Five Things Plan Sponsors Don't (Always) Do -- But Should
|
Newsletter Sponsor Cutting edge software for today's retirement industry...
In This Issue
General Items Five Things Plan Sponsors Don't (Always) Do -- But Should Summary: There is frequently a difference between doing all that the law requires of a plan sponsor and doing everything that could be done. Here are five things that plan sponsors don't always do, but should. Source: Napa-net.org Roth 401k -- Underrated Beauty? Summary: Roth has been around for almost a decade, and yet it continues to go unnoticed by plan sponsors and participants alike. Author suggests that the Roth 401k has yet to reveal itself as the stunner it is. Source: Tristarpension.com Summary: To help your participants navigate the murky waters of consolidating old 401k accounts, consider conducting a roll-in campaign. Orchestrating such a campaign doesn't have to be an elaborate task. All you need is a good rollover form and a captive audience. Source: Ssga.com When Financial "Advice" Is Really a Sales Pitch Summary: We know the car salesman has a financial stake in getting us behind the wheel, but Americans are often less clear on the motivations of the broker trying to get us into a particular mutual fund. The Department of Labor's effort to change this, with proposed regulations to increase transparency and accountability in the sometimes-murky world of invest. advice, has divided the financial services industry. Source: Marketwatch.com
403(b) Plans A 403(b) Collective Trust? A Note of Caution Summary: Collective trusts have seemingly become all the rage in plan investment circles. But what of a 403(b) plan purchasing collective trust interests? Well, as seems to be with all things 403(b), there's trouble in the details. Source: Businessofbenefits.com Another EPCRS Update: Automatic Enrollment Summary: Revenue Procedure 2015-27 made several updates to the Employee Plans Compliance Resolution System, or EPCRS, found in Revenue Procedure 2013-12. This article examines the auto-enrollment changes to EPCRS to determine their impact on 403(b)/457(b) plan sponsors. Source: Cammackretirement.com
Fiduciary and Plan Governance Material The New Landscape for Company Stock in DC Plans Summary: Company stock has a long tradition in retirement plans, but sponsors should consider taking a more proactive approach to managing and monitoring company stock as an investment option for their participants. Article provides steps to ensure your company stock policies helps protect you and your participants. Source: Ssga.com
Insight: Studies, Research and White Papers Workforce Experience Linked to Benefits Communications Enhancements Summary: Employees entering the workforce and those near retirement need tailored communications to optimize workplace benefits, according to Guardian study. While all employees find tailored benefits communications and support valuable, six in ten say that their benefits meetings would be more relevant if they were targeted by age. Source: 401khelpcenter.com Consistent 401k Participation Leads to Higher Account Balances Summary: The average 401k account balance of workers who participated consistently in a 401k plan from year-end 2007 to year-end 2013 increased significantly between 2012 and 2013, according to an updated annual study by the Employee Benefit Research Institute and the Investment Company Institute. Source: 401khelpcenter.com 2015 Gender Gap in Financial Wellness Report Summary: Report examined the gender gap as it relates to the current shortfall in retirement savings. Using an example of a median 45-year-old man and woman, the report looks at median incomes, deferral rates, retirement savings, life expectancies, and projected healthcare costs to determine how much each would need to save in order to replace 70 percent of their income in retirement. The report found a 26 percent gap in the savings shortfall and further, a purchasing power gap of 95 percent between men and women in terms of extra dollars needed to fund retirement expenses. Source: Financialfinesse.com How to Boost Retirement Confidence Summary: Why contribution rates may matter even more than investment choices - and other insights from our latest global survey. Source: Ssga.com Retirement Specialists Control Nearly Half the Advisor-Sold DC Market Summary: Nearly half of the $1.3 trillion advisor-sold DC market is controlled by retirement specialists, according to new research from Cerulli Associates. Source: 401khelpcenter.com
Plan Automation Leading the Horses to Water: 401k Plan Re-enrollment and "Backsweeps" Summary: While perfect solutions to these problems have yet to be developed, one approach on the savings and investment front that has gained traction in the last ten years is the "lead the horses to water" approach. That is, automatically enrolling employees in a defined contribution plan and then defaulting those who do not otherwise make an affirmative investment election into an appropriate investment fund, subject to opt-out. Source: Morganlewis.com
Compliance and Regulatory It's Now Clear the Current DOL Fiduciary Proposal Worsens Investor Protections Summary: The DOL is aggressively seeking to broaden the definition of fiduciary. While promoted with much fanfare as a needed regulatory improvement to help protect retirement savers, the DOL's proposal may serve only to confuse the issue further. Source: Fiduciarynews.com Hardship & Loan Documentation Requirements Summary: The IRS has reminded plan sponsors that permit hardship distributions or participant loans that they should review their current practices to ensure they are operating in compliance with IRS requirements. This is an overview of the requirements. Source: Mhco.com IRS and Treasury Officials Provide Informal Views on 401k Issues Summary: The answers in this report do not necessarily represent IRS policy, but they provide helpful insight regarding many issues, including plan loan leave-of-absence rules, Form 1099-R reporting for plan loan deemed distributions, and after-tax contribution rollovers. Source: Ebia.com
Marketplace News Ascensus Appoints New Pacific Northwest Region VP NFP Expands Retirement Platform With Acquisition Enhanced Retirement Solutions Moves Into TPA Arena CEFEX Enhances Fiduciary Assessment Program ERISApedia Adds Content on Privacy and Security Issues New Pentegra Service Supports Greater Retirement Readiness Great-West Introduces HelloLife, a Holistic Retirement Income Program
This eNewsletter is a digest of information published by a variety of web-based sources on 401k and related issues and is published as a service to our users. 401khelpcenter.com, LLC is not the author of the material unless specifically noted. Articles are copyrighted to their publishers. If you believe that your work has been copied in a way that constitutes copyright infringement, please contact the source site immediately. All links were tested before this eNewsletter was e-mailed to you to ensure that they are still functional, but publishers do move or delete articles. Therefore, we can't guarantee that the links provided will remain operational. 401khelpcenter.com, LLC does not endorse and disclaims any and all responsibility or liability for the accuracy, content, completeness, legality, or reliability of the material linked to in this newsletter. Reliance on this material should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Opinions expressed are those of the author of the article and do not necessarily reflect the positions of 401khelpcenter.com. THIS NEWSLETTER IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE INVESTMENT, TAX, ACCOUNTING OR LEGAL ADVICE. Copyright © 2015 by 401khelpcenter.com, LLC. All rights reserved. No reproductions without prior authorization, but you are free to email this copy (in its entirety) along to colleagues or clients. This newsletter may not be posted to any website. 401khelpcenter.com, LLC
|
