Fidelity Investments Wins Huge in the 'Biggest 401k Case in Decades'
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Court, Legal, Legislative and Washington DC Fidelity Investments Wins Huge in the 'Biggest 401k Case in Decades' Summary: In what many experts view as a landmark case for 401k fees, Fidelity Investments was cleared by a U.S. Court of Appeals 8th Circuit Court judge of charging excess fees. Yet the good news for the Boston-based retirement king proved a bitter pill for its client, Switzerland-based ABB Inc. Source: Riabiz.com Eighth Circuit Issues Widely Anticipated Excessive Fee Decision in Tussey v. ABB Summary: In Tussey v. ABB, Inc., the US Court of Appeals for the Eighth Circuit upheld, vacated and remanded, and reversed in part a decision from the District Court for the Western District of Missouri regarding breach of fiduciary duty claims for excessive recordkeeping fees and the imprudent selection of plan investment funds. Source: Practicallaw.com Fifth Circuit: Investment Advisor Paid by a Third Party Is Not an ERISA Fiduciary Summary: The U.S. Court of Appeals for the Fifth Circuit recently held that an investment advisor was not a fiduciary for purposes of ERISA because he did not receive any fees from the retirement plan for his advice regarding the investment at issue in the case, but received a commission from the third-party broker/dealer used to make the investment recommended by the advisor. Source: Haynesboone.com
403(b) Plans 403(b) Required Minimum Distributions Summary: RMD rules for 403(b) plans are similar to those for defined contribution plans, but there are also differences. Here is a review and some examples. Source: Mhco.com
Fiduciary and Plan Governance Material Are You Doing What Your Plan Says You Are Doing? Consistent Plan Administration Summary: ERISA provides some pretty broad protections to diligent plan fiduciaries, but those protections are limited in that a fiduciary has to follow the terms of the plan document. In many respects, the plan documents serve as a promise to participants about the constancy with which the plan will be administered, and courts, when reviewing fiduciary decisions, hold fiduciaries to those promises. Source: Foxrothschild.com What Are the Responsibilities of a Fiduciary? Summary: You have a lot of weight on your shoulders as a plan sponsor. After all, if something goes wrong, you could be held personally liable. Not only are you liable for losses resulting from a breach of your fiduciary responsibility, but you're also liable if you have knowledge of another fiduciary's breach and either conceal it or fail to make reasonable efforts to remedy it. And, to top it off, no actual harm is needed for you to be found liable. Deciding who can be held liable is confusing considering the various roles and fiduciary definitions under ERISA. Article looks at what ERISA says about fiduciary responsibility. Source: Deardrebit.com Summary: Every plan must have a fiduciary(s) responsible for the operation of the plan. A fiduciary can be identified as a person or as an office, such as a company's board of directors. Many plans have several fiduciaries, each being responsible for a different aspect of the plan's management. What are a few of the rules? Source: Mhco.com Five Nuances to Managing Fiduciary Liability With a QDIA Summary: You might be interested in knowing five things about qualified default investment alternatives (QDIAs) that might not be on your radar screen. So, what are the five nuances that plan sponsors should know about these vehicles? Source: 401kadvisor.us
Insight: Studies, Research and White Papers EBRI's 2014 Retirement Confidence Survey: Confidence Rebounds Somewhat Summary: Americans' confidence in their ability to afford a comfortable retirement has recovered somewhat from the record lows of the past five years, according to the 24th annual Retirement Confidence Survey, but it does not appear to be founded on improved retirement preparations and it may be limited to those with retirement plans. Source: 401khelpcenter.com 2014 Retirement Confidence Survey Summary: In the aggregate, worker savings remain low, and only a minority appear to be taking basic steps to prepare for retirement. On the other hand, there are notable differences between the behaviors -- and confidence -- of those who indicate they or their spouse have a retirement plan, and those who do not. Source: Ebri.org Do Longevity Expectations Influence Retirement Plans? Summary: Life expectancy at 65 has increased by about four years since 1980, and this rise in longevity has sharply increased the time spent in retirement. This article explores the relationship between workers' expectations about how long they will live -- their subjective life expectancy -- and their retirement plans. Source: Center for Retirement Research Are Workers Rethinking Retirement Age? Summary: While the age at which workers expect to retire has been slowly rising over time, that trend could be slowing, according to a new report from the nonpartisan Employee Benefit Research Institute. Source: Ebri.org
Items of Special Interest to Service Providers DOL Proposed Regulation on 408(b)(2) Guide; Impact on Service Providers Summary: The DOL has issued its long-anticipated proposal to amend the 408(b)(2) regulation. If adopted, the proposal will require covered service providers to furnish responsible plan fiduciaries with a guide to their disclosures. This Alert discusses the proposed regulation and its impact on the four major categories of covered service providers: recordkeepers; broker-dealers; registered investment advisers; and third party administrators. Source: Drinkerbiddle.com Borzi Plays 'Three Questions' With Critics of DOL's Expected Fiduciary Rule Re-Proposal Summary: Phyllis C. Borzi, assistant secretary for the DOL's Employee Benefits Security Administration, doesn't have 21 questions for people who doubt whether the agency's expected re-proposed fiduciary regulations are necessary. She has only three. Source: Bna.com Multiple Employer Plans Grabbing More Attention Summary: A concerted effort in Washington to get more employers to offer retirement plans has raised the profile of multiple employer plans, a largely untapped market for institutional money managers and other service providers. Source: Pionline.com
Compliance and Regulatory Related 408(b)(2) Fee Disclosure Guide, Where Will It Lead? Summary: The DOL's proposal leaves open for comment the circumstances under which such a guide would be required. In addition to the guide, the proposal also adds three notable requirements to the existing regulation that could alter some covered service providers existing disclosure processes. Finally, DOL also signals in the proposal a willingness to impose requirements on electronic communications between plan service providers and plan fiduciaries -- something that it has not done before. Source: Groom.com Quebec Releases Draft Voluntary Retirement Savings Plan Regulations Summary: The Quebec government released draft regulations that are required to complete the new legal framework for the establishment of voluntary retirement savings plans (VRSPs) in Quebec effective July 1, 2014. Source: Pensionsbenefitslaw.com 401k Contribution Remittance: What's an Employer to Do? Summary: One particular regulation that has been a source of confusion for employers -- and in some cases, has landed them in hot water with the DOL -- is the timely deposit of employee contributions into 401k plans. Over time, the DOL has changed its expectations on remittance, despite not rewriting the rule. Source: Benefitnews.com Summary: This compliance checklist incorporates defined benefit, defined contribution and ERISA 403(b) requirements and provides information on the materials that you will need to file, filing due dates and agencies to which the filings should be made. Source: Prudential.com Summary: Virtually every retirement plan faces a growing problem that costs time and money and could actually cause it to fall out of compliance with various regulations. The problem is caused by ex-employees who still belong to the plan, but end up being classified as missing or non-responsive because they can't be located or never acknowledge communications about their retirement accounts. This article explores what plan sponsors can do when ex-employee participants disappear or ignore them. Source: Mtrustcompany.com
Marketplace News Great-West and Putnam Merge Retirement Businesses New Fidelity Program to Help Advisors Accelerate Retirement Plan Business Growth Higher Ed Retirement Plan Design Database Unveiled Americas Best 401k Integrates Online Advice Pensionmark Releases Employer Document Vault 2014 Retirement Decisions Guide Released Standard Announces Co-Marketing Relationship With M Financial Pentegra Retirement Hires Chief Technology Officer ASPPA and NTSA to Launch Revamped Websites Prudential Retirement Names New Head of Investments
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