Upgrade Your Retirement Plan Governance in 2014
|
Newsletter Sponsor
The premier resource for information, tools and services and connections supporting Business Management, Business Development and Practice Improvement for TPA firms. Business owners/managers are responsible for the day to day as well as running a successful business, which means that at times those important business related tasks are placed on hold. TPAresources.com was built specifically keeping that in mind. Subscriptions available January 2, 2014! For more information go to www.TPAresources.com.
Fiduciary and Plan Governance Material Upgrade Your Retirement Plan Governance in 2014 Summary: Both the Internal Revenue Service and the Department of Labor are intent on making certain that retirement plans focus on best practices and good plan governance. The expectation of these agencies is that the interests of participants will be better protected if plans operate at a high level. Having good plan governance and operating with best practices also limits the liability of plan fiduciaries. Here are 25 suggestions to improve your plan governance. Source: Benefitsbryancave.com Ten Hidden Liability Pitfalls Retirement Plan Sponsors Should Avoid Summary: There are certain instances where a plan sponsor is unaware that their action or inaction puts them at risk to liability from either plan participants or governmental agencies such as the Department of Labor and the Internal Revenue Service. For plan trustees, that liability may be personal liability. This article details pitfalls, that plan sponsors are usually unaware of, that exposes them to potential fiduciary liability. Source: Jdsupra.com Five Easy Pieces Every Committee Member and Plan Sponsor Should Learn Summary: Running a plan can be frustrating and difficult, and, yes, complex. The literally thousands of details and decisions plan sponsors and their committees encounter routinely over the course of a year can cause loss of big picture perspective and control of their plans. But every plan sponsor and committee must do the following five things annually. Source: Fiduciaryplangovernance.com
403(b) Plans IRS Updates Information About 403(b) Plans Summary: The Internal Revenue Service has updated two publications relating to 403(b) plans: Publication 4482, "403(b) Tax-Sheltered Annuities for Participants," and Publication 4483, "403(b) Tax-Sheltered Annuity Plans for Sponsors." Source: Planadviser.com
Insights: Studies, Research and White Papers 401k Plan Asset Allocation, Account Balances, and Loan Activity Summary: This paper is an annual update to ICI and EBRI's ongoing research into 401k plan participants' activity. The report is divided into four sections: the first describes the EBRI/ICI 401k database; the second presents a snapshot of participant account balances at year-end 2012; the third looks at participants' asset allocations, including analysis of 401k participants' use of target-date, or life-cycle, funds; and the fourth focuses on participants' 401k loan activity. Source: Ici.org Five ETF Trends to Watch in 2014 Summary: So much has happened in the exchange-traded fund space in 2013 that could fundamentally change the game for the industry in 2014 and beyond. Here are five that could gain traction in 2014. Source: Benefitscanada.com Target-Date Funds Expand in 401k Plans Summary: Greater number of 401k plan participants are investing in target-date funds over time. At year-end 2012, 41 percent of 401k participants held target-date funds, according to a report released by the Employee Benefit Research Institute and the Investment Company Institute. Source: Ebri.org Summary: This research report from Prudential Retirement indicates that the addition of auto-enrollment and auto-escalation features in defined contribution plans may produce markedly higher participation levels and deferral rates, significantly improving the likelihood of successful retirement outcomes. Source: Prudential.com Video: Understanding Contributions to Individual Retirement Accounts Summary: In this video, Stephanie Ortbals-Tibbs, ICI's Director of Media Relations, examines possible drivers behind relatively low contribution rates to traditional IRAs. Source: Ici.org Bridging the Gap Between 401k Plan Sponsors and Participants Summary: As defined contribution plans become the primary retirement savings vehicle for more and more American workers, there is no shortage of challenges facing participants. They aren't saving enough they aren't making good investment choices, and they aren't committed to preparing for their retirement, as evidenced by the borrowing that is occurring to fulfill short-term needs. But there is reason for optimism, according to a survey from Northern Trust. Source: Benefitnews.com
Compliance and Regulatory Related New Compliance Obligations for 2014: Fewer New Laws, but Important Changes for Employers Summary: As always, the new year brings a host of new laws that are the product of our state and federal legislatures. While the total number is lower this year, these new compliance obligations are just as important for employers. This summary provides an overview and chart of new laws that become effective in 2014. Source: Littler.com Retirement Plan Guidance is on EBSA's Gift List for 2014 Summary: The Department of Labor's Employee Benefits Security Administration recently released an update to its guidance agenda, including a number of priorities that can be expected to affect retirement plans. Clearly there are some surprises in this updated priorities document and perhaps some reason for concern as well. Source: Ascensus DOL Seeks Removal of 401k Trustee Summary: The DOL filed a lawsuit in the U.S. District Court for the Northern District of Illinois, Eastern Division. The suit names Eugene Aguirre, as well as the Sunstrand Electric Company Inc. Employees 401k Profit Sharing Plan and Trust, as defendants. The Department of Labor hopes to remove the trustee. Source: Planadviser.com
General Items Are 401k Plans a Failed Experiment? Summary: Over the past decade, 401k plans have moved from a system of "democratic choice" to one of "democratic paternalism." Kevin Crain, head of institutional retirement and benefit services Bank of America Merrill Lynch explains what he means, and how the 401k system can be further strengthened. Source: Benefitnews.com A Flexible 401k for the Solo Entrepreneur Summary: If you're a small-business owner without employees, you're probably familiar with both the exhilaration and travails of going it alone. With a gradually improving economy, more small-business owners may be in a position to defer income this year and next. If you're wondering how to lower your self-employment tax bill, consider a one-participant 401k plan, better known as a "solo 401k," a flexible retirement vehicle with a plethora of advantages to solo entrepreneurs. Source: Fool.com
|
