277 pages. "The Department proposes that a person would be an investment advice fiduciary under Title I and Title II of ERISA if they provide investment advice or make an investment recommendation to a retirement investor (i.e., a plan, plan fiduciary, plan participant or beneficiary, IRA, IRA owner or beneficiary or IRA fiduciary); the advice or recommendation is provided 'for a fee or other compensation, direct or indirect,' as defined in the proposed rule; and the person makes the recommendation in one of the following contexts: 

• The person either directly or indirectly (e.g., through or together with any affiliate) has discretionary authority or control, whether or not pursuant to an agreement, arrangement, or understanding, with respect to purchasing or selling securities or other investment property for the retirement investor;
• The person either directly or indirectly (e.g., through or together with any affiliate) makes investment recommendations to investors on a regular basis as part of their business and the recommendation is provided under circumstances indicating that the recommendation is based on the particular needs or individual circumstances of the retirement investor and may be relied upon by the retirement investor as a basis for investment decisions that are in the retirement investor's best interest; or
• The person making the recommendation represents or acknowledges that they are acting as a fiduciary when making investment recommendations....

The proposals' compliance obligations are generally consistent with the best interest obligations set forth in the Securities and Exchange Commission's (SEC's) Regulation Best Interest and its Commission Interpretation Regarding Standard of Conduct for Investment Advisers (SEC Investment Adviser Interpretation), each released in 2019."   MORE >>

81 pages. "This proposed amendment would build on these existing conditions to provide more certainty for Retirement Investors receiving advice and Financial Institutions and Investment Professionals complying with the exemption's conditions. In this regard, the Department is proposing additional disclosures to ensure that Retirement Investors have sufficient information to make informed decisions about the costs of the investment advice transaction and about the significance and severity of the investment advice fiduciary's Conflicts of Interest. The proposed amendment also would provide more guidance for Financial Institutions and Investment Professionals complying with the Impartial Conduct Standards and implementing their policies and procedures."   MORE >>

92 pages. "The Department is proposing to amend PTE 84-24 to address specific issues that Insurers confront in complying with the current conditions of PTE 2020-02 when distributing annuities through independent agents.... The proposed amendment would provide exemptive relief to fiduciaries who are Independent Producers that recommend annuities from an unaffiliated Insurer to Retirement Investors on a commission or fee basis if certain protective conditions are met."   MORE >>

44 pages. "The Department is hereby proposing amendments to existing PTEs 75-1, 77-4, 80-83, 83-1, and 86-128 that currently provide relief for investment advice fiduciaries to receive compensation when plans and IRAs enter into certain transactions recommended by the fiduciaries as well as certain related transactions.... The proposed amendments would remove fiduciary investment advice, as defined under ERISA and in a proposed regulation issued by the Department that is found elsewhere in this issue of the Federal Register, from the covered transactions in each exemption and make certain other administrative changes"   MORE >>

PBGC [has] posted a table showing the applicable present values for 2024 plan years. A  two-column spreadsheet  version of the table is also available.   MORE >>

"This proposed fiduciary definition would apply to recommendations to roll over assets from a workplace retirement plan to an IRA if every element of the proposed fiduciary definition is satisfied.... The new proposed fiduciary definition ... focuses directly on the nature of the relationship between the advice provider and the investor. It is intended to extend to the type of interactions retirement investors commonly have in the financial services marketplace with trusted advisers.... The new proposed investment advice fiduciary definition is more narrowly tailored than the 2016 fiduciary rule, which applied to virtually all paid recommendations to retirement investors. In addition, the proposed amendments to the Department's exemptions do not impose any new contract or warranty requirements.... Under the proposal, the Department would make two exemptions available for the management of conflicts of interest with respect to advice. One exemption (PTE 2020-02) would be broadly available for advice with respect to the wide universe of investments recommended to retirement investors. A second exemption (PTE 84-24) would be tailored for use by independent insurance agents and is intended to facilitate their ability to make best interest recommendations under their business model."   MORE >>

Link is to YouTube live broadcast of White House announcement of DOL proposed regs, scheduled for 3:30 p.m. ET on October 31, 2023.  Recording should be available after the event; BenefitsLink will update this link if necessary.   MORE >>

"As the statutory trustee of a terminated pension plan, PBGC is authorized under [ERISA] to recover money owed to the plan and to bring lawsuits on the plan's behalf. PBGC has three years from the date it becomes trustee to bring a legal action against former fiduciaries who breached their duties to the plan at any time during the plan's existence." [42-minute video of PBGC officials' presentation at the Office of Small Business Development Centers' state directors call, with detailed text outline.]   MORE >>

"[T]he retrospective period in which a plan sponsor can self-correct 'eligible inadvertent failures' is effectively open-ended ... [T]he level of detail and the narrative [a plan sponsor chooses] to share is entirely in their hands.... An operational failure in this context is 'inadvertent.' In other words, it is human error and unintentional, and such fact should be highlighted."   MORE >>

"Starting in 2024, a SIMPLE IRA can be replaced with a safe harbor 401(k) plan mid-year. The replacement plan can be either a traditional safe harbor plan or a Qualified Automatic Contribution Arrangement (QACA) safe harbor 401(k) plan. The replacement ... plans must be effective as of the termination date of the SIMPLE IRA."   MORE >>

"[1] Talk to your employee benefits counsel about any changes to the ownership of the plan sponsor or related companies.... [2] Determine if any plan changes ... need to be incorporated into a formal plan amendment by year-end ... [3] Cash out terminated participants with vested account balances under $5,000 ... [4] Decide how forfeitures will be used.... [5] Consider who is making discretionary decisions concerning your 401(k) plan, and confirm that those individuals have been delegated that authority by the company or the plan's administrative committee."   MORE >>

"Nearly 75% of owners [surveyed], who don't currently offer a plan, indicated an intention to do so within the next two years, but only 13% of them said that was likely to happen in the next six months ... The SECURE 2.0 Act marked a significant stride towards enabling more small business owners and employees to pursue retirement stability. How can financial professionals and retirement plan recordkeepers help them take the next critical step?"   MORE >>

"While the automakers did not agree to restore the workers' defined benefit pension plan, which shut down in 2007, they conceded to significant increases in benefits for workers with pensions and 401(k) plans ... For current employees in the defined contribution plan, Ford and Stellantis offered to increase 401(k) contributions to 9.5% of pay from 6.4%. For retirees on the defined benefit plan, the automakers agreed to a $5 credit per month for each year of service."   MORE >>

"[N]avigating the world of [Performance Stock Units (PSUs)] can be tricky, and mishandling them can have significant financial consequences. Here are some common mistakes executives make with their PSUs, along with ways a financial advisor can potentially help executives keep more of their PSU proceeds."   MORE >>