2014 401k Fiduciary Calendar
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Fiduciary and Plan Governance Material Summary: An interactive look at the key retirement plan compliance dates. Compliance dates and fiduciary milestones may vary from plan to plan, but this quarterly calendars provide a great starting point from which to create a schedule specific to your plan. Source: Fidelityinv.com 401k Plan Committee Meetings: Preparation, Execution and Agenda Suggestions Summary: Members of the plan committee share the unique fiduciary responsibility for making decisions on behalf of the current and future beneficiaries of the plan. This fiduciary responsibility entails a long list of tasks, duties and responsibilities be perform each year. The plan committee meetings agenda suggestions here offer you a starting place to ensure that the committee is performing those tasks, duties and responsibilities. Source: 401khelpcenter.com The Plan Checklist That Every Retirement Plan Sponsor Needs Summary: Here is a checklist that plan sponsors should review that can help them develop good practices and avoid unnecessary liability in their stewardship of retirement plans for their employees. It will help plan sponsors navigate the perilous waters of retirement plan sponsorship. Source: Jdsupra.com The Investment Policy Statement: Putting It in Writing Summary: Among a plan sponsor's responsibilities is to offer sound investments options to participants. Your plan's IPS is a double win on that count. It not only helps you think through how best to fulfill this important fiduciary duty, it also is one of the most powerful tools available for protecting yourself against fiduciary liability by formally documenting the process you're using to select and monitor your plan's investment selections. What are some of the key components? Source: Alliantwealthadvisors.com Fiduciary Liability on Employer Directed PS Contributions Summary: A prospective client has a 401k plan. The investment of the plan's assets is directed by the participants with the exception of the employer profit sharing contribution. That is invested at the discretion of the employer. What is the employer's potential fiduciary liability with regard to the profit sharing source? Source: Tagdata.com Be Mindful of Section 404(b) of ERISA When Investing ERISA Plan Assets in International Markets Summary: Section 404(b) of ERISA generally requires ERISA plan fiduciaries to maintain the "indicia of ownership" (i.e., the "evidence of ownership") of ERISA plan assets within the jurisdiction of U.S. District Courts. Plan fiduciaries should be mindful of this requirement when investing plan assets in international markets, in order to avoid breaching this fiduciary duty. Source: Winston.com
Insight: Studies, Research and White Papers Can Social Security and 401k Savings Be Enough? Summary: Current levels of Social Security benefits, coupled with at least 30 years of 401k savings eligibility, could provide most workers with an annual income of at least 60 percent of their preretirement pay on an inflation-adjusted basis, according to a new analysis by the nonpartisan Employee Benefit Research Institute (EBRI). Source: 401khelpcenter.com Hispanic Americans and Retirement Summary: A new study released by Prudential Financial found that the Hispanic American community is moderately confident in their future outlook for household finances, the local and national economy, and the attention paid to their needs by the financial industry and government. In addition, the Hispanic American community places a priority on funding near-term goals such as supporting their multigenerational families. These factors, according to the study respondents, make it difficult for the Hispanic American community to prepare for long-term financial security. Source: 401khelpcenter.com Five Reasons to Re-Enroll Your 401k Participants Summary: Now is the time to determine whether it makes sense to re-enroll all of your participants into your Qualified Default Investment Alternative funds. A number of employers re-enroll all participants into their QDIA default funds (typically target-date funds) each year for the reasons covered here. Source: Benefitnews.com
Court, Legal, Legislative and Washington DC What Extent Can An ERISA Fiduciary Rely on Legal Advice? Summary: The D.C. Circuit concluded that ERISA's adoption of the common law's standard of fiduciary care in Section 404(a)(1)(B) permits prudent fiduciaries making important decisions to rely on the advice of counsel in "appropriate circumstances." Source: Alston.com Fiduciaries Can Sometimes Rely on Legal Advice (or Why ERISA Counsel is a Good Thing to Have) Summary: One of the hallmarks of the fiduciary obligation is to make decisions on an informed basis and to be reasonably diligent when making decisions related to the plan and its administration. Fiduciaries can reasonably rely on experts, like plan counsel, when making decisions related to plan administration. In Clark v. Feder Semo and Bard, P.C., the United States Court of Appeals for the D.C. Circuit recently affirmed that "relying on the advice of legal counsel" was a good thing for the plan administrator. Source: Foxrothschild.com
Compliance and Regulatory Related 2014 Key Administrative Dates and Deadlines for Calendar-Year DC Plans Summary: This is a four page chart of key 2014 administrative dates and deadlines for calendar-year defined contribution retirement plans subject to ERISA and the Internal Revenue Code. Source: Milliman.com ERISA/Employee Benefits Legal Compliance Checklist Summary: Make sure that 2014 starts with your benefits in full legal compliance. This ERISA and employee benefits legal compliance checklist will help you assess your benefits program and structure. Source: Wagnerlawgroup.com Video: Guidance to Plan Sponsors Dealing With Fee Disclosure Noncompliance Summary: Beginning July 1, 2012, a plan's covered service provider became responsible to provide certain fee disclosure information to the plan sponsor. Failure to provide these disclosures would cause the underlying fee to be considered to be a prohibited transaction. This video discussed plan sponsors should do if they do not receive these disclosures from the provider. Source: Erisasunscreen.com DOL Set to Take a Look at 'Brokerage Windows' in 401k Plans Summary: The Labor Department is poised to take a closer look at whether investors are protected in company retirement plans that enable employees to go beyond the plan's menu to choose investments. The department is scheduled to release a request for comment in April on so-called brokerage windows in 401k plans. The mechanisms provide a way for workers to select any fund on the market rather than limit themselves to the investments offered in the plan. Source: Investmentnews.com (free registration may be required) Summary: It's natural to feel bad when someone is in need. However, authorizing a plan distribution that does not meet the requirements can disqualify the entire plan and lead to adverse tax consequences for plan participants and for the plan sponsor. It is important for sponsors to understand the hardship rules and to have procedures in place for making distributions and documenting a participant's need in a manner that will satisfy the IRS in case the plan is chosen for examination. Source: Kravitzinc.com Can a Covered Service Provider Assess Their Own Services and Fees under 408(b)(2)? Summary: Author thinks this a very interesting question as to which there is no definitive guidance from the DOL. With no specific DOL prohibition, they conclude that a CSP is free to provide an initial assessment of their fees and services to a Responsible Plan Fiduciary as long as the substance and the spirit of the 408(b)(2) regulations and other ERISA fiduciary duties are followed. However, a RPF must ultimately be the one to who signs off on the final assessment. Source: Fraplantools.com Numerous Changes Have Been Made to Determination Letter Procedures Summary: The IRS has issued revised procedures for issuing determination letters on the qualified status of pension, profit-sharing, stock bonus, annuity, and employee stock ownership plans (ESOPs), and the status for exemption of any related trusts or custodial accounts. The revised procedures are effective February 1, 2014. Source: Wolterskluwerlb.com
Marketplace News Putnam Brings Peer Comparison to 401k Plans David Booth to Chair PSCA's Investment Committee Verisight Acquires DailyAccess Corporation Vanguard Announces Partnership With HelloWallet Guardian Adds Federated Stable Value to 401k Line-Up Wagner Law Group Opens Chicago Office in National Expansion Move Lawing Financial Acquires Missouri Firm
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