Strong Plan Committees Have Documentation, Flexibility
|
Newsletter Sponsor The newly released 401k Averages Book 24th Edition introduces fresh charts and a revamped format. Notable additions include Advisor Compensation along with the introduction of a comprehensive recordkeeping administration fee, encompassing hard dollar and asset-based recordkeeping costs along with any allocations from revenue sharing. These new data points will prove to be highly beneficial, offering a more comprehensive and insightful perspective on 401k average costs. Click here to order your copy. In This Issue
Fiduciary and Plan Governance Strong Plan Committees Have Documentation, Flexibility When it comes to running strong retirement plan committees, organization, documentation and flexibility are some of the key strategies for plan sponsors and their advisers to follow. Success comes not from following a set list of procedures, but creating the process that will best meet the plan sponsors goals and sticking to it. Source: Planadviser.com Anticipating and Overcoming Retirement Plan Disclosure Challenges As plan fiduciaries, employers often bear significant responsibilities and must comply with a wide variety of specific and recurring disclosure obligations imposed by law. Consistently meeting these obligations can be challenging, especially with the growing number of required disclosures and increased scrutiny by both the DOL and the IRS. As such, employers need to identify strategies and tactics to help anticipate and overcome these challenges. Source: Bloomberglaw.com Vetting of QDIAs Is Crucial as Options Proliferate The qualified default investment alternative that a plan fiduciary chooses can shape participant outcomes for decades. As if that is not important enough, all the relatively new, compelling QDIA options for employees are making the evaluation and selection process even harder. Fiduciaries must have a strong process to determine the best-qualified default investment alternative for their plan's participants, said a panel at the PLANSPONSOR National Conference. Source: Planadviser.com ERISA Bond: What Is It and do I Need One? Almost every sponsor of every tax-qualified retirement plan must obtain a fidelity bond under section 412 of ERISA. Despite the broad application of this requirement, a surprising number of plan sponsors are unaware of this requirement and do not have a bond at all or do not have a bond in the proper amount. This article will help explain the requirements. Source: Legacyrsllc.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, Analysis, and Papers Plan Sponsors Focusing on Retirement Income Solutions A greater number of DC plan sponsors are prioritizing retirement income solutions, according to a recent report by PIMCO. The firm's latest study found that nearly 90% of large institutional consultants say the top priority for clients is to find solutions for generating income in retirement, a 21% increase over the previous year. Source: 401kspecialistmag.com Most Workers are Unknowingly Skimping on Their 401ks A large chunk of US employees are not making contributions to their workplace retirement plans, and they don't even know it. A new poll from Principal sheds light on employee confusion around workplace retirement plans, and how good plan design could help solve the problem. Source: Investmentnews.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Advisers and Other Service Providers Jerry Schlichter Preps Advisors for Fiduciary Rule Changes: Podcast Jerry Schlichter, founding and managing partner of Schlichter Bogard LLC and a well-known pioneer of retirement plan excessive fee litigation, visits the 401k Specialist Podcast to share some important insights on the upcoming changes, legal challenges and what advisors need to be doing to prepare for compliance. Source: 401kspecialistmag.com Institutional Plan Consultants: Nearly 90% of Clients Want Income Solutions Institutional DC consultants are getting this message from nearly 90% of clients: We want retirement income solutions to offer our participants, according to PIMCO's 2024 DC Consulting Study. In a study capturing data, trends and opinions from 28 consulting and advisory firms working with more than 15,000 clients representing more than $7.9 trillion, respondents said 90% of large institutional clients put retirement income solutions of both guaranteed and non-guaranteed options as a top priority, a 21% increase over 2023. Source: Planadviser.com 401k Versus 403b: Guiding Clients Through Retirement Plan Choices For building their retirement savings, investors have many options. There are many employer-sponsored retirement accounts, and the 401k plans and 403b plans are just two examples. Of the two, the 401k is the more popular and more familiar. Meanwhile, the 403b, even if lesser known, has its merits. So, what's the difference between 401k and 403b plans? In this article, InvestmentNews provides some insight into the question. Source: