2013 Year-End Qualified Retirement Plan Checklist
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Compliance and Regulatory Related 2013 Year-End Qualified Retirement Plan Checklist Summary: It's time to ensure year-end qualified plan deadlines are satisfied. This is a checklist designed to help employers with this process, including information regarding the U.S. Supreme Court's recent decision in U.S. v. Windsor regarding the Defense of Marriage Act and the impact of this decision on qualified retirement plans. This checklist addresses both year-end deadlines and January 2014 deadlines which sponsors of qualified retirement plans may wish to begin preparing for now. Source: Bryancave.com A Plan Sponsor's Guide to 401k Compliance Testing Summary: Most plan sponsors don't value the role of a good TPA. A good part of a TPA's work is the performance of compliance testing to make sure that the plan passes the required discrimination testing which is a requirement of the Internal Revenue Code that a qualified retirement plan must do. This article describes the fundamentals of compliance testing for 401k plans, so plan sponsors can better understand the role of a good TPA in dealing with the administration of a 401k plan. Source: Jdsupra.com DOL Investigators Quiz Plan Sponsors On Training of Fiduciaries Summary: The Department of Labor is looking into fiduciary training as part of the agency's investigations into retirement plans, attorneys at Trucker Huss. The fact that some DOL investigators have asked plan sponsors about their fiduciary education should encourage sponsors and their advisers to address the fiduciary education process more directly. Source: Bna.com Required Minimum Distributions Summary: As we approach the end of the calendar year, it is important to be reminded about one frequently overlooked retirement plan requirement -- required minimum distributions. An overview, example and decision tree chart are provided here. Source: Legacyrsllc.com The Initial Fee Disclosure Deadlines Are Behind Us, but Fee Disclosure is Not Summary: The initial regulatory deadlines are behind plan sponsors and service providers, but neither should think that fee disclosure is a thing of the past. Recent activity by the DOL confirms that fee disclosure is well-centered in the Department's radar. Initial disclosures to plan sponsors and participants have been made, but ongoing efforts are necessary. Plan sponsors must take action with respect to information disclosed by CSPs, ensure that the information is complete, and determine whether the compensation is reasonable. This determination is not a one-time effort, but an ongoing consideration. Source: Unitedretirement.com Required 2013 Qualified Retirement Plan Amendments and Cycle C Determination Letter Filing Deadline Summary: This Article provides a summary of required qualified retirement plan amendments for individually designed plans that must be adopted to comply with the Internal Revenue Code by the end of the 2013 plan year. It also provides plan document considerations for January 2014 determination letter application filers (Cycle C). Source: Practicallaw.com
403(b) Plans The Seven "403(b) Administrative" Sins (Part 1) Summary: Mistakes that 403(b) plan sponsors make -- the "Seven Administrative Sins" if you will -- can put a non-profit plan in real jeopardy. While the majority of "sins" are committed unknowingly, they have the potential to create some real administrative and compliance-related issues for plan sponsors. The first two are covered in this article. Source: Principal.com
Fiduciary Material and Insight 401k Fiduciary Liability in a Multi-Vendor Environment Summary: There are many liability traps when comes to hiring service providers for 401k plans. Oftentimes, a well-documented system can help mitigate that liability, but there are many demons that can tempt plan sponsors to take a seemingly common sense short-cut that can end up costing more in the end. Source: Fiduciarynews.com Are 3(16) Plan Administrator Arrangements a Sham? Summary: If any provider, whether an adviser, a mutual fund complex, trustee, investment manager, or 3(16) provider claims their services absolve a plan sponsor of all of their fiduciary responsibility, and potential liability, that's a sham promise you can't trust. Source: Fiduciaryplangovernance.com
