Do You Need to Send an Annual Notice to Plan Participants?
|
Newsletter Sponsor 401k Averages Book 13th Edition -- Updated and Newly Released Fee Benchmarking Book Want to become a "subject matter expert" on 401k fees? Use the 401k Averages Book to better understand investment, recordkeeping, revenue sharing expenses for all size 401k plans. The newly released and updated Averages Book is the leading source available for non-biased, comparative 401k fee information. It is designed to provide professionals with essential fee information to help their clients determine if their plan costs are above or below average. Click here for more information.
Compliance and Regulatory Related Do You Need to Send an Annual Notice to Plan Participants? Summary: Plan sponsors of defined contribution qualified plans may need to issue one or more annual notices to participants before the end of each plan year. Failure to issue a required annual notice can have significant consequences. This article provides a list of the content and deadlines for the most common notices that plan sponsors may need to distribute. Source: Alston.com 2013 End of Year Compliance Checklist Summary: This nine page checklist provides an overview of new compliance items for various benefit plans that should be addressed before 2014. The checklist also includes important ongoing year-end requirements. Source: Reinhartlaw.com Retirement Plans: Year-End Planning Summary: Here are a few reminders of the retirement plan administrative matters that should be reviewed and managed on or before January 1, 2014. Source: Tri-ad.com DOL Clarifies Anti-Criminal Rule Under ERISA Rules Summary: The DOL on November 1, 2013 issued Advisory Opinion 2013-05A concerning the application of certain anti-criminal provisions under the Employee Retirement Income Security Act of 1974. In particular, the Opinion generally provides clarification regarding what may be considered a "conviction" for purposes of Prohibited Transaction Class Exemption 84-14 (the "QPAM Exemption"). Source: Dechert.com IRS Final Rule Simplifies Requirements to Suspend or Reduce Safe Harbor Contributions Mid-Year Summary: The Internal Revenue Service (IRS) issued final rules permitting the mid-year reduction or suspension of safe harbor nonelective contributions 401k's by employers that are operating at an economic loss or satisfy certain notice requirements. The final rules also make conforming changes to regulations addressing the reduction or suspension of safe harbor matching contributions under Section 401(m) of the IRC. Source: Practicallaw.com Keeping Plan Records: How Long is Long Enough? Summary: Plan sponsors often overlook a couple of the key recordkeeping requirements of ERISA. And there are penalties for failing to maintain sufficient records, so before disposing of those old boxes of plan information, check to make sure you will in fact never actually need them in the future. Source: Foxrothschild.com
Items of Special Interest to Advisors 401k Market Projected to Grow by 9% in 2014 Summary: Buoyed by economic growth, the 401k market is projected to grow by 9% in 2014, reaching $4.2 trillion by the start of 2015. That represents annual growth of 9% in 2013 and 9% in 2014, up from $3.6 billion at the end of last year, according to new research from Ignites Retirement Research. Source: 401khelpcenter.com Don't be the Blockbuster of Retirement Plan Providers Summary: If you're a broker and you never see your retirement plan sponsor clients in quite some time, your days are numbered. If you are a third party administrator and you live and die by revenue sharing, the jig is probably going to be up. Source: Jdsupra.com Vendors Segment Fiduciary Services as DOL Treads Water on New Definition Summary: While most retirement plan sponsors and their vendors think being deemed a plan fiduciary is an "all-or-nothing" proposition, it is in fact becoming a growing continuum of service-provider job titles and responsibilities, one industry expert suggests. As a new definition of fiduciary to replace that of 1974 approaches from the DOL, different tiers of fiduciary roles are emerging. Source: Thompson.com
General Items The Great Bundled vs. Unbundled 401k Provider Debate Summary: In our lives, there are times when we have two important choices. It's Coke vs. Pepsi, Mac vs. PC, Xbox vs. PlayStation (sorry Nintendo), Star Wars vs. Star Trek, and Marvel vs. DC. In the 401k space, it's always bundled vs. unbundled for the employer to choose as a 401k plan provider. So this article will discuss the bundled vs. unbundled debate and what may be the better fit for a particular 401k plan. Source: Jdsupra.com The Value of a 401k Plan Administrator Summary: Managing a 401k isn't easy. There are daily operations to monitor, complicated forms to fill out, money to collect and pay out, and plenty of communication strategies to execute. There's a lot of pressure on plan sponsors to have highly successful 401k plans to help attract and retain workers. Many plan sponsors turn to experts to run the entire plan -- or at least certain parts. Source: Workforce.com
