2015 Projected Retirement Plan Limits
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In This Issue
General Items 2015 Projected Retirement Plan Limits Summary: Based on the current CPI information through August, here are the projected 2015 retirement plan limits as calculated by a number of reliable sources. The IRS will release the official numbers on or about October 22, 2014. Remember, these are just projected 2015 numbers. Source: 401khelpcenter.com Three Ways to Increase Employee Participation in Your 401k Plan Summary: Helping educate your employees about the benefits of a 401k plan, and in the process debunking common plan myths, can go a long way towards getting more employees to enroll. But there are other ways you can help increase participation too. Article takes a brief look at three of them. Source: Mossadams.com How to Reassure Retirement Plan Participants in Light of PIMCO Moves Summary: For many, if not most 401k plans, the PIMCO Total Return Bond Fund is one of their fixed income options. Most plan participants close to retirement use the Fund as the cornerstone of their retirement investment strategy. If you offer the Fund in your plan, you will probably have some nervous participants and may wish to share the information suggested in this article. Source: Benefitnews.com The Departure of Bill Gross From PIMCO; Here's What it Means for Your 401k Plan Summary: Plan fiduciaries with plan investments in the PIMCO Total Return fund are now faced with making a thoughtful decision on retention and monitoring of the fund. This decision is not a simple one and requires careful consideration of the IPS, governing plan documentation and, ultimately, what is perceived to be in the best interest of plan fiduciaries. Source: Benefitsbryancave.com Infographic: The Boomerang Generation's Retirement Planning Summary: There are several steps Millennials can take to secure a better retirement. This infographic features 12 tips Millennials should consider when developing their retirement strategy. Source: Retirementtownhall.com
Fiduciary and Plan Governance Material Role of the Independent Fiduciary Summary: This is a seven page overview of the role of the independent fiduciary including background principles, common situations where an independent fiduciary is either legally required or advisable, the duties of an independent fiduciary and some practical pointers regarding what to expect when employing such a fiduciary. Source: Ajg.com Assigning Fiduciary Responsibilities Through a Cofiduciary Arrangement Summary: Can an investment manager or other provider relieve you of part of your fiduciary responsibility? "Cofiduciary" is an approach to fiduciary responsibility that some may consider. But what does it really mean, and is there reason for caution? Outlined here are some of the questions you should be asking when considering a possible cofiduciary arrangement. Source: Fidelity.com Is the IPS Just Ammunition for a Lawsuit? Summary: Having a written investment policy statement just makes it easier for my clients to sue you. You've probably heard that argument before, right? But that's only true if you are either unwilling or unable to follow what's in the IPS. Source: Fi360.com
Insight: Studies, Research and White Papers Employers Looking to Enhance 401k Investment Structures, Survey Finds Summary: Employers are enhancing the investment structures of their 401k plans, according to a new survey by Towers Watson. This includes replacing single, stand-alone investment options with multi-manager, white-label choices, implementing custom target-date fund solutions and outsourcing all or portions of their 401k plan oversight. Source: 401khelpcenter.com The Slow Rise of the Tablet App for Retirement Plans Summary: Apps that are created for use on tablets offer the potential for greater functionality than a typical mobile app, Corporate Insight says in its recent report "Retirement on the Move: Tablet Edition," an overview of retirement plan tablet apps. In the defined contribution world, users could view account balances and analyze fund data or asset allocations on the move, and the larger screens of tablets would make certain tools easier to use and multimedia resources more accessible. Source: Planadviser.com
Items of Special Interest to Service Providers Chatham Partners Release TPA Benchmarking Study Summary: For the 3rd consecutive year, Chatham Partners has conducted its 'TPA Satisfaction and Needs Assessment Study'; surveying 199 TPAs and gathering their opinions on 22 leading retirement service providers. The study assessed TPAs' attitudes and perceptions of leading retirement service providers, including their levels of satisfaction with providers' TPA support services, personnel, technology, product and service offering, and overall impressions. This is an overview of the findings. Source: 401khelpcenter.com Re-Proposal of DOL Fiduciary Advice Regulation Summary: The DOL has pushed back the date for the re-proposal of the fiduciary advice regulation to January of next year. In addition, the SEC is working with the DOL to help determine the impact of an expanded fiduciary advice regulation on the ability of investors to continue to receive adequate investment services. Finally, the White House is also evaluating the potential impact of a regulation that expands the definition of fiduciary advice. The big question, of course, is what does all of this mean? Source: Fredreish.com
Target-Date Funds Do Customized Target-Date Funds Hit the Target? Summary: As automatic enrollment becomes a staple of 401k plan design, the resulting deferrals are increasingly invested in target-date funds. But a growing issue for plan sponsors is whether off-the-shelf TDFs are robust enough for their growing role in retirement plan investing. Article discusses the question of whether there are a better option for participants than the off-the-shelf TDFs offered in most 401k plans. Source: Shrm.org
Court, Legal, Legislative and Washington DC Third Circuit Serves Up Big Win for Retirement Plan Service Providers Summary: The U.S. Court of Appeals for the Third Circuit recently issued an important decision in one of the many cases alleging that financial services companies breached fiduciary duties under ERISA by charging allegedly excessive fees. This type of litigation has grown more prevalent in recent years. However, most appellate courts, including now the Third Circuit, have found these claims unmeritorious. Source: Alston.com John Hancock Dodges ERISA Class Action -- An Analysis of the Bigger Picture Summary: Author writes, "The open question from these cases is whether 3(21)(A)(iii) requires the actor to actually exercise their discretion or not, i.e. it's a fiduciary breach to be both malfeasant and nonfeasant. The reason this has not been as prominent is that in most instances, the allegations are centered around the investments which generate the fees and they have little to do with plan administration. The chances are high that allegations against the large service providers in the future will involve claims under 3(21)(A(iii), even if the investments are the core of the conduct, i.e. revenue sharing." Source: Fraplantools.com High Court to Hear ERISA Fiduciary Breach Case Summary: Lower courts have held that Edison International employees could not sue their 401k plan administrator for breach of fiduciary duty because their claims were time-barred under ERISA. Now the U.S. Supreme Court has agreed to consider the case. Source: Cfo.com
Compliance and Regulatory Related IRS Mandates Electronic Filing by Large Retirement Plans Summary: IRS issued final regulations requiring employer retirement plan sponsors or administrators that file at least 250 returns in a calendar year to submit Form 5500 annual reports and other plan-related documents electronically. The regulations are effective Sept. 29th. Source: Thompson.com Have You Had Your Retirement Plan Check-Up This Year? Summary: A retirement plan needs regular care to keep it operating properly. Your plan's care should include a regular review of your plan's basic operations. These one-page checklists are a quick way to start your review. Each checklist links to a Fix-It Guide with tips on how to find, fix and avoid each potential error. Source: Irs.gov Summary: Retirement plans must be established with the intention of continuing indefinitely. However, you may terminate your plan when it no longer suits your business needs. This IRS piece outlines the general steps you need to take to terminate a retirement plan. Source: Irs.gov Video: Are Your Loan Repayments Processed in a Timely Manner? Summary: "Sufficiently Similar" are the words that the Department of Labor used when describing a Plan's requirements to remit participant loan repayments on a timely basis. Watch this one minute video to learn what that means. Source: Erisasunscreen.com
Marketplace News John Hancock Reduces Fees on TDF's New White Paper Delves Into Socially Responsible Investing ShoeFitts Announces Digital Marketing Program for Plan Advisors TRA Introduces Industry Specific Plan Design Solutions Don Trone Releases New Book: LeaderMetrics
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