2016 401k Retirement Plan Contribution Limits Announced
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In This Issue
General Items 2016 401k Retirement Plan Contribution Limits Announced Summary: The IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2016. In general, the pension plan limitations will not change for 2016 because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment. Source: 401khelpcenter.com Summary: Experts agree the recordkeeping business may look very different in a few years than it does today. Consolidation will continue, robo-advisors are entering the market, offering sophisticated technology at lower prices. Source: Workforce.com Is Retirement Industry's Focus on Costs Too Much? Summary: Retirement plan fee litigation over the past decade, in addition to fee disclosure rules, has some plan sponsors placing too much importance on cost when deciding what investment decisions are prudent. "Cost is not dispositive of prudence." Source: Planadviser.com
403(b) Plans Fiduciary Regulations: A Cautionary Tale for 403(b) Plan Sponsors Summary: The 403(b) industry has seen a lot of changes over the past nine years. However, even with all the regulatory changes, the IRS and the DOL have given non-profit organizations a lot of time to bring their plans into compliance. However, it now looks like the tide may be shifting and we're starting to see a tightening of the regulatory reins. Source: Principal.com Study Quantifies the Value Advisors Bring to 403(b) Participants Summary: Plan participants who use an advisor can benefit from the experience both financially and emotionally, according to a new 16-page study of 403(b) plan participants by AXA. Source: Axa.com
Fiduciary and Plan Governance Material Selecting 401k Service Providers: Determine the Professional Help You Need Before You Shop Summary: Selecting competent service providers is the most important - and most confusing - fiduciary duty of a 401k sponsor. Many plans pay for superfluous services participants do not use. Article lays out a two-step process to ensure your plan does not pay fees for services your participants will not use. Source: Employeefiduciary.com Will Your Fiduciary Insurance Cover You When You Need It? Summary: Will that insurer your company has been paying premiums to for all of these years stand behind you if you are sued for ERISA violations? Article covers a few points to be considered in a thorough review of coverage. Source: Pensionsbenefitslaw.com
Insight: Studies, Research and White Papers Employers Taking Action to Help Workers Close the Retirement Savings Gap Summary: With only one-in-five workers on track to retire at age 65, a new survey from Aon Hewitt reveals U.S. employers are taking steps to help workers save more and improve their long-term financial outlook. Source: 401khelpcenter.com Probability of a "Successful" Retirement Between DB and 401k Plans Summary: Seventeen-page report looks at the question, "How does the probability of a 'successful' retirement differ between participants in final-average defined benefit plans and voluntary enrollment 401k plans?" Source: Ebri.org A Few Years Makes a Tremendous Difference in Retirement Savings -- Study Summary: While only a few years separate working Americans ages 55-59 from those in their 60s, there are sharp differences in the savings they have amassed and steps they have taken to prepare for retirement. That's one finding of Wells Fargo & Company's annual Retirement Study. Study shows what a tremendous difference a few years can make when it comes to retirement savings. Source: 401khelpcenter.com ETFs Non-Player in 401ks, CITs Gaining Attention Summary: A recent Cerulli survey shows more ETF sponsors are focusing distribution efforts on small- and mid-sized defined contribution plans. While Collective Investment Trusts are gaining more attention overall in the industry. Source: 401khelpcenter.com
Items of Special Interest to Service Providers Getting on a DC Advisors' Short List Summary: DC advisors maintain a limited set of go-to providers, as they continue to recommend just 2.4 plan providers on average for prospective clients to consider. Remarkably, nearly one-third of DC advisors (32%) recommend only one plan provider to prospective clients, creating a daunting challenge for DC recordkeepers that are striving to gain advisors' attention. Source: Marketstrategies.com Meet the Software Firm That Wants to Power the Next Gen of 401ks Summary: In order to tailor customized strategies for participants, such as those offered in managed account programs, recordkeepers and advisers need access to participants' financial lives outside their workplace plans. An Orange County-based software company, vWise, is one of the companies helping recordkeepers build the next generation of participant platforms that hopes to mine data on assets and financial information outside of workplace plans. Source: Thinkadvisor.com
DOL's Re-Proposed Fiduciary Rule ASPPA Believes DOL Fiduciary Rule Is All but Inevitable Summary: Hundreds of retirement plan advisers are shifting their game plan as they descend on Capitol Hill this week. Instead of urging lawmakers to kill a Labor Department rule that would raise advice standards for 401(k)s and IRAs, they've accepted the rule will become a reality and instead seek to modify it to address their concerns. Source: Investmentnews.com (registration may be required)
Compliance and Regulatory Year-End Update on Compliance Issues for Retirement Plans Summary: This Update identifies some upcoming compliance deadlines and other reminders for employers that sponsor defined benefit and defined contribution plans, including multiple-employer plans. Source: Sibson.com Borzi: DOL Seeks Easier State Embrace of ERISA Summary: The Department of Labor is seeking to make it easier for states to fit within the framework of ERISA in their efforts to establish state-run retirement plans, says Phyllis C. Borzi, head of the Employee Benefits Security Administration. Source: Asppa.org
Marketplace News ERISA Compliant Electronic Document Distribution and Tracking System Introduced 401k Advisor and Wealth Management Firms Merge Integrated Retirement Adds Senior ERISA Counsel Envisage Names New VP of Corporate Strategy & Development SageView Continues to Expand in Honolulu vWise Announces Retirement Plan Engagement Platform Firms Partner to Offer Streamlined Web-Based RFP Process ASPPA Bestows 2015 Industry Awards ASPPA Welcomes Nichols as 48th President
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