Key to Turning Off Plan Fee Litigation
|
Newsletter Sponsor 401k Averages Book 13th Edition -- Updated 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 Key to Turning Off Plan Fee Litigation Summary: The legal issues in the area of fees charged to plans and the fiduciary duty to monitor them are particularly complex because this relatively new species of litigation overlays a fairly complex statutory and regulatory structure, with new regulations addressing this area specifically. To simplify matters, this article is organized around the five questions that have been most prominent in plan fee litigation. Source: Alston.com Boomerang Employees: Rehires and Retirement Plans Summary: A boomerang employee is, quite simply, one who leaves and then comes back to work...a rehire. As is so often the case, the retirement plan rules related to rehires are quite different than those that apply to other areas of employment and benefits. Whether rehiring a former employee is a rare occurrence or part of your regular course of business, it is important to understand how these rules work. Source: Aktrps.com Guide on General Distribution Rules Summary: Distributions of elective deferrals from a 401k plan can be made for a number of reasons and the rules governing them are often complex. This is a general overview of distribution rules, prepared by the IRS, giving plan sponsors and other professional's guidance on the subject. Source: 401khelpcenter.com EBSA to Focus on Conflict-of-Interest Rule, Prohibited Persons, Audits, Borzi Says Summary: With respect to EBSA's 2014 regulatory agenda, Borzi said that the agency's "most important regulatory priority" continues to be the re-proposal of the conflict-of-interest rule, which is expected to redefine the term fiduciary. Borzi pointed to the changed nature of retirement savings and the deficiency in financial literacy throughout the country as reasons why an updated fiduciary definition was important. Source: Bna.com Puerto Rico Guidance on Retirement Plans Limits for 2014 Summary: For plans qualified only in Puerto Rico, and for plans qualified both in Puerto Rico and the U.S., the limits on annual benefits, annual contributions and plan compensation all will increase. However, the limits on elective deferrals, after-tax and catch-up contributions, and the highly compensated employee threshold, will remain unchanged for 2014. The attached chart reflects the key limits. Source: Groom.com
Fiduciary and Plan Governance Material What Should Plan Sponsors Ask Their Investment Advisors? Summary: Most business owners are not 401k experts. Therefore, working with a quality 401k investment advisor is important and there are questions you should be asking your advisor to ensure they are helping your meet your fiduciary obligations as the plan sponsor. Here are four. Source: Deardrebit.com The Fiduciary Fad: Can Anyone Be a Fiduciary? Summary: With increased regulatory pressure from the DOL, and seemingly ever-growing responsibilities for retirement plan sponsors, it's no wonder that turnkey fiduciary solutions are popping up everywhere. But what risks do these newfangled "fiduciaries" bring to their plan sponsor clients? The answer lies in the complex responsibilities and liabilities of the fiduciary role. Source: Rolandcriss.com Is the Fiduciary Standard at a Crossroads? Summary: Financial advisors, typically those who are fiduciaries, counsel their clients to ignore the cacophony of market noise surrounding them on a daily basis. Better to concentrate on the importance of staying the course for the long-term. These same advisors would be well-advised to take the same sort of medicine with regard to the long-term outlook for the much-maligned but enduring fiduciary standard. Source: Fi360.com
Insight: Studies, Research and White Papers Inflation: The Forgotten Risk? Summary: Over the long-run, investors must successfully manage key risks, including capital risk, reinvestment rate risk, and inflation risk. Years of disinflation coupled with very low market expectations for future inflation have lulled many into a false sense of security about inflation. While it appears unlikely that inflation will be problematic in the near-term, it is a risk that we believe bears monitoring. Article explores the potential drivers of inflation and what can be done to address this "forgotten" risk. Source: Manning-Napier.com Average 401k Balance Nearly Doubles at Fidelity Summary: Fidelity Investments announced the average 401k balance continued its growth trend to end the fourth quarter of 2013 at a new record high of $89,300.00, up 15.5 percent from one