"The 2023 Form 5500 series (filed in 2024) introduces three new compliance questions on Schedule R. These new 'interesting' compliance questions may be used by the regulatory agencies in the review and examination selection process. It is critically important to understand what these new questions are asking and how to accurately complete the schedules for your plan."   MORE >>

"403(b) plans do not need to file Form 5330 or pay the excise tax on the lost earnings ... However, in addition to your VFCP filing, if you are a large ERISA 403(b) plan that is subject to audit (more than 100 employees), note that you will also need to report the late remittance on your 2023 Form 5500 filing[.]"   MORE >>

"The suits -- two now targeting AT&T, the other Lockheed Martin -- acknowledge that the process itself is perfectly legal, but question the prudence of the decision to 'offload' that pension responsibility to parties -- more specifically one party in particular -- deemed less financially viable to fulfill those obligations."   MORE >>

"DC litigation remains relatively robust.... Encore Fiduciary reports at least 20 cases per year being filed since 2016, including a peak of 101 cases filed in 2020 ... These cases generally focus on the country's largest plans ... [I]nnovation and evolution naturally continue in the roughly $9 trillion DC space, which, in turn, continues to get attention from the plaintiffs' bar.... [P]lan sponsors and their advisers must remain diligent in managing and monitoring retirement plans fees."   MORE >>

"The 'Baby Boom' is still having an impact on the workplace despite its advancing age, with an increasing number from that generation staying in the workforce longer than the 'normal' retirement age. And that has implications for employers, retirement saving, and retirement plans."   MORE >>

"70% of women surveyed are rethinking their retirement as they consider inflation and a possible economic downturn.... 43% of single women and 40% of married women cite cost-of-living increases as a long-term challenge to their retirement portfolio.... 47% of single women and 51% of married women believe that their advisor understands their financial targets, with some describing their interactions as one-sided."   MORE >>

"[A]ssuming a 20% difference in wages, or $10,000/year, now you are talking over $3,150,000 of additional retirement savings lost out on. Not to mention, these numbers don't account for the lost potential from company matches and Social Security benefits ... In general, women tend to be more risk-averse.... [W]omen born today are projected to live until 80 and men only until 74, a six-year difference!"   MORE >>

34 pages. "Proposals to make Social Security coverage mandatory for newly hired state and local government employees have been part of the policy debate for years.... Estimates show that the policy change would close 4% of the Social Security system's projected long-range funding shortfall.... Opponents maintain that mandatory coverage could pose administrative and cost burdens on state and local governments and their employees at a time when many state and local pension systems are underfunded." [R46961 updated Mar. 19, 2024]   MORE >>

"The definition of compensation in a retirement plan is a pivotal element that affects how deferrals, matching contributions, profit sharing contributions, and plan limits are determined. An error in compensation, even a small one, can result in substantial correction costs that expand dramatically over time. ... It is critical to make sure that the compensation amounts used in calculating plan contributions and plan limits are accurate at all times. What is the best practice to ensure this?"   MORE >>

"[T]he TDF oligopoly has made high risk the standard, so low risk has become the subject of lawsuits for underperformance....[E]quities have been king for the last 15 years -- the longest bull market on record. High risk TDFs have been the winners for 15 years, the entire history of TDFs after 2009. But surveys report that beneficiaries want low risk and most believe they are protected as they approach retirement."   MORE >>

"[T]he 401k alternative didn't appear until four years after ERISA, and it took another five years for companies to embrace the new vehicle. What might explain the decline of pension plans prior to the domination of 401k plans?"   MORE >>

"The lack of availability of certain asset classes has important implications for participants, since it makes it more difficult to build efficient portfolios.... [T]he average participant using the core menu correctly could generate approximately four more years of income if he or she had a complete menu of funds available.... Better core menus do not necessarily mean that core menus need to get larger, but rather more thoughtfully designed."   MORE >>

"Many of the FY 2025 budget proposals track those made in prior Biden Administration budgets.... [This article outlines] key health, retirement, and benefits-related provisions in the budget."   MORE >>