Retirement Planning for Global Nomads
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General Items Retirement Planning for Global Nomads Summary: For multinational companies, growing a business means leveraging the right talent in the right place. In the world of "global nomads" -- expatriates and third country nationals who spend much of their working lives away from their home country -- the provision of future financial security becomes ever more important. To attract and retain the right talent willing to move across borders, whether on a temporary or permanent basis, employers need to provide competitive compensation packages that include a retirement savings component. This paper details how to address retirement security for a mobile workforce. Source: 401khelpcenter.com Saver's Credit Helps Low- and Moderate-Income Workers Save for Retirement Summary: Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit this year and in the years ahead, according to the Internal Revenue Service. Source: 401khelpcenter.com
403(b) Plans Whose 403(b) Money Is It Anyway? Summary: Typically, an ERISA plan is written with a procedure for beneficiary designation. The terms of the plan are supposed to govern. A typical plan provides that a participant designates a beneficiary for his/her plan balance. Any new beneficiary designation would override prior designations. Service providers often solicit these beneficiary designations. This could cause a great deal of confusion if a participant designates different beneficiaries with different providers, and then these have to be reconciled to the terms of the plan. Source: Principal.com
Fiduciary Related Material and Insight Suitability vs. Fiduciary Standards Summary: In the investment field, there are two primary parties who are able to offer investment advice to plan sponsors. These parties are investment advisors and investment brokers who work for brokers-dealers. Many clients may consider the advice they receive from each party as similar, but there is a key difference that may not be completely understood. The difference pertains to two competing standards that advisors and brokers must adhere to, and the distinction has important. Source: Investopedia.com Are Plan Sponsors Required to Provide Fiduciary Training to Their Fiduciaries? Summary: Neither the provisions of ERISA or interpreting regulations require fiduciary training, but that doesn't mean a plan sponsor shouldn't. Author thinks it is a best practice to offer training routinely (at least annually) and when internal fiduciaries are appointed. Source: Fiduciaryplangovernance.com 408(b)(2) Related Contractual Considerations for Service Provider Contracts Summary: For those plans that intend to rely on the statutory prohibited transaction exemption under ERISA Section 408(b)(2) in order to enter into the contract with the service provider, this is a non-exhaustive list of exemption-related contract considerations plan fiduciaries should consider. Source: Winston.com
Insights: Studies, Research and White Papers Most Workers Finds Retirement Projections Helpful, but Many Don't Understand Them Summary: A new study by the LIMRA Secure Retirement Institute (SRI) reveals that 9 in 10 U.S. workers find retirement income projections somewhat or very helpful. The study also uncovered workers' concerns about the validity of and calculations behind the projections. Source: 401khelpcenter.com Survey Shows Companies Changing 401k Investment Approaches Summary: Determined to help employees improve their financial security at retirement, a growing number of employers are placing greater emphasis on improving and institutionalizing their 401k investment lineups to boost participant returns and increase savings levels, according to a new survey by Aon Hewitt. Source: 401khelpcenter.com Study Reveals Effectiveness of Custom, Target-Date Investment Structures Summary: Transamerica Retirement Solutions announced the results of a year-long analysis on the effectiveness of custom, target-date investment structures for participants in employer-sponsored retirement plans. The analysis focused on participants' personalized rates of investment return versus their investment risk, and examined the actual account performance for over one million plan participants during the course of 2012. Source: 401khelpcenter.com Paper Illustrates Important Role 401ks Play in U.S. Retirement System Summary: Transamerica Retirement Solutions announced the results of a year-long analysis on the effectiveness of custom, target-date investment structures for participants in employer-sponsored retirement plans. The analysis focused on participants' personalized rates of investment return versus their investment risk, and examined the actual account performance for over one million plan participants during the course of 2012. Source: 401khelpcenter.com
