2015 Defined Contribution Benchmarking Survey
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In This Issue
Insight: Studies, Research and White Papers 2015 Defined Contribution Benchmarking Survey Summary: This 68 page benchmarking survey found that plan sponsors and providers have invested nearly across the board in expanding offerings to engage employees, from automatic enrollment and step-up contributions, to individual financial counseling and mobile transaction processing. Source: Iscebs.org The Future of the Recordkeeping Industry Summary: In 2014, thirteen merger/acquisition deals were made among retirement plan recordkeepers, a record number of consolidations and ownership changes. This trend is predicted to continue. This paper examines the future of the recordkeeping industry and how plan sponsors can use that knowledge to be prepared. Source: Brainshark.com (Free registration may be required)
General Items Surprise! This Annuity Could Save Your Retirement Summary: Even though you can find all sorts of complicated annuities that are open to criticism from skeptical financial planners, there's a much simpler type of annuity that can actually give older Americans the exact protection they need when they need it -- and often at a cost they can afford. Source: Fool.com Is General Motors' 401k Annuity Choice a Harbinger for Broader Uptake? Summary: Lifetime income options in 401k plans haven't gained much traction to date, but the move by one multi-billion-dollar plan sponsor to offer annuities to its participants could portend a warming to these sorts of products in the marketplace. Source: Investmentnews.com (registration may be required) The Pitfalls of Taking a Loan From Your Retirement Plan Summary: "I might need my money." This is a remark that is frequently voiced by retirement plan participants. Plan loans are one way to ensure access, but, as the author notes, there are several pitfalls related to these 401k plan loans that participants should be aware of. Source: 401khelpcenter.com
Fiduciary and Plan Governance Material An IPS Is About "What," Not "How" and "Why" Summary: It is not good practice to use your Investment Policy Statement to identify the specific stocks or bonds or funds you will recommend for your client's portfolio. Those are issues of implementation. One way to think about an IPS is to view it largely about "how" and "why," and not about "what." Source: fi360.com The Challenges of Picking a QDIA Summary: A recent GAO report takes a look at the various factors plan sponsors consider when they pick and monitor default investments, and the results of their monitoring efforts, which hinge on plan-specific considerations. Source: Planadviser.com 401k Fiduciary Outsourcing: Does it Actually Increase an Employer's Fiduciary Liability? Summary: When an employer hires a 401k service provider, they have a fiduciary responsibility to monitor that provider for job performance. When a service provider has fiduciary authority, employer monitoring of that provider is even more important. Why? Because fiduciary liability for the employer can result. Source: Employeefiduciary.com
Items of Special Interest to Service Providers Who Cares About the BIC Exemption for IRAs. "Reasonable Compensation" is Already Exempt...Isn't It? Summary: There appears to be a widespread belief that IRA fiduciaries are already permitted to receive "reasonable compensation" regardless of conflicts. If this is the case, is the DOL fiduciary proposal a waste of time? This article reviews this issue. Source: Groom.com Coaching: More Powerful and Safer Than Advising? Summary: While the financial services industry seems hyper-focused on the definition of a fiduciary and what an advisor can and cannot do when communicating to investors, the concept of coaching -- a co-creative process -- is starting to gain traction. Source: Napa-net.org Is the 3(16) Plan Administrator Role Right for You? Summary: There's a lot of talk in the retirement industry these days about becoming a 3(16) plan administrator to plan sponsor clients. But what exactly does that entail, and how would it benefit third party administrator firms? Article discusses. Source: Asppa.org
Court and Legal What Goes In Your IRA? None of Your Small Business! Summary: Tax Court ruling makes operating your small business inside your IRA problematic and potentially very costly. Source: Morningstar.com
Compliance and Regulatory Summary: The "Surface Transportation and Veterans Health Care Choice Improvement Act of 2015" included a number of unrelated provisions, one of which was a revision in the rules relating to extensions for filing Forms 5500. Source: Fordharrison.com DOL and Treasury Update 2015-2016 Regulatory Agendas for Employee Benefits Summary: The principal regulators of employee benefits have recently published updates to their guidance plans for the coming months. There are three new DOL initiatives and nine new tax initiatives. Here is a complete summary. Source: Sutherland.com IRS Teams up with DOL to Find Form 5500 Non-Filers Summary: Recently the Internal Revenue Service's Employee Plans Compliance unit announced plans to collaborate with the Department of Labor's Office of the Chief Accountant to contact Form 5500 non-filers identified using payroll and plan data in their records. Source: Asppa.org IRS Eliminates Five-Year Restatement Cycle for Individually Designed Plans Summary: For some time, the IRS has been trying to balance the staggered five-year cycle for individually designed plans and the IDPs' demand for determination letters, against budget cuts and dwindling resources. The crash came with the recent issuance of IRS Announcement 2015-19. Source: Wellsfargomedia.com
Marketplace News Ted Godbout Joins DCIIA as Director of Communications Robo-Advisor Betterment to Enter 401k Market Leading 401k Prospecting Tool and Sales Coaching Firms Partner Pensionmark Adds Industry Veteran to Executive Team
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