BenefitsWire

“The IRS has issued proposed regulations that would modify rules for the minimum funding requirement applicable to single-employer defined benefit plans. The IRS issued them on Aug. 19. The proposed modifications include changes to the rules relating to the determination of a plan’s target normal cost and funding target. The proposed regs would implement certain statutory amendments that have not yet been reflected in applicable regulations, and would affect (1) participants in, (2) beneficiaries of, (3) employers maintaining, and (4) administrators of single-employer pension plans.” MORE >>

Source: American Retirement Association

The Department of Labor is considering exemptions for prohibited transactions involving Hawaii Pacific Health, Liberty Puerto Rico, and the Mid-America Carpenters Regional Council Apprentice and Training Fund. MORE >>

Source: Federal Register

The Administration for Children and Families withdrew its intent to award a single-source cooperative agreement to Burke Law Group, PLLC. MORE >>

Source: Federal Register

“The Staff stated that it would not recommend enforcement action under Section 17(f) of the Investment Company Act of 1940 (1940 Act) and paragraphs (b), (e), and (f) of Rule 17f-2 thereunder, provided that the Franklin Templeton Funds maintain 12 specified operational safeguards in connection with the proposed "self-custody" arrangement. Section 17(f) of the 1940 Act governs the custody of investment company assets. Rule 17f-2 (also known as the "self-custody" rule) applies when a registered investment company custodies its own assets, including through custodial arrangements with an affiliated custodian.” MORE >>

Source: Faegre Drinker

“During decumulation, behavioral biases may reduce the use of tools that can help participants with that process. However, there are steps recordkeepers and sponsors can take to account for them, says the Institutional Retirement Income Council (IRIC) in a recent report. According to the report, many savers struggle with “the last mile of retirement,” or the decumulation stage. Only 29% of pre-retirees aged 55 or older have a plan to draw down their savings.” MORE >>

Source: American Retirement Association

“The firm reported that across all small businesses, the percentage that are offering a retirement plan that their employees use has risen from 19% in 2019 to 31% in 2026, an increase of 64%. What’s more, employers with fewer than 10 employees account for much of the growth Gusto has observed over the last six years. In fact, the share of businesses with fewer than five employees and a plan doubled, from 10% in 2019 to 20% in 2026. And businesses with 5 to 9 employees saw their share rise 64%, from 22% to 36% over the same period.” MORE >>

Source: American Retirement Association

“A new white paper suggests plan sponsors can help participants break down barriers between saving and spending.” MORE >>

Source: PLANSPONSOR

“A federal appeals court revived a lawsuit challenging Royal Caribbean Cruises Ltd.’s selection of target-date funds for its employee retirement plan, ruling that plaintiffs do not always have to identify a closely matched investment benchmark to establish that a fiduciary made an objectively imprudent investment decision. The U.S. 11th Circuit Court of Appeals on August 17 reversed a lower court’s grant of summary judgment in favor of Royal Caribbean and sent the case back to the district court for further proceedings. According to the three-judge circuit court panel, the district court applied too rigid a standard when it required plaintiff Ann Johnson to produce an “apples-to-apples” compa” MORE >>

Source: PLANADVISER

“The opportunity is to build behavioral infrastructure for decumulation: defaults, education, guidance, planning tools and retirement income, delivered by the providers closest to the participant,” the paper stated. “Each provider holds a distinct lever.” The first hurdle IRIC named in its paper is switching off participants’ “save more, spend less” mentality. In response to a recent Corebridge Financial survey, only 28% of pre-retirees and retirees reported being comfortable drawing down their savings, and 38% said they deliberately underspent to protect their nest egg.” MORE >>

Source: PLANADVISER