Pension News - What's New in 2023?

The following list tracks important guidance that were released during 2023 or January 1-8, 2024. We will not publish further updates due to the retirement of Sal Tripodi and TRI Pension Services, effective January 31, 2024. Through the end of 2024, we will keep the links to the right active for access to current developments during 2020-2023.

Last Updated: February 1, 2024

Legislative Developments

• None

Treasury Regulations

• IRS reduces the minimum return requirement from 250 to 10 for mandatory electronic filing on many plan-related reporting forms, effective in 2023 [Citation: Treas. Reg. §§54.6011-3, 301.6011-2, 301.6011-10, 301.6033-4, 301.6057-3, 301.6058-2, 301.6059-2, 301.6721-1, 88 F.R. 11754 (February 23, 2023)]
  Text available at: https://www.govinfo.gov/content/pkg/FR-2023-02-23/pdf/2023-03710.pdf
• Prop. Treas. Reg. §1.401-7, 88 F.R. 12282 (February 27, 2023)]
  Text available at: https://www.govinfo.gov/content/pkg/FR-2023-02-27/pdf/2023-03778.pdf (also appears in the 2023-11 I.R.B. 565 (March 13, 2023)
• Mortality tables for post-2023 valuation dates [Citation: Treas. Reg. §§1.430(h)(3)-1, 88 F.R. 72357 (October 20, 2023)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2023-10-20/pdf/2023-23267.pdf
• Proposed regulations on long-term, part-time employees [Citation: Prop. Treas. Reg. §1.401(k)-5, 88 F.R. 82796 (November 27, 2023)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2023-11-27/pdf/2023-25987.pdf

IRS Guidance

• 2023 annual update of general procedures for obtaining Employee Plans private letter rulings and determination letters; 2023 user fees [Citation: Rev. Proc. 2023-4, 2023-1 I.R.B. (January 3, 2023)]
  Text available at https://www.irs.gov/pub/irs-irbs/irb23-01.pdf#page=165
• IRS updates Operational Compliance List to reflect changes effective through 2022 [Citation: Operational Compliance List (updated February 2023), www.irs.gov]
  Text available at https://www.irs.gov/retirement-plans/operational-compliance-list
• Two-year window to restate defined benefit pre-approved plans for third remedial amendment cycle starts April 1, 2023 [Citation: Announcement 2023-6, 2023-9 I.R.B. 501 (February 27, 2023)]
  Text available at https://www.irs.gov/pub/irs-irbs/irb23-09.pdf#page=24
• Reporting relief for IRA custodians/trustees/issuers due to SECURE 2.0 Act change [Citation: Notice 2023-23, 2023-13 I.R.B. 571 (advance release on March 7, 2023)]
  Text available at: https://www.irs.gov/pub/irs-drop/n-23-23.pdf or https://www.irs.gov/pub/irs-irbs/irb23-13.pdf#page=4
• IRS is developing guidance on when NFTs are collectibles and seeks public comment [Notice 2023-27, 2023-15 I.R.B. 634 (April 10, 2023)]
  Text available at: https://www.irs.gov/pub/irs-drop/n-23-27.pdf
• IRS provides guidance on expanded self-correction procedures authorized by SECURE 2.0 [Citation: Notice 2023-43, 2023-24 I.R.B. 919 (June 9, 2023; advance release on May 25, 2023)]
  Text available at: https://www.irs.gov/pub/irs-drop/n-23-43.pdf
• Tax relief provided for certain distributions to individuals born in 1951; regulatory interpretation of the application of the 10-year rule with respect to participants who die after RBD will not be effective earlier than for 2024 RMD calculations [Citation: Notice 2023-54, I.R.B. 2023-? (; advance release on July 14, 2023)]
  Text available at https://www.irs.gov/pub/irs-drop/n-23-54.pdf
• IRS provides a two-year transition period during which plans will not have to require catch-up contributions made by participants who are subject to new IRC §414(v)(7) to be in the form of designated Roth contributions [Notice 2023-63, 2023-37 I.R.B. 817 (September 11, 2023)]
  Text available at https://www.irs.gov/pub/irs-drop/n-23-62.pdf, or at https://www.irs.gov/pub/irs-irbs/irb23-37.pdf#page=24
• Procedures for requesting hardship waiver of electronic filing requirement for Forms 5500-EZ and 8955-SSA or administrative filing exemption for Form 8955-SSA for post-2023 plan years [Citation: Rev. Proc. 2023-31, 2023-40 I.R.B. 1057 (October 2, 2023)]
  Publication release link: https://www.irs.gov/pub/irs-drop/rp-23-31.pdf
  Direct IRB link: https://www.irs.gov/pub/irs-irbs/irb23-40.pdf#page=88
• Applicable mortality tables for IRC §417(e) determinations for annuity starting dates that occur in stability periods beginning in 2024 [Citation: Notice 2023-73, 2023-? I.R.B. (advance release October 19, 2023)]
  Text available at https://www.irs.gov/pub/irs-drop/n-23-73.pdf
• Adjusted dollar limits for 2024 [Citation: Notice 2023-75, 2023-? I.R.B. (advance release on November 2, 2023)]
  Text available at https://www.irs.gov/pub/irs-drop/n-23-75.pdf
• IRS combines approval procedures for Qualified Pre-Approved Plans and Section 403(b) Pre-Approved Plans, announces submission period for 4th Remedial Amendment Cycle for Qualified Pre-Approved DC Plans, and makes some procedural modifications [Rev. Proc. 2023-37, 2023-51 I.R.B. 23 (December 18, 2023)
  Text available at https://www.irs.gov/pub/irs-drop/rp-23-37.pdf
• 2023 remedial amendment list contains no required amendments [Citation: Notice 2023-79, 2023-52 I.R.B. 1581 (December 26, 2023)]
  Text available at https://www.irs.gov/pub/irs-drop/n-23-79.pdf
• IRS issues 2024 covered compensation table [Citation: Rev. Rul. 2024-01, 2024-1 I.R.B. (January 2, 2024; (advance release on December 18, 2023)]
  Text available at https://www.irs.gov/pub/irs-drop/rr-24-01.pdf
• 2024 annual update of general procedures for obtaining Employee Plans private letter rulings [Citation: Rev. Proc. 2024-4, 2024-1 I.R.B. (January 2, 2024)]
  Text available at https://www.irs.gov/pub/irs-irbs/irb24-01.pdf#page=162
• 2024 annual update of user fees [Citation: Rev. Proc. 2024-4, 2024-1 I.R.B. (January 2, 2024)]
  Text available at https://www.irs.gov/pub/irs-irbs/irb24-01.pdf#page=249
• 2024 annual update of determination letter procedure [Citation: Rev. Proc. 2024-4, 2024-1 I.R.B. (January 2, 2024)]
  Text available at https://www.irs.gov/pub/irs-irbs/irb23-01.pdf#page=165
• 2023 Cumulative List released for Cycle 4 Opinion Letter Applications for Defined Contribution Qualified Pre-Approved Plans [Citation: Notice 2024-03, 2024-02 I.R.B. 338 (January 8, 2024)]
  Text available at https://www.irs.gov/pub/irs-drop/n-24-03.pdf
• IRS issues preliminary guidance on a number of SECURE 2.0 Act provisions focusing primarily on rules taking effect in 2024 [Citation: Notice 2024-02, 2024-2 I.R.B. 316 (January 8, 2024)]
  Text available at https://www.irs.gov/pub/irs-drop/n-24-02.pdf

