DOL Proposes Updates to the Voluntary Fiduciary Correction Program

The DOL proposes what it calls a "Self-Correction Component" concerning delinquent participant contributions and loan repayments, subject to several conditions discussed below. It is important to note that the self-correction contemplated by the VFCP update differs from the self-correction afforded under EPCRS because it would still require a submission to the DOL, albeit a streamlined one.

Source: Wagnerlawgroup.com, November 2022

Judge Dismisses Charge of "Unreasonable" 401k Fees by Electronics-Maker Ricoh

A federal district court bounced two fiduciary breach claims brought by participants against Ricoh USA, saying plaintiffs failed "to plausibly allege the committee breached its ERISA-imposed fiduciary duty by charging unreasonable recordkeeping fees."

Source: Planadviser.com, November 2022

2023 US Defined Contribution Plan Compliance Calendar

For calendar-year defined contribution plans, this retirement plan compliance calendar list key IRS, Pension Benefit Guaranty Corp., and Labor Department reporting and disclosure deadlines.

Source: Mercer.com, November 2022

Retirement Benefits Nearly as Important as Salary, Survey Finds

The COVID-19 pandemic thrust retirement savings into the limelight as workers looked for ways to secure financial stability during uncertain times.

Source: Hrdive.com, November 2022

401k Plan Asset Allocation, Account Balances, and Loan Activity in 2020

Key Findings: 401k plans draw in many young retirement savers and new hires. Younger 401k plan participants tend to be invested more in equities than older 401k plan participants. Ownership of investments in equities is widespread among 401k plan participants. Target date funds continue to be an often-used investment option among 401k plan participants. 401k plan loans are widely available but rarely taken. The average 401k plan account balance tends to increase with participant age and tenure.

Source: Ebri.org, November 2022

Are Retirement Plans Too Complicated and at Risk of Becoming Even More So?

Albert Feuer, who writes frequently on the technical aspects of ERISA compliance, has published an interesting new article in Bloomberg Tax's Tax Management Compensation Planning Journal on the latest proposed legislation to alter retirement savings. Albert points out that the changes would help in allowing employees to increase their retirement savings, but would fail to either address the complexity of the system or the extent to which it allows a small percentage of taxpayers to use retirement accounts to shelter massive amounts of wealth far beyond that needed to fund retirement.

Source: Bostonerisalaw.com, November 2022

DOL Proposes Adding Self-Correction Component to VFCP

The DOL proposed updates to the voluntary fiduciary correction program, including a provision that should help plan sponsors and providers. More specifically, the addition of a self-correction component for employers that fail to send employee salary withholding contributions or participant loan repayments to retirement plans on time.

Source: Asppa.org, November 2022

ARA Presses DOL for Changes to QPAM Exemption Proposal

The American Retirement Association is calling on the Department of Labor to make changes to its proposed amendments to the Qualified Professional Asset Manager exemption, arguing that, as currently drafted, the proposal would needlessly disrupt plan relationships and increase costs.

Source: Asppa.org, November 2022

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