2016 401k Fiduciary Calendar
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Fiduciary and Plan Governance Material Summary: An interactive look at the key retirement plan compliance dates. Compliance dates and fiduciary milestones may vary from plan to plan, but this quarterly calendars provide a great starting point from which to create a schedule specific to your plan. Source: Fidelityinvestments.com 401k Plan Sponsors Shift From Investment Focus to Emphasizing Retirement Readiness Summary: Over the last decade or so, perhaps with the advent of the popularity of target-date funds, we've seen a dramatic shift from focusing on retirement plan investments towards emphasizing retirement readiness. In recognition of their fiduciary duty, 401k plan sponsors have begun restructuring retirement plans to echo this movement. But are plan sponsors too late in making this change? Source: Fiduciarynews.com What Does Recordkeeper Consolidation Mean for You as a Plan Sponsor? Summary: Over the past several years the retirement planning industry has seen a number of large mergers and acquisitions among recordkeepers, which has resulted in commoditization of their services. This commoditization creates both an opportunity and a risk for plan sponsors and fiduciaries. Source: Pension-Consultants.com
General Items Frequently Asked Questions About 401k Plans: The Basics Summary: The Investment Company Institute has updated their FAQ on 401k retirement plans. Some of the questions covered include: What is a 401k plan and how does it work? How have 401k plans grown since their introduction? What are the benefits of investing in a 401k plan? Is there a limit to how much an employee and employer can contribute to a 401k plan? Source: Ici.org 401k Loans: A Quick Way to Sabotage Your Retirement Summary: At some point in your life you will need a loan to make some sort of purchase. When this need arrives, the first thing you may do is figure out the size of the loan and second, where you will get it from. Many times, taking a loan from your 401k presents itself as an option. Article outlines five reasons why this can be detrimental to your retirement plan. Source: Brightscope.com
403(b) Plans 2016 403(b) Fiduciary Calendar Summary: An interactive look at the key 403(b) retirement plan compliance dates. Compliance dates and fiduciary milestones may vary from plan to plan, but this quarterly calendars provide a great starting point from which to create a schedule specific to your plan. Source: Fidelityinvestments.com
Insight: Studies, Research and White Papers Simplifying Choices in DC Retirement Plan Design Summary: In view of the growth and popularity of DC plans, along with the government's growing attention to retirement plan costs and investment choices provided, it is important to evaluate how people select their plan investments. This paper tracks how employees in a large firm altered their fund allocations when the employer streamlined its pension fund menu, tiering options in an easier-to-understand format. Source: Tiaa-crefinstitute.org Costs of 401k Plans Continue to Drop for Sponsors, Participants Summary: The costs of offering and participating in a 401k plan continue to fall, according to an analysis of Form 5500 data by the Investment Company Institute and BrightScope. Source: Thinkadvisor.com Proprietary Mutual Funds Account for Big Chunk of Largest 401k Plans Summary: About 67 percent of 401k plans included proprietary mutual funds in 2013, accounting for almost 28 percent of all plan assets, according to the Investment Company Institute and BrightScope's most recent research on the defined contribution industry. Source: Benefitspro.com
Items of Special Interest to Service Providers A 21st Century Model of ERISA Counsel Summary: While some ERISA practices inside large law firms are burdened by huge overhead allocations that inflate their billable rates, standalone ERISA practices are sustainable by using the efficiencies technology can offer to moderate cost. Source: Erisafiduciaryadministrators.com Creating a Successful Best Interest Contract Practice Summary: The BICE regulation forces each financial advisor and every related institution into making a major decision of how to respond. This is an overview of the implications of BICE. It highlights the massive changes that will be required to meet the obligations and implications of a "Best Interest Contract." The effects covered include, business models, small accounts, business development, marketing communications, risk management and compliance. Source: Dalbar.com SEC Warns Advisors to Pay Closer Attention to 12b-1 Fees Summary: A recent Securities and Exchange Commission exam sweep of investment advisor and mutual fund complexes' distribution fees, including 12b-1 fees, has prompted SEC staff to issue guidance warning advisors and boards to pay closer attention to such fees. Source: Thinkadvisor.com
Court and Legal 401k Lawsuit Targets HR Outsourcer and Trustee Summary: Emboldened by wins against large 401k plan sponsors like Boeing, Cigna, Caterpillar and Cigna, plaintiff's attorney Jerome Schlichter recently filed suit against an HR outsourcing company and their discretionary trustee claiming breach of fiduciary responsibility. Source: 401ktv.com
Compliance and Regulatory Defining and Using Compensation in DC Plans Summary: When we hear the word compensation, most of us probably think about the dollars that show up as gross pay on our pay stubs, but that isn't necessarily "compensation" for qualified retirement plan purposes. There are multiple definitions of compensation, and depending on the definition your plan uses, the results can be quite different. Four-page article looks at the subject. Source: Wellsfargomedia.com IRS Provides Guidance on the Determination Letter Program in Notice 2016-03 Summary: Internal Revenue Service Notice 2016-03 explains that the Department of the Treasury and the IRS will issue guidance modifying Revenue Procedure 2007-44 to account for the termination of the determination letter remedial amendment cycles for individually designed retirement plans. Source: Practicallaw.com Changes to Voluntary Correction Program Compliance Fees Summary: To encourage employers who sponsor 401(a) qualified retirement plans and 403(b) plans to correct plan failures through VCP, the IRS reduced the general VCP fees for the newest submissions made on or after February 1, 2016. Source: Irs.gov
Marketplace News Certified Personal Retirement Specialist Designation Unveiled Standard Hires Dallas Based Retirement Plan Consultant Wagner Law Group Appoints Stephen D. Rosenberg Partner Arnerich Massena Transitioning Select DC Clients to SageView Dalbar Announces BICE Tools and Training AdvisorHub Names New CEO, Hires Editors
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