Obama Starter Retirement Plan Lacks Many 401k Features
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Court, Legal, Legislative and Washington DC Obama Starter Retirement Plan Lacks Many 401k Features Summary: President Barack Obama's new retirement accounts lack the most popular features of 401k plans. They offer no matching contributions, no prospect for eye-popping returns and no track record of employer support. Source: Financial-Planning.com Will the "myRA" Help Companies Cut Retirement-Plan Costs? Summary: It not hard to imagine that some companies will seize on the myRA as a next-generation strategy for saving on existing retirement-plan costs. It's happened before, when the 401k replaced pension plans as the chief retirement-funding vehicle. Source: Cfo.com Can Obama's 'myRA' Lure Workers Who Don't Save for Retirement? Summary: 'myRA' plans would be subject to a $15,000 maximum balance, after which they will be converted without penalty into IRAs. Those amounts are small, but the idea is to get workers who currently save nothing into the system. Source: Businessweek.com Year in Review: 2013 in ERISA Litigation Summary: Several U.S. Supreme Court rulings broke new ground for employee benefits in 2013, and decisions in 2014 are also expected to push these issues into new territory. In addition to its landmark ruling recognizing same-sex marriage under federal law, the U.S. Supreme Court also issued two significant opinions under the Employee Retirement Income Security Act in 2013 -- one involving contractual limitations periods, and the other involving Section 502(a)(3)'s equitable remedies provision. Source: Bna.com Changing the Policy Conversation, An Interview With Six DC Stakeholders Summary: Lew Minsky and five other DC industry leaders were interviewed in the latest edition of The Participant Magazine. They discuss how to improve the retirement system by driving change in Washington. Source: Ssga.com Harkin Unveils Legislation to Address Retirement Crisis, Rebuild Private Pension System Summary: Harkin, Chair of Senate Pensions Committee, Proposes "Universal, Secure, Adaptable (USA) Retirement Funds Act" to Expand Access to Privately-Run, Portable Retirement Plans. Harkin's legislation would create a new type of privately-run retirement plan that combines the advantages of traditional pensions -- including lifetime income benefits and pooled, professional management -- with the portability and ease for employers of a 401k. Source: Senate.gov
403(b) Plans 2014 403(b) Fiduciary Calendar Summary: An interactive look at the key 403(b) 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 Trouble Ahead for the Non-ERISA 403(b) Plan Summary: It is difficult to maintain the non-ERISA status of a 403(b) arrangement and the ability to maintain the non-ERISA status of a 403(b) plan seems to have dimmed considerably late last year when the DOL took an interesting position in a lawsuit it filed last year against a plan administrator. Source: Businessofbenefits.com
Fiduciary and Plan Governance Material The Lost Art of Plan Design: Origins of Fiduciary Liability Summary: The commoditization of plan documents has become so engrained in the industry that rarely does the plan sponsor's management or its board have the draft plan reviewed by independent legal counsel before approving it, accepting on faith the bulk of a complex standard form document on the advice of a service provider who is acting neither as an attorney nor a fiduciary. Besides ending up with a sub-optimal plan design, such a process places fiduciaries in untenable positions. Read how. Source: Erisafiduciaryadministrators.com Bad News Bonds Could Increase 401k Fiduciary Liability Summary: State Street Global Advisors released the results of their Biannual DC Investor Survey. In part, the results confirm the results of earlier surveys that showed 401k investors are over-weighted in bonds. The survey found that investors seemed to have a fundamental misunderstanding regarding the nature, risk and safety of bonds. And here lies a potential for fiduciary liability. Source: Fiduciarynews.com
