DC Consolidation Heats Up: 10 Major Announcements in Less Than a Year
|
Newsletter Sponsor The Power of Financial Wellness Programs Keeping employees focused on the work that matters while at work is vital to any organization's success. When employees spend time at work focusing on financial problems, companies see costs rise due to lost employee productivity. Learn how the Financial Fitness Challenge, the proven, cost-effective way to provide employees with online financial wellness education that boosts employee financial well-being and greatly increases their productivity. Find out more.
In This Issue
Items of Special Interest to Service Providers DC Consolidation Heats Up: 10 Major Announcements in Less Than a Year Summary: The 2008 economic crisis forced potential buyers in the DC world to shore up their own businesses rather than looking at acquisitions. But those concerns are all past, it seems. Major deals and restructuring have significantly altered the DC industry landscape, with more to come. Here are the 10 major deals that have occurred or have been announced over the last 12 months. Source: Napa-net.org SEC to Examine Investment Advisers' Procedures for Countering Cyber Security Threats Summary: On April 15, 2014, the Securities and Exchange Commission's Office of Compliance Inspections and Examinations issued a "Risk Alert" explaining a new initiative to assess cyber security preparedness in the securities industry. Although not an official rule, regulation or statement of the SEC, the Risk Alert advised that OCIE will be conducting examinations of more than 50 registered broker-dealers and registered investment advisers, regarding their cyber security and data security procedures and policies. Source: Drinkerbiddle.com
Fiduciary and Plan Governance Material ERISA Fee Disclosures: Best Practices for Fiduciaries Summary: In response to intense public scrutiny and a series of lawsuits brought against plan sponsors and fiduciaries concerning the compensation paid to 401k service providers, the DOL created a three-part fee disclosure initiative aimed at greater transparency for the benefit of such plans and their participants. In addition to changes to Form 5500, Schedule C reporting, the DOL issued two final regulations: a regulation on participant-level fee disclosure, and a regulation on plan sponsor-level fee disclosure. It is now up to plan sponsors and participants to use the disclosure information obtained as a result of these initiatives in a manner that yields prudent and effective investment decisions. Source: Erisa-Lawyers.com 401k/403(b) Best Practices -- Fees Summary: Are your retirement plan fees market competitive? Do you meet your fiduciary obligations regarding provider fee review each year? Consider these best practices relating to fees. Source: Lawtonrpc.com
Insight: Studies, Research and White Papers BMO White Paper on Automatic Features Summary: White paper examines the use of automatic features within a defined contribution plan. It notes that it is widely known that features such as auto-enrollment and auto-escalation typically increase employee participation, and are therefore likely to improve retirement readiness. In contrast, plan sponsors have not traditionally received guidance on how to implement these features effectively. The paper identifies the key questions that need to be addressed. Source: Bmo.com Canada: What Retirement Crisis? Summary: There isn't a retirement income crisis in Canada, according to a study. The Fraser Institute study The Reality of Retirement Income in Canada finds that analysts, activists and politicians who advocate for expanding the Canada Pension Plan (CPP) base their arguments on several faulty assumptions, often overlooking all the resources available to Canadians in retirement. Source: Benefitscanada.com Retirement Remains Americans' Top Financial Worry Summary: A firm majority of Americans, 59%, are worried about not having enough money for retirement, surpassing eight other financial matters. A majority of Americans have reported being "very" or "moderately" worried about retirement savings every year since 2001, illustrating that saving for retirement 'disquiets' Americans in both good and bad economic times. Source: Gallup.com
Court, Legal, Legislative and Washington DC President Obama's 2015 Budget Proposes Changes to Employer Benefits Summary: President Obama's budget proposal for fiscal 2015 includes items from the State of the Union address, such as the new myRA retirement savings accounts and a minimum wage hike. The budget also includes proposals from earlier budgets, including limits on savings and benefits in tax-preferred retirement plans, a cap on tax preferences for employer-provided health and retirement benefits, and calls for higher Pension Benefit Guaranty Corporation premiums. Source: Towerswatson.com 'Bipartisan Policy Center' Launches New Retirement Savings Initiative Summary: As fewer Americans accumulate sufficient savings and the solvency of Social Security is threatened, how Americans adequately prepare for retirement has become a critical question. To address this long-term challenge, the Bipartisan Policy Center announced the launch of a new Personal Savings Initiative. Source: 401khelpcenter.com Fiduciaries Evades Liability for Use of Float Income Summary: The U.S. Court of Appeals in St. Louis has affirmed a trial court ruling that plan fiduciaries violated their duties under ERISA by failing to monitor excessive fees remitted to a recordkeeper that was paid through revenue sharing. In addition, the court absolved the recordkeeper of liability for its use of float income retained on plan investments. Source: Wolterskluwerlb.com
