62 pages, Feb. 13, 2024. " What's New for 2023 : [1] IRA contribution limit increased.... [2] Increase in required minimum distribution age.... [3] Modified AGI limit for traditional IRA contributions ... [4] Modified AGI limit for Roth IRA contributions ...  What's New for 2024 : [1] IRA contribution limit increased for 2024.... [2] Modified AGI limit for traditional IRA contributions increased.... [3] Modified AGI limit for certain married individuals increased.... [4] Modified AGI limit for Roth IRA contributions increased."   MORE >>

"[T]he cheaper result of the online calculator should not prevail over the participant's, the plan's, or the default investment alternative's actual rate of return or some of the other alternatives presented [in this article] EXCEPT, if the error affects mostly the highly compensated employees (HCEs). The regulators will always accept a cheaper alternative when it involves HCEs."   MORE >>

"Because the 12-month periods may overlap, some employees may become eligible as LTPT employees even before they have worked 'long term.' ... Upon rehire, it is important to differentiate between employees who were previously eligible for a plan due to being LTPT employees and employees who were eligible for any other reason.... If a plan sponsor mistakenly did not provide LTPT employees eligible as of Jan. 1, 2024, the opportunity to defer on that date, the plan sponsor may need to take corrective action under [EPCRS] ... Even if LTPT employees are excluded from testing, plan sponsors can still make employer contributions on their behalf."   MORE >>

"The DOL FAQs provide 20 questions and answers regarding [1] Eligibility and participation, [2] Contributions, [3] Distributions and withdrawals, and [4] Administration and investment.... IRS [ Notice 2024-02 ] provides examples of anti-abuse measures that the Treasury Department and IRS would deem to be unreasonable and therefore cannot be used to limit the frequency or amount of matching contributions made to a PLESA."   MORE >>

"[This article highlights] six pieces of IRS guidance that apply to most employers that sponsor retirement plans and how they impact your compliance efforts. [1] Mandatory automatic enrollment ... [2] Financial incentives for plan participation ... [3] Roth employer contributions ... [4] Self-correction for automatic enrollment employee deferrals ... [5] Terminal illness distributions ... [6] Plan amendment deadlines."   MORE >>

"Where a prohibited transaction occurs, the protection of an exemption (PTE) will be needed, e.g., PTEs 84-24 or 2020-02. One of the conditions for obtaining the protection of either of those PTEs is an annual retrospective review and report on compliance with the requirements of the exemptions. If a failure is found in the review, it must be corrected or the benefit provided by the exemptions will be lost."   MORE >>

"85% of respondents expect their employer to offer retirement benefits, up from 72% last year.... [A]mong Vestwell's 401(k) and 403(b) account holders, the average deferral rate in 2023 was 6.4%. While 62% of savers believe they should defer 10% or more of their salary to retire comfortably, only 34% contribute that much."   MORE >>

"The January CPI-W came in at 2.9%. That's higher than the inflation trends indicated last month based on December CPI-W data. Based on this trend, The Senior Citizens League (TSCL) is adjusting the long-term forecast COLA to 1.75% in 2025." MORE >>

"State and local governments contributed, in aggregate, approximately $221 billion to pension funds in FY 22, which represents an increase of nearly 20 percent from the prior year ... [S]pending on pensions by states and political subdivisions varies widely among states, from under 2.0 percent to more than 10.0 percent."   MORE >>

"[1] Timing of distributions: ... [2] Lump sum threshold ... [3] Number of installments ... [4] Minimum annual installment threshold ... [5] Extension for large balances ... [6] Loan repayment delay."   MORE >>

"While AI will remove the human element from some tasks, humans will still be necessary for many parts of the processes. AI will be a productivity add-on for every line of business, not a way of replacing administrators, advisers or other professionals in the retirement business.... Where [the authors] see AI having the biggest impact in the near term is digesting communication with your clients.... What an AI solution becomes, then, is a good assistant whispering relevant information in your ear."   MORE >>

"[O]ne of the most straightforward ways to re-assert a clearer line for consumers between advice and sales is simply for the DoL to permit insurance agents and brokerage representatives to continue to be salespeople… so long as the professional does not hold themselves out as being a financial advisor or market that they offer financial planning.... The benefit of such an approach is that it would allow insurance companies and brokerage firms to continue acting in a purely sales function, without meeting the additional regulatory burdens of being a fiduciary advisor."   MORE >>

"With each generation that enters the workforce, so does a unique set of benefit requests that suit their lifestyles, aspirations, and shifting medical needs.... [By] identifying the things that each group values the most, you can begin to craft a benefits program that resonates with each generation."   MORE >>

"The J&J case provides a valuable glimpse into the potential liabilities of being a fiduciary when these duties are not upheld. Fiduciaries that do not adhere to the basic standards of conduct (aka, their fiduciary duties) can very easily find themselves personally liable for restoring any losses to the plan, or for restoring any profits made through improper use of the plan’s assets that result from their actions."   MORE >>

"[F]ederal legislators are starting substantial conversations to find a viable bipartisan approach that expands retirement or paid family medical leave to cover all U.S. workers. These federal discussions build on the work happening in more than a dozen states, yet the players are not always talking to and learning from each other.... [This article provides] a framework of the seven essential elements to enact sustainable public-private partnerships that create universal retirement and/or paid family medical leave [along with] two elements to leave out of legislation to avoid insolvency, unnecessary constraints and the potential for partisanship."   MORE >>

"While directors may seek input from an executive, directors have the ultimate responsibility to control the compensation decision-making process.... Boards and compensation committees should retain outside compensation consultants to advise on what is considered reasonable executive compensation.... Directors should be independent of executives, particularly with respect to compensation matters.... All required disclosures to stockholders must accurately describe the material terms of the executive compensation package."   MORE >>