"Under the proposed regulations, a transfer under an automatic portability program would qualify as a prohibited transaction exemption from ERISA as granted by the SECURE 2.0 Act. The proposed regulations also address rules for service providers that charge direct fees to plan sponsors instead of IRA owners. However, the plans involved -- both those transferring out the IRA funds (transfer-out plans) and those receiving the transferred IRA funds (transfer-in plans) -- must meet certain requirements[.]"   MORE >>

"[T]he most significant change for PTE 2020-02 is not the changes to its provisions, but that many more recommended transactions will need the relief provided by PTE 2020-02. The impact on individual advisors -- 'investment professionals' -- appears to be minimal…primarily additional disclosures. Once the disclosures are developed, the new work due to the changes should be largely done. From then on, the disclosures just need to be delivered…and possibly explained."   MORE >>

"The agreement, if approved by a Georgia federal judge, would resolve all claims brought against Horizon in response to a cyberattack that exposed the personally identifiable information (PII) of more than 100,000 Horizon customers and a potential settlement class of over four million individuals." [Sherwood v. Horizon Actuarial Services LLC, No. 22-1495 (N.D. Ga. settlement agreement filed Mar. 11, 2024)]   MORE >>

"[T]he court held that under ERISA, Bulk Transport was not required to make contributions to the Fund on behalf of employees whose work was not covered by the CBA or the addendum. The court explained that the terms of pension contributions to multi-employer plans cannot be changed orally." [ Bulk Transp. Corp. v. Teamsters Union No. 142 Pension Fund , No. 23-1563 (7th Cir. Mar. 22, 2024)]   MORE >>

"Many stakeholders securing OMB meetings in the coming two weeks have previously expressed opposition to the rule and have called for it to be withdrawn in its entirety. Others have expressed support for the rule and are urging it to be finalized.... According to the  OMB website , 14 different meetings with stakeholders are on the docket."   MORE >>

"ChatGPT 3.5 did a good job summarizing the issue, formatting an easy-to-read response, and providing generally accurate guidance on the correction.... The guidance was not exactly correct nor did it necessarily provide information a plan sponsor would need to fully implement a correction."   MORE >>

An unofficial monthly report of the Moody's Daily Long-term Corporate Bond Yield Averages and Moody's Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).   MORE >>

"DOL should remove the aspect of the proposal that requires a plan sponsor to appoint a special plan official specifically charged with monitoring APTs. This is unnecessary micromanagement of a plan sponsor's fiduciary process to monitor service providers and plan transactions. DOL should remove the unnecessary disqualification provisions it has copied from the QPAM changes, which could cause unnecessary disruption to plan sponsors."   MORE >>

"A recent 'news' post about a blog post finds some curious 'faults' with the 401(k).... Apparently rather than saving for retirement, we're supposed to 'look for an investment that will pay for your desired standard of living. Make your money work for you, not the other way around.' What could go wrong?"   MORE >>

"[D]eveloping an ERISA-compliant decision-making process is relatively simple once the fiduciary understands the importance of 'controlling the controllables' as part of a prudent fiduciary process.... [E]valuating decisions based purely on results is flawed in that often results are influenced by factors which are beyond anyone's control. Fiduciaries should be evaluated on their ability to control the controllable."   MORE >>

"A recent Delaware Supreme Court decision ... looks favorably on such forfeiture for competition provisions. But other states, especially California, continue to pass laws that create legal risks when incorporating restrictive covenants into compensation arrangements. And the FTC proposed (but has not yet adopted) a nationwide ban on many noncompetes. [This] article explores these recent developments and suggests steps employers should consider when incorporating restrictive covenants into their SERPs or other deferred compensation plans."   MORE >>

"[1] Compensation income ... [2] Stock sales: capital gain or loss ... [3] Cost basis of company stock sales ... [4] Alternative Minimum Tax (AMT) ... [5] Equity comp income left off W-2 ... [6] Estimated taxes ... [7] IRS Form 1099-NEC for nonemployees."   MORE >>