Eight Hot Topics for Defined Contribution Retirement Plan Sponsors
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General Items Eight Hot Topics for Defined Contribution Retirement Plan Sponsors Summary: The start of a new year is a time to reflect on what has occurred, and to think about what will come to pass in the year ahead. Looking back on the defined contribution industry in 2012, this article highlights eight trends that plan sponsors, committee members and even plan participants can expect in 2013. Source: Cammack LaRhette Consulting Ten Things Your 401k Wants You to Know Summary: If your 401k plan could speak, what would it have to say? Here are 10 things that your 401k would like you to know. Source: Milliman.com Savers Snub New Roth 401k Perk Summary: When Congress passed a deal to avert the fiscal cliff this month, it included what might seem like a big perk for savers: The ability to turn their 401k retirement plans into so-called Roth savings accounts. But retirement experts say response to the new provision has been lukewarm so far—and may stay that way for a while. Source: Marketwatch.com
Compliance and Regulatory Related 2013 Key Administrative Dates and Deadlines for Calendar-Year Defined Contribution Retirement Plans Summary: This calendar contains general information, key administrative dates and important deadlines for calendar-year defined contribution retirement plans subject to ERISA and the Internal Revenue Code. Source: Milliman.com DOL Representative Sheds Light on Enforcement Priorities Summary: A representative from the Atlanta Regional Office for the Department of Labor recently spoke at an Atlanta Bar Association luncheon and provided some insight into the Employee Benefits Security Administration's enforcement priorities and some other interesting facts. Source: Benefitsbryancave.com Fee Disclosure's Impact Questioned Summary: Some six months after the implementation of the first round of plan sponsor-level fee disclosure regulations, many in the retirement industry are feeling a little like we all did after Y2K - a massive build-up to nothing in particular. But according to a panel of experts gathered at the FRA's DCIO Market conference in Boston, retirement advisors and plan sponsors may start to see more tangible results to the regulations in the coming year. Source: Benefitspro.com IRS Corrects Address References in Determination Letter Application Guidance Summary: In the past, interested parties were directed to submit comments to the address for submitting determination letter applications. It appears that the IRS is now directing interested party comments to another department. But this correction does not seem to completely resolve the confusion over the addresses. Source: Thomson Reuters/EBIA DOL Updates Form 5500 Delinquent Filer Voluntary Compliance Program Summary: This update largely incorporates features that have already been made part of the DFVC Program. Nevertheless, those making DFVC filings should ensure that they are familiar with the latest guidance and should refer to the updated Program when preparing their filings. DFVC filers will also appreciate the updated FAQs, which provide a comprehensive and easy to understand summary of the Program. Source: Thomson Reuters/EBIA An FAQ on the Delinquent Filer Voluntary Compliance Program Summary: In an effort to encourage pension and welfare plan administrators to file overdue annual reports (commonly referred to as the Form 5500), the Department of Labor's Employee Benefits Security Administration provides a Delinquent Filer Voluntary Compliance Program. Here are some frequently asked questions and answers about the program. Source: U.S. Department of Labor Summary: The Puerto Rico Treasury Department adopted Regulation Number 8324 clarifying the rules of taxation applicable to distributions made by retirement plans. It becomes effective on February 8, 2013. Source: McConnell Valdes LLC
Fiduciary Information and Insight Fiduciary Responsibilities for Benefit Plans Under ERISA Summary: Qualified retirement plans can be rewarding and beneficial for both employees and employers. However, plan sponsors, administrators and officials who have discretion over a plan must take care to meet the high standards of conduct for fiduciaries under ERISA. Non-compliance with ERISA can expose benefit plan sponsors to serious risk and litigation. Source: EJReynoldsinc.com
Some Items of Interest to Advisors The RIA M&A Market Stumbled in 2012 Summary: The pace of merger and acquisition activity in the RIA business remains mired in crisis mode but industry leaders point out that even though there were fewer deals last year, the deals that got done were huge. Schwab Advisor Services, which tracks the deals, announced today that there was a 30% increase in the total value of M&A transactions from 2011 to 2012. Source: RIAbiz.com Schwab Releases RIA Merger & Acquisition Activity for Year End 2012 Summary: According to industry-wide independent registered investment advisor (RIA) mergers and acquisition data compiled by Schwab Advisor Services, 2012 closed with a thirty percent increase in the total value of M&A transactions year over year. The assets under management of the 45 deals completed in 2012 totaled $58.8 billion versus $43.9 billion for the 57 deals in 2011. Source: 401khelpcenter.com ERISA Fiduciary Issues: A Guide for Advisors Summary: Regulatory mandates, economic uncertainty and dwindling retirement confidence among America's workers are among the key factors shining a spotlight on the role retirement plan fiduciaries play in helping workers save and safeguard retirement assets. Plan sponsors are increasingly looking to retirement plan advisors for guidance. This brings potential business opportunities but also more regulatory scrutiny. Advisors must know when their plan sponsors are acting as fiduciaries and the steps to take to avoid breaching their duties. This practice guide answers five questions for retirement plan advisors. Source: Broadridge.com (free registration required) Life and Opportunities for Retirement Plan Providers After Fee Disclosure Summary: This article is about how plan providers can survive and thrive after fee disclosure regulations are finally on the books. Source: Rosenbaum Law Firm
Insights: Studies, Research and White Papers Sponsors May Say, 'Me, Too' On Once-a-Year Match Summary: About 9% of employers have once-a-year matching contributions, according to an Aon Hewitt survey of 546 U.S. employers (representing more than 12 million employees and $780 billion in assets). It's not the norm. Nevertheless, as employers start planning for 2014, it's quite likely we'll see more interest in annual matches. Source: Benefitnews.com Adding Automatic Enrollment to Your 401k PlanSummary: With more workers approaching retirement, saving is a high priority. Automatic enrollment 401k plans are an effective way to get employees to save now and to continue saving. Source: U.S. Department of Labor January Inflows Set New Mutual Fund Industry Record Summary: Stock and bond mutual fund net inflows reached and possibly exceeded $90 billion during January 2013, excluding additional inflows to ETFs. January net inflows were dramatically higher than the prior all-time monthly flows records of $58 billion reached nearly a decade ago on January 2004. Source: SIonline.com Less Than Half of Small Businesses Offer Benefits Summary: Only 47 percent of small businesses (2-99 employees) in the United States offer benefits to their employees, the lowest level in two decades of LIMRA research. Source: 401khelpcenter.com Summary: For decades we've focused on the nest-egg notion as the goal for retirement saving, benchmarking our progress in relation to that lump sum. But it has no context other than probably being the single biggest “paycheck” most of us will ever see. That lump sum may sound great to me, but what does it mean for my spending over 20 or even 30 years without a paycheck? Source: Alliancebernstein.com
Court, Legislative and Washington DC Retirement Reform Likely Target for Obama's Second Term Summary: If you think that the retirement industry suddenly fell off the radar with the end of the first round of fiscal cliff fixes, think again - substantial reform, courtesy of the second-term Obama administration, is likely on the way. Source: Benefitspro.com Outlook for Legislative and Regulatory Activity in 2013 Summary: Provides a summary of policy related to human resources and employee benefits. The report discusses priorities facing the 113th Congress and also includes an overview of key health care and retirement issues for 2013. Source: Aon Hewitt
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