On July 11, 2023, the Pension Benefit Guaranty Corporation (PBGC) issued a final rule on benefits administration for terminated single-employer pension plans. The final rule aims to increase transparency of benefits administration for terminated plans while also clarifying and simplifying regulatory language.

The IRS recently released updated instructions for Form 5300, Application for Determination for Employee Benefit Plan; Form 5307, Application for Determination for Adopters of Modified Non-standardized Pre-Approved Plans; and Form 5310, Application for Determination for Terminating Plan.

The SECURE 2.0 Act made significant changes to the Employee Plans Compliance Resolution System (EPCRS) self-correction program but also granted the IRS broad latitude to limit self-correction as it deems appropriate.

On May 10, 2023, in Su v. Sherrod, the Seventh Circuit affirmed the district court’s grant of summary judgment to the DOL in a case involving breaches of ERISA duties of loyalty and prudence. The rulings follow a civil enforcement action brought against Dr. Shirley Sherrod and Leroy Johnson, the trustee and plan administrator, respectively, of a defined benefit retirement plan established in 1987 for employees of Sherrod’s...

On April 25, 2023, the DOL’s Employee Benefits Security Administration (EBSA) issued Field Assistance Bulletin No. 2023-01, providing guidance to multiemployer plans on how they can comply with ERISA annual funding disclosure requirements when they receive special financial assistance (SFA) under the American Rescue Plan Act. The EBSA presents the guidance as 11 Q&A's, which are explained in order below.

The Seventh Circuit Court of Appeals (Seventh Circuit) has remanded two of three of the plaintiffs’ claims for further proceedings in Hughes v. Northwestern University after the US Supreme Court overturned its previous ruling that dismissed all three claims.

The IRS recently released its Employee Plans Examination Process Guide, which provides a general explanation of the EP Examination process and provides resources for retirement plan compliance. The guide is divided into six sections:

Retirement plan fiduciaries may continue to consider the potential financial benefits of investing in funds that take “the economic effects of climate change and other environmental, social, and corporate governance factors” (“ESG factors”) into account without fear of automatically running afoul of ERISA’s fiduciary duty requirements after President Biden’s veto of a House resolution on March 20, 2023.

SECURE 2.0, which we covered in detail in our January 5, 2023, edition of Compliance Corner, delayed the required beginning date for required minimum distributions (RMDs) for IRA owners. IRS Notice 2023-23 provides relief for financial institutions tasked with filing Form 5498 (IRA Contribution Information) for individuals for whom an RMD would have been due in 2023 had the delay under SECURE 2.0 not occurred.

On February 27, 2023, the IRS published a proposed rule in the federal register relating to the use of forfeitures in qualified retirement plans, including a deadline for the use of forfeitures in defined contribution plans. Previous guidance and regulations prohibited plan administrators from applying forfeitures arising from severance of employment, death, or for any other reason to increase the benefits any employee would otherwise receive under the plan. Previous regulations also required plan administrators to use those forfeited amounts as soon as possible to reduce the...