401k Service Providers and Cybersecurity: Questions to Ask
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In This Issue
Fiduciary and Plan Governance Material
401k Service Providers and Cybersecurity: Questions to Ask Summary: 401k plan fiduciaries have an obligation to secure and keep private the personal identifiable information of plan participants and beneficiaries. Part of this essential task is ensuring that plan service providers take cybersecurity preparedness and plan data protection seriously. Here are some questions you should be asking.
Source: 401khelpcenter.com
Finding "Best Fit" in a Retirement Plan Provider Through the RFP Process Summary: Rather than relying upon purely quantitative comparisons of data from competing proposals, plan sponsors should base their final decision on a more balanced set of factors that can help them achieve "best fit" with a prospective provider. Article discusses three areas of fit that are essential to a successful sponsor-provider relationship.
Source: 401khelpcenter.com
The Fiduciary Requirements for Selecting a Lifetime Income Provider Summary: Little has been written about how a plan fiduciary should prudently select insurance companies and guaranteed retirement income for participants. There's a DOL "safe harbor" regulation, but it doesn't give fiduciaries a checklist for compliance.
Source: Drinkerbiddle.com
What's Your Fee Policy? Going Beyond 408(b)(2) Summary: As fiduciaries, plan sponsors are responsible for making decisions related to selecting an appropriate fee structure. Establishing a comprehensive fee policy is a crucial step in making those decisions. It shows procedural discipline with regard to reviewing plan fees. Much like an investment policy, it also helps to maintain consistency of its policies by future committee members.
Source: Plantemoran.com
General Items
Plan Sponsors Need to Take Advantage of Regulators' IRA Rollover Scrutiny Summary: While financial institutions will bear the brunt of expanded regulatory scrutiny of 401k to IRA rollovers, it is important that employer plan sponsors be aware of financial institution practices regarding these accounts. Having knowledge of current guidance about IRAs also can be of use when highly compensated employees in the plan seek direction from the benefits office on decisions about their outside retirement savings.
Source: Erisadiagnostics.com
How to Choose a 401k Plan for Yourself and Your Employees Summary: No longer just for large companies, 401k plans now can fit into the scope and budgets of small firms. So how do you go about choosing a 401k plan? Article provides some tips and pointers.
Source: Paychex.com
403(b) Plans
How California Insurance Rules Apply to 403(b) Investments Summary: How does California Insurance Code Section 770.3 apply to 403b investments? Ellie Lowder provides an answer regarding the rules in the most populous state.
Source: Ntsa-net.org
Revisiting K-12 School District 403(b) Agreements Summary: Author analyzes a series of agreements between a large insurance company and a K-12 school district. He states that, "Once an individual retail investor signs an account application agreement with a provider of investment products and services such as a stockbrokerage firm, that person enters into a world in which the deck is largely stacked against him."
Source: Morningstar.com
Plan Communications
How to Improve DC Communications Summary: When it comes to DC communications, the data is pretty clear: same old, same old isn't working. Judged by a number of factors, engagement levels have barely budged in recent years. New thinking suggests a behavior-based, outcomes-focused communication strategy that works with basic human tendencies can have better outcomes.
Source: Benefitscanada.com
Gender-Specific Retirement Education Fills Void Summary: Employers have a critical role to play in helping women save for retirement, and research suggests women are open to receiving information from their employers and more likely to take advantage of investment tools, programs and education when they're offered.
Source: Benefitnews.com
Court, Legal, Legislative and Washington DC
Another Cautionary Tale About Explaining Your Plan Amendments Summary: Second Circuit Court of Appeals provided a reminder of the potential consequences of inaccurate plan communications. This came on December 23, 2014 in the form of a decision upholding class relief to participants who challenged CIGNA's conversion of its defined benefit pension plan to a cash balance plan.
Source: Pensionsbenefitslaw.com
Seventh Circuit Again Considers Partial Terminations of Retirement Plans Summary: The Seventh Circuit revisited the topic of partial termination in a class action that had been litigated for almost 19 years and involved five appeals. In Matz v. Household Int'l, the court affirmed the lower court's dismissal of the case, and in doing so it reiterated its views on various issues relating to partial terminations.
Source: Mcguirewoods.com
Compliance and Regulatory Related
IRS Implements Changes to Employee Plans Determination Letter Program Summary: The Internal Revenue Service (IRS) issued Revenue Procedures 2015-6 and 2015-8, updating the employee plans determination letter program and user fees.
Source: Practicallaw.com
Allocating Pretax and After-tax Amounts to Multiple Destinations Summary: For years, it wasn't clear whether plan participants with after-tax money in their 401k accounts could roll over the after-tax portion of an eligible distribution to a Roth IRA and the pretax portion to another employer's plan or a traditional IRA (or a combination). The IRS has provided the answer.
Source: Pentegra.com
How to Avoid DOL Audit Heartburn Summary: A DOL audit of an employee benefit plan can cause heartburn for plan sponsors if they are unaware of the seriousness, scope, or intention of the audit. This white paper shows plan sponsors how to prepare for a potential audit with a seven-point prescriptive framework.
Source: Retirementandbenefitpartners.com (free registration may be required)
Marketplace News Benish Resigns as Executive Director of PSCA Miller & Chevalier Adds ERISA Attorney ShoeFitts Announces Resource for Women in Financial Services Free 401k Portfolio Management Tool Released Stephen Davis Joins John Hancock RPS as Divisional VP Chatham Partners Creates Market Research Platform TRA Strengthens Plan Installation Team Pentegra Promotes Linney to Regional Director
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. 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, but publishers do move or delete articles. Therefore, we can't guarantee that the links provided will remain operational. 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. THIS NEWSLETTER IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE INVESTMENT, TAX, ACCOUNTING OR LEGAL ADVICE. Copyright © 2015 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. 401khelpcenter.com, LLC
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