Make the Most of Your Retirement Plan Committee Meetings
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Fiduciary and Plan Governance Make the Most of Your Retirement Plan Committee Meetings Due to the significant amount of fiduciary responsibility of a retirement plan committee to both consider the best interests of the participants and properly oversee the administration of the plan, committee meetings ought to be as efficient and effective as possible. Like any other executive meeting, proper preparation and processes can deliver meaningful benefits to both the participants and the committee members themselves. This article reviews several items to consider. Source: Planpilot.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, Analysis, and Papers What Are the Key Trends Affecting DC Plans? Retirement income is at the center of trends discussed in a new study that evaluates the viewpoints of 35 leading consultant and advisory firms on key retirement and investment trends affecting DC plans and their sponsors. The study captures the latest perspectives from DC consultants and advisors on target-date solutions, retirement income, investment trends, and financial wellness programs. Additionally, this year's study explores respondents' thoughts on managed accounts, alternative investments, and the value of active versus passive management. Source: Psca.org Six Reasons to Consider Retirement Income People are living longer. And we're also, for the most part, not choosing to put off retirement. More years to enjoy retirement should be a good thing if we can afford them. From financial security to mental fitness, here's how guaranteed income can benefit workers as they enter that next chapter. Source: Blackrock.com "Retirement Crisis" Debunked - Facts Versus Factoids, Part II This is the second in a two-part series on Andrew Biggs' intriguing new white paper titled "America's 'Retirement Crisis': The Emperor Has No Clothes" that debunks the various claims that the nation faces a retirement savings crisis. "What the discussion over retirement policy needs is not factoids but facts -- that is, accurate answers to relevant questions that shed light on the underlying issues being examined," Biggs writes. "There is no need to turn upside down a retirement system that by objective measures is among the most successful in the world." Source: Asppa-net.org Retirement Income and Personalization Among Key 2024 DC Trends As lifetime income solutions continue to trend upward, plan sponsors are inquiring more about retirement income in workplace plans. New findings from T. Rowe Price's Defined Contribution Consultant Study, which explores the latest retirement plan and investment attitudes from DC advisors and consultants, show that more employers have an opinion about retirement income today compared to past years. Source: 401kspecialistmag.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Advisers and Other Service Providers Fidelity to Limit 401k Access By Third Parties Fidelity is clamping down on third-party access to 401ks, a move that could restrict outside advisors from managing clients' assets in those accounts. On Friday, the massive financial services company announced that it would "begin taking steps to prevent platforms reliant on credential sharing from accessing and taking action in customer accounts held at Fidelity." That step, the firm stated, "is with customers' best interests in mind to enhance security and reduce customer data exposure." Source: Investmentnews.com Read on Retirement: Advisor Perspective Retirement. It's deeply personal. And nobody knows this better than the retirement plan advisors working first-hand with sponsors to understand and address the challenges their savers face. Blackrock surveyed over 300 advisors as part of its annual "Read on Retirement®" research to better understand how they're enhancing outcomes and growing their practice. This is a 12-page report. Source: Blackrock.com DOL Seeks to Keep ERISA Investment Advice Regulations in Place The DOL recently filed a reply brief in a lawsuit brought by insurance industry groups seeking to block new regulations that expand the definition of fiduciary under ERISA. In its brief, the DOL asked the Court to deny a motion for a preliminary injunction that would prevent the agency from implementing and enforcing the new regulations. Source: Hallbenefitslaw.com More Than Half of Plan Advisers Expect to Use AI Artificial intelligence use may move from idea to reality in the next 12 months in plan advisement, with more than half (53%) of advisers planning to implement AI in some fashion, according to BlackRock's "2024 Read on Retirement: Advisor Outlook." If those predictions come true, it will be a significant jump from the 9% of advisers that report currently using AI tools in their practices. Source: Planadviser.com Regulatory Monitor: ERISA Update In the article, Groom principal David Kaleda examines the DOL's 2024 fiduciary rule. He gives an overview of the rule and covers its potential impacts, examples of how the rule might apply, and when it is expected to go into effect. Source: Groom.com Court and Legal Lawsuit Related to Use of Forfeitures Dismissed On September 5, 2024, a federal court for the Eastern District of Virginia dismissed claims that a 401k plan participant asserted against BAE Systems regarding the use of forfeitures to reduce future employer contributions. The Court's ruling is a significant victory for defendants in the newest wave of ERISA litigation. The decision underscores that including plan terms that eliminate discretion by directing how forfeitures are to be used can mitigate litigation risk. Source: Groom.com District Court Permits 403b Plan Fiduciary Breach Claims to Proceed A federal district court in Massachusetts recently denied a motion to dismiss a complaint filed by plan participants in the Cape Cod Healthcare, Inc. 403b plan, which alleged that the plan's fiduciaries breached their ERISA duty of prudence by permitting the plan to pay excessive recordkeeping fees and remain invested in overpriced, underperforming investment options. Plaintiffs, both former employees of Cape Cod Healthcare, alleged that Cape Cod Healthcare (plan sponsor and named fiduciary) and individual fiduciary defendants breached their fiduciary duty in two ways. Source: Erisapracticecenter.com Court Grants Genworth Class Certification Appeal The U.S. Court of Appeals for the Fourth Circuit has granted plan sponsor Genworth Financial the chance to appeal a decision to give class-action status to a group of participants who were invested in BlackRock Inc. target-date funds through a workplace retirement plan. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Cyber and Plan Security Cyber Risk and Cybersecurity for Retirement Plan Sponsors The digital nature of retirement plan administration makes plans tempting targets for cybercriminals. From phishing attacks to account takeovers, plan participants, recordkeepers, and sponsors are at risk of significant financial losses and brand damage. In this article, learn more about cyber risk management for retirement plans. Source: Captrust.com »» Click here for more on Cybersecurity Issues Compliance and Regulatory 2025 401k Contribution Limits: Milliman Halves Its Increase Prediction It's looking like retirement savers will only see a $500 increase in the amount they can contribute to their 401k, 403b, or 457 plans in 2025, according to the newly updated final forecast for the 2025 IRS contribution limits from Milliman. For 2024, the elective deferral limit was also increased by $500 compared to 2023. Source: 401kspecialistmag.com A Brief Guide to Qualified Disclaimers for Retirement Plan Administrators A "qualified disclaimer" is a tax-effective way to refuse a transfer of property that would otherwise occur on someone's death. From time to time, retirement plan administrators may be contacted by a beneficiary who wants a deceased participant's benefit to go to a contingent beneficiary or the participant's estate. The way to make that happen is a qualified disclaimer. Source: Verrill-law.com »» Click here for more Compliance and Regulatory Material Marketplace News Pontera Partners With Recordkeeper 401GO
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