IBM has recently entered into a $6 billion pension risk transfer agreement with Prudential, as the retirement industry evolves from pension plans to 401(k) plans and PRTs firm allow firms to offoad the burdensome administration of allocating pension plans.
By staying informed and proactive, advisors and brokers can help ensure that employee benefit plans remain robust, compliant, and beneficial for all stakeholders.
In the last year, Lockheed Martin, AT&T, Alcoa and GE have been sued by employees in class action lawsuits over the PRT deals made with Athene, alleging the firm "breached their fiduciary duty," says law firm Schlichter Bogard.
Transitioning from voluntary to auto-enrollment in 401(k)s, coupled with auto-escalation, should be a key plan design feature for employers, recommends the Morningstar Center for Retirement & Policy Studies.
Just like auto enrollment and the default selection of target-date funds, the adoption of auto portability was given a push by SECURE 2.0 and the upcoming Saver's Match Program will allow low-income workers to save even more for retirement.
The IRS's new fact sheet includes guidance for provisions on de minimis financial incentives, Roth SIMPLE and SEP IRAs and designated Roth matching contributions – and how these provisions impact how certain amounts are reported on their W-2s.