Items of Special Interest to Advisors Seven Deadly Sins Every Retirement Plan Provider Should Avoid Summary: There are many mistakes that retirement plan providers make that are essentially deadly sins because they threaten the existence of that provider. This article is about seven deadly sins that plan providers should avoid if they want to stay in business. Source: Jdsupra.com Developing Your Investment Adviser's Compliance Calendar for 2014 Summary: To help manage the ongoing compliance process, registered investment advisers should consider developing a compliance calendar that can serve as an effective and proactive tool to assist the investment adviser with meeting its ongoing compliance requirements. Developing a compliance calendar can help strengthen an investment adviser's written compliance policies and procedures that must be developed pursuant to Rule 206(4)-7 of the Investment Advisers Act and similar state rules to detect, prevent, and correct possible regulatory violations that can occur throughout the year. Source: Ria-compliance-consultants.com Summary: It's important that advisors to select DCIO partners that have the commitment, experienced staff, support and value added services that can really help advisors to build, grow and service their business. NAPA Net's DC Investment Only list is provided here, updated in December 2013. There have been some significant changes in the industry since the list was last updated in May. Source: Napa-net.org
Court, Legislative and Washington DC Appeals Court Allows Boeing 401k Plan Case to Proceed as Class Action Summary: On November 26, 2013, the Seventh Circuit Court of Appeals rejected the Boeing Company's request to appeal the order of Chief Judge David R. Herndon of the United States District Court for the Southern District of Illinois, which granted class certification to participants in Boeing's 401k Plan for their claims that Boeing personnel responsible for managing the plan breached their fiduciary duties under ERISA. Source: Prweb.com Fiduciary Questions in MassMutual Case Summary: Recent lawsuit raises questions about a company providing its own products and services to its own employees in its own qualified retirement plans. Source: Morningstar.com
Compliance and Regulatory Related 2013 Plan Year: Year-End Compliance Reminders Summary: Every year, plan sponsors must make sure their plans meet certain compliance requirements. This publication identifies the materials you need to review and will help you prepare for year-end. This information applies to qualified defined contribution plans and 403(b) plans that are subject to Title I of ERISA. Source: Prudential.com Best Practices for Beneficiary Designations in Retirement Plans Summary: Issues for plan sponsors to consider when it comes to beneficiary designations are very broad. There is no "one-size fits all" answer when designing a retirement plan to deal with beneficiary designations. The right approach for your plan will be based on a number of facts and circumstances. Article covers some issues plan sponsors should consider when administering beneficiary designations. Source: Multnomahgroup.com Electronic Disclosures: It Is Not as Simple as Sending an E-mail Summary: In light of all the PPACA disclosure requirements, and with the year-distributions required for retirement plans, employers tend to want to distribute benefit plan notices electronically. Maybe companies want to post them on a company website or e-mail them to employees, but there is no question that mailing paper notices to employees is the least preferred method for employers. Unfortunately, it is the preferred method for plan communications from a regulatory perspective. ERISA does permit the electronic disclosure of certain plan communications under certain circumstances. But employers should be very careful to follow these rules. Source: Foxrothschild.com Qualified Retirement Plan Distributions Are Exempt From Net Investment Income Tax Summary: Effective for 2013 and later tax years, Section 1411 of the Internal Revenue Code imposes a 3.8 percent net investment income tax on the net investment income of individuals, estates and trusts. The definition of NII is complex, but generally NII does not include any distribution from a qualified retirement plan under Code Section 401(a), or from a Code Section 403(b) or 457(b) plan or an individual retirement account. Source: Mcguirewoods.com DOL Releases Advance Copies of 2013 Form 5500 Annual Report Summary: The U.S. Department of Labor's Employee Benefits Security Administration, the Internal Revenue Service, and the Pension Benefit Guaranty Corporation today released advance informational copies of the 2013 Form 5500 annual return/report and related instructions. Modifications to the Form 5500 and Form 5500-SF and their schedules and instructions for plan year 2013 are described under "Changes to Note" in the 2013 instructions Source: Dol.gov Video: Are You Following Your Investment Policy Statement? Summary: What's better? Having an investment policy statement and not following it or not having an investment policy statement? Watch this quick video to find out. Source: Erisasunscreen.com DOL Lists Fiduciary Re-Proposal, Project On Brokerage Windows on Regulatory Agenda Summary: The Department of Labor's Employee Benefits Security Administration projected that its rule on the redefinition of the term "fiduciary," also known as its conflict-of-interest rule, will be re-proposed in August 2014, and also indicated its intentions to start on a project related to brokerage windows, according to the DOL's fall 2013 regulatory agenda. Source: Bna.com
Marketplace News Transamerica Introduced Retirement Plan Comparison App MFS Launches Two Low-Volatility Equity Funds Fidelity Unveils New Retirement Preparedness Measure Wal-Mart Keeps Bank of America on $18 Billion 401k Plan WMSI Opens Boston Financial District Office
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