Five Reasons Why Small Businesses Should Establish Retirement Plans
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In This Issue
General Items Five Reasons Why Small Businesses Should Establish Retirement Plans Abstract: As a small business owners or self-employed professionals, you need to be thinking about preparing for retirement. Author writes about five reasons a retirement plan can help a small business owner. Source: 401khelpcenter.com Benefits Fairs May Not Benefit Your Retirement Plan Abstract: Can benefits fairs be beneficial for awareness about your retirement plan? So while there are times when participants are more attuned to their retirement plan's options, it may not be the same season when they're deciding what kind of medical insurance to get, how much life insurance to buy, and how much to contribute to a flexible spending account. Source: Vanguardinstitutionalblog.com
Fiduciary and Plan Governance Material An Overview of