How Can I Know Unless You Tell Me? New Rules for Participant Disclosures: Are They Any Easier?

SECURE 2.0 gave some leeway to plan sponsors in revising their participant notice distribution options. Effective this year, defined contribution plan sponsors have the option to forgo providing notification to unenrolled participants (with zero account balances). Certain conditions apply like (1) SPDs are still required, as are initial notices, like initial QDIA notices, (2) annual eligibility notices are still required (to be provided a reasonable time before the plan year begins), and (3) all participants must be provided notices on request. 401(k) plans with auto enrollment likely won’t have participants with zero accounts, except opt-outs. These disclosure rules may have minimum impact in reducing plan administration, but simplification was their goal.

Read now »

Related Content

• SECURE 2.0 Act Impact on Retirement Plan Compliance and Administration 
  Remember that the SECURE 2.0 Act consists of over 90 provisions that affect scores of rules governing qualified retirement plans and other tax-favored rules. The changes range from relatively minor modifications of existing provisions to important new optional and mandatory plan features and designs.   
• Participant Disclosure Checklist (Defined Contribution Plan)
  Review our summary charts for defined benefit plan notifications which (1) identify the plans subject to the disclosure rule, (2) summarize the disclosure's purpose and content, (3) identify required recipients, (4) set forth the timing rules, and (5) provide links to primary and secondary sources for further information.
• ERISA Retirement Plan Notices Resource Kit
  Reference this resource kit which provides guidance to counsel, plan sponsors, fiduciaries, and plan administrators in satisfying various ERISA and Internal Revenue Code notice and disclosure requirements for both defined benefit and defined contribution qualified retirement plans. DID YOU KNOW? You can quickly locate many executive employment agreements filed with the SEC by going to Market Standards – Employment. Market Standards – Employment is a searchable database of publicly filed executive employment agreements. It enables users to search, compare, and analyze more than 7,000 agreements using approximately 75 detailed deal points to filter search results. 

DID YOU KNOW? You can quickly locate many executive employment agreements filed with the SEC by going to Market Standards – Employment. Market Standards – Employment is a searchable database of publicly filed executive employment agreements. It enables users to search, compare, and analyze more than 7,000 agreements using approximately 75 detailed deal points to filter search results. 

Practical Guidance Updates 

Featuring the latest updates from your Practical Guidance account.    

• Employee Benefits & Executive Compensation Key Legal Developments Tracker
  Stay informed on new developments.
  • Retirement Plans. PBGC announces the maximum monthly guarantees to participants in (involuntary or distress) terminating/terminated single-employer pension plans whose benefits PBGC begins to pay or whose employer enters bankruptcy in 2024. The guarantees do not apply to multiemployer plans. PBGC, Maximum Monthly Guarantee Tables.
  • Retirement Plans. IRS specifies a mortality table for use in determining minimum present value under I.R.C. § 417(e)(3), ERISA 205(g)(3) (29 U.S.C. § 1055(g)(3)), for distributions with annuity starting dates that occur during stability periods beginning in the 2024 calendar year. IRS Notice 2023-73.
  • Retirement Plans. IRS and the Treasury Department set forth final regulations prescribing mortality tables to be used for most defined benefit pension plans. 88 Fed. Reg. 72357 (Oct. 20, 2023).
  • Health Plans. IRS updates PCORI fee for policy and plan years ending on or after October 1, 2023, and before October 1, 2024. The PCORI fee for the period between October 1, 2023, and October 1, 2024, is $3.22 per covered life, increasing $0.22 per covered life as compared to the PCORI fee assessed on or after October 1, 2022, and before October 1, 2023. IRS Notice 2023-70.
• Generative Artificial Intelligence (AI) Resource Kit is a collection of current guidance on generative AI, ChatGPT, and similar tools.
• Public Interest, Pro Bono, and Non-Profit Resource Kit offers valuable guidance for those providing pro bono legal services and assisting non-profit organizations and public interest groups. It includes useful content on topics including tenant's rights, fair housing and lending, discrimination, immigration, and general non-profit resources. 
• Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts. 
• Practical Guidance Journal Third Edition 2023 features Generative AI cautions and benefits, new trends in lending, environmental law considerations, and market intelligence.
• Check out our Practical Guidance Author Center! Learn about the 1750+ leading attorney authors contributing to our 26 practice areas, and find out how you can Become a Practical Guidance Author. Practical Guidance is committed to amplifying diverse voices of attorneys across all differences, including gender and race.  
• Legal Developments provide the latest updates and analyses of emerging topics impacting your practice area. Visit the Legal Developments page to see the latest topics, which also include breaking legal news and related Practical Guidance content. 
• Listen Up! The Practical Guidance and Law360 Podcasts Resource Kit features interviews with industry-leading attorneys on cutting edge issues in the law: AI, NFTs, Cannabis, and more.
• New and Updated Practical Guidance Content
  • Executive Separation Agreement Negotiation (Pro-executive)
  • Considerations for Health and Welfare Church Plans in Electing ERISA Status
  • Church Plan Election of ERISA Status under Section 410(d)
  • Executive Employment Agreement Drafting Checklist
  • Identity Theft and Internet Fraud Warning Clauses (Retirement Plan) (Summary Plan Description
  • 'Clawing Back' Executive Compensation: Companies Listed on the NYSE and Nasdaq Have Until December 1 to Adopt a Compensation Recovery Policy

PRACTICAL GUIDANCE CUSTOMER EMAIL EDITION ON THE WEB

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+