News & Analysis as of

Employer Contributions Compensation & Benefits Retirement Plan

BCLP

Abolition of MPF Offsetting Mechanism in Hong Kong

BCLP on

From 1 May 2025, in respect of Hong Kong’s MPF scheme, the MPF offsetting mechanism will be abolished, meaning that employers no longer will be able to use the accrued benefits of their mandatory contributions under the...more

Foley & Lardner LLP

Taming the Tariffs: Employee Benefit Issues for Employers During Times of Economic Uncertainty – Group Employee Terminations

Foley & Lardner LLP on

Many companies are scrambling to quickly assess how to reduce the business impact of the upheaval to U.S. manufacturing and trading with the recent onslaught of tariffs threatened or imposed by the United States and the...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Vesting doesn’t help with retention

I have worked at places that were so unpleasant that I consider myself lucky the vesting schedule was only six years. If they had the option, I’m convinced they would have implemented a 20-year vesting schedule. For me,...more

Williams Mullen

PODCAST: Williams Mullen's Benefits Companion - Big Changes to Catch-Up Contributions in 2025

Williams Mullen on

On this episode of Williams Mullen's Benefits Companion, host Brydon DeWitt discusses big changes to contributions to retirement plans under SECURE 2.0 that begin in 2025. He covers the new “Super Catch-Up” contributions for...more

Pullman & Comley - Labor, Employment and...

Retirement Plan Update – Forfeitures are New Focus of Fiduciary Breach Litigation

Many employer-sponsored defined contributions plans, including 401(k) profit sharing plans and money purchase pension plans include a vesting schedule – a period over which a plan participant earns a nonforfeitable right to...more

Dickinson Wright

Both Employers and Participants Benefit from New IRS Guidance on Correcting Inadvertent Benefit Overpayments

Dickinson Wright on

Retirement plan administration mistakes require difficult conversations with participants, especially when the mistake involves an overpayment.  Changes in the law, specifically, SECURE 2.0 and IRS Notice 2024-77, give plan...more

Bennett Jones LLP

Federal Government Proposes Changes to 30 Percent Rule to Spur Pension Investment Within Canada

Bennett Jones LLP on

Canada’s federal government announced it intends to remove the “30 percent rule” for investments by domestic pension funds in Canadian entities. The change is part of the Fall Economic Statement that was released on December...more

Williams Mullen

PODCAST: Williams Mullen's Benefits Companion - New IRS Guidance on SECURE 2.0 Act Student Loan Employer Contributions

Williams Mullen on

On this episode of Williams Mullen's Benefits Companion, host Brydon DeWitt discusses the recent IRS guidance regarding provisions under the SECURE 2.0 Act which allows employers to make matching contributions on account of...more

Husch Blackwell LLP

Navigating Employer Responsibilities: SECURE 2.0 Act's Impact on Long-Term Part-Time Rules

Husch Blackwell LLP on

The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) introduced the Long-Term Part-Time (LTPT) rules. These rules aim to address the retirement needs of long-term part-time employees who have...more

Littler

Illinois Federal Court Holds that a Pension Rehabilitation Plan Fund Used an Improper High-Contribution Rate in Withdrawal...

Littler on

On March 29, 2024, the U.S. District Court for the Northern District of Illinois issued its decision in Central States, Southeast and Southwest Areas Pension Fund v. Event Media, Inc. In a matter of first impression for...more

Patterson Belknap Webb & Tyler LLP

Does Your Retirement Plan Need a 'PLESA'?

Pension-Linked Emergency Savings Accounts (“PLESAs”) are a special retirement plan feature created under SECURE ACT 2.0. PLESAs were first permitted to be made available to participants as of January 1, 2024. PLESAs, which...more

Nossaman LLP

Court of Appeal Ends Decade-Long Dispute and Upholds Board’s Fiduciary Decisions Regarding Funding of Retirement System

Nossaman LLP on

On March 27, 2024, after nearly a decade of dispute and five years of litigation, the First District Court of Appeal unanimously rejected all claims that a participating employer brought against the Alameda County Employees’...more

Littler

Canada Entered Last Phase of CPP Enhancements on January 1, 2024

Littler on

All Canadian employers other than those in Quebec are required to: Deduct Canada Pension Plan (CPP) contributions from their employees’ pensionable earnings if the employee meets certain conditions; Contribute an...more

Pullman & Comley - Labor, Employment and...

