Experts Say Hardship Self-Certification Was Never Allowed
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In This Issue
Compliance and Regulatory Related
Experts Say Hardship Self-Certification Was Never Allowed Summary: The Internal Revenue Service recently issued a publication about appropriate documentation retirement plan sponsors should keep for participant hardship and loan requests. Some industry groups and providers say a recent IRS publication goes against prior guidance, but experts at the ASPPA Virtual Conference disagree.
Source: Plansponsor.com
DOL Extends Comment Period on Fiduciary Duty Proposal Summary: The Labor Department has extended by 15 days the comment period for a controversial proposal that would raise invest. advice standards for brokers working with retirement accounts, acquiescing to demands from members from both parties in Congress for more time to respond.
Source: Investmentnews.com (registration may be required)
DOL's Proposed Prohibited Transaction Exemption: Best Interest Contracts Summary: This article focuses on a new proposed prohibited transaction exemption published with the DOL's proposed fiduciary rule that would allow persons who are deemed to be "invest. advice fiduciaries" receive compensation for invest. advice if certain conditions are met.
Source: Pillsburylaw.com
Internal Controls for Catch-Up Contributions Summary: For 401k plans evaluating whether participants are eligible to make a catch-up contribution, 1965 is an important year.
Source: Erisasunscreen.com
401k Record Retention Guidelines Summary: A quick record retention guideline overview of what 401k documents should be retained and for how long.
Source: Tristarpension.com
Fiduciary and Plan Governance Material
Wisdom for Qualified Retirement Plan Sponsors: Focus on Your Five "T's" Summary: Recent history has shown that conflicts of interest in the employee benefit context are not well understood and, as a result, oftentimes remain unidentified. Unfortunately, these latent conflicts can lead to enterprise-risks that can otherwise be easily avoided with just a bit of work up front. Focusing on the five "T's" -- Time, Talent, Tools, Trust, and Terms -- is an approach that should be applied when evaluating any service provider.
Source: 401khelpcenter.com
Insight: Studies, Research and White Papers
Former Employee Plan Participants: What Is in Their Best Interest? Summary: Given the large impact excessive fees can have on former participant IRA rollovers, sponsors are beginning to evaluate potential solutions to address these issues and to assist their former employees. Regardless of employment status, companies and their retirement committees want current and former employees to be able to stay on a path toward a successful retirement. Article discusses of what some sponsors are currently doing and a few ideas concerning future changes within the industry that should help protect former employees' retirement savings.
Source: Milliman.com
Americans Likely Leaving $24 Billion in Company Match on the Table Summary: A new research report, issued by Financial Engines, estimates that Americans leave $24 billion in unclaimed 401k company matches on the table each year. The company examined the saving records of 4.4 million retirement plan participants at 553 companies, and found that one-in-four employees (25 percent) miss out on receiving the full company 401k match by not saving enough.
Source: 401khelpcenter.com
Data Finds Increase in Both Employer and Employee 401k Contributions Summary: Judy Diamond Associates has completed a comparative analysis of 401k plan contributions among both employers and employees in 2012 and 2013, the most recent year for which data is available. This research shows that together, employers and employees contributed a total of $13 billion more in 2013 than in 2012.
Source: 401khelpcenter.com
Mega 401k Plans Triple Use of Managed Accounts Summary: Mega plan sponsors are pushing the envelope yet again by offering more personalization to their plan participants through managed account vehicles. The proportion of Mega plans offering these customized allocation solutions as their 401k plan default investment option has increased from 5% in 2014 to 18% in 2015 according to a Cogent Reports study by Market Strategies International.
Source: 401khelpcenter.com
Items of Special Interest to Service Providers
Warning: RIAs Could Get Snagged by Fiduciary Reproposal Summary: Registered investment advisors may be thinking that the Department of Labor's proposed conflict of interest regulation doesn't have an impact on them. After all, they are already fiduciaries acting in the best interest of their client. However, when it comes to retirement savings, there's a new sheriff in town: the DOL.
Source: Napa-net.org
Proposed Fiduciary Definition Regulations Will Impact Adviser Practices Summary: One result of the proposed regulations and accompanying prohibited transaction exemptions is the "ERISAfication" of IRAs. Because of the significant changes in operation that might be required for investment advisers and other plan consultants, it is important to anticipate how these proposals could impact current practices.
Source: Faegrebd.com
What's the Difference Between "Sole" Interests and "Best" Interests? Summary: So what is the difference between "sole" interest and "best" interest? And why does it matter? Fi360 CEO Blaine Aikin looks at this distinction and asks whether some conflicts are what's "best" for investors.
Source: Fi360.com
Issue of Lifetime Income
Navigating Retirement Risks: Creating Sustainable Retirement Income Summary: This is the second article in our series on navigating retirement risks, based on the white paper, Creating Sustainable Retirement Income in 401k Plans Using Managed Risk Funds. This article discusses the importance of investing retirement savings properly.
Source: Drinkerbiddle.com
New Investment Opportunity for DC Plans - Qualifying Longevity Annuity Contracts Are Here Summary: In an effort to help prevent retirees from outliving their retirement savings, the IRS and the Treasury Department finalized new rules that allow participants in defined contribution plans to invest in "longevity annuities" that do not violate the complex minimum required distribution requirements, which otherwise mandate that participants start taking plan distributions upon reaching age 70 1/2. These complex new rules are summarized in this article.
Source: Groom.com
Court and Legal
Sleeper Supreme Court Case Is Worth Watching Carefully Summary: On April 20, 2015, over the objection of the Solicitor General, the Supreme Court agreed to decide, in Spokeo, Inc. v. Robbins, No. 13-1339, whether Article III of the Constitution allows Congress to permit lawsuits over a statutory violation where the violation does not necessarily result in a plausible claim of concrete injury. If the Supreme Court finds that private plaintiffs cannot sue to enforce statutory obligations, which would mean that an ERISA plan participant would have no access to the federal courts to enforce the myriad of ERISA reporting, disclosure, vesting and funding rules.
Source: Erisa-employeebenefitslitigationblog.com
Marketplace News Pensionmark Continues Expansion With Denver Affiliation SageView Expands in California SEC Sues Retirement Planners for Making False Claims Maresh Yoshida 401k Group Announces Corporate Name Change
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