Compliance and Regulatory Related Guide to Key Defined Contribution Plan Reporting and Disclosure Deadlines Summary: Do you know that there are more than 30 statements, notices, participant communications, and forms that a 401k or other defined contribution plan may be required to distribute or file in a given year? Now that Spring is in the air and the dust from all the first of the year benefit changes has settled, it is a good time to take a look at your plan's compliance with key reporting and disclosure deadlines. Source: Quarles.com Preventing and Fixing Broken 401k Plans: 12 Common Compliance Errors Summary: Retirement plans must always be in both form and operational compliance, including demographic eligibility compliance, with the terms of the plan document for the life of the 401k plan in order to claim the benefits granted to a qualified plan. Here is a summary of 12 common 401k plan compliance errors. Source: Thinkadvisor.com Common Retirement Plan Problems and How to Fix Them - Part 2 Summary: The question of compensation seems like it would be very straight forward, but it trips up so many plan sponsors. Problem: The compensation on which contributions were calculated was not the same as the compensation as defined in the plan document. How do you fix it? Source: Benefit-Resources.com Using Retirement Accounts to Fund a Business Startup Draws IRS Scrutiny Summary: The IRS is increasing scrutiny into a complex practice for using retirement accounts to fund a business. The practice may trip up business owners who take advantage of it. In the end, it could cost them not only their retirement nest eggs, but open them up to paying back taxes and large penalties to the IRS. Source: Smallbiztrends.com ERISA Penalty Claims, How to Handle Them Summary: Are you seeing more ERISA Plaintiffs asserting claims seeking penalties for delayed production of ERISA-related documents? 29 U.S.C. 1132(c)(1) allows the Court to impose penalties of up to $110 per day for delays in producing documents requested in writing. But are those written requests for ERISA documents sufficiently detailed to create a risk of penalties? In Cultrona v. Nationwide Life Insurance Company, the Court requires Plaintiff's written request for ERISA documents to give plan administrator "clear notice" of the documents requested. Source: Boomerisablog.com
403(b) Plans IRS Extends Deadline for 403(b) Plan Documents Summary: The IRS issued Revenue Procedure 2014-28, which extends the deadline for plan document providers to submit applications to the IRS for pre-approval of prototype and volume submitter 403(b) plan documents from April 30, 2014 to April 30, 2015. Source: Mcgladrey.com Report Card on 403(b) Plans: Have They Improved? Summary: Before a new set of regulations kicked in a few years ago, 403(b) plans were like the wild, undisciplined cousins of the 401k plan. Participants choosing a 403(b) plan often had to sort through a complex list of options ranging from A to Z. And we're not talking about investment options. This complexity was a barrier to entry for the average and even the above-average participant. How have 403(b) plans changed? Source: Yahoo.com
General Items Summary: What would it take to get the employees at your organization to save more for retirement? Getting employees to build an "emotional connection" with their future selves may be the key to getting them to save more for retirement. Source: Hreonline.com Summary: We are just beginning to witness how retirement plays out for a generation of workers who have primarily funded their retirement through a 401k plan. It's likely that in the future, plan sponsors will play a more active role in helping participants convert their retirement savings to retirement income. Source: Francisinvco.com How Do Companies Boost 401k Enrollment? Summary: More Americans are saving for retirement through their employers' 401k programs. That's because in recent years they've been given a strong nudge -- more companies are automatically enrolling workers in retirement savings programs. Some firms are also automatically increasing the amount employees contribute. That's just as important, experts say. And all of this makes a big difference: Without it, millions of Americans don't save at all. Source: Npr.org
Marketplace News Nominations for the 2014 'Signature Awards' Now Open Peggy Santhouse Joins John Hancock RPS fi360 Expands Senior Level Management Team Segal Group Creates Dedicated DC Team WMSI Launches Small Business Retirement Plan Comparison Calculator IRIC Announces Lincoln Financial, Voya as Newest Sponsors ADP Launches 'IPS Zero' Platform BlackRock Enhances CoRI Retirement Suite Principal Hosts ERISA 3(16) Webcast for TPAs InHub Launches RFP Tool for Institutional Investors Invesco National Trust Launches 15 New CTFs
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
|
