On April 16, 2024, the DOL issued a request for public comment on its proposal to create a database to allow individuals to locate former retirement plan information. This searchable database would help implement the requirement under the SECURE 2.0 Act to more easily allow individuals to obtain plan administrator contact information.

The IRS recently issued Notice 2024-35, which updates and extends the transition relief provided in Notice 2023-54, which addressed changes made by the SECURE Act and the SECURE 2.0 Act in required minimum distribution (RMD) requirements for qualified plans such as 401(k) plans, IRAs, Roth IRAs, 403(b) plans, and 457(d) eligible deferred compensation plans. For further information on prior Notice 2023-54, please see our August 3, 2023, Compliance Corner.)

On April 2, 2024, the DOL announced that it amended a rule that provides an exemption for qualified professional asset managers (QPAMs). A QPAM is defined as a bank, savings and loan association, insurance company, or registered investment adviser that assists retirement plans in making financial investments. QPAMS are particularly useful in that they can facilitate transactions that would otherwise not be allowed under ERISA, through the exemption granted by the DOL. The amendment clarifies language in the original rule, including what misconduct can render a QPAM ineligible...

On February 28, 2024, Chairperson Bernard Sanders (I-VT) and the majority staff of the Senate Health, Education, Labor, and Pensions (HELP) Committee released its report “A Secure Retirement for All” in coordination with that day’s full committee hearing on the potential for the expansion of defined benefit pension plans.

On February 13, 2024, the Employee Benefits Security Administration (EBSA), the DOL agency responsible for enforcement of ERISA, reported monetary recoveries totaling over $1.434 billion in its report on enforcement activities for fiscal year (FY) 2023. EBSA oversees approximately 2.8 million health plans, 619,000 other welfare benefit plans, and 765,000 private pension plans.

On January 24, 2024, the DOL finalized rules to amend the individual application procedure for prohibited transaction exemptions under ERISA and the Code. The final rules (termed the “Final Amendments”) follow the proposed rules published on March 15, 2022, but reflect certain changes in response to public comments received.

On January 17, 2024, the DOL released guidance regarding pension-linked emergency savings accounts (PLESAs) as part of the implementation of the SECURE 2.0 Act. The guidance, which is in the form of 20 frequently asked questions (FAQs), provides general compliance information. The FAQs were developed in consultation with the IRS and follow a recent IRS notice concerning PLESA anti-abuse rules. (Please see our January 17, 2024, Compliance Corner article.)

On January 18, 2024, the DOL released proposed regulations on automatic portability transactions for retirement plans when employees change jobs. This proposed change could make it easier for employees to keep track of existing retirement plan accounts with a benefit valued at $7,000 or less upon job termination. Currently, the rules allow those account balances to automatically roll over into a Safe Harbor IRA if the employee does not take certain actions upon job termination.

On January 12, 2021, the DOL released three documents addressing their policy on missing participants. The first two pieces – “Compliance Assistance Release No. 2021-01” and “Missing Participants – Best Practices for Pension Plans” – identify the steps that defined benefit plan sponsors should take when they are unable to find certain vested participants or beneficiaries. The third piece – “Field Assistance Bulletin No. 2021-01” – outlines the DOL’s temporary enforcement policy regarding the participation of terminated defined contribution plans in the Pension Benefit...

On January 12, 2024, the IRS released Notice 2024-22, which provides preliminary guidance to assist plan sponsors with implementing Pension-Linked Emergency Savings Accounts (PLESAs). Specifically, the notice addresses anti-abuse measures to discourage potential manipulation of the PLESA matching contribution rules.