"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"   MORE >>

"Absent relief from the PBGC, many entities that are not typically subject to 4010 reporting would have been required to submit a filing this year. As explained in [ Technical Update Number 23-1 ], the 'atypical and almost unprecedented interaction of market conditions' in late 2022 and early 2023 is expected to drive many plans' 4010 FTAP below 80% 'for the first time in a long time (or perhaps ever).' The same plans might have 4010 FTAPs at or above the 80% threshold if the calculation used a market-based approach that does not smooth out discount rates and asset values over time."   MORE >>

"Plans that are eligible for SFA should be aware of new processes established by PBGC on July 27, 2023 for [1] requesting an independent death audit from PBGC, [2] expedited processing of minimally revised applications, and [3] submitting revised lock-in applications. PBGC has also added a new template for plans to summarize assumptions."   MORE >>

"[It] may seem that every beneficiary who is subject to the 10-year rule and would otherwise be required to take an RMD for 2023 should take advantage of the opportunity to skip their 2023 RMD. It may seem like a no brainer to keep the funds in the account if not needed and avoid an immediate tax bill. However, this may not actually be a smart planning move."   MORE >>

"FBG challenged the district court's Rule 23(b)(1) and (b)(3) determinations, arguing that the district court abused its discretion by failing to account for the wide variety of plans included in the class and sanctioning hundreds of mini-trials because of the individualized nature of the class claims. The Fifth Circuit disagreed, finding that Plaintiffs have standing, and certification is appropriate ... The court concluded that the district court correctly determined that this litigation may proceed as a class-action lawsuit." [ Chavez v. Plan Benefit Services, Inc., et al , No. 22-50368 (5th Cir. Aug. 11, 2023)]   MORE >>

"The [DOL] is seeking public feedback and comment on several sections of the SECURE 2.0 Act of 2022 that establish new or revised reporting requirements ... EBSA notes that several sections of the law establish new or revise existing [ERISA] reporting, which in some cases require the department to submit regular reports to Congress as updates or to guide future legislation."   MORE >>

"One of the key benefits of aftertax 401(k) contributions is that they are allowable on top of the basic traditional or Roth contributions, making them ideal for heavy savers looking for additional opportunities for tax-advantaged savings. While aftertax contributions aren't available to everyone with a 401(k), plans that do offer them are increasingly adding features that make it easy to convert those contributions to Roth without leaving the plan"   MORE >>

18 pages. "[T]his survey shows return expectations over horizons of both 10 years and 20 years ... [T]his report also constructs an asset allocation for a hypothetical multiemployer pension plan ... The expected returns for this 2023 edition were 126 basis points higher over a 10-year horizon than they were last year, and 94 basis points higher than they were in 2018. Over a 20-year horizon, expected returns are 88 basis points higher than last year, and 5 basis points higher than they were five years ago in the 2018 edition of the survey."   MORE >>

"This post explores the high-fee landscape of 403(b) plans, including long-term financial damage caused by poor 403(b) investment choices. It also discusses advantages of 403(b) plans, which can often be replicated elsewhere, and 'dealbreaker' features of 403(b)s when it is time to consider walking away. The post then describes five 403(b) plan alternatives ... It also includes research about the 'drag' on 403(b) plan earnings caused by high-expense investments, as well as three 'need to know' facts and six take-away action steps."   MORE >>

"The power of auto portability, when combined with the reach of the [Portability Services Network (PSN)] network, will produce nothing short of a revolution for future, job-changing participants whose small-account balances are subject to their plan's automatic rollover provisions. For these participants, the best choice -- consolidation -- will also become the default choice, leading to dramatic reductions in cashout leakage and increased retirement security."   MORE >>

"[A recent op-ed ] calls out for criticism a retirement system [the authors] say allows workers to put portfolios at risk by failing to diversify their investments and choosing investment options with 'relatively high fees that eat into their returns.'.... [Their] solution ... is -- 'guardrails' -- basically imposing limits on how much participants might be permitted to invest in ... funds that, in the estimation of the plan fiduciary MIGHT be harmful in large 'doses.' ... [They seem] to have bootstrapped ... a fiduciary obligation to not only prudently review and monitor the services and investments offered by a plan, but to track, investigate and, yes, limit the asset allocations of participants among options that are deemed subject to misuse/abuse."   MORE >>

"HR departments' direct involvement in benefits education is on the decline, according to a new report  ... [O]ne-on-one conversations with HR decreased to 26 percent from 28 percent in 2022. These conversations have been replaced by employers' use of online resources at 63 percent, up from 53 percent last year. The data marks a continual decline in HR benefits communication over the past couple years -- in 2020, for instance, 33 percent of employers offered one-on-one conversations with HR."   MORE >>

30 pages. "Significant deficiencies exist in the IRS's accounting for microfilm backup cartridges. Deficiencies result in the inability of the IRS to account for thousands of microfilm cartridges containing millions of sensitive business and individual tax account records. The sensitive business and individual taxpayer information stored on the unaccounted for cartridges are key information that can be used to commit tax refund fraud identity theft."   MORE >>