"[W]hen considering whether a corporate transaction will result in participants becoming entitled to a plan distribution, plan sponsors should not simply assume that a change in a participant's common law employer will entitle the participant to a distribution.... [W]hen it comes to determining whether participants will experience a severance of employment and be entitled to a 401(k) distribution as a result of a corporate transaction, there may not always be a clear answer."   MORE >>

" SB 6069 is among the bills the governor will sign into law on March 28.... The measure will require covered employers to allow employees an opportunity to contribute to an IRA through an automatic payroll deduction. The default contribution rate is to be not less than 3%, nor more than 7%, of wages."   MORE >>

"[This case] is an example of the complexity of the law in this area, especially the interaction between MPPAA and labor law. It also emphasizes that although an uphill battle, an employer can successfully contest a withdrawal liability assessment. Both competent counsel and patience are needed. (The Seventh Circuit's decision represented the end of a 12-year saga.)" [ Bulk Transport Corp. v. Teamsters Union No. 142 Pension Fund , No. 23-1563 (7th Cir. Mar. 22, 2024)]   MORE >>

"[We] are seeing the growth of technology and AI service providers who are providing the necessary avenues for even smaller TPAs to access data with the same or even more ease and efficiency as their big brothers have been exhibiting for several years.... [T]his is a game changer for everyone, and has the potential to make the entire plan administration process more efficient for everyone."   MORE >>

"[1] Identify your window participants and check your data.... [2] Make sure participants know the window is coming.... [3] Encourage participants to open the package.... [4] Keep it compliant and easy to understand.... [5] Enhance the election process."   MORE >>

"Mississippi issued a cease-and-desist order against BlackRock Inc. and its subsidiaries on [March 27] alleging widespread fraud in the marketing of the firm's investment funds that do not carry an ESG label. The order does not contain a specific monetary penalty but indicates it could result in a 'multimillion-dollar penalty' at a later point for violations of the Mississippi Securities Act."   MORE >>

"[In] 2023, 67% -- or $104.5 billion -- of net inflows into target-date strategies went into CITs ... CITs now represent 49% of the market and are on pace to overtake mutual funds as the most popular target-date vehicle in 2024."   MORE >>

"Guaranteed income options can be included in CITs as part of their target date strategy, and employers interested in exploring the provision of in-plan lifetime income products may view this as a 'lower exposure' approach than causing the plan to contract directly with an insurance company."   MORE >>

"To determine how excess plan funds can be exhausted, which may include a reversion to the plan sponsor, there are seven possibilities to consider. As always, the place to start with any retirement plan issue is to answer the question: what does the plan say?"   MORE >>

"[SECURE 2.0] allows -- but does not require -- defined contribution plan sponsors to offer automatic portability features. In implementing this provision, DOL should not impose burdens on plan sponsors or service providers that will unduly discourage participation in automatic portability arrangements. In certain areas of the Proposal, DOL has introduced complexity and administrative costs that are not required by the statute. Those provisions of the NPRM should be eliminated from any final rule."   MORE >>

"The [IRS] today further postponed until Aug. 7, 2024, various tax-filing and tax-payment deadlines for individuals and businesses affected by the Aug. 8, 2023, wildfires in Hawaii.... [A]ffected individuals, businesses and tax-exempt organizations will now have until Aug. 7, 2024, to file their 2023 returns and pay any taxes due.... The IRS is offering relief to Maui and Hawaii counties ... Individuals and households that reside or have a business in these localities qualify for tax relief."   MORE >>