2015 Best in Class 401k Plans
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In This Issue
General Items Summary: Recipients of the 2015 Best in Class 401k Plans designation were selected from more than 4,500 plans responding to PLANSPONSOR's annual Defined Contribution Survey. 401k plans were evaluated and scored on more than 30 criteria related to plan design, oversight/governance, and participant outcomes.
Source: Plansponsor.com
403(b) Plans
403(b) vs. 401k: What are the differences? Summary: 403(b) plans are generally subject to fewer technical requirements and less administrative burdens than 401k plans. This two page chart compares 403(b) and 401k plan types in a columnar format.
Source: Consultrms.com
Seeking Contract Clarity for 403(b) Decision-Makers Summary: If investment experts cannot identify all the actual costs and beneficial relationships in a 403(b) contract, how can decision-makers at school districts ever do so? W. Scott Simon, a principal at Prudent Investor Advisors, explores this question.
Source: Morningstar.com (registration may be required)
Fiduciary and Plan Governance Material
A Fiduciary Planning Guide for Plan Sponsors Summary: This 15 page guide was developed by MassMutual's ERISA Advisory Services team. It contains some key dates DB and DC plan fiduciaries should be aware of related to plan filings, notices, distributions, testing and reporting requirements. The calendar is divided into calendar year quarters and topics for both calendar year and non-calendar year plans.
Source: Massmutual.com
Best Practices in Retirement Plan Recordkeeper Searches Summary: Plan sponsors have a fiduciary obligation to undertake a prudent process for selecting a competent recordkeeper. This article provides an outline of the RFP process, along with best practices for conducting the project smoothly and efficiently.
Source: Fiallc.com Summary: Whatever the reason to consider a change, once the decision is made to move the plan to a new recordkeeper, the plan sponsor must understand the process for implementing and managing the transfer and the timing requirements for the various notices that are used to communicate the change to the plan participants. Article reviews the process.
Source: Consultrms.com
Insight: Studies, Research and White Papers
Plan Sponsors Eying New Set of DC Investment Providers Summary: As defined contribution (DC) plan sponsors continue to refine their investment lineups, there is a sizable shake-up among the top 10 DC investment managers plan sponsors think of when considering a change to their lineups.
Source: 401khelpcenter.com
Benefits of Collective Investment Trusts Summary: Why do consultants, advisers and plan fiduciaries select CITs? This one page overview explores some of the benefits that make these investment funds increasingly popular in the retirement marketplace.
Source: Ctfcoalition.com
15th Annual Transamerica Retirement Survey Compendium Summary: Transamerica Center for Retirement Studies released this "Compendium of Findings About American Employers" from its 15th Annual Retirement Survey. This comprehensive new report provides an in-depth 127-page overview of employers' perspectives on retirement benefits, plan sponsorship rates, adoption of specific plan features, and their perceptions of their employees' retirement preparedness. The report also offers detailed comparisons between small and large companies as well as a five-year trend analysis on selected survey questions.
Source: Transamericacenter.org
Items of Special Interest to Service Providers
Captrust Accelerates Roll-Up Plans With a Liberal Structure in Pensionmark Deal Summary: Fielding Miller faced a brutal choice between power and control as he pondered how to add the next $160 billion of assets under advisory to his 401k-specialized $160-billion RIA. He recognized many deals didn't comport with his preference for total control. Such was the case with Pensionmark Retirement Group.
Source: Riabiz.com
Industry Professionals Voice Strong Support for Fiduciary Standard Summary: Brokers and Investment advisers indicate strong support for the DOL ERISA fiduciary standard, according to the report on the 2015 fi360 Fiduciary Standard Survey from fi360 and FiduciaryPath, "Seeking Trusted Advice for Individual Investors."
Source: 401khelpcenter.com
What Type of 3(16) Services Will You Offer? Summary: There are significant differences in the types of 3(16) services currently available. If you are considering becoming a 3(16) administrator, you must decide what type of 3(16) administrator you will be, what type of services you will offer, and how much liability you are willing to take on.
Source: Tparesources.com
Target-Date Funds
Seventh Annual Target-Date Fund Study Released by Morningstar Summary: Morningstar announced findings from its 2015 Target-Date Fund Landscape Report. This release provides key findings about the industry's performance and growth in the past year.
Source: 401khelpcenter.com
Plan Automation
Automatic Enrollment: Separating the Hyperbole From the Helpful Summary: Articles have regularly extolled the virtues and almost every new retirement-related bill introduced in Congress that has included some provision designed to encourage greater adoption of automatic enrollment in 401k plans. Unfortunately, with that much attention comes a certain amount of hype. This article attempts to separate hyperbole from helpful.
Source: Rpgny.com
Compliance and Regulatory Related Summary: This article provides an overview of the fidelity bonding requirements. It highlights key elements that employers and other plan sponsors should know about ERISA's fidelity bonding requirements. The questions and answers provide general information to help you understand the law and the fidelity bonding requirements.
Source: 401khelpcenter.com Summary: SEC officials signaled this week that the agency is revisiting the rules regarding annual 12b-1 fees in mutual funds.
Source: Benefitspro.com
IRS Relaxes Correction Requirements for Elective Deferral Failures Under EPCRS Summary: The new guidance provides relief from the current standard EPCRS correction method for elective deferral failures. Also, in an effort to facilitate the adoption of automatic contribution arrangements and prompt correction of failures, the IRS has established favorable safe harbor correction methods for elective deferral failures.
Source: Erisapracticecenter.com
Documentation for Loans and Hardship Withdrawals Must Be Retained Summary: Most sponsors of defined contribution plans rely on a third-party administrator to handle participant loans and hardship withdrawals -- typically through the TPA's website. However, in guidance issued last week, the IRS cautions that the sponsor -- not the TPA or the participant -- is responsible for maintaining documents proving that those transactions comply with the law.
Source: Benefitsinbrief.com
Marketplace News Envestnet Makes Strategic Investment in AlphaHedge Capital Partners Mutual of America Names John R. Greed President 2015 Retirement Designation Guide Released
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