year earlier, and nearly double what is traditionally considered the market low of March 2009 when it was $46,200.00. Source: 401khelpcenter.com Building Retirement Security Through DC Plans Summary: This paper discusses why employer-sponsored defined contribution plans and individual retirement accounts are such an important part of the U.S. retirement system. Discusses the numerous positive strides taken by many plan sponsors to increase participation, provide more diversified portfolios, and provide immediate eligibility to cater to a mobile workforce. Source: Acli.com Retirement Plans for the Millennial Workforce Summary: Baby Boomer managers are likely to take traditional approaches to designing retirement and savings plans. That may not resonate with Millennials, those born after 1980, resulting in lower appreciation for these programs. This paper offers some suggestions for improving the effectiveness of such plans and enhancing Millennial engagement. Source: Buckconsultants.com Cashing Out Can Derail Retirement; Employees in Transition Need Help Summary: Article outlines the latest trends in distributions and rollovers and shows plan sponsors the importance of communicating cash out risks to their transitioning employees. Source: Fidelity.com
Court, Legal, Legislative and Washington DC 401k Committee Minutes and Attorney-Client Privilege Summary: A Massachusetts district court articulated two guiding principles for attorney-client exceptions to the general rule that favors disclosure, to participants, of the minutes of plan committee meetings. The decision in this case highlights the difficulty of establishing attorney-client privilege. Source: Paulhastings.com The Fiduciary Exception to the Attorney-Client Privilege: What It Is and Why It Matters Summary: In Kenney v. State Street, the magistrate judge dealt, in a very clean and easily understood manner, with the key issues that come into play under that doctrine, which have to do with its borders: to be exact, what attorney-client communications are subject to disclosure under this exception, and what ones are not. Source: Bostonerisalaw.com Retirement Savings Proposals -- Summary of Key Provisions Summary: Three different proposals have recently emerged from Washington D.C., each seeking to improve access to retirement plan savings vehicles. Each of these proposals is primarily targeted at employees of small employers who do not currently sponsor defined benefit or defined contribution retirement plans. This Aon Hewitt bulletin provides a high-level summary of the following three proposals. Source: Aon.com Summary: The participant claimed that under Cigna v. Amara, the SPD could not be the plan document and that the plan document therefore had to be the administrative services contract. The federal district court disagreed, stating that if there is only an SPD, then the SPD is the plan document and it can be enforced. Source: Benefitsnotes.com
Marketplace News Lincoln Financial Adds Three Regional Sales Directors 401k Advisors Expands East Coast Presence Aspire Partners With LPL Worksite Solutions Blackrock Launches Five CoRI Funds MassMutual Retirement Adds Five to Sales Team Rosenbaum Publishes Book, 'How to Succeed in the 401k Plan Business' New Name for CPI Qualified Plan Consultants Redhawk and Centier Bank Announce Strategic Alliance
This eNewsletter is a digest of information published by a variety of web-based sources on 401k and related issues and is published as a service to our users. 401khelpcenter.com, LLC is not the author of the material unless specifically noted. We review each article to ensure that it is related to the interests of our subscribers, but 401khelpcenter.com, LLC does not endorse and disclaims any and all responsibility or liability for the accuracy, content, completeness, legality, or reliability of the material. Reliance on this material should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. All articles are copyrighted to their publishers. If you believe that your work has been copied in a way that constitutes copyright infringement, please contact the source site immediately. All links were tested before this eNewsletter was e-mailed to you to ensure that they are still functional.
Copyright © 2014 by 401khelpcenter.com, LLC. All rights reserved. No reproductions without prior authorization, but you are free to email this copy (in its entirety) along to colleagues or clients. This newsletter may not be posted to any website.
THIS NEWSLETTER IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE INVESTMENT, TAX, ACCOUNTING OR LEGAL ADVICE.
401khelpcenter.com, LLC
|
