American Airlines Employees Locked Out of 401k Funds
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In This Issue
General Items American Airlines Employees Locked Out of 401k Funds Summary: Jim Irvine had his compass set on an ideal retirement. With two generous pensions and a 401k that he maxed out every year, the American Airlines pilot had been on track to retire by 60. But he has been banned because he used a newsletter called EZ Tracker to trade his 401k. Source: Money.cnn.com Best Practices -- Employee Education Summary: Have you started planning for this year's employee education sessions? Consider the employee education best practices outlined here. Source: Lawtonrpc.com Expert Q&A on the Effects of Health Care Reform on Retirement Plans Summary: At first glance, health care reform does not seem to affect qualified plans, since health care reform regulates health care and not retirement plans. However, a closer examination of health care reform reveals that it could make a significant difference for retirement plans for employees, employers and the retirement community generally. Source: Wagnerlawgroup.com Small Business Retirement Plan Options Summary: This is a chart that compares the four most common types of retirement plan designs utilized by small employers. Source: Consultrms.com
Fiduciary and Plan Governance Material The 15-Minute 401k Plan Review Summary: The law that governs 401k plans is hundreds of pages long and written by Congress. Given that most CFOs won't be referring to the actual statute anytime soon, this article lists eight essential criteria plan sponsors can use to help assess a plan's features, service providers and possible legal exposure. Source: Cfo.com Defined Contribution Retirement Plan Handbook Summary: This handbook is designed to help you better understand today's DC market and prevailing best practices as you build a plan to help meet participants' retirement income needs within the context of meeting your fiduciary obligations. Source: Russell.com ERISA Fiduciary Guidance: Making a "Watch List" Work Summary: Most investment policy statements provide for a "watch list." An investment alternative is put on a watch list when the investment committee determines that a closer review of the alternative is necessary. The nature of the watch list process has the tendency to tempt a committee and its advisors to do the very thing that investors are warned to avoid: selling low and buying high. Source: Bsk.com
Insight: Studies, Research and White Papers More Workers Satisfied With Retirement Benefits, Survey Finds Summary: More U.S. employees are satisfied with their company-sponsored retirement benefits now compared with five years ago, but satisfaction with health care benefits, especially the cost of medical benefits, has declined, according to a survey by global professional services company Towers Watson. Source: 401khelpcenter.com IRI Report Outlines Retirement Security Challenges for Women Summary: The Insured Retirement Institute released new research showing that few women across the Baby Boomer and Generation X cohorts are confident in achieving a financially secure retirement. The report found that many women are still facing financial challenges, which are impairing their retirement readiness and outlook. Source: 401khelpcenter.com Most Do-It-Yourselfers Turn Out Not to be "Doers" at All, According to Guardian Study Summary: Guardian announced new findings from its second annual Guardian Workplace Benefits Study that reveal while four in 10 employees identify themselves as DIYers (Do-It-Yourselfers) when it comes to making financial decisions, they are significantly falling behind their peers on prioritizing and meeting key financial objectives. Source: 401khelpcenter.com Study Shows Value of Asset Allocation Portfolios Summary: Participants in qualified plans serviced by John Hancock Retirement Plan Services who invested exclusively in a single John Hancock asset allocation portfolio earned better returns on average than participants who selected individual investment options to form their portfolios over the five, ten, and fifteen year periods ending December 31, 2012. Source: 401khelpcenter.com
Items of Special Interest to Service Providers In Retirement Business, Big Players Like Vanguard Think Small Summary: Vanguard joins rivals like T. Rowe Price Group Inc in putting a new emphasis on the micro-plans. The newfound interest reflects how the largest corporate retirement plans are either locked up or bargaining hard on fees, while many smaller companies have room to cut their costs and are under pressure to do so. Source: Reuters.com Advisors and the 'Halo Effect' on Small Business 401k's Summary: Financial advisors emit a "halo effect" on small businesses that rely on advisors to structure 401k plans. Small plan sponsors report better retirement plans across eight separate metrics, a new survey has found. The survey also underscores how much opportunity there is for financial advisors who want to pursue the small-plan market. Source: Insurancenewsnet.com
Court, Legal, Legislative and Washington DC Proprietary Fund Litigation Chart Summary: The use of "proprietary" (also referred to as "affiliated") products and services raises a series of issues under ERISA's prohibited transaction rules and fiduciary standards. Compliance with these rules and standards is under increased scrutiny by the Department of Labor and the plaintiffs' class action bar, which has filed more than a dozen lawsuits against the fiduciaries of in-house plans. This chart identifies the lawsuits that have been filed to date, describes the claims that have been asserted in the lawsuits, and summarizes the substantive court rulings and the procedural status of the cases. Source: Groom.com Connecticut Passes Public Retirement Plan Legislation Summary: Connecticut legislators have approved a study that will examine the feasibility of creating of a public retirement plan for private sector workers in the state who don't have access to an employer-sponsored plan. Source: Benefitnews.com Don't Get Cute When Documents Are Requested: ERISA Penalty Provisions for "Hiding" Plan Documents Summary: ERISA generally requires that plan participants get copies of summary plan descriptions, plan documents and annual reports when requested. For administrators, this obligation can even apply if the participant is not specific in their request for documentation. Such was the case in Cultrona v. Nationwide Life Insurance Company, a recent case out of the 6th Circuit Court of Appeals. Source: Foxrothschild.com
Compliance and Regulatory Related A Plan Administrator's Due Diligence Obligations Summary: If you are one of the many plan sponsors who do not adequately review the qualification of rollovers into your qualified plan, this article will help you to understand the issue, the process that you should already be engaged in when it comes to reviewing such contributions and certain new IRS guidance on the matter. Source: Legacyrsllc.com Video: ERISA Spending Accounts Summary: A recent development in the world of employee benefit plans is the introduction of "ERISA Spending Accounts," which result from agreements with the investment service provider. These agreements redistribute amounts received by the investment service provider from revenue sharing arrangements. This video takes about how a retirement plan should account for its ERISA Spending Accounts. Source: Erisasunscreen.com Canadian Employers Providing DC Plans Given Additional Guidance Summary: The Canadian Association of Pension Supervisory Authorities released guidelines that supplements existing CAPSA guidance related to DC plans and provides additional guidance to employers that provide a defined contribution pension plan or a pension plan with a defined contribution component. Although the Guideline is not a legal requirement, it reflects the expectations of regulators regarding the operation of DC plans. For plan administrators, in particular, the Guideline can assist in meeting their fiduciary duties. Source: Capsa-Acor.org Top Payroll-Related Matters Identified in a 401k Audit Summary: In connection with an initial or ongoing 401k plan audit, a plan auditor evaluates internal control matters, often uncovering risks and potential issues related to payroll. Payroll-related mistakes can not only be time consuming and costly for a plan sponsor to correct, but they also may jeopardize a plan's compliance with IRS and DOL regulations. This article reviews a list of the payroll-related matters most commonly identified in the course of a 401k plan audit. Source: Lindquistcpa.com
Marketplace News Seyfarth Shaw Launches Employee Benefits Administrative Service Center Corporate Insight Releases 'Engaging Participants: Best Practices for Plan Sponsors' TriStar Pension Consulting Partners With Dave Ramsey TRA Hires New National Sales Manager Manning & Napier Enhance Their DC Distribution Channel Ryan Alfred Joins EBRI's Board of Trustees TPA's Implement SunGard's Income Analysis Tool FIS to Acquire Atlanta-Based Reliance Financial TRI-AD Acquires Scott, Tellier and Co. and TPGR Daily Committee for the Fiduciary Standard Honors David G. Tittsworth
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