Employers – You May Help Your Employees Pay Off Student Debt AND Save for Retirement

Student loan debt is a significant source of financial stress for borrowers, who face a hefty new line item in their budgets since the pause on student loan repayment ended in October 2023. Recent surveys show that student...more

Morgan Lewis

Secure Act 2.0: Analysis of Expanded Matching Contribution and Emergency Savings Account Provisions

Morgan Lewis on

The SECURE 2.0 Act of 2022 (SECURE 2.0) makes far-ranging changes to the US employer–retirement plan system intended to expand access to retirement plans and encourage savings by US workers. This LawFlash more closely...more

Faegre Drinker Biddle & Reath LLP

The SECURE Act 2.0: The Most Impactful Provisions #11 — The Saver’s Match for Low Income Workers

The President signed the Consolidated Appropriations Act, which included SECURE Act 2.0, on December 29, 2022. SECURE Act 2.0 has over 90 provisions, some major and some minor; some mandatory and some optional; some...more

McDermott Will & Emery

SECURE 2.0 Takes Second Bite at Retirement Security

McDermott Will & Emery on

The US Congress recently passed the SECURE 2.0 Act of 2022 (SECURE 2.0). Building on the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 (SECURE 1.0), SECURE 2.0 strives to expand retirement plan...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

In 2021, people were deferring more

The Plan Sponsor Council of America’s (PSCA)65th Annual Survey of 401(k) and Profit Sharing Plans showed record savings in retirement plans. In 2021, participant and employer contribution rates combined to produce an...more

Morgan Lewis

SECURE Act 2.0: Congress Delivers Retirement Plan Legislation and Holiday Cheer as Part of Year-End Spending Bill

Morgan Lewis on

After months of on-again off-again consideration of competing bills, US Congress capitalized on bipartisan support for retirement plan legislation to deliver the SECURE 2.0 Act of 2022 (SECURE Act 2.0) as part of the year-end...more

Verrill

401(k) Plan Matching Contributions: To True Up or Not True Up?

Verrill on

As a matter of plan design, for purposes of matching contributions some 401(k) plans provide that a participant’s compensation for the entire plan year is taken into account (regardless of whether the participant makes...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Employer contributions will be cut

I always joke that local news stations should simply recycle some stories during every major snowstorm. The stories where stores are emptied of food and shovels are just stating the obvious of a snow storm, so no need to redo...more

Groom Law Group, Chartered

Upcoming Deadlines for Plan Sponsors: April 2022

In this month’s edition of our upcoming deadlines notice to plan sponsors, we highlight April 2022 deadlines that sponsors should prepare for in order to ensure compliance and avoid risks....more

Proskauer - Employee Benefits & Executive...

Ninth Circuit Agrees with Third Circuit that “Highest Contribution Rate” for Withdrawal Liability Payment Calculations Excludes...

On January 31, 2022, the Ninth Circuit affirmed the lower court’s finding that surcharges imposed by the Pension Protection Act (“PPA”) are excluded from the determination of an employer’s “highest contribution rate” for...more

Faegre Drinker Biddle & Reath LLP

IRS Announces 2022 Cost-of-Living Adjustments for Retirement Plans

The IRS recently announced the 2022 cost-of-living adjustments to various benefit and contribution limits applicable to retirement plans. Generally, the IRS increased the applicable limits for 2022, although certain limits...more

Morgan Lewis - ML Benefits

IRS Issues Important Reminder on Application of IRC Section 415(c) Limit to 403(b) Plans

The Internal Revenue Service (IRS) issued an important reminder of the unique application of the limit under Internal Revenue Code (IRC) Section 415(c) to 403(b) plans on August 20, 2021. The IRS’s “Issue Snapshot”...more

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