Nine Hot Trends for DC Retirement Plan Sponsors
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In This Issue
Insight: Studies, Research and White Papers
Nine Hot Trends for DC Retirement Plan Sponsors Summary: Looking back on the defined contribution industry and the U.S. retirement system in 2014, article has highlighted nine trends that plan sponsors, committee members and plan participants can expect in 2015.
Source: Cammackretirement.com
Picking Winners? Investment Consultants' Recommendations of Fund Managers Summary: Investment consultants advise institutional investors on their choice of fund manager. Focusing on U.S. actively managed equity funds, paper analyzes the factors that drive consultant recommendations, what impact these recommendations have on flows, and how well the recommended funds perform.
Source: Ssrn.com
Survey Finds Most Employees Stressed and Distracted by Financial Worries Summary: State Street Global Advisors released the findings of its semi-annual employee retirement survey, which targeted approximately 1,000 employees between the ages of 20 and 69. Overall, the survey found that the stressors having greatest impact to workers include student loans and mortgages, health care costs and an unsettled feeling that one has not done enough to prepare for retirement.
Source: 401khelpcenter.com
Retirement Planning Among Middle-Aged and Older Hispanics Summary: The goal of this study is to deepen the understanding of how middle age and older Hispanics plan for retirement. It finds that that most participants, whether they were already retired or not, are not well prepared for retirement since they have been unable to save for retirement and have not made specific retirement plans.
Source: Ssrn.com
Quick Guide to Retirement Plans for Small Business Owners Summary: As a business owner, you may be surprised to find that offering the right retirement plan may significantly benefit both you and your employees. Here's an overview of all the major features of each kind of retirement plan, including SIMPLE, SEP, 401k, defined-benefit, and profit-sharing plans.
Source: Horsesmouth.com
403(b) Plans
IRS Releases New LRMs for Pre-approved 403(b) Plans Summary: The IRS has issued the previously promised revisions to its IRC Section 403(b) plan Sample Plan Provisions and Information Package, better known as the "listing of required modifications" (LRMs). LRMs are used in drafting pre-approved plan documents.
Source: Ascensus.com
IRS Updates 403(b) Listing of Required Modifications Package Summary: The Internal Revenue Service has updated its Section 403(b) plan listing of required modifications. Also updated was a redlined version showing changes to 403(b) plan LRM from 2013. The package contains sample plan provisions that satisfy certain specific Internal Revenue Code requirements applicable to Internal Revenue Code Section 403(b) plans.
Source: IRS.gov
Fiduciary and Plan Governance Material
How to Button up Benefits in M&A Deals Summary: When one business buys another, employee benefits are often overlooked. However, carefully analyzing them as part of due diligence and incorporating benefits in the rollout and implementation of the deal can impact the transaction's ultimate success. Such preparation can also mitigate significant risks and exposure.
Source: Cfo.com
From Committees to Costs: Five Key Areas of Fiduciary Focus Summary: Because retirement plan fiduciaries are held to an exceptional level of duty and care under ERISA, the fiduciary standards that plan sponsors, investment committee members, and others in fiduciary roles must abide by can be summarized by a single phrase: "doing the right thing." When considering what plan sponsors can do to most effectively satisfy this, the five best practices outlined here rise to the top of the list.
Source: Vanguard.com
Items of Special Interest to Service Providers
The Fiduciary Exemption for Commissions Summary: While some of the attention is on that standard of conduct, most of the opposition has been to the prohibited transaction rules that apply to fiduciaries. In other words, the greatest controversy isn't over the fiduciary standard, but instead it is about the fiduciary prohibitions of certain conflicts of interest that apply to fiduciaries.
Source: Fredreish.com
SEC Aligns With White House on Need to Address Fiduciary Standards Summary: SEC Chair Mary Jo White confirmed March 17 that the Commission will "implement a uniform fiduciary duty for broker-dealers and investment advisors where the standard is to act in the best interest of the investor."
Source: Asppa.org
Compliance and Regulatory Related
DOL Announces New Flexibility for Annual 401k Fee Disclosure Summary: The DOL has announced a proposed final rule that provides a two-month grace period for 401k plans to provide annual investment and plan-related information to participants. This change is effective June 17, 2015.
Source: 401khelpcenter.com
State Auto-IRAs and Federal Law Summary: The ERISA issues related to state-auto-IRAs are well recognized, which are similar to the issues related to 403(b) plans: how do you established a payroll based auto-IRA without causing the arrangement to be governed by ERISA?
Source: Businessofbenefits.com
Have Plans Get Rid of Those Forfeitures Summary: There is no reason that an employer should have thousands of dollars growing each year in forfeitures, they should be allocated annually. Otherwise, the plan may run into compliance issues.
Source: Jdsupra.com
IRS Encourages Use of Reference Checklists in Determination Letter Applications Summary: The IRS has posted Reference Lists of Changes in Qualification Requirements for Retirement Plans on its website. To speed up its review of determination letter applications, the IRS is encouraging plan sponsors to include Reference Lists in their applications.
Source: Towerswatson.com
DOL Reaches $84 Million Settlement With BNY Mellon Over ERISA Violation Summary: The Bank of New York Mellon has agreed to repay $84 million to employee benefit plan customers who were victimized through the bank's "standing instruction" foreign exchange trading program.
Source: 401khelpcenter.com
Marketplace News Revzon Rolls Out Small Company 401k Program NAPA Announces the Top DC Wholesalers for 2015 Cafaro Greenleaf Grows Service Team With Consultant Addition Ameritas Adds VP for Retirement Plan Sales ERISApedia to Publish ERISA Fiduciary Responsibilities Guide UBS Re-Brands Retirement Plan Consulting Business MassMutual Appoints Six RM's to Support Retirement Plans New York Life Enhances Mobile App Blue Prairie to Offer Online ERISA Fiduciary Training Bob Riebesehl Joins Pentegra as a Regional Sales Director
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