"Employees who are eligible to be part of an employer's defined contribution plan and qualify to contribute to a PLESA, if their employer offers one, can contribute to the account even if they don't participate in the employer's defined contribution plan. Generally, the maximum balance in a participant's PLESA (attributable to contributions) is $2,500, but employers can opt to set a lower limit."   MORE >>

"IRS Notice 2024-2  ... [provides] bringing guidance on twelve provisions of SECURE 2.0 that are or will soon be effective. About half of these items are of interest to most retirement plan sponsors, while a few apply primarily to smaller employers.... [T]ables summarize the guidance provided by the IRS."   MORE >>

"The final regulations are nearly identical to the proposed regulations (we covered here), with the only difference being a clarification of the methodology. The final regulations also closely follow the existing methodology in Notice 2007-81 , though they make two key changes."   MORE >>

"The Supreme Court holds oral arguments Jan. 17 on a challenge to the legal standing of regulatory agencies that could significantly alter the balance of power between regulators and federal courts.... [P]laintiffs say the justices should overrule or restrict Chevron deference across the board -- a prospect that would affect every acronym from EPA to NLRB, from SEC to IRS, from DOL to PBGC.... Critics say Chevron deference allows legislation via regulation, permitting regulatory overreach beyond the scope of the laws that regulators administer."   MORE >>

"You must understand your company's goals and objectives and the demographics of your company. This will help you ask the right questions to potential service providers.... Drafting a thorough and detailed Request for Proposal (RFP) document is a foundational step ... When selecting potential providers, consider factors such as industry reputation, experience, and financial stability."   MORE >>

"While each investigation may be unique and certain techniques will not work in all situations, there are several steps that can be taken to mitigate the burden.... [Establish] a strong rapport with the DOL investigator.... [T]he DOL has shown willingness to work collaboratively to resolve any issues.... The plan sponsor's ability to document efforts will lead to a more expeditious resolution."   MORE >>

"Over the past decade, executives overseeing corporate defined benefit (DB) pension plans have experienced significant regulatory reform and a full reversal of investment conditions. While rising liabilities once offset asset gains, the opposite is now true. Yet many organizations haven’t recalibrated their approach to plan management in response, leaving them exposed to unnecessary costs and at risk of missed opportunities. Today, plan sponsors should be rethinking their plan’s strategic priorities and re-underwriting their investment approach."   MORE >>

"Under the Proposal, certain banks' investment grade 'corporate exposures' would receive a preferential risk weighting for purposes of calculating capital requirements, provided that the derivative counterparty (or its parent) is publicly traded. Pension funds that do not have publicly listed securities would be ineligible for this preference. That would make pension funds a less desirable counterparty for otherwise beneficial transactions than other potential counterparties."   MORE >>

"The industry must shift its mindset. Retirement programs don't need to be purely DB or DC. Plan sponsors can build better programs for themselves and their employees. Start by focusing on your company's goals, then introduce flexibility and control so people can customize based on their needs. Ultimately, a retirement program should provide efficient retirement savings and income while driving engagement,"   MORE >>

"IBM wasn't the first organization to reopen their frozen DB. We may see a few organizations with frozen DB plans with a funding surplus follow IBM's lead. But no one is predicting employers who don't currently offer a DB plan will start one based on IBM's actions, let alone return to 1985."   MORE >>

"Revenues saved from repealing the retirement saving tax preferences could be reallocated to address the majority of Social Security’s long-term funding gap, strengthening a program that is crucial for the retirement security of older Americans while bypassing a decades-old debate about raising taxes or reducing Social Security benefits. This study reassesses the favorable tax treatment of retirement plans and explores an opportunity to use taxpayer resources more productively."   MORE >>

"[A chart] shows DOL's maximum 2024 penalties for single-employer defined benefit (DB) and defined contribution (DC) plans, with 2023 penalties shown for comparison. The increased amounts apply to penalties assessed after Jan. 15, 2024, for violations occurring after Nov. 2, 2015.... PBGC's 2024 maximum penalty under ERISA Section 4071 for single-employer DB plans is $2,670 a day (up from $2,586 in 2023) for each day a filing, notice or other information is overdue. The higher rate applies to penalties assessed after Jan. 12, 2024."   MORE >>

"The architecture of employee benefit plan committees, also known as plan ?duciary or plan oversight committees, is as diverse as the organizations that sponsor them. There is, however, essential consistency in the skills and experiences of the individuals employers appoint to serve as committee members."   MORE >>