Insights: Studies, Research and White Papers Participants More Open to DC Plan Design Changes Than Previously Thought Summary: Based on a survey of 1,000 current and former participants in U.S. 401k plans, the Northern Trust study finds that significant numbers of workers and retirees would be inclined to agree with changes that plan sponsors and consultants believe would improve outcomes in defined contribution plans. Source: 401khelpcenter.com PSCA's Latest Survey Shows That DC Plans Continue to Grow Summary: The results of 56th Annual Profit Sharing and 401k Survey from the Plan Sponsor Council of America demonstrate the continued success and improvement of the DC system. During the last couple of years, participation rates, deferral rates, and company contributions have increased steadily, and are now equal to or higher than they were before the recession. Source: 401khelpcenter.com Infographic: Most Employers Unclear on How to React to DOMA Ruling Summary: A recent survey of 285 plan sponsors seeks to determine how employers are responding to the landmark decisions regarding the Defense of Marriage Act (DOMA) and gauge any actions they may take regarding their employee benefit plans. This infographic shows the results. Source: Towerswatson.com
Items of Special Interest to Advisors How Can 401k Advisers Use 3(16) Administrators to Advance Their Practices Summary: We have reached a tipping point. Plan sponsors have had enough. This is most strikingly evidenced by the movement to professional plan management under section 3(16) of ERISA. These professionals are responsible for the hiring and oversight of third party administrators, accountants, and other service providers; making discretionary decisions regarding the administration of a plan; and filing annual returns, among other things. This movement will force you to adjust your service models if you are to thrive. Source: Fiduciaryplangovernance.com New Fiduciary Rules Create Opportunities for Retirement Plan Advisors Summary: Target date funds have grown phenomenally in the past five years from virtually zero in 2007 to about $1 trillion today, half in mutual funds and the rest in custom funds and collective investment trusts. And it's just beginning. The DOL recently issued a must-read guide on target date funds for defined contribution plan fiduciaries. These new rules clarify several safe harbor provisions, as well as provide several opportunities for proactive investment advisors. Source: Targetdatesolutions.com ERISA Compliance Issues for Plan Providers: The DOL Consultant/Adviser Project Summary: The purpose of this article is to describe the legal and regulatory underpinnings that led to the DOL's creation of the Consultant/Adviser Project (which is also explained here in greater detail), the ERISA issues on which service providers need to focus, and the steps they should take to avoid liability exposure under ERISA. Source: Drinkerbiddle.com
Court, Legislative and Washington DC ERISA -- Second Circuit: Effective Exhaustion of Remedies Defense Summary: What does it take to assert an effective exhaustion of remedies defense in ERISA cases? Properly drawn plan documents that expressly impose the duty upon the claimant to exhaust remedies before bringing a lawsuit. Source: Boomerisablog.com Third Circuit: Once Again Proper Documentation Saves the Day for an ERISA Plan Sponsor Summary: Recently, former unionized employees cried foul over their failure to receive defined benefit pension plan benefits subsequent to their termination. Relying on clear, unambiguous documents contradicting the employees' claims, the Third Circuit concluded was entitled to judgment as a matter of law. Source: Seyfarth Shaw You Cannot Take the Embezzler's 401k Plan Balance Summary: Many employers know that a participant's benefit in a tax qualified retirement plan is protected, but there are several exceptions. However, there is no exception that allows an employer to keep an account balance if the participant has committed a crime against the employer. A recent federal district court case made that point clear. Source: Benefitsnotes.com
General Items Six Crucial 401k Employee Education Tips Summary: Make sure your next employee education sessions address these six topics. Your employees will be grateful for the encouragement and support. Source: Benefitnews.com 401k Plan Design -- Building Successful Outcomes Begins With Effective Plan Design Summary: Effective plan design is more than just administrative services and fund choices. It starts with understanding a company's culture, demographics and benefits philosophy -- and a dialogue that provides a framework for your plan objectives. This paper deals with some of the key considerations. Source: Pentegra.com Marketplace News Vanguard Streamlines Fund Lineup With Mergers Transamerica Expands Pension Sales, Distribution Team Ameritas Names Benham Retirement Division Head Aspire Financial Outlines Brand Enhancements MullinTBG Adds Seven to Sales and Service Teams
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