Best Practices in Plan Administration
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In This Issue
Compliance and Regulatory Related
Video: Best Practices in Plan Administration Summary: This 17 minute video is for plan administrators to help with the company retirement plan throughout the year. You'll learn about plan documents, enrollment, late deposits, distributions and more.
Source: Benefit-Resources.com
Audit Survival Tips for Retirement Plans Summary: Although only a small fraction of retirement plans are audited each year, over time it's almost certain that you and your plan will be audited by either the IRS or the DOL. Your preparation for an audit and your approach to an audit will save your organization thousands of dollars in productive time, penalties, and interest. Here are some tips.
Source: Wellsfargomedia.com
General Items
Rethinking Participant Education Summary: An advisor's bottom line or sales strategy should never be the driving force behind participant education; the needs of the participant should always take the main stage. Participant education should empower participants and give them the tools and information they need to successfully plan and save for retirement, but how?
Source: Ekonbenefits.com
Four Things You Need to Know About Default Funds Summary: A growing number of retirement plan participants, and retirement plan assets, are being invested in the default option selected for the plan. The existence of default funds isn't exactly a new phenomenon. Arguably it's as old as that first participant enrollment form returned without the investment election section completed. Here are four things you should know about default funds.
Source: Napa-net.org
403(b) Plans
How to Maximize an ERISA 403(b) Plan With Participant-Controlled Assets Summary: Many service providers issue 403(b) contracts where participants have control over the contract, regardless of the plan's ERISA status. This may be appropriate in the non-ERISA environment, but it's grossly inappropriate in ERISA plans where fiduciaries are supposed to control the plan assets.
Source: Principal.com
403(b) Plan Participant Group Exclusions Summary: If a 403(b) plan excludes these groups without written provision or excludes other eligible participants, the mistake can be very costly, possibly leading to the loss of the plan's tax deferred status. The Universal Availability Rule also contains an effective opportunity requirement meaning that employees must be provided with an opportunity to make or change their elective deferral at least once each Plan year.
Source: Ekonbenefits.com
Fiduciary and Plan Governance Material
Fred Reish Unravels Washington Regs and Explains 401k Plan Sponsor Fiduciary Liability Summary: While this big Wall Street firms are busy arguing how many angels can dance on the head of their business model, the real advantage of the DOL's pending fiduciary rule goes unreported. What's lost in this debate is the potential impact the fiduciary rule can have on plan sponsor fiduciary liability.
Source: Fiduciarynews.com
Fiduciary Requirements for Selecting an Insurance Guarantee for Your Participants Summary: Insurance guarantees for retirement benefits are increasing in popularity because they guarantee that the money lasts for a lifetime. However, there is not much guidance about the fiduciary process for selecting a particular annuity or GMWB product to provide those guaranteed benefits. Article reviews some key points.
Source: Drinkerbiddle.com
Items of Special Interest to Service Providers
DOL Enforcement Update: Advisers Are an Enforcement Priority Summary: DOL enforcement activity targeting investment advisers, broker dealers, and other financial services companies has increased over the years. The purpose of this article is to raise awareness of EBSA's examination authority and update readers regarding recent trends in DOL enforcement activity including joint enforcement efforts by the EBSA and the SEC.
Source: Groom.com
Wall Street Seeks Wedge in Fight Against 401k Rules Summary: There's a gap between the White House and Wall Street's main regulator over a push to tighten broker rules. To the investment industry, it's an opening to exploit.
Source: Benefitspro.com
DOL Head Says Fiduciary Standard Will Happen Summary: Department of Labor Secretary Thomas Perez expressed confidence Friday that his agency will be able to complete work on a rule to strengthen investment-advice standards for retirement accounts before the end of the Obama administration.
Source: Investmentnews.com (free registration may be required)
Target-Date Funds
Infographic: Understanding Target-Date Fund Glide Paths Summary: Target-Date funds play a critical role in most workplace retirement savings plans, with four out of five plans using a TDF as their default investment. But different TDFs may take very different paths, some planning "to" the anticipated retirement date, and some "through" retirement. This infographic offers a brief primer on how "through" TDFs compare with "to" TDFs, and why the difference is so important.
Source: Fidelity.com
Court and Legal
Supreme Court Could Consider RJR Stock Drop Case Summary: The U.S. Supreme Court may take up important fiduciary liability questions related to a "reverse stock-drop" case leveled against a major tobacco producer.
Source: Planadviser.com
Marketplace News Destel-Bergen Merges With DWC ERISA Consultants CAPTRUST Acquires Stake in Pensionmark ASPPA Adopts New Name: American Retirement Association Financial Advisors With Highest Social Media Visibility Announced Northern Trust Increases DC Plan Fund Trading Flexibility Hal Rose Joins 401kDirect as President and Chief Marketing Officer Financial Engines' Retirement Assets Exceed $1 Trillion
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