31 Oct 2023
How Can I Know Unless You Tell Me? New Rules for Participant Disclosures: Are They Any Easier?
SECURE 2.0 gave some leeway to plan sponsors in revising their participant notice distribution options. Effective this year, defined contribution plan sponsors have the option to forgo providing notification to unenrolled participants (with zero account balances). Certain conditions apply like (1) SPDs are still required, as are initial notices, like initial QDIA notices, (2) annual eligibility notices are still required (to be provided a reasonable time before the plan year begins), and (3) all participants must be provided notices on request. 401(k) plans with auto enrollment likely won’t have participants with zero accounts, except opt-outs. These disclosure rules may have minimum impact in reducing plan administration, but simplification was their goal.
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Reference this resource kit which provides guidance to counsel, plan sponsors, fiduciaries, and plan administrators in satisfying various ERISA and Internal Revenue Code notice and disclosure requirements for both defined benefit and defined contribution qualified retirement plans. DID YOU KNOW? You can quickly locate many executive employment agreements filed with the SEC by going to Market Standards – Employment. Market Standards – Employment is a searchable database of publicly filed executive employment agreements. It enables users to search, compare, and analyze more than 7,000 agreements using approximately 75 detailed deal points to filter search results.
DID YOU KNOW? You can quickly locate many executive employment agreements filed with the SEC by going to Market Standards – Employment. Market Standards – Employment is a searchable database of publicly filed executive employment agreements. It enables users to search, compare, and analyze more than 7,000 agreements using approximately 75 detailed deal points to filter search results.
Practical Guidance Updates
Featuring the latest updates from your Practical Guidance account.
- Employee Benefits & Executive Compensation Key Legal Developments Tracker
Stay informed on new developments.- Retirement Plans. PBGC announces the maximum monthly guarantees to participants in (involuntary or distress) terminating/terminated single-employer pension plans whose benefits PBGC begins to pay or whose employer enters bankruptcy in 2024. The guarantees do not apply to multiemployer plans. PBGC, Maximum Monthly Guarantee Tables.
- Retirement Plans. IRS specifies a mortality table for use in determining minimum present value under I.R.C. § 417(e)(3), ERISA 205(g)(3) (29 U.S.C. § 1055(g)(3)), for distributions with annuity starting dates that occur during stability periods beginning in the 2024 calendar year. IRS Notice 2023-73.
- Retirement Plans. IRS and the Treasury Department set forth final regulations prescribing mortality tables to be used for most defined benefit pension plans. 88 Fed. Reg. 72357 (Oct. 20, 2023).
- Health Plans. IRS updates PCORI fee for policy and plan years ending on or after October 1, 2023, and before October 1, 2024. The PCORI fee for the period between October 1, 2023, and October 1, 2024, is $3.22 per covered life, increasing $0.22 per covered life as compared to the PCORI fee assessed on or after October 1, 2022, and before October 1, 2023. IRS Notice 2023-70.
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