403(b) Plans Study Finds Higher Education Institutions Consolidating Retirement Plans and Features Summary: Transamerica Retirement Solutions found Higher Education institutions are trending toward streamlining their retirement plans. According to a just released Transamerica study, institutions are making big changes to ease administrative burden and reduce costs. Source: 401khelpcenter.com
Fiduciary Related Material and Insight Liability Insurance and a Plan Review Are Warranties Worth Paying For Summary: Fiduciary liability insurance helps protect plan sponsors who find themselves also appearing as defendants in a plan lawsuit filed by an aggrieved plan participant in a town near you. Spending some shekels on a fiduciary liability policy and a plan review is certainly well worth it to avoid a greater harm later. Source: Jdsupra.com Fiduciary Governance Issues Created by Canned Plan Documents Summary: All plans make at least a minimum assignment of fiduciary authorities and responsibilities. These authorities are the predicate for acts that are authorized under the terms of the plan and those that are not. Not paying attention to what the plan says can cause real and serious problems for employers. Source: Fiduciaryplangovernance.com
Insights: Studies, Research and White Papers Offering Benefits Still Gives Employers a Competitive Advantage Summary: The vast majority or workers say that the benefits package an employer offers -- especially health insurance -- is important to their decision to accept or reject a job, but a quarter are not satisfied with them, according to a new EBRI survey. Source: 401khelpcenter.com Employees' Stress About the Economy and Their Own Financial Security Increase Summary: The study found that employees' financial wellness declined in Q3 to a level not seen since Q1 2012. The decline appears to be a result of employees growing more aware of their financial shortcomings in areas outside of day-to-day money management. Source: 401khelpcenter.com Boosted by Resurgent Stock Market, 401k Average Balance Reaches New High Summary: Fidelity announced its average 401k balance rose to a new high of $84,300 at the end of the third quarter, up 11.1 percent from a year ago, thanks in large part to a resurgent stock market (see chart). Employees who were continuously active in their 401k plan over the last 10 years saw the average balance rise 19.6 percent to $223,100 during the past 12 months. Source: 401khelpcenter.com The Retirement Income Challenge Summary: At a company where the 401k plan has become the primary retirement savings vehicle, the issue of how you turn the participant's account balance into a stream of income supporting the participant in retirement has become a focus of increasing concern, among policymakers, sponsors and plan participants. Source: Octoberthree.com Retirement Plan Participation Generally Stable Summary: The number of workers participating in an employment-based retirement plan has increased slightly, although the level of participation is down slightly, according to a new analysis by the nonpartisan Employee Benefit Research Institute. Source: 401khelpcenter.com Some Canadians Don't Retire When They Want Summary: While 80% of Canadians nearing retirement believe they'll choose when they leave their careers, in reality, 41% of retirees say they left sooner than expected, according to the RBC 2013 Retirement Myths & Realities Poll. Often employers asked them to step down (41%), or health issues sped up their departure (22%). Source: Benefitscanada.com
Court, Legislative and Washington DC MassMutual 401k Suit Takes Litigation Into New Territory Summary: A recently filed case involving allegations that 401k plan sponsors charged excessive fees is raising questions on whether general account products, group annuities and stable-value products might also become a focal point in future litigation. The suit is no ordinary 401k fee case. Source: Investmentnews.com (free registration may be required) Capping Small Business Retirement Savings Summary: White House officials earlier this year unveiled the Obama administration's Fiscal Year 2014 budget proposal, which included a cap on tax-deferred retirement savings. Changes in tax policies can trigger responses from employers, but a proposed cap on retirement savings could have a particularly severe impact on small businesses, according to an analysis by the nonpartisan Employee Benefit Research Institute. Source: Ebri.org Marketplace News Custodia Financial Teams Up With TSA Consulting 401k Plan Advisor Business Improvement Program Released Principal Launches Hispanic Market Program Sunwest Pensions and TAG Resources Partner on Fiduciary Service USI Consulting Group Launches Redesigned Website Schwab Unveils Latest Technology Initiatives to Support RIA Growth Gordon Asset Management Launches 401k Fee Disclosure Website
|
