Important Survey on DOL's Proposed Fiduciary Rule
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Items of Special Interest to Service Providers Important Survey on DOL's Proposed Fiduciary Rule Summary: There has been a fair amount of speculation, some informed and some not, about how the DOL's proposed fiduciary rule will impact advisers and their firms. At least one organization is undertaking to an effort to gather information directly from those impacted by the proposed rule change. Source: 401khelpcenter.com How Mutual Fund Store Is the Real Engine Now at Financial Engines Summary: Unable to hold nine million hands as market tanked, Larry Raffone jumped when Warburg Pincus put The Mutual Fund Store on the block. "Though we didn't see this one coming, we can see where it's headed -- much more after a candid interview with Financial Engines CEO Larry Raffone." Source: Riabiz.com Financial Engines' Acquisition of The Mutual Fund Store a Turning Point in Robo Debate Summary: If ever there were doubt of the need for the human element when it comes to robo-advisers, there isn't any more. Deal is proof positive that online advice platforms will need human advisers to offer a full menu of financial planning services. Source: Investmentnews.com (registration may be required)
General Items 401k Plan Design -- This Checklist Can Make the Process Simple Summary: There is no such thing as a one size fits all 401k plan, but there are six major features a 401k plan must define during the design process -- eligibility, compensation, contributions, vesting, distributions and loans. Each of these features are described here. Use this checklist to choose the 401k specifications for your plan. Source: Employeefiduciary.com Use Plan Design to Help Bridge the Financial Literacy Gap Summary: For Canadian plan sponsors, financial literacy is seen primarily as a means of improving employees' understanding of their plans so that they make better decisions and enjoy better outcomes. But, if that's the goal, many sponsors would also do well to take a fresh look at their plan to ensure it's designed with the end-users in mind, and doesn't place unnecessary demands on the financial literacy skills of the employees it's intended to serve. Source: Benefitscanada.com
Fiduciary and Plan Governance Material Responsibilities and Options to Consider When Selecting TDFs Summary: Employers and plan sponsors have responsibilities and options to consider when selecting TDFs. A key responsibility is to conduct due diligence, perhaps even more than is done for other available funds, precisely because so many participants will make this their sole election. Article outlines some steps plan sponsors should follow when selecting TDFs. Source: 401khelpcenter.com Passive Management and the False Premise of Fiduciary Relief Summary: Defined contribution retirement plan fiduciaries have become increasingly interested in greater utilization of passive management. The decision to move to a purely passive approach seems to be based on two dubious premises, namely, that 1) it is safer for fiduciaries to offer funds that have the lowest absolute cost and little risk of underperforming a stated benchmark, and 2) fiduciary oversight obligations are nearly eliminated. This paper particularly examines the second premise. Source: Russell.com Fiduciary Education Needs More Attention Summary: An educated, engaged and motivated plan fiduciary is arguably the most important factor in determining a plan's success. Yet it's shocking how ill prepared most plan fiduciaries are to run their DC plans. Source: Napa-net.org
Insight: Studies, Research and White Papers Vanguard Examines 401k Behavior/Outcome Gender Paradox Summary: Vanguard examined gender differences in participants of DC plans, finding that women exhibit better savings behaviors but trail men in outcomes. A new white paper reviewed participation, savings rates, and investments to investigate the substantial imbalance in 401k wealth accumulation for men and women. Source: 401khelpcenter.com Retirement Analysis: Account Balances Decline, but Present Opportunity for Roth Conversion Summary: Fidelity Investments released its third quarter 401k and Individual Retirement Account savings analysis. The analysis reveals three key facts from last quarters stock market volatility. Source: 401khelpcenter.com
Court and Legal Does the Intel Retirement Plans Case Have Merit? Summary: The lawsuit says the Intel breached its fiduciary duties by investing a significant portion of the plans' assets in risky and high-cost hedge fund and private equity investments through custom-built target-date funds. PLANADVISER reached out to Marcia Wagner, principle with Wagner Law Group in Boston, for comments about the case. Source: Planadviser.com Boeing Excessive Fee Case Settles for $57 Million Summary: The parties in Spano v. Boeing Co. filed for court approval of a Settlement Agreement that was finally made public. The defendants have agreed to a $57 million payment. Schlichter, Bogard, & Denton, attorneys for the plaintiffs, with court approval will receive $19 million in attorney's fees and $1,845,000 in costs. Source: Fraplantools.com BP Wins Dismissal of ERISA Duty-to-Monitor Claims Summary: BP employees have again lost their bid to have the company and its top officials held liable for allegedly failing to monitor those they put in charge of administering the company's retirement plan investments. Source: Bna.com
Compliance and Regulatory Compliance Checklist to Ensure You're Meeting Plan Obligations Summary: Periodically evaluating a DC plan's governance structure and procedures is a best practice to confirm a plan is in compliance with ERISA and industry best practices, and to avoid errors. This checklist is a list of suggested review items. Source: Plansponsor.com IRS Issues Draft Form 5500-EZ for 2015 Reporting Summary: The IRS has issued a draft of the Form 5500-EZ to be used by one-participant retirement plans for 2015 information reporting. Source: Asppa.org DOL Initiative on Missing Plan Audit Reports Summary: The DOL sent about 1,200 letters by email to filers of 2014 Form 5500 that did not properly include the report of an independent accountant. The emails do not constitute enforcement correspondence, but should be a warning that the DOL has the situation on its radar. Source: Asppa.org
Marketplace News Financial Engines to Acquire The Mutual Fund Store BlackRock Launches iRetire to Help Close the Retirement Income Gap
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