"While this database could be helpful to both participants and plan sponsors, the DOL's request would likely be a significant new burden on plans.... [H]aving information on file or in the plan records somewhere does not necessarily mean this will be easy, especially regarding benefits that were already paid. Gathering and organizing the information will be especially difficult in situations where there have been plan sponsor changes, plan mergers, and recordkeeper changes."   MORE >>

"[T]he succession of IRS waivers means that designated beneficiaries who inherited IRAs or defined contributions plans after 2019 aren't required to take annual RMDs until at least 2025. But some individuals may be better off beginning to take withdrawals now, rather than deferring them.... [M]any provisions of the Tax Cuts and Jobs Act, including reduced individual income tax rates, are scheduled to sunset after 2025. The highest rate will increase from 37% to 39.6%, absent congressional action."   MORE >>

"The rule/guidance package  ... will turn many persons -- critically, call center operators affiliated with financial institutions -- who previously understood themselves to be 'just service providers' into 'advice fiduciaries.' ... Sponsors will want to ... discuss with their providers how they intend to comply with the new advice fiduciary rule/PTE.... [T]here may be situations in which sponsor officials themselves, e.g., discussing plan investment decisions with plan participants, might be considered advice fiduciaries."   MORE >>

"The Department's release emphasized key differences between the 2024 Fiduciary Rule and the 2016 Rule, including the 2024 Fiduciary Rule's absence of any requirement that advisers and financial institutions give their customers enforceable contract rights for noncompliance.... Also missing is the Department's prior proposal requiring financial institutions, insurers, and others taking advantage of certain ERISA PTEs to disclose their compensation arrangements on a public website."   MORE >>

"The expanded definition of fiduciary advice in the regulation will cause many more people and firms to be fiduciaries when they make investment recommendations to retirement investors. The most important definition is the one for non-discretionary recommendations."   MORE >>

"Under the program, 'covered employers' must give 'covered employees' the opportunity to contribute a portion of their pay to an individual retirement account ('IRA') on a pre-tax basis in order to save for retirement.... The program will be launched by July 1, 2027."   MORE >>

"Average costs for workers covered by a small plan would drop to 75 basis points from 93 basis points ... Participants would save over $55 billion in the first 10 years and over $130 billion in the subsequent 10 years ... Over 80% of these savings would be experienced by small-plan participants, of which there are currently more than 20 million.... [R]etirement investors rolling into fixed-index annuities will save over $32.5 billion in the first 10 years and over $32.5 billion in the subsequent 10 years."   MORE >>

"The DOL generally recommends that retirement plan sponsors conduct RFPs once every three to five years.... There are certain key provisions ... which should be included in every RFP.... [1] Description of services and fees: ... [2] Review of the service provider's background ... [3] Communications ... [4] Specimen service agreement."   MORE >>

"Robo-advisors provide software-based management tools for investing. Portfolios managed with a robo-advisor generally tend to be cheaper to use than human-advised portfolios. These cost savings can add to your company's bottom line. Robo-advisors intend to keep portfolios optimally diversified, which could lead to better returns over time for plan participants."   MORE >>

"80 percent of women agree there indeed is a retirement crisis and 81 percent say employers should contribute more money to workers' retirement plans.... Eighty-two percent of women say that all workers should have a pension ... Nearly all women (89 percent) say it is important for the next administration to work with Congress to develop a Social Security funding solution."   MORE >>

"[N]on-compete clauses can be found in a variety of compensation arrangements, including employment agreements, severance plans, and incentive awards.... [T]he final rule largely preserves the proposed rule's sweeping scope, while incorporating a narrow legacy exception for existing non-compete clauses with senior executives. Assuming it survives court challenges, the rule will transform employee compensation arrangements in the United States, forcing many employers to rethink how they incentivize, retain, and part ways with their employees."   MORE >>

"Although three lawsuits have been filed so far, the lawsuit to watch is the United States Chamber of Commerce lawsuit filed in the United States District Court for the District of Texas.... [C] ompanies should know in June whether the Rule will be enacted (and thereby require companies to come into compliance within 120 days of the Rule being published in the Federal Register) or enjoined. " [Chamber of Commerce of the United States of America v. Federal Trade Commission, No. 24-00148 (E.D. Tex. complaint filed Apr 23, 2024)]   MORE >>