2024 401k Contribution Limit: Milliman Forecasts Modest Increase
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In This Issue
Compliance and Regulatory 2024 401k Contribution Limit: Milliman Forecasts Modest Increase Based on current inflation data, Milliman's latest 2024 IRS limits forecast predicts a $500 increase while official 2024 limits are expected to be announced in October. Source: 401kspecialistmag.com DOL Requests Budget Allocation to Locate Missing Retirement Plan Participants The DOL has requested that Congress allocate $5 million and 22 full-time employees in its 2024 budget to create a program to locate missing retirement plan participants. The program's focus will be to bring economic equity to financially vulnerable individuals. Source: Hallbenefitslaw.com »» Click here for more Compliance and Regulatory Material Fiduciary and Plan Governance A Model for Managing Fiduciary Risk A critical legal duty accompanies the responsibility of employers to manage employee benefit plans fairly and safely. Tactics for managing the associated risks are not intuitive and pose a significant challenge for the typical executives who populate a plan management committee. Risk management is often left for others in an enterprise to consider, but current events mandate a change in thinking and action. A framework of standardized procedures is needed. Source: Rolandcriss.com What You Should Be Worried About When You "Divorce" Your 401k TPA Often we find that what determines a good third-party administrator from a bad one is when we find out what happens when the TPA gets fired, and we start getting real. This article is all about contemplating divorcing your TPA. Source: Jdsupra.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers 22nd Annual Edition of How America Saves Report Participation rates in 401k plans record kept by Vanguard have reached an all-time high, driven by the continued power of design features like automatic enrollment and automatic annual increases. The firm's annual release of How America Saves also reports that employers are increasingly bolstering 401k plans with services designed to meet the broader financial needs of their employees, including advice. Source: Vanguard.com Using Technology to Improve Plan Sponsor, Participant Experiences Advances in technology have made many areas of life easier, and this is true for retirement plan sponsors and participants as well. The increasing use of data has facilitated better plan design decisions and increased personalization of participant advice. Source: Plansponsor.com US Retirement Assets Grow to $35.4 Trillion in Q1 The total amount of retirement assets in the U.S. grew 3.5% quarter-over-quarter to $35.4 trillion as of the end of the year's first quarter, according to data released by the Investment Company Institute. Source: Planadviser.com Great Resignation Drives Jump in Forgotten 401k Accounts The number of forgotten 401ks and their assets both increased by more than 15% since May 2021, driven by the Great Resignation, a period of heightened job-switching in the wake of the COVID-19 pandemic, according to the New York-based firm that specializes in helping savers reclaim 401k rollovers. As a result, 3.8 million accounts were left behind in 2021, and 4.4 million in 2022. Source: Planadviser.com One-Quarter of Pre-Retirees Expect to Delay Retirement, According to Nationwide One-quarter of pre-retirees, defined as non-retired investors aged 55 to 65, are planning to retire later than they had expected, and another 15% are unsure if they will ever retire, according to Nationwide's eighth annual Advisor Authority survey from the Nationwide Retirement Institute. Source: Planadviser.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers What Can AI Do for the Retirement Plan Industry? AI technologies allow companies to automate repetitive processes, interact with plan participants more efficiently and analyze their plan-related data more effectively. These uses lack sci-fi buzz, but they illustrate how AI is gaining traction in the retirement plan industry. Source: Planadviser.com Court and Legal Potential for Increased Participant Litigation Looms After Appellate Court Decision The U.S. Court of Appeals for the Seventh Circuit recently took a second look at allegations that a defined contribution plan's fiduciaries had breached the duty of prudence under ERISA in Hughes v. Northwestern University. Source: Hallbenefitslaw.com Judge Finds Fault in Fee Comparisons, Dismisses Suit Add this one to the list of courts that want more than a mere list of allegedly comparable plans (based solely on plan/participant size) to make a "plausible" argument sufficient to withstand a motion to dismiss. While the differential in services provided has certainly been implied in other decisions, the judge spent more time outlining those differences and correlating them to fee differences than has typically been the case. Source: Napa-net.org Pfizer Hit with Excessive Fee 401k Complaint A former employee claims that plan fiduciaries operating the Pfizer 401k Savings Plan breached their ERISA duties. The complaint, filed in U.S. District Court for the Western District of Michigan, Southern Division, named as defendants Pfizer Inc, the Board of Directors of Pfizer Inc., and the Savings Plan Committee of Pfizer Inc. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Lawmakers to Introduce SECURE 2.0 Technical Corrections Lawmakers clarify legislative intent relating to four provisions in SECURE 2.0 to fill the gap while waiting for corrective action from Congress. Source: Wtwco.com »» Click here for more on Legislative and Washington Actions State-Based Private-Sector Retirement Programs OregonSaves Passes $200 Million Retirement Savings Mark Six years after launch, new populations of first-time savers continue to join the nation's first state-based auto-enrollment retirement savings program. Source: 401kspecialistmag.com Silver State Strikes Gold for Savers Nevada became the latest state to provide retirement plan coverage for private-sector employees whose employers do not. The Nevada Senate passed the bill, SB305, on May 26; the Nevada Assembly followed suit on June 4. The bill then went to Gov. Joe Lombardo, who signed it into law on June 13. Source: Napa-net.org Marketplace News Vestwell Grows MEP and PEP Capabilities OneDigital Acquires StoneStreet Equity ProNvest Rebrands as Future Capital Ameritas Unveils New Pooled Employer Plan JULY Acquires Sunwest Pensions
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