Episode 19: 401(k) Forfeitures Under Fire: Unpacking Recent Legal Battles

Pension Risk Transfers and Litigation Risk: What Fiduciaries Need to Know

In this episode, Richard is joined by Alan Wilmit, serving as co-host, as they welcome Ada Dolph, a Partner in Seyfarth’s ERISA Litigation group, to unpack the complexities of pension risk transfers (PRTs). Ada explains what PRTs are, how they’re used to manage pension liabilities, and why they’re drawing increased scrutiny. The conversation covers recent litigation trends, the impact of the Supreme Court’s Thole decision, and the evolving focus on Article III standing. Grab your coffee and tune in for practical insights on what fiduciaries need to know as PRT-related class actions continue to emerge. Read the full transcript of this episode here: https://www.seyfarth.com/dir_docs/podcast_transcripts/CoffeeTalkWithBenefits_Episode21.pdf

Episode 20: The ESG Evolution: Trends, Strategies, and Legal Insights

In this episode, we’re joined by Ameena Majid, Seyfarth’s Impact & Sustainability Partner, to explore the intricacies of ESG (Environmental, Social, and Governance) investing. Ameena explains the core principles of ESG, why it has become a priority for companies, and the different types of ESG investing. We also discuss how corporate ESG goals influence 401(k) and pension plan investments, the regulatory landscape, and potential legal hurdles. Grab your cup of coffee and tune in to hear Ameena share her expertise on navigating the evolving ESG legal landscape. Read the full transcript of the episode here: https://www.seyfarth.com/dir_docs/podcast_transcripts/CTWB_Episode20.pdf

Episode 19: 401(k) Forfeitures Under Fire: Unpacking Recent Legal Battles

In this episode, Richard and Sarah are joined by Ian Morrison, a Partner in Seyfarth’s ERISA Litigation group to delve into a new line of cases alleging that forfeitures are plan assets, and must be used to benefit plan participants. The plaintiffs in these cases are claiming that using forfeitures to offset employer contributions – a common practice - amounts to disloyal conduct by the fiduciaries and self-dealing by the employer. This episode also explores the defense's arguments that this practice is lawful, backed by longstanding Treasury Regulations and Department of Labor guidance. Grab your cup of coffee and tune in to hear Richard and Sarah discuss these recent cases with Ian, and the steps plan sponsors can take to navigate this evolving legal landscape.

Episode 18: Understanding SECURE 2.0: A Deeper Dive into the Rothification of Employer Contributions

Released by the IRS in the final days of 2023, Notice 2024-2 offers guidance on several aspects of the SECURE 2.0 Act, particularly focusing on instructions related to designated Roth matching and nonelective contributions. In this episode, Seyfarth’s Ben Spater provides insights on various aspects of the notice, including the participant eligibility to elect employer contributions, the irrevocability of Roth designations, the five-year holding period for tax benefits, and potential administrative complexities. Ben also clarifies how Roth contributions are treated for purposes of tax reporting. Grab your cup of coffee and tune in to hear Richard and Sarah discuss how these provisions impact retirement planning strategies, compliance considerations for employers, and what individuals need to know about managing their tax liabilities when it comes to Roth contributions in their retirement accounts.

Episode 17: Long-Term Part-Time Employee Guidance

On November 24, 2023, the IRS issued highly anticipated proposed regulations concerning the provisions under SECURE and SECURE 2.0, requiring 401(k) plans to expand deferral eligibility for long-term part-time employees. The proposed rules answer a number of burning questions that have been lingering since 2019 when SECURE was first enacted. In this special episode, Seyfarth Partner Diane Dygert and our very own co-host Sarah Touzalin delve into the intricacies of identifying long-term part-time employees, the nuanced vesting rules applicable to long-term part-time employees, the newly introduced concept of former long-term part-time employees, and what, if anything, plan sponsors and administers need to do for 2024. Grab your cup of coffee and tune in for a lively discussion of these proposed rules!