligible inadvertent failures need[s] to be explained."   MORE >>

"This article summarizes state and city retirement initiatives for private-sector workers ... The latest update includes information about a recently enacted auto-enrollment program in Nevada." [Updated Jun. 29, 2023]   MORE >>

"The court should vacate the portions of the exemption's text and preamble that allow consideration of individual retirement account investment advice relationships when determining fiduciary status, Ms. Rutherford said. 'These provisions exceed the DOL's authority under ERISA and constitute arbitrary and capricious interpretations of the five-part test to determine whether financial professionals are acting as "investment advice fiduciaries," ' she concluded." [Federation of Americans for Consumer Choice Inc. v. DOL, No. 22-0243 (N.D. Tex. magistrate recommendations Jun. 30, 2023)]   MORE >>

"The decision is instructive for defendants who are faced with class allegations that purport to target a single policy or practice, but which in fact relate to numerous individual decisions. It should also serve as a reminder that defendants must consider not only the facial validity of a claim, but also the robust defenses available under the ERISA." [ Haley v. TIAA , No. 17-0855 (S.D.N.Y. Jun. 27, 2023)]   MORE >>

"What remains unclear is whether the Treasury Department has the regulatory authority or the willingness to ignore the Section 603 drafting error, despite the congressional letter of intent .... [T]here has been an increasingly active and vocal lobbying campaign from large employer retirement plan sponsor groups and their retirement plan recordkeepers to get Congress to provide a two-year delay of the Section 603 Roth catch-up requirement."   MORE >>

"The growth of pooled employer plan registration has slowed in 2023 even as the industry gears up for more small and midsized businesses to introduce new retirement plans ... [P]ooled plan providers [are] continuing to bring PEPs to market ... [but] even as new plans emerge, more are pulling out of the market due to lack of uptake from plan sponsors. Some of the pullback ... came after a clarification this year by the [IRS] that expanded the audit requirements for PEPs."   MORE >>

"Today's workers are navigating the extended hangover of the pandemic as well as new disruptions that pose a threat to their lifestyles and livelihoods. Many workers are confronting short-term employment and financial challenges that have implications for their ability to save and invest for their future retirement. A concerted effort is needed among policymakers, employers, and workers themselves to put them back on the road towards a financially secure retirement."   MORE >>

"In a defined benefit plan termination, employees are generally given the choice to take their benefit as a lifetime annuity ... or an account balance ... While employees with smaller benefits tend to take the account balance option, 34% of the dollars for employees over age 55 were moved to insurance companies to provide lifetime income. This is a much larger utilization rate than seen in the retail annuity market or in-plan defined contribution plan offerings."   MORE >>

"Here is an example showing the results of comparing seven plans for a small business.... The results show the differences that can be obtained from various plan designs. The best design for any given situation will vary depending on employee ages and salaries, as well as company objectives."   MORE >>

"The aggregate funded ratio for U.S. corporate pension plans increased by an estimated 2.3 percentage points in June and ended the month at 103.5% ... The monthly change in funded ratio resulted from a 2.3% increase in asset value and no material change in liability value. The aggregate funded ratio is estimated to have increased by 3.1%, 4.8%and 8.1% during the second quarter, year-to-date and over the trailing twelvemonths, respectively."   MORE >>

"The process employed to maintain a system's sustainability over time can be more important than the assumptions and tools used to project future experience. Therefore, [advisors are encouraged] to utilize the general actuarial process (or something similar) on an ongoing basis when consulting with their clients about retirement finances."   MORE >>

"[D]efendant's former Chief Digital Officer sued for severance benefits after he was terminated. Not surprisingly, he pointed to the fiduciary exception that generally applies in ERISA cases. But the court carefully analyzed the severance plan, and concluded that ... the plan's status as a 'top-hat plan' meant that under ERISA the fiduciary exception did not apply." [ Kramer v. American Electric Power Executive Severance Plan , No. 21-5501 (S.D. Ohio Apr. 13, 2023)]   MORE >>