Investmentnews.com DOL Fiduciary Rule Challenge Gains More Support The Hispanic Leadership Fund has filed an amicus brief in support of a suit brought by the Federation of Americans for Consumer Choice and others that "seeks to grant the motion to stay the Rule's effective date and to issue a preliminary injunction." It follows another amicus brief filed last week by the U.S. Chamber of Commerce in support of the legal challenge. Source: Napa-net.org 403b Plans Nuts and Bolts of 403b Plan Terminations What are the rules for terminating a 403b plan? In general, the rules for defined contribution plan terminations apply to 403bs. In this article, John Iekel writes about a recent presentation by Kelsey Mayo J.D., Partner, Poyner Spruill, and Director of Regulatory Affairs at the American Retirement Association, on the subject. Source: Ntsa-net.org »» Click here for More 403b Material Court and Legal Another Employer Targeted With Forfeiture Fiduciary Breach, With a New Twist Another national employer's 401k plan has been sued for a fiduciary breach in its use of plan forfeitures to reduce employer contributions with the plaintiff represented by a law firm new to this arena. The plan is the Wells Fargo & Company 401k Plan. Source: Napa-net.org Participant-Plaintiffs Shift Argument, Outcome in TIAA Rollover Suit A suit that challenged a program designed to "drive members from their ERISA plans and into TIAA-sponsored offerings, with little upside to those participants," has moved past a motion to dismiss. The suit, filed in September 2022 by plaintiffs against Teachers Insurance Annuity Association of America (TIAA) and TIAA-CREF, had asserted "...a variety of claims under the Employee Retirement Income Security Act of 1974." Source: Napa-net.org »» Click here for more Court and Other Legal Issues State-Based Private-Sector Retirement Programs Rhode Island Latest State to Pass Auto-IRA Bill for Uncovered Workers Ocean State lawmakers passed the Rhode Island Secure Choice Retirement Savings Program Act (H.B. 7127) on June 11 to create an automated individual retirement account for uncovered workers. Source: Ntsa-net.org Compliance and Regulatory Use of Plan Forfeitures Not the Slam Dunk It Used to Be A recent rash of class action lawsuits in California claims that using forfeitures to reduce future employer contributions to tax-qualified retirement plans runs afoul of ERISA. These cases have continued to advance despite their central claim seeming to contradict long-standing IRS guidance for the permitted use of plan forfeitures. Considering these developments, this article reviews how an employer can best use the forfeiture dollars without risking exposure to litigation. Source: Benefitslawadvisor.com When Does a Corporate Transaction Trigger a 401k Participant's Right to a Distribution? To accurately answer that question and to avoid potentially costly operation errors, sponsors of 401k plans who intend to participate in corporate transactions should be well-versed in the applicable distribution rules under the Internal Revenue Code and how they apply to various transaction scenarios. This article focuses on the rules applicable to 401k plans. Source: Reinhartlaw.com »» Click here for more Compliance and Regulatory Material Marketplace News Strategic Retirement Partners Launching PEP With Alerus
This eNewsletter is a digest of information published by a variety of web-based sources on 401k and related issues and is published as a service to our users. 401khelpcenter.com, LLC is not the author of the material unless specifically noted. Articles are copyrighted to their publishers. If you believe that your work has been copied in a way that constitutes copyright infringement, please contact the source site immediately. Hyperlinks in this document are provided as a convenience and we disclaim any responsibility for information, services, or products found on websites linked hereto. All links were tested before this eNewsletter was e-mailed to you to ensure that they are still functional, but publishers do move or delete articles. Therefore, we can't guarantee that the links provided will remain operational. 401khelpcenter.com does not endorse, approve, certify, or control this material and does not guarantee or assume responsibility for the accuracy, completeness, efficacy, or timeliness of the material. Use of any information obtained from this material is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com. Opinions expressed are those of the author of the article and do not necessarily reflect the positions of 401khelpcenter.com. THIS NEWSLETTER IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE INVESTMENT, TAX, ACCOUNTING, OR LEGAL ADVICE. Copyright © 2024 by 401khelpcenter.com, LLC. All rights reserved. No reproductions without prior authorization, but you are free to email this copy (in its entirety) along to colleagues or clients. This newsletter may not be posted on any website. 401khelpcenter.com, LLC
|
