Mercer Projects 2024 Retirement Plan Limits
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General Items Mercer Projects 2024 Retirement Plan Limits Almost every key Internal Revenue Code limits for qualified retirement plans will rise from 2023 to 2024, Mercer projects. The 2024 limits will reflect increases in the Consumer Price Index for All Urban Consumers from the third quarter of 2022 to the third quarter of 2023. Only the catch-up contribution limit, which has a relatively large rounding value, is expected to stay the same next year. Source: Mercer.com Fiduciary and Plan Governance Prudent Plan Governance Essential in Defense Against Fiduciary Breach Although retirement plan excessive fee cases remain an ongoing concern for plan sponsors, the recent jury trial victory for Yale in Vellali v. Yale University provides hope for plans with strong, prudent plan governance. Given the pace of new excessive fee lawsuits and the verdict in Yale, plan sponsors should review their plan governance procedures as soon as possible for compliance with the roadmap outlined here. Source: Dwt.com Some Symptoms of Retirement Plan Issues When it comes to a retirement plan, there are symptoms to suggest that something is wrong. This article is all about symptoms that might suggest you should be looking at your plan. Source: Jdsupra.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers This survey offers insights into how plans have navigated the remarkable past four years. The period began with the COVID-19 pandemic; subsequently moved through the Great Resignation, rapidly rising inflation, and elevated market volatility; and then saw the passage of the SECURE 2.0 Act. Plan sponsors appear to have emerged with an ever-expanding focus on how to help position participants for greater retirement funding success. Source: Jpmorgan.com DC Plan Sponsors Taking More Responsibility for Employees' Retirement Income Employers offering defined-contribution plans to their workers are broadening their focus on financial well-being, according to a poll from J.P. Morgan Asset Management. DC plan sponsors are especially keen to ensure that their employees are well-placed to enjoy adequate retirement income, with 9 out of 10 respondents saying they "strongly agree" or "somewhat agree" that it is important to offer investments that help participants generate income in retirement. Source: Investmentnews.com Single Retirees of Color Face Greatest Financial Hardship Far larger shares of the nation's Latino, Black, Asian, and Native American retirees are financially insecure than Whites, according to a new report confirming the now-familiar racial disparities that face both workers and retirees in this country. But what also stands out in this report is the gaping disparity between retired single people and married couples. Source: Bc.edu »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Which TPA Service(s) Matter Most? The third-party administrator, or TPA, can be a key advisor ally. Or, if expectations aren't aligned, the bane of a customer relationship. What's most important in an advisor/TPA relationship? Source: Napa-net.org Court and Legal On August 4, 2023, the Ninth Circuit Court of Appeals revived a lawsuit against AT&T Services Inc. and its retirement plan fiduciaries, reversing a district court's order granting summary judgment in AT&T's favor. This decision, which is published and binding on cases located in the Ninth Circuit, could open up new lines of attack on retirement plan sponsors and fiduciaries based on indirect fees received by plan service providers that, to date, have not played a major role in this area of litigation. Source: Truckerhuss.com BlackRock TDF Suite Picks Up Fifth ERISA Challenge Dismissal A federal court in California dismissed a breach of fiduciary duty lawsuit brought against Cisco under ERISA, though plaintiffs were allowed to amend their lawsuit. This case is one of a series of lawsuits brought by the Miller Shah law firm which alleges that BlackRock Inc.'s LifePath target-date-fund suite underperformed other TDFs in the market and that sponsors that selected the TDF series as their QDIA only did so to pursue lower fees, not with overall performance in mind. Source: Planadviser.com Two District Courts Reach Conflicting Holdings Over Excessive Recordkeeping Fee Claims Two District Courts have reached conflicting decisions on the same day when ruling on substantially similar allegations that plan fiduciaries violated ERISA by paying too much for recordkeeping services, with one court dismissing the claims and the other court allowing the claims to move forward into the (often expensive) discovery phase of litigation. Source: Erisapracticecenter.com DOL Sues 401k Plan, Fiduciary for Abandoning Plan The Department of Labor claims a payroll services and HR outsourcing company has effectively barred participants from accessing accounts and refused to accept contributions to the plans. Source: Plansponsor.com »» Click here for more Court and Other Legal Issues State-Based Private-Sector Retirement Programs Maine and Colorado to Partner On State-Sponsored Auto IRA Maine will partner with Colorado on its already established state-sponsored automatic retirement savings program for private-sector workers to provide the smaller state of Maine with a ready-made plan while reducing costs for both programs, the states announced Tuesday. Source: Planadviser.com State-Sponsored Retirement Plans Now Hold More Than $1B State-facilitated retirement savings programs have accumulated more than $1 billion in assets, as of July 31, according to data collected by the Center for Retirement Initiatives at Georgetown University. The assets are held by eight of the 19 state programs, with the largest share in the programs run by California, Oregon and Illinois. Source: Planadviser.com Compliance and Regulatory DOL Seeks Information for SECURE 2.0 Disclosure Guidance The DOL's pension office is seeking data and suggestions to help it address numerous obligations for disclosure guidance under SECURE 2.0. The DOL request for information addresses nine areas of SECURE 2.0 and asks 31 specific questions. The DOL is asking for comments by October 10, 2023. Source: Segalco.com New Rules Require Plans to "Chase Time" -- Coverage for Long-Term Part-Time Employees Certain 401k and 403b plans must be amended to allow part-time employees to participate under new rules in the 2019 SECURE 1.0 Act and the revised rules in SECURE 2.0. Plan sponsors should consider adopting an amendment to remove a 1,000-hour requirement and/or a part-time employee exclusion so that it is clear how the plan complies. Source: Frostbrowntodd.com Big Changes Coming to Catch-Up Contributions: Impacts of SECURE Act 2.0 In December 2022, Congress passed the SECURE Act 2.0. The SECURE Act 2.0 includes a multitude of provisions, many of which affect employer-sponsored retirement plans and individual retirement accounts. This article focuses specifically on changes to catch-up contributions for employer-sponsored retirement plans. Source: Berrydunn.com »» Click here for more Compliance and Regulatory Material Marketplace News Sprouting Rock Launches Rebranded, Independent Retirement Entity ADP, Morningstar Launch Managed Accounts for Small Business 401k Millennium Trust Announces Plans to Rebrand as Inspira Financial
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