BenefitsWire

⏱ Comment closes Sep 4

PBGC is proposing to simplify its benefit overpayment recoupment rules for single-employer terminated plans by replacing the current variable methodology with a flat 5% reduction of a participant's monthly benefit and eliminating recoupment from surviving beneficiaries — changes that would reduce financial hardship on retirees and ease administration for PBGC-trusteed plans. MORE >>

Source: Pension Benefit Guaranty Corporation

“In DOL Technical Release 2026-02, the DOL concluded that Trump Accounts, during the growth period, were not pension plans under ERISA because employer contributions would be made, in most cases, to dependents of employees and not to the employees themselves. In the few cases where a 16-year-old or 17-year-old might be an employee and thus the contribution would be to an employee's own Trump Account, the DOL determined that the Trump Account would still not be a pension plan if it satisfied the existing minimal employer involvement exception for IRAs. After the growth period, Trump Accounts become IRAs of the child and generally fall under the IRA exceptions to ERISA.” MORE >>

Source: Segal

“Revenue Procedure 2026-25 resolves that uncertainty with a safe harbor: qualifying contributions are treated as gifts eligible for the annual gift tax exclusion. ... If all three conditions are met, each contribution is treated as a completed gift to the beneficiary rather than a future interest in property that would require a return. If any condition is not met (for example, if contributions to a single beneficiary exceed the annual exclusion), the donor must file gift tax returns for every Trump account beneficiary who received a contribution from the donor that year.” MORE >>

Source: Groom Law Group

“Workers turning 60, 61, 62, or 63 during 2026 can now set aside up to $11,250 in catch-up contributions to their 401(k) or similar retirement plan, according to IRS guidance. That figure is roughly 41 percent higher than the $8,000 standard catch-up limit available to all workers 50 and older. Combined with a new $24,500 elective deferral ceiling for 2026, eligible near-retirees can shelter as much as $35,750 in a single year, giving them a narrow but meaningful window to close savings gaps before required minimum distributions begin.” MORE >>

Source: The Financial Wire

“The DOL's proposed rule change (published March 30) would establish a process-based safe harbor for fiduciaries selecting investment options—including alternative assets such as cryptocurrency, private equity, hedge funds, and annuities—for participant-directed defined contribution plans. The comment period closed June 1 with 47,103 responses, the overwhelming majority opposed. ... A final rule is expected in coming months. The Biden-era 2022 guidance directing 'extreme care' before adding crypto to 401(k) menus was rescinded by the Trump DOL in May 2025.” MORE >>

Source: Northwest Labor Press

[General Benefits]

“On March 30, 2026, the DOL proposed a new rule establishing a process-based safe harbor for fiduciaries selecting investment options for participant-directed defined contribution plans (91 Fed. Reg. 16088). The rule identifies six factors—performance, fees, liquidity, valuation, benchmarking, and complexity—and outlines examples of prudent and imprudent processes. The rule has the potential to significantly curb meritless class actions targeting 401(k) plans and is intended in part to implement Executive Order No. 14430, 'Democratizing Access to Alternative Assets for 401(k) Investors.'” MORE >>

Source: Gibson Dunn

[General Benefits]

“Sustained higher interest rates since late 2022 have substantially diminished the impact of pension funding relief during 2023-2026. Underfunded plans are likely seeing higher required contributions for the next few years. Discount rates were close to flat again last month. We expect most pension sponsors will use effective discount rates in the 5.4%-5.8% range to measure pension liabilities right now.” MORE >>

Source: octoberthree.com

“The DOL's proposed rule provides a "safe harbor" pursuant to which a plan's fiduciaries can comply with ERISA's fiduciary duty of prudence under Section 404(a)(1)(B) of ERISA when making alternative assets available under the plan. ... the DOL repeatedly noted that plan fiduciaries should engage appropriately qualified advisers to help them evaluate DIAs if they do not have the expertise to do so. Remarkably, however, the DOL's proposed rule did not speak to fiduciary review of direct or indirect investment in digital assets, by way of example or otherwise.” MORE >>

Source: PLANADVISER

[Retirement Plans]

“Treasury is nearing final regulations for rollovers from Trump accounts into the retirement system, per conversations he has had with Treasury officials. ... ARA has asked Treasury to clarify tax basis tracking, and how Trump accounts containing pre- and post-tax funds can be rolled over. ... Under the law, Trump account funds must be invested entirely in passive equity index funds that have an expense ratio of 0.1% or less, and must be invested primarily in U.S. companies.” MORE >>

Source: American Retirement Association