Fiduciary Benchmarks Responds to Yale Law Professor Letters
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Items of Special Interest to Advisors Fiduciary Benchmarks Responds to Yale Law Professor Letters Summary: Fiduciary Benchmarks, in response to the furor caused by thousands of letters that were sent from a Yale Law Professor, issues this press release to help plan sponsors, participants and their service providers understand flaws in the data and approach that were used for those letters. Source: Fiduciarybenchmarkstraining.com Fidelity Offers to Caddy for Retirement Plan Sponsor Prospects Summary: As more companies move from defined benefit to defined contribution plans, aggressive prospecting from top retirement plan providers is something we expect to increase. Source: Corporateinsight.com How to Be Quotable: Nine Tips for Advisors Summary: Most seasoned financial professionals have received media inquiries from journalists who are working on a story and looking for sources. Getting quoted in the press can generate new business. You're more likely to master the art of capturing the journalist's attention if you incorporate the tips outlined in this article into your media responses. Source: Financial-Planning.com ERISA Newsletter for Retirement Plan Service Providers - August Summary: Because of DOL's increasing focus on service providers, and because of the increasing role of service providers in the delivery of 401k and 403(b) plans, service providers will continue to be closely scrutinized. This newsletter is intended to help service providers understand the ERISA compliance burdens and their potential consequences. Source: Drinkerbiddle.com Fidelity Puts Hard Numbers on the Disgruntlement of 401k Plan Sponsors Summary: The 401k industry is experiencing a crunch as plan sponsors scream for more service and bargain harder on fees -- a toxic combination for providers but one that bodes well for advisors who really know their 401k stuff. This sweet and sour appraisal comes from a variety of industry sources in the wake of Fidelity's fourth annual Plan Sponsor Attitudes Survey. Source: Riabiz.com
Compliance and Regulatory Related Opportunity to Reset Timing of Annual Participant Fee Disclosures Summary: The DOL issued Field Assistance Bulletin No. 2013-02 which provides administrators with a one-time opportunity to reset the timing for the annual fee disclosure notices during an extended compliance period. The FAB extends the 12-month requirement specified under the final regulations for 2013 fee disclosure notices, and provides that administrators may send out 2013 fee disclosure notices no later than 18-months after the 2012 fee disclosure notices were actually distributed. Source: Seyfarth.com Safe Harbor 401k Establishment Deadlines Summary: In general, a safe harbor 401k plan must be adopted before the beginning of the plan year and maintained throughout a full 12-month plan year. However, it is possible to establish a calendar year, safe harbor 401k plan as late as October 1st and still obtain the exemption from the ADP and ACP tests in relation to the remainder of the year. Source: 401khelpcenter.com FAQ on the Automatic Enrollment Safe Harbor 401k Summary: This is a ten question FAQ dealing with the requirements for an Automatic Enrollment Safe Harbor plan and other common issues related to these plans. Source: Mbm-inc.com
403(b) Plans SPARK Seeks IRS Guidance on 403(b) Prototype Plan and Error Correction Program Summary: The SPARK Institute has submitted an eleven page request for guidance to the IRS regarding the pre-approved 403(b) plans program and the application of the revised error correction program, the Employee Plans Compliance Resolution System, to 403(b) plans. Source: 401khelpcenter.com
Fiduciary Material and Insight Should 401k Plan Sponsors Ban Risk Tolerance Questionnaires? Summary: Researchers have long questioned the rationale for using risk tolerance questionnaires. For 401k plan sponsors, who are held to a higher (fiduciary) standard, as opposed to brokers (who are held only to the "suitability" standard), the use of risk tolerance questionnaires becomes problematic in light of this academic research. Source: Fiduciarynews.com Institutionalizing DC Plans - A Starting Point for Addressing Fiduciary Issues Summary: If your plan hasn't yet embraced institutionalization, you may be wondering how to get started and what issues need to be considered from a fiduciary perspective. Or, if your plan has already taken some steps in this direction, you may be wondering what's next or what new features may now be appropriate. This article provides a basic framework for plan sponsors and fiduciaries interested in exploring perspectives on institutionalizing their DC plans. Source: Dciia.org
Insights: Studies, Research and White Papers 2013 Canadian HR Consultants Report Summary: Only a few years ago, it was standard practice for Canadian employers to spread the love around when it came to working with HR consultants. They would have different providers for pension and health benefits consulting, as well as for employee communication, administration, compensation and other services. More recently, organizations have demonstrated an increased willingness to partner with a single consultancy for multiple services. Source: Benefitscanada.com Plan Sponsor Attitudes Survey: Executive Summary Summary: This is a summary of Fidelity's 4th annual survey of plan sponsors. It was an online survey of 937 plan sponsors who use a wide variety of recordkeepers. Responses from plan sizes with 25 to 10,000 participants. A number of concerns were raised including confidence about fiduciary responsibilities, retirement readiness of employees, want a better understanding of how well the plan is working for employees, and key considerations for advisors. Source: Fidelity.com Lessons From First Implementers of Auto-Enrollment Summary: Aon Hewitt has listed here the top five tips gleaned from organizations which had an early staging date for auto-enrollment and have completed the initial process. Source: 401khelpcenter.com The State of 401k Investing - New Schwab Survey Summary: The majority of American workers in a new survey accept responsibility for financing their own retirement and are relying primarily on their 401k to get them there, but many lack the confidence to effectively manage their retirement savings. Includes infographic of survey results. Source: 401khelpcenter.com
Court, Legislative and Washington DC Plaintiffs Win Round Vs. Lockheed in Stable Value Fund Case Summary: A federal appeals court handed a procedural victory to plaintiffs who say their Lockheed Martin Corp retirement plans were badly run, a boost for the closely watched lawsuit against the large 401k sponsor. A panel of judges in the Seventh Circuit last week reversed a lower court decision that denied class certification to workers and beneficiaries with investments in a so-called "stable value fund" that Lockheed offered. Source: Reuters.com 401k Reform Movement Growing: Three Major Game Changers Summary: The two groups called on Congress to come up with new solutions to retirement security. Since Congress hasn't done much of anything over the past two years, that's quite a challenge. But, here's some cause for optimism in the groups joint proposal. Source: Forbes.com
General Items Is Your 401k Loan Program State-of-the-Art? Summary: Many recent studies have shown that major obstacles to employee attainment of retirement readiness include the loss of account balances due to loan defaults and hardship withdrawals. This account leakage can be reduced by a well-managed participant loan program. This article describes the characteristics of a state-of-the-art loan program. Source: Benefitnews.com Retirement Plans Advised Not to Push Loan Access Summary: Defined contribution plan participants who take out plan loans are more likely saving at a lower contribution rate than most, and are not likely to repay the loan when they leave their employer. With those factors in mind, the large plan service provider encourages plan sponsors not to push loan access as a feature to attract more employee plan participants. Source: Thompson.com Are Lifetime Income Guarantees the 'Next Big Thing' for 401k Plans? Summary: Ask employees what worries them most about their 401k and you'll likely hear some variation of this: It's unstable, and I could lose virtually everything if the market crashes. It's a reasonable fear. Luckily there's a new option for defined-contribution plans that can go a long way toward putting staffers' minds at ease. That strategy: in-plan lifetime income guarantees. Source: Cfodailynews.com
Marketplace News Koehler Launches New ERISA Fiduciary Firm
CapTrust Acquires Cambridge Financial Services
New Tool Helps Advisors Navigate Retirement Plan RFPs
Investment Firm, Officers Ordered to Restore Assets to 13 Employee Benefit Plans
DOL Extends Nominations Deadline for 2014 ERISA Advisory Council
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