DOL Updates Cybersecurity Guidance
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Cyber and Plan Security
DOL Updates Cybersecurity Guidance The DOL updated its cybersecurity guidance confirming that it applies to all types of plans governed by the ERISA. The new Compliance Assistance Release provides best practices in cybersecurity for plan sponsors, plan fiduciaries, recordkeepers, and plan participants. Assistant Secretary for Employee Benefits Security Lisa M. Gomez said "These updates remind plan sponsors and fiduciaries of the critical importance of safeguarding job-based benefits and personal information." Source: Dol.gov
Cybersecurity Best Practices for Retirement Plans Artificial intelligence deepfakes, including fraudulent correspondence, voice impersonations, and videos are hitting financial institutions and their customers. There is no single solution for managing these threats, especially as AI-based methods continue to evolve. However, plan advisers and their sponsor clients can implement cybersecurity plans that will help keep the bad guys at bay. In this article, experts discuss how plan fiduciaries can stay up to speed. Source: Planadviser.com
Keys to Guarding Retirement Plan Data Against Human Error As the digital age evolves, so too do the risks that threaten the security of employer-sponsored retirement plans and their data. Human error within organizations poses a significant risk, as hackers are adept at taking advantage of these vulnerabilities. Understanding and mitigating these risks is therefore crucial for plan sponsors, recordkeepers, and participants alike. Source: Planadviser.com »» Click here for more on Cybersecurity Issues Fiduciary and Plan Governance
2024 Mid-Year Fiduciary Update for Private Sector Employers: Webinar This 2024 Mid-Year Fiduciary Update Webinar for private-sector employers took place on Wednesday, August 28, 2024. Here are the presentation slides and full video from the session. The agenda includes SECURE Act 2.0 fiduciary issues, an update on fiduciary breach litigation, an update on general fiduciary issues, and an annual review of plan documents and operational compliance. Source: Hansonbridgett.com
DOL Seeks to Streamline PTE Process With Updated Procedures Updated DOL procedures for handling requests for prohibited transaction exemptions require more detailed disclosures from ERISA plan sponsors. The final rules also enhance the agency's scrutiny of independent fiduciaries and appraisers hired to safeguard plans and their participants. Although service providers may also seek PTEs, this article focuses on aspects of the final rules most relevant to sponsors. Source: Mercer.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, Analysis, and Papers
Do Participant Account Balances Imply Lower Recordkeeping Costs? A new analysis of the drivers of U.S.-based defined contribution recordkeeping costs suggests that higher balances may not necessarily lead to lower costs. In fact, according to the study by CEM Benchmarking, higher participant account balances do not have much impact on reducing costs, but factors such as economies of scale, managed accounts, and proprietary investment options, instead, were found to be key cost drivers. Source: Asppa-net.org
Just 42% of U.S. Workers Confident They're Saving Enough for Retirement: Survey Just two-fifths (42%) of U.S. employees say they feel highly confident they're on track to save what they need in retirement, according to a new survey by LiveCareer. The survey, which polled more than 1,000 U.S. workers, found six in 10 said they fear retirement more than death (61%) or the idea of getting a divorce (64%). Indeed, 39% expressed fear that retiring will make them a financial burden to loved ones or that they won’t have enough saved for medical emergencies or unexpected costs in retirement. Source: Benefitscanada.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Advisers and Other Service Providers
Stop and Go? The Fiduciary Rule and Forfeiture Suits: Podcast The so-called fiduciary rule has been stayed and legal challenges regarding forfeiture reallocation are picking up. Nevin Adams and Fred discuss what you should be doing now. Source: Napa-net.org Court and Legal
Three plaintiffs sued TIAA and Morningstar claiming the defendants engaged in a "scheme to enhance corporate profits" by counseling participants to invest in two of TIAA's most lucrative investment vehicles. Plaintiffs target ERISA and non-ERISA plans. The complaint alleges that TIAA and Morningstar developed an investment advisory tool deliberately inducing participants to transfer account balances into TIAA's Traditional Annuity and/or Real Estate Account, TIAA's two most profitable investment products. Source: Erisalitigationadvisor.com
What the End of the Chevron Doctrine May Mean for ERISA's Fiduciary Provisions Loper Bright will have an impact on most executive agencies, and a surge of litigation is expected as parties seek to have courts independently examine regulations interpreting federal laws, especially in new or recent regulations. The overturning of Chevron also raises the question of what other existing regulations may be ripe for challenge in the new landscape. Source: Morganlewis.com
Salesforce Settles 401k Suits for $1.35M Salesforce Inc. has settled for $1.35 million a pair of outstanding 401k lawsuits alleging excessive retirement plan fees. The settlement requires court approval. The agreement brings to a close about four years of litigation across two separate lawsuits, according to a motion filed August 23 in U.S. District Court for the Northern District of California. Source: Planadviser.com
Sixth Circuit Sets Limits on Mandatory Arbitration Provisions in ERISA Plans Plan sponsors often include arbitration provisions in employee benefit plans to resolve plan disputes outside of the courtroom. However, the recent Sixth Circuit Court of Appeals decision in Parker v. Tenneco is a good reminder to plan sponsors to ensure that plan arbitration provisions are not too restrictive and do not otherwise impede or waive a participant's statutory rights and remedies under ERISA to avoid a court finding the arbitration provision unenforceable. Source: Haynesboone.com »» Click here for more Court and Other Legal Issues Compliance and Regulatory
Major SECURE 2.0 Guidance Issued: Extra Credit for Repaying Qualified Student Loans On August 19, 2024, the IRS issued Notice 2024-63 providing guidance for plan sponsors that wish to provide matching contributions based on eligible student loan repayments made by participants, rather than based only on elective deferrals, pursuant to the SECURE 2.0 Act of 2022. This article summarizes guidance under the Notice. Source: Beneficiallyyours.com
Interim Guidance on Matching Qualified Student Loan Payments Until recently, employer matching contributions under qualified plans were required to be conditioned solely upon employee contributions made to the plan. However, one of the many changes enacted by the SECURE 2.0 Act enabled certain qualified plans to condition employer matching contributions on employees' qualified student loan repayments. The IRS recently released Notice 2024-63, which provides interim guidance related to the administration of such loan repayment matching programs. Source: Pbwt.com
Final Warning: Distributions to Beneficiaries Must Begin in 2025 The complexity of the RMD rules and subsequent proposed and final regulations has created confusion in administering plan provisions. The IRS has given qualified plan beneficiaries relief from the excise tax through 2024 and has also put plan sponsors on notice that RMDs must be administered correctly going forward. Source: Brickergraydon.com
Long-Term Part-Time Eligibility Provisions -- 2025 Edition Everyone is now an expert on how to apply the "long-term part-time employee" provisions of the SECURE Act which became effective at the beginning of this year. Unfortunately, it is now time to "adjust" that knowledge in anticipation of certain impending changes to the LTPT rules. This is because, while the SECURE Act established the LTPT rules that became required for most plan sponsors on January 1, 2024, subsequent retirement plan legislation commonly referred to as "SECURE 2.0" modified and expanded the LTPT rules. This article discusses those changes to the LTPT rules as imposed by SECURE 2.0. Source: Legacyrsllc.com »» Click here for more Compliance and Regulatory Material Marketplace News Alera Group Acquires $24B Advanced Capital Group NewRetirement Rebrands as Boldin, Unveils Financial Wellness Dashboard Vestwell Adds First Annuity Option for 401ks, From TIAA
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