Fiduciary Best Practices Proposed, Full Detail Here
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In This Issue
Fiduciary and Plan Governance Material
Fiduciary Best Practices Proposed Summary: The Institute for the Fiduciary Standard has proposed eleven "Best Practices" fiduciaries should meet to serve the best interest of their clients. They are reproduced here and the Institute is seeking comment.
Source: 401khelpcenter.com
Don't Forget 401k Plan Committee Meetings and Reviews Summary: Your clients offer 401k plans, and all have 401k plan committees. Those committees have fiduciary responsibility, and it's in your clients' interest to make sure they are fulfilling their duties. They can do that through meetings of those committees and quarterly reviews. Here are some tips.
Source: Asppa.org
"How-to" Guidelines to Follow When Creating 401k Plan Benchmarks Summary: The 401k environment has evolved over the decades. One of the best examples lies in the focus of plan benchmarking. Oddly, though, for all the talk of benchmarking, no "benchmark" for benchmarking actually exists.
Source: Fiduciarynews.com
403(b) Plans
Are ETFs and Self-Directed Brokerage Accounts Available in 403(b) Plans? Summary: The answer to the question posed in the title is "maybe." Article looks at how these type of accounts might work in a 403(b) plan and specific challenges that they bring.
Source: Ntsa-net.org
Insight: Studies, Research and White Papers
DC Assets Expected to Surpass $6 Trillion in 2018 Summary: Total private defined contribution assets are expected to surpass $6 trillion in 2018, according to new research from global analytics firm Cerulli Associates.
Source: 401khelpcenter.com
DC Sponsors' Big Concern: Controlling Costs Summary: In its forward-looking survey for 2015, Aon Hewitt found defined contribution plan sponsors are pretty preoccupied with controlling fees and expenses.
Source: Moneymanagementintelligence.com
Video: Recent Trends in Retirement Plan Fee Structures Summary: On an annual basis, the Multnomah Group prepares a fee benchmarking study for its DC clients. This is a recorded webinar reviewing their latest study including topics like the slowing of fee compression and changing fee structures.
Source: Youtube.com
Pension Trends: Is Phased Retirement an Option for Your Employees? Summary: More employees are working in retirement and it's not just about the money. A 2014 survey of Municipal Retirees Organization Ontario (MROO) members revealed 28% of the 1,580 respondents have paid part-time post-retirement jobs. Even seniors with a solid pension aren't always ready to stop working.
Source: Benefitscanada.com
Items of Special Interest to Service Providers
The White House Backs DOL Fiduciary Standard Summary: It took forever to come but The White House has endorsed a very intense fiduciary standard with a withering attack on the way financial advice is currently applied to the savings of retirees.
Source: Riabiz.com
Can a Fiduciary Duty for Investment Advisers Co-Exist With Commissions? Summary: Legislative and regulatory consultant Duane Thompson writes, "Given the premise that a fee arrangement is inextricably bound with the fiduciary standard, it would seem logical to assume that a salesperson working on commission cannot be a fiduciary. However -- spoiler alert -- you would be wrong. That is not to say that working on a commission basis and serving the client's best interest is an easy thing to do -- it's just far more difficult, at least in legal terms."
Source: Kitces.com
NAPA Takes Position Against DOL's Fiduciary Rule Summary: This month, the DOL is expected to propose a "fiduciary rule" for financial advisors that provide investment advice to retirement plans. It is the authors opinion that, "when you pay a financial advisor for investment advice, they should work in your best interest and not theirs." But, a growing number of powerful industry groups disagree.
Source: Employeefiduciary.com
Legislative and Washington DC
Will There Be SAFE Passage for a Grab-Bag of ERISA Changes? Summary: In 2013, Sen. Orrin G. Hatch introduced the Secure Annuities for Employee Retirement Act of 2013, or the SAFE Act. Sen. Hatch indicated that the Act will be re-proposed. Flying more under the radar were the provisions in Title II of the SAFE Act, which include a fairly extensive grab-bag of miscellaneous changes. It turns out that, while several of the proposed changes are highly technical in nature, some of them are significantly substantive. The Title II provisions are generally less politically charged, and in a number of cases may not be overly controversial.
Source: Dechert.com
Senators Introduce Retirement Security Act Focused on Small Business Summary: Sens. Susan Collins and Bill Nelson introduced the Retirement Security Act of 2015 (S. 266) which allows more small businesses to join multiple employer plans, includes measures to encourage and expand auto enrollment and also expand tax incentives for small businesses.
Source: Thinkadvisor.com
Compliance and Regulatory Related
Changes to Forms 5500 and 5500-SUP Ring in the New, but Bring Back Some of the Old Summary: Preparing employer benefit plans' annual filings to federal agencies can be detailed and time-consuming. A review of recent changes to the 2014 Form 5500 series indicates this process could become even more laborious for some plans, as the government seeks more data disclosure.
Source: Complianceexpert.com
Fiduciary Re-Proposal, Fee Disclosures on Deck for 2015; MEPs Wait in the Wings Summary: Bloomberg BNA's Pension & Benefits Reporter reviews the top employee benefit issues for the Department of Labor in 2015: a re-proposal that would expand the definition of "fiduciary" under the Employee Retirement Income Security Act and guidance on plan fee disclosures.
Source: Pensionrights.org
Collectibles in Qualified Plans Summary: May a qualified plan hold collectibles? If the plan has pooled assets and the collectibles are in the pooled asset account, the answer is yes. However, there may be valuation issues. If the plan has only individual accounts, collectibles are not allowed, unless they were acquired prior to 1982.
Source: Mhco.com
Marketplace News QBI Acquires Strategic Pension Services BrightScope Extends Sales Reporting Platform NAPA Announces 401k Advisor Leadership Award Semi-Finalists Securian Expands Retirement Plan Midwest Sales Staff Hancock Hires Regional VP for Central Division Advantus Capital Adds Wholesalers, Expands Retail Mary Nell Billings Named 2014 EBRI Lillywhite Award Winner DOL Sues to Appoint Independent Fiduciary for 401k DOL Obtains Judgment Ordering Company to Restore More Than $31,000 to 401k Got News?
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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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