Nearly Four Million 401k Callers Flood Fidelity as Market Dives
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In This Issue
General Items Nearly Four Million 401k Callers Flood Fidelity as Market Dives Summary: It's like rubbernecking after a car accident: The market sinks dramatically, as it has for most of 2016, and virtually everyone with a 401k plan suddenly can't look away from the wreckage. Source: Benefitspro.com Six Ideas for DC Plan Sponsors in 2016 Summary: This year really is different. The Federal Reserve is hiking rates for the first time in nine years. Inflation is making a comeback, however modest. For defined contribution plan sponsors, these inflection points create an opportunity to potentially improve participant outcomes. Source: Pimco.com Chasing Plan Design Perfection Summary: Before any plan design conversations can happen, plan sponsors must first shake off the inertia -- whether that is a matter of thinking the plan is "good enough" or "not broken, so why fix it" -- then take the time to benchmark the plan and prepare to make changes. Article provides some benchmarking tool. Source: Plansponsor.com
Insight: Studies, Research and White Papers Seven Aspects of a 'Generous' Employer Summary: What makes for a "generous" employer when it comes to retirement plans? Researchers claim there are seven aspects of plan design that make for a generous (or not so generous) employer. Source: Plansponsor.com Guardian Workplace Benefits Study Summary: Guardian announced new findings from the third annual Guardian Workplace Benefits Study that outlines how one in three employers now outsource all of their benefits administration, up 20 percent since 2013. Given their reliance on workplace benefits for overall financial preparedness, it's not surprising employees believe that employers have a responsibility to offer core insurance and retirement benefits to workers. Source: Guardiananytime.com
Items of Special Interest to Service Providers DC Plan Industry Could Use Some Balance Summary: There is always a strong push and pull moving the industry in one direction or another, observes Josh Cohen, a 20-plus year industry veteran currently running DC business for Russell Investments. Source: Plansponsor.com Roth vs. Traditional 401ks: What to Consider for Clients Summary: According to the Plan Sponsor Council of America, nearly 58% of 401k plans allowed for Roth deferrals in 2014. Should an investor make Roth deferrals or traditional, pretax contributions into a 401k plan? It's a question that could have large tax implications for clients. Source: Investmentnews.com (registration may be required)
Court and Legal Passive Funds Don't Get a Free Pass in DC Fee Debate Summary: Recent high-profile lawsuits include a new twist: targeting DC plan sponsors for excessive fees. Even though some of the investments were low-fee index mutual funds, the DC plan could have used essentially identical and cheaper vehicles. Source: Abglobal.com Another Suit Claims Recordkeeper to be a Fiduciary Summary: A new class-action lawsuit that hopes to include thousands of 401k plans in its claim alleges that Empower Retirement earned "disproportionate profits" from revenue-sharing agreements. Source: Benefitspro.com
DOL's Re-Proposed Fiduciary Rule DOL Poised to Advance Final Fiduciary Rule Summary: The Labor Department is poised to advance as early as this month a final rule that would raise invest. advice standards for retirement accounts. The agency is working to get the measure to the Office of Management and Budget for review by Jan. 31, according to a report published by Politico on Tuesday. Source: Investmentnews.com (registration may be required) RayJay CEO: DOL Fiduciary Battle Is Over Summary: After countless hours of lobbying, one big opponent of the DOL's plan to rein in brokers' profit from retirement accounts has thrown in the towel. Paul Reilly, chief executive of Raymond James Financial, said that there are no more political strings to be pulled before a final fiduciary rule requiring brokers to put clients' interests ahead of their own is unveiled. Source: Advisorhubinc.com
Compliance and Regulatory Puerto Rico Cost-of-Living Adjustments for 2016 Summary: Puerto's Treasury Department announced the 2016 cost-of-living adjustments to certain Puerto Rico plan limits in Circular Letter of Tax Policy 15-16. Consistent with the plan limits and thresholds under the U.S. Internal Revenue Code, the 2016 Puerto Rico limits and thresholds are unchanged from 2015. Source: Prudential.com Updated Publication 560 -- Retirement Plans for Small Business Summary: This is the newly updated 28-page IRS Publication 560 which covers retirement plans can set up and maintain for Small Businesses. Includes SEP, SIMPLE, and Qualified Plans. Source: Irs.gov Updated Publication 575 -- Pension and Annuity Income Summary: This is the newly updated 43-page IRS Publication 575 discusses the tax treatment of distributions from pension and annuity plans and also shows how to report the income on a federal income tax return. Source: Irs.gov DC Plans Expected to Exit Prime Money Market Funds Summary: Consultants expect many defined contribution plans to move away from prime money market funds in the face of a looming October deadline for new SEC regulations that might create complications for sponsors. Here's why. Source: Pionline.com Now Is the Time to Prepare for the New Money Market Rules Summary: The new money market fund rules take effect October 2016. Now is the time for you as plan sponsors and fiduciaries to start reviewing your plan's current money market fund holdings and make decisions on what to do going forward. Source: Pension-Consultants.com
Marketplace News DCIIA Membership Elects New Leaders; Executive Committee Pavilion Adds DC Consultant to Chicago Office
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