8 May 2025

📈Proposed Rule for Correcting Errors in Retired Lifecycle Funds

Method of Correcting Errors Involving Retired Lifecycle Funds

Summary

The Federal Retirement Thrift Investment Board (FRTIB) is proposing to amend its regulation regarding the method for correcting errors involving Lifecycle Funds that no longer exist. Specifically, it is reverting to the use of a constructed share price to calculate breakage and the value of negative adjustments for errors involving Lifecycle Funds that no longer exist as of June 1, 2022.

Agencies

  • Federal Retirement Thrift Investment Board

Business Impact ?

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The proposed rule by the Federal Retirement Thrift Investment Board affects compliance and regulatory requirements for businesses managing retirement plans, specifically in calculating contributions and adjustments related to retired Lifecycle Funds. This could impact businesses’ financial planning and administrative processes linked to employee retirement benefits.

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