Senator Says He'll Cut 401ks to Pay for Federal Retirement Plan
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Legislative and Washington DC
Senator Says He'll Cut 401ks to Pay for Federal Retirement Plan Senator John Hickenlooper, a sponsor of a controversial bill to create a Thrift Savings-like plan for private sector workers, said he'd reduce 401k savings to pay for the legislation. At a retirement-themed event sponsored by BlackRock in Washington, D.C. on July 10, Axios political reporter Stef Kight asked Hickenlooper about the cost of the Retirement Savings for Americans Act. Hickenlooper responded that he would lower 401k tax incentives and contribution limits to pay for the program. Source: Ntsa-net.org
ERISA Advisory Council Makes Case for Annuities as Part of QDIA An ERISA Advisory Council hearing explored expanding the use of annuities in default investment offerings. Experts at the hearing recommended that annuities should be part of a defined contribution plan's default investments as a hedge against longevity risk. Source: Planadviser.com »» Click here for more on Legislative and Washington Actions Fiduciary and Plan Governance
"Fiduciary" Is the Best Practice 401k Plan Sponsors Can No Longer Ignore "A plan sponsor's paramount responsibility is to ensure the effectiveness and compliance of their 401k plan," says Richard Bavetz, investment advisor at Carington Financial in Westlake Village California. "In light of evolving regulatory landscapes, technological advancements, and participant needs, revisiting best practices can help safeguard the interests of both sponsors and participants." At the head of the 401k best practices list, especially considering the latest DOL initiatives, is a concept often underestimated by 401k plan sponsors. Source: Fiduciarynews.com
The Art of Terminating a 401k Plan Provider There are so many reasons why you may need to fire a retirement plan provider. The problem is extricating yourself from them with as little damage to you and the assets of your employees in your 401k plan. This article is about how to deal with terminating a plan providers. Source: Jdsupra.com »» Click here for more Fiduciary and Plan Governance Material Items of Special Interest to Advisers and Other Service Providers
Seven Super Practical Ideas to Enhance Your Retirement Business Advisors often talk about pipeline fluctuations, periods of booming activity, and then busts. "I was so busy I didn't have time to prospect. Then I had to start from scratch to ramp it back up again." To help you create a consistent pipeline that doesn't ebb and flow, here are seven super practical ideas that can transform your business strategy and drive growth. Source: 401kspecialistmag.com
On June 28, 2024, in a 6-3 decision, the Supreme Court overturned Chevron v. Natural Resources Defense Council, the most-cited case in administrative law. Chevron established a framework for how the federal courts decide challenges to agency interpretations of statutes and served as a bedrock support for upholding agency interpretations of statutes for the last 40 years. Source: Groom.com
DOL's ESG Rule Challengers Cite Chevron Reversal The U.S. Supreme Court's decision to overturn the longstanding Chevron standard of deference to federal agencies will likely get a first test in the U.S. 5th Circuit Court of Appeals in a case seeking to overturn the DOL's ESG rule. The case will become the first concerning environmental, social, and governance factors to go before a judge in the post-Chevron era, with plaintiffs in Utah et al. v. Julie Su, Acting Secretary of Labor, arguing that the new Loper Bright decision has a direct bearing, while the DOL notes it did not rely on Chevron in its earlier rebuttal, making the June decision irrelevant to the appeal. Source: Planadviser.com 403b Plans
Hardship Distributions From Restricted 403bs The hardship distribution rules for restricted 403b accounts are the same as those applicable to 401k plans. All amounts in these accounts (including earnings), may be distributed due to a hardship. The plan and contract would, of course, need to have language permitting the distribution. Source: Ntsa-net.org »» Click here for More 403b Material Court and Legal
Lawsuit vs. ESG Investing in 401k Plans Marks Courts' First Test After Chevron Ruling A lawsuit challenging a Biden administration rule permitting socially conscious investing by employee retirement plans will test the courts' approach to federal regulations following a pivotal Supreme Court decision. The New Orleans-based 5th US Circuit Court of Appeals will hear arguments from 25 Republican-led states opposing the DOL's rule on Tuesday, reported Reuters. Source: Investmentnews.com
District Court Dismisses Challenge to Use of Plan Forfeitures A federal district court recently granted a motion to dismiss claims that defined contribution plan fiduciaries breached their fiduciary duties of loyalty and prudence, and violated ERISA's anti-inurement and prohibited transaction rules, by using forfeited funds to satisfy a portion of the employer's matching contribution obligations where the plan also permitted using such forfeitures to pay administrative expenses. Source: Erisapracticecenter.com »» Click here for more Court and Other Legal Issues State-Based Private-Sector Retirement Programs
Rhode Island Secure Choice Becomes Law Add the Ocean State to the growing number of states providing a state-run plan that affords private-sector employees retirement plan coverage if their employers do not. Source: Ntsa-net.org Compliance and Regulatory
The Supreme Court's Rejection of Chevron Deference Could Upend Employee Plan Compliance Imagine that you have spent considerable time and money to set up systems to comply with new regulations. These include changes to your plan's recordkeeping system, plan documents, communications, and compliance procedures. Years later, a court invalidates the regulations, which might restore the prior rules or leave important statutory issues and terms undefined. The effect of the decision might be retroactive. How do you deal with this situation? The benefits community is about to find out, and regardless of whether you think the agencies overstep their regulations, it will not be a pretty picture. Source: Cohenbuckmann.com
2024 Deadlines and Important Dates for Plan Sponsors Sponsors of defined benefit and defined contribution retirement plans should keep the following deadlines and other important dates in mind as they work toward ensuring compliance with their plans in 2024. Dates assume a calendar year plan. Some deadlines may not apply, or dates may shift based on the plan sponsor's fiscal year. Source: Berrydunn.com
Updated User's Guide to Secure 2.0 Navigating SECURE 2.0 is a formidable challenge. To help employers and plan sponsors understand the legislation's implications, this updated guide provides a high-level summary of SECURE 2.0 provisions grouped topically. The six tables in this guide describe statutory changes and their effective dates, identify whether the changes are mandatory or optional for employers, and provide observations, including implementation. Source: Mercer.com
New Plan Distributions are Becoming Operational SECURE 2.0 provided employees with better access to liquid assets during a major life crisis. The IRS, through the issuance of Notice 2024-55, has provided further guidance on the domestic abuse victim distribution exemption and the emergency personal expense distribution exemption. Source: Brickergraydon.com
Catch-up Contributions: Impacts of the SECURE 2.0 Act The SECURE 2.0 Act includes a multitude of provisions, many of which affect employer-sponsored retirement plans and individual retirement accounts. This article focuses on changes to catch-up contributions for employer-sponsored retirement plans. Source: Berrydunn.com »» Click here for more Compliance and Regulatory Material Marketplace News Vanguard Leans Into DC Adviser Outreach Pensionmark Rebrands to World Investment Advisors 401GO Launches Mobile App to Enhance Retirement Planning Experience Netchex Launches 401k Solution
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