IRS Informal Rulings, Letters or other "Soft" Guidance

• Participants who have reached in-service distribution age may be treated as retirees for purposes of taking withdrawals from IRC §401(h) retiree medical account [Citation: PLR 202305001 (dated November 4, 2022; released February 3, 2023)]
  Text available at https://www.irs.gov/pub/irs-wd/202305001.pdf

DOL Regulations

• Civil penalty adjustments for 2023 [Citation: DOL Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2022, DOL Reg. §2575.3, 88 F.R. 2210 (January 13, 2023)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2023-01-13/pdf/2023-00271.pdf
• DOL/IRS/PBGC finalize modifications to the 2023 Form 5500 series to incorporate SECURE Act; conform DOL’s reporting regulations to coordinate with these 5500 modifications [Citation: Revision of Annual Information Return/Reports, 26 C.F.R. Part 301 (IRS) and 29 C.F.R. Parts 2520 (DOL) and 4065 (PBGC), 88 F.R. 11984 (February 24, 2023); DOL Reg. §§2520.103-1, 2520.103-10, 2520.103-14, 2520.104-51, 88 F.R. 11793 (February 24, 2023)]
  Text available at:
  https://www.govinfo.gov/content/pkg/FR-2023-02-24/pdf/2023-02653.pdf (revisions to the Form 5500 series); the DOL also has published a Fact Sheet on these revisions
  https://www.govinfo.gov/content/pkg/FR-2023-02-24/pdf/2023-02652.pdf (conforming amendments to DOL’s reporting regulations)
• DOL issues request for information (RFI) on several SECURE 2.0 provisions relating to reporting and disclosure rules under its jurisdiction [Citation: Request for Information - SECURE 2.0 Reporting and Disclosure, 88 F.R. 54511 (August 11, 2023)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2023-08-11/pdf/2023-17249.pdf
• DOL proposes regulations to modify the definition of an investment advice fiduciary; propose corresponding changes to several prohibited transaction exemptions relating to investment transactions [Citation: Prop. DOL. Reg. §2510.3-21(c)-(g), 88 F.R. 75890 (November 8, 2023)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2023-11-03/pdf/2023-23779.pdf

