"Until the IRS issues new guidance, plan sponsors may rely on a 'good faith, reasonable interpretation' regarding self-correction, and thoroughly document the self-correction process in the event of future IRS examination. This pause in regulation presents an exceptional opportunity for plan sponsors to review their plans in detail and make all eligible corrections without engaging in a Voluntary Correction Program (VCP) or other IRS intervention."   MORE >>

"The Tenth Circuit upheld the district court's conclusion that an individual arbitration provision prohibiting plan-wide relief was unenforceable because it prevented the participant-plaintiff from exercising his statutory rights under [ERISA]." [ Harrison v. Envision Mgmt. Holding, Inc. Bd. of Directors , No. 22-1098 (10th Cir. Feb. 9, 2023)]   MORE >>

"What does a plan sponsor need to know when choosing the various service providers who help administer the plan, choose investments, and provide custodial/recordkeeping services? While expenses are unavoidable, an employer who understands the range of available services, and the corresponding fees, will be better able to find value for money when choosing services."   MORE >>

"[The authors[ find that dollars paid in employer contributions to 401(k) plans have double the effect on a firm's recruiting success, relative to wage dollars. The effect is driven by higher-income and higher-age occupations.... [P]articipants value retirement to wage dollars at a ratio of 1.6 to one. Eighty percent of firms in-sample could improve their recruiting outcomes by increasing 401(k) contributions."   MORE >>

"Retirement confidence has been on a steady decline since 2021, as only 56% of workplace savers this year said they feel 'on track' with their savings to retire with the lifestyle they want, compared to 63% in 2022 and 68% in 2021 ... The lack of confidence has not translated to a decrease in savings rates, which held steady year-over-year ... But participants did express that having guaranteed retirement income would quell some of their fears about inflation and market volatility eroding their savings[.]"   MORE >>

"Chandler this week became the largest city in Arizona to pay off its public safety pension debt, saving $8-10 million per year in the city's budget and ensuring its police and fire employees receive their promised pensions. This is part of a trend of Valley cities trying to clear their pension debts that, along with interest, are eating up a growing chunk of their budgets."   MORE >>

"[GAO] found that: [1] Disparities between low-income and high-income older workers households' (ages 51-64) retirement accounts were greater in 2019 than in 2007. [2] 1 in 10 low-income households had a retirement account balance in 2019, compared to 1 in 5 in 2007. [3] 9 in 10 high-income households had a retirement account balance between 2007-2019. [4] More White households had a retirement account balance than those of all other races." [GAO-23-105342 Jul 27, 2023] MORE >>

"We are writing to request clarification of a number of provisions of SECURE 2.0 effective in 2023 and 2024. Some of these are mandatory and some are voluntary, but although they will require administrative changes that require significant time to implement, the statute does not provide much detail. Without early guidance on the issues raised in this letter, plan sponsors and their service providers and advisers will be unsure how to implement these changes or whether they are in compliance."   MORE >>

"By encouraging, but not requiring, more employers to adopt an automatic reenrollment feature as part of their retirement plan, this bill [ S 2517 ] will help ensure more low- and middle-income individuals in particular can improve their financial security in retirement."   MORE >>

"De-risking (also known as a pension risk transfer) is a way for companies to sell off their pension liabilities to insurance companies. ... This strategy allows companies to get out from their corporate pension liabilities (and wash their hands of further legal and administrative responsibility for paying benefits), all the while making their shareholders happy. Insurance companies are happy, too -- because they get billions of dollars to invest. But do these deals make workers and retirees happy? Not so much."   MORE >>

"[T]he 217th open meeting of the [ERISA Advisory Council] will be held via teleconference on August 29, 2023.... The purpose of the open meeting is for the ERISA Advisory Council to hear testimony from invited witnesses on the following topics: [1] Long-Term Disability Benefits and Mental Health Disparity, and [2] Recordkeeping in the Electronic Age. Descriptions of these topics are available on the ERISA Advisory Council's web page  ... The ERISA Advisory Council will also discuss and finalize views on section 2509.95-1 of title 29, Code of Federal Regulations (relating to the fiduciary standards under the [ERISA] when selecting an annuity provider for a defined benefit pension plan)"   MORE >>

"[T]he 2023 Advisory Council will examine the implications of employee benefit plans' shift to electronic/digital recordkeeping for compliance with ERISA's record retention requirements and related matters. The Council will examine the tools and technologies used by plan administrators and third-party service providers to manage and retain plan records electronically, and will identify recent trends in electronic recordkeeping systems, potentially including the use of artificial intelligence.... The Council also intends to investigate the transfer of records when plan-level transactions occur, such as recordkeeper transitions, spin-offs, plan terminations, orphaned plans, and pension risk transfers.... The Council intends to determine if guidance would be beneficial with respect to records retention, the authenticity and reliability of the electronic records, the data security of electronic records, or other issues[.]"   MORE >>

"A recent SEC complaint and federal criminal indictment present a classic lesson in what not to do when you know [material non-public information (MNPI)] about a company.... Anyone who learns MNPI about a company is in a position to be accused of insider trading if they buy or sell that company's stock before the information is made public. That applies even to MNPI acquired via the most personal relationships ... Working remotely at home greatly increases the risk of insider tipping that can lead to insider trading."   MORE >>