Insight: Studies, Research and White Papers Success by Plan Design: Improving 401k Plan Health and Employee Wellness Summary: For most employees, their 401k plan will be the primary source of retirement income. But research shows that many employees are not using their plans as well as they could be. This paper outlines action-based plan design strategies that can help participants contribute early, contribute at high-enough levels and help them pursue their financial wellness and retirement goals. Source: Benefitplans.baml.com The Evolution of DC Plans: New Challenges, Intriguing Solutions Summary: In today's post-defined benefit world, defined contribution plans have evolved into the primary retirement vehicles for most employers and employees. Despite this trend, many companies have been slow to introduce improvements and adopt proven principles that better enable employees to plan for and achieve a comfortable retirement at an age that they can enjoy it. Source: Buckconsultants.com
Items of Special Interest to Advisors Survey: RIAs See Opportunity in Retirement Plan Market but Want Guidance Summary: Most Registered Investment Advisors agree the U.S. retirement plan market represents a tremendous growth opportunity yet relatively few RIAs pursue this business in a significant way. What advisors want, according to a recent TD Ameritrade Institutional Advisor Survey, is a deeper understanding of the rules and more guidance in assembling the components needed to service 401k and other employer-sponsored retirement plans. Source: 401khelpcenter.com FINRA Issues 10 Tips to Making a Sound Decision on IRA Rollovers Summary: The largest source of IRA contributions comes from individuals who move their money from their employer-sponsored retirement plans such as 401k and 403(b) plans. When considering rolling over money from an employer plan into an IRA, ponder these tips to help decide whether an IRA rollover is the right thing to do. Source: Sparkinstitute.org
Compliance and Regulatory Related Get Your Ducks in a Row: 58 Questions From the DOL Summary: One of the mechanisms the DOL uses to meet their objectives is the audit of retirement plan sponsors. These audits provide the Department a wide variety of data to analyze, but also provide plan sponsors insight into the issues that the Department is most interested in evaluating. This article lays out 58 questions the DOL asks in their audits. Source: Multnomahgroup.com Video: DOL's Lifetime Income Calculator Summary: At the recent AICPA Employee Benefit Plan conference in Washington DC, Phyllis Borzi from EBSA talked about a useful tool on their website that is sure to be eye opening for your participants. It's called the "Lifetime Income Calculator." Watch this quick video to see how it works. Source: Erisasunscreen.com SPARK Seeks Permanent Participant Disclosure Compliance Deadline Flexibility Summary: Transitional relief provided by the DOL it provided did not resolve concerns that the current timing requirements in the 404a-5 regulations may result in a fixed annual deadline. SPARK requests that DOL issue guidance that specifies that "furnishing the required materials not later than 45 days following the anniversary of the day on which the materials were furnished for or during the preceding year will constitute good faith compliance with the requirement to furnish such materials at least annually." Source: Sparkinstitute.org
General Items Tax Benefits for Employers Sponsoring a Retirement Plan Summary: Business owners are eligible for tax deductions for contributions to the plan for the employees and for the business expense of engaging a third party administration firm to administer the plan. Depending on the amount that the employer contributes, the deduction can be worth thousands of dollars. Source: Badenrps.com Hybrid DB/DC Plan Getting Play Summary: A new type of defined benefit pension plan is gaining some traction in both the public and private sectors that could reverse the trend of companies and governments dumping their defined benefit plans in favor of defined contribution plans. The adjustable pension plan is the brain child of executives at Cheiron. Source: Benefitspro.com How Saving Too Much in Your 401k Could Cost You Summary: Company matches are typically allotted each pay period, meaning those who max out annual contributions early could miss out on extra retirement savings. Source: Morningstar.com
Marketplace News OneAmerica Introduces Index(b) Retirement Plan Product TD Ameritrade Unveils Retirement Plan Solution for RIAs Milliman Enhances Mobile Apps for Plan Participants Custodia Hires Retirement Industry Expert Nationwide Adds Stadion to Managed Accounts Platform ING Hires Keating to Lead Large Corporate Market Sales BLAZE SSI Rolls Out Refreshed Website DOL and SEC Reaches $21mm Settlement With Western Asset Management
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