DOL Formal Guidance/Prohibited Transaction Exemptions

• None

PBGC Regulations and Other Guidance

• Civil penalty adjustments for 2023 [Citation: PBGC Adjustment of Civil Penalties for Inflation, PBGC Reg. §§4071.3 and 4302.3, 88 F.R. 1991 (January 12, 2023),]
  Text available at: https://www.govinfo.gov/content/pkg/FR-2023-01-12/pdf/2023-00499.pdf?utm_medium=email&utm_source=govdelivery
• PBGC responds to comments on withdrawal liability conditions in final rule regarding applications for financial assistance under the American Rescue Plan Act [Citation: PBGC Reg, §4262.16(g)(3), 88 F.R. 4900 (January 26, 2023)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2023-01-26/pdf/2023-01415.pdf
• PBGC adopts clarifications and codification of existing practices in the payment of benefits under PBGC-trusteed plans [Citation: PBGC Reg. §§4022.7-4022.9, 4022.21, 4022.93, 4044.41, 4062.4, 88 F.R. 44045 (July 12, 2023)]
  Text available at https://www.govinfo.gov/content/pkg/FR-2023-07-11/pdf/2023-14349.pdf
• One-time waiver of 4010 filing for certain filers due to atypical market conditions [Citation: PBGC Technical Update 23-1 (August 7, 2023)]
  Text available at: https://www.pbgc.gov/prac/other-guidance/tu/one-time-4010-filing-waiver

EBSA Advisory Opinions, Field Assistance Bulletins and other informal guidance from the DOL

• DOL provides guidance to field offices regarding annual funding notice requirements for multiemployer DB plans that receive special financial assistance [Citation: Field Assistance Bulletin 2023-01 (April 25, 2023)]
  Text available at: https://www.dol.gov/sites/dolgov/files/EBSA/employers-and-advisers/guidance/field-assistance-bulletins/2023-01.pdf

ERISA Litigation

• Arbitration clause in plan did not apply to ERISA §502(a)(2) claims for fiduciary breach because the claims belong to the plan, not to the individual employee [Citation: Harrison v. Envision Management Holding, Inc. Board of Directors, No. 22-1098, ___ F.4th ___ (10th Cir. February 9, 2023)]
  Text available at: https://www.ca10.uscourts.gov/sites/ca10/files/opinions/010110810667.pdf
• Florida district court vacates DOL’s interpretation of when rollover advice constitute fiduciary advice [Citation: American Securities Association v. Department of Labor, No. 8:22-cv-330-VMC-CPT (M.D.Fla. (Tampa Division) February 13, 2023)]
  Text available at: https://ecf.flmd.uscourts.gov/cgi-bin/show_public_doc?2022-00330-55-8-cv
• Applying the Tibble analysis, as required by the Supreme Court, the Seventh Circuit allows plaintiffs’ claims relating to the fiduciaries’ alleged failure to monitor recordkeeping fees and to negotiate for certain institutional shares in excessive fee case to move forward; more clarity provided regarding pleading requirements for such claims [Citation: Hughes v. Northwestern University, No. 18-2569, ___ F.4th ___ (7th Cir. March 23, 2023)]
  Text available at: http://media.ca7.uscourts.gov/cgi-bin/OpinionsWeb/processWebInputExternal.pl?Submit=Display&Path=Y2023/D03-23/C:18-2569:J:Brennan:aut:T:fnOp:N:3020799:S:0
• Actions taken by two plan fiduciaries warranted banning them permanently from holding positions of trust with ERISA plans [Citation: Su v. Johnson, No. 22-2204, ___ F.4th ___ (7th Cir. May 10, 2023)]
  Text available at: http://media.ca7.uscourts.gov/cgi-bin/OpinionsWeb/processWebInputExternal.pl?Submit=Display&Path=Y2023/D05-10/C:22-2204:J:Hamilton:aut:T:fnOp:N:3043618:S:0
• Arbitration clause in plan did not apply to ERISA §502(a)(2) claims for fiduciary breach because the claims belong to the plan, not to the individual employee [Citation: Henry v. Wilmington Trust, N.A., No. 21-2801, ___ F.4th ___ (3rd Cir. June 30, 2023)]
  Text available at: http://www2.ca3.uscourts.gov/opinarch/212801p.pdf
• Fiduciary’s pitch to cross-sell services to plan was not a fiduciary action, so fiduciary breach claim fails with respect to those actions [Citation: Reetz v. Aon Hewitt Investment Consulting, Inc., No. 21-2267, ___ F.4th ___ (4th Cir. July 17, 2023)]
  Text available at https://www.ca4.uscourts.gov/opinions/212267.p.pdf
• Ninth Circuit permits prohibited transaction and fiduciary breach claims to proceed based on fiduciary’s alleged failure to evaluate third party fee arrangements the recordkeeper had and reporting deficiencies regarding such fees; rejects interpretations of two other Circuit Courts regarding fiduciary breach claims arising from arms’ length transactions [Citation: Bugielski v. AT&T Services, Inc., No. 21-56196, ___ F.4th ___ (9th Cir. August 4, 2023)]
  Text available at https://cdn.ca9.uscourts.gov/datastore/opinions/2023/08/04/21-56196.pdf

Miscellaneous Guidance

• None