In April 2024, the DOL proposed collecting information from plan administrators to create an online tool for individuals to locate potentially lost retirement benefits, as mandated by the SECURE 2.0 Act. This initiative aims to establish a Retirement Savings Lost and Found database by December 29, 2024. While under review by the Office of Management and Budget, the DOL updated its proposal, reducing the information required from terminated participants and excluding transferred benefits. Additionally, the DOL will not utilize the Form 5500 EFAST system for this reporting.
The DOL will hold the 2024 Advisory Council on Employee Welfare and Pension Benefit Plans, or ERISA Advisory Council, on October 22. The online, public meeting will focus on recommendations for the secretary of Labor regarding two key study topics: improving accessibility of welfare plan claims and appeals procedures, and assessing lifetime income and qualified defined investment alternatives.
The ERISA Industry Committee is seeking more guidance from the IRS regarding non-discrimination testing and other specific issues related to the student loan match program authorized by the SECURE 2.0 Act of 2022. On Friday, ERIC submitted a letter to the IRS requesting additional technical guidance to assist defined contribution plan sponsors in providing employer-matching contributions based on participants' qualified student loan payments.
Recent litigation has emerged targeting the use of forfeitures to offset employer contributions in retirement plans. A panel discussion featuring Nevin Adams, Fred Reish, Bonnie Treichel, and Tom Clark at the Strategic Retirement Partners annual conference explored the implications of this trend and offered guidance for plan fiduciaries. They discussed the current legal landscape and strategies for addressing these new challenges.
The shift to remote work has brought both challenges and benefits for employers and employees, particularly regarding productivity and accountability. However, one area that needs more focus is the impact of remote work on retirement plans and employee saving behavior. Research by firms like Morningstar indicates that physical absence from the office may affect employees' participation in employer-sponsored plans. Consequently, plan sponsors should consider adapting their retirement plans to better accommodate remote workers, enhancing goodwill and satisfaction among employees.
As 2024 nears its end, plan sponsors should review their plan documents and operations to ensure compliance with complex qualification requirements and deadlines. Although no mandatory plan amendments are due this year, sponsors must stay vigilant about discretionary amendment deadlines, ensure operational compliance with legal changes, and verify that later-adopted amendments accurately reflect plan operations.
In the article from TAXES -- The Tax Magazine, titled "IRS Issues Student Loan Match Guidance -- Save for Retirement While Repaying Student Loans," Groom principals Elizabeth Thomas Dold and David Levine explain the IRS's new guidance on qualified student loan payments. They address common questions about this guidance and provide suggestions for plan sponsors and recordkeepers on the necessary next steps to take.
A white paper by T. Rowe Price suggests that combining a drawdown withdrawal strategy with guaranteed income from a deferred annuity can enhance retirement income while ensuring retirees retain sufficient liquidity. As the focus of retirement discussions shifts from accumulation to decumulation, T. Rowe Price identifies retirement income as a pressing issue for the industry to address.
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Collected Wisdom™
Our researchers look for what they think are some of the better resources available to assist you in administering your plan or helping your clients. We group these resources in our COLLECTED WISDOM™ topics to make it easy for you to locate the information you need. Each item in a category contains a summary and date of when it was placed in the group.
We also maintain some older material in these collections for perspective and context.
