Intel Sued for Investing Employee 401k Funds in Hedge Funds, Private Equity
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Court and Legal Intel Sued for Investing Employee 401k Funds in Hedge Funds, Private Equity Summary: The lawsuit alleges 401k and profit-sharing participants who were invested in Intel's custom target-date series and global diversified fund lost hundreds of millions of dollars on underlying hedge funds and private equity investments. Source: Investmentnews.com (registration may be required)
Fiduciary and Plan Governance Material What Is an Investment Policy Statement and Why Is It Important? Summary: A 3(21) investment advisor can only advise you on the proper course of action. They themselves do not have the ability to make decisions or change policy. The responsibility (and liability) for these actions remains with you. In that respect, when using a 3(21) investment advisor, your Investment Policy Statement becomes all the more important. Source: Fiduciaryplangovernance.com
Insight: Studies, Research and White Papers 401ks Shifting to Fixed-Dollar, Per-Head Fees Summary: More 401k plans are paying their third-party administrators, which handle plan recordkeeping and administration, based on a fixed-dollar amount per plan participant rather than fees based on a percentage of assets under management, according to Boston-based plan advisory firm NEPC. Source: Shrm.org The Best and the Worst of 401k Plan Design Elements Summary: What is the best way to structure 401k plan? To answer this question, author asked retirement plan professionals for their ideas and the best and the worst they've seen when it comes to 401k plan design elements. Responses are broken down into two broad categories: Basic Plan Infrastructure and Plan Investment Philosophy. Source: Fiduciarynews.com The 2015 Retirement Plan Adviser Survey Summary: Arguably, retirement plan advisers have a better perspective than their plan sponsor clients about the relative strength of products and services offered by investment and recordkeeping providers. The 2015 Retirement Plan Adviser Survey endeavors to gain insight from the adviser community about how providers and funds are selected, and which are the favorites each year. Source: Planadviser.com
Items of Special Interest to Service Providers Three 401k Talking Points to Ace Your Next Client Meeting Summary: The fourth quarter is a great time to conduct plan reviews with your clients and set clear goals for 2016. With that in mind, article covers three talking points that you should consider in your next review. Source: 401kspecialistmag.com Are Robo Advisors Following the Path of Internet-Only Banks? Summary: Peter Nesvold, the managing director of Silver Lane Advisors, says the story of Internet banks of the 1990s provides a useful lesson for the new independent automated investment advisory services, commonly known as robo advisors. Source: Wealthmanagement.com
403(b) Plans Fiduciary Process for Higher Education Institutions? Summary: The path from the 403(b) plan of yesterday to a modern retirement benefit program is complex. This article focuses on fiduciary governance issues higher education institutions face as they transform their retirement plans to meet the needs of plan participants within the current market, administrative, and regulatory environment. Source: Captrustadvisors.com 'MacGyverisms' Can't Solve 403(b) Problems, but There Are Ways to Fix Them Summary: There are no "MacGyverisms" to fix 403(b) plan problems. But the IRS has something even better. It's called EPCRS which stands for the Employee Plans Compliance Resolution System, which is a correction program to fix mistakes and avoid the consequences of plan disqualification. Source: Retirementplanblog.com
General Items Retirement Readiness: Employee or Employer Responsibility? Summary: Increasingly, employers are realizing the significance retirement readiness can have on managing their workforces and the consequences of delayed retirements. A number of them recognize that helping employees navigate through the maze of issues related to retirement readiness can be mutually beneficial. Source: Xerox.com A Better Buzzword Than 'Retirement' Summary: Workers looking to the future want to be debt-free and obtain economic independence. They need a retirement plan design and message that speaks about economic independence or flexibility, not retirement, according to experts. Source: Plansponsor.com Summary: When spearheading the selection of a new 401k provider, take it as a given that with or without the help of a pension consultant, you're going to prepare and send a request for proposal to several providers. Article suggests some things to keep in mind while creating the RFP and evaluating the proposals. Source: Cfo.com
Compliance and Regulatory DOL Announces New Guidance on Social Investments Summary: Interpretive Bulletin 15-01 rescinds a 2008 IB the DOL issued on the same subject and reinstates guidance originally issued by the DOL in 1994. Announcing the new guidance, Secretary of Labor Thomas E. Perez stated that the 2008 guidance had "unduly discouraged plan fiduciaries from considering economically targeted investments." To address this, IB 15-01 clarifies that factors often associated with ETIs, including environmental, social, and governance factors, "may have a direct relationship to the economic value of investments" and therefore may be considered in a fiduciary's primary economic analysis of plan investments. Source: Groom.com Fiduciaries Ordered to Restore Withheld 401k Contributions Summary: The Department of Labor announced that plan fiduciaries, including the owner of the plan sponsor company, have been ordered by a district court to restore employee contributions withheld but never forwarded to the plan. Source: Plansponsor.com IRS Proposed Rules Would Include Same-Sex Spouses in Terms Related to Marital Status Summary: The IRS has issued proposed regulations that would amend existing regulations to provide that, for federal tax purposes, terms indicating sex (for example, "husband" or "wife") are interpreted in a neutral way to include same-sex and opposite-sex spouses. The changes would not apply to individuals in domestic partnerships or similar relationships. Source: Practicallaw.com Required Minimum Distribution Basics Summary: Qualified plans under section 401(a) such as 401k plans, IRAs, tax sheltered annuities under code section 403(b), and eligible deferred compensation plans under code section 457(b) generally must begin the payment of required minimum distributions to plan participants not later than the participant's required beginning date. Articles covers the basics of RMDs. Source: Mhco.com
Marketplace News JULY Adds Midwest Regional Sales Consultant TRA Integrates With VMS' Retirement Platform Martin Beaulieu Joins BrightScope's Advisory Board Fidelity to Offer Envestnet's Integrated Workstation to Retirement Advisors Mastering Compliance eCourse Takes the Fright Out of Social Media PEI and Canada's Proteus Form Alliance Alerus Buys ABG North Central States
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