The Weekly Highlights for Benefits Professionals
BenefitsWire
Retirement Plans
Week of July 17, 2026
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12 items · ~4 min read
In this issue
Regulatory Action and Guidance (9) · Retirement Plans (2) · Litigation (1)
Regulatory Action and Guidance
9 items“Nonpartisan seniors’ group The Senior Citizens League (TSCL) predicts this year’s COLA to be 3.8%, unchanged from last month’s forecasts but still 1% higher from 2026’s official figure of 2.8%. If TSCL’s projected 2027 COLA went into effect today, average benefits would increase by $73.62, or from $1,937.53 to $2,011.15. Meanwhile, Mary Johnson, an independent Social Security and Medicare analyst, forecasts the 2027 COLA at 3.7%, as inflation dropped for the month of June.” MORE >>
Source: 401(k) Specialist
The IRS issued final regulations clarifying how transfer-for-valuable-consideration rules and information reporting requirements apply when life insurance contracts are exchanged in tax-free Section 1035 exchanges, corporate reorganizations, or reportable policy sales, affecting insurers, policyholders, and other parties to these transactions including those receiving reportable death benefits. MORE >>
Source: IRS
“ Revenue Ruling 2026-13 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274.” MORE >>
Source: IRS
“PBGC concluded that, if the active participants are expected to remain employed, the reduction in headcount would not trigger a reportable event. Under ERISA section 4043, defined benefit plan administrators must notify PBGC when certain “reportable events” occur. One of those events is a reduction in the active participant headcount. Under that rule, if the headcount under a defined benefit plan is reduced by 20% or more from the count at the start of the year, the plan administrator must notify PBGC.” MORE >>
Source: Groom Law Group
“The National Cancer Institute (NCI) and Frederick National Laboratory for Cancer Research (FNLCR) seek research co-development partners and/or licensees for commercial development of a novel liquid biopsy diagnostic for non-invasive detection of cell-free HPV 6 and 11 DNA for recurrent respiratory papillomatosis (RRP).” MORE >>
Source: Federal Register
“A U.S. district court has vacated Notice 2025-42, which narrowed the beginning of construction (BOC) rules for wind and solar facilities seeking section 45Y or 48E tax credits and remanded the matter to the Internal Revenue Service (IRS) for further consideration. Oregon Environmental Council v. IRS, No. 25-4400 (CKK) (D.D.C. June 06, 2026). The court held that the Notice inadequately explained the elimination of a BOC safe harbor only for wind and solar projects and, consequently, was arbitrary and capricious under the Administrative Procedure Act (APA).” MORE >>
Source: Miller & Chevalier
“Among the 702 targeted rules are environmental review requirements for energy projects, energy efficiency standards, rules that promote diversity, equity, and inclusion (DEI), and specific deregulatory actions relevant to the federal contracting community. ... Among the 702 deregulatory actions is the U.S. Department of Labor's proposed rescission of all regulations implementing Executive Order 11246, the long-standing framework that required federal contractors to maintain affirmative action programs and comply with related nondiscrimination obligations.” MORE >>
Source: Ogletree Deakins
The Pension Benefit Guaranty Corp. (PBGC) says that purchasing annuities for actively employed participants in a frozen defined benefit (DB) plan doesn’t trigger event reporting under ERISA Section 4043. MORE >>
Source: Mercer
“On June 18, 2026, the U.S. Department of Labor (DOL) published Technical Release 2026-02, concluding that employer contribution arrangements associated with Trump Accounts are generally not subject to the Employee Retirement Income Security Act (ERISA).” MORE >>
Source: mondaq.com
Retirement Plans
2 items“The Internal Revenue Service (IRS) requires employers maintaining a pre-approved 403(b) plan to adopt a restated plan document (formally referred to as a Cycle 2 restatement) by December 31, 2026 to maintain reliance on the IRS approval. A Cycle 2 restatement is more than just another plan amendment. It is a comprehensive update and replacement of your plan document that incorporates changes in applicable law and IRS guidance since the last 403(b) pre-approved plan cycle. ... Many document providers are providing the Cycle 2 restatement and then intending to separately issue a SECURE 2.0 amendment later this year. As a result, plan sponsors may receive additional plan document updates relati” MORE >>
Source: Boutwell Fay
“Congress is once again considering legislation that would allow 403(b) retirement plans to invest in Collective Investment Trusts (CITs). More than 30 financial industry organizations are urging the Senate to act, arguing that teachers, nonprofit employees and clergy deserve access to the same institutional investment vehicles already available in many 401(k) plans. There is merit to that argument. Many Collective Investment Trusts are excellent investment vehicles. Vanguard’s Retirement Savings Trust (RST) funds are an excellent example. Low-cost institutional index strategies offered through CITs can reduce expenses for participants.” MORE >>
Source: The Commonsense 401(k) Project
Litigation
1 item“In Guenther v. BP Retirement Accumulation Plan, No. 24-20551, 2026 WL 2031828 (5th Cir. July 14, 2026) (per curiam), the United States Court of Appeals for the Fifth Circuit vacated a judgment entered in favor of a class of current and former BP employees on their ERISA fiduciary-breach claims and remanded for the district court to evaluate Article III standing. Plaintiffs sued under ERISA § 502(a)(3), alleging that BP breached its fiduciary duties under ERISA § 404(a) when, in a series of 1989 communications, it represented that employees would receive benefits under a new Retirement Accumulation Plan (RAP) at least equal to those under the predecessor Retirement Plan (ARP).” MORE >>
Source: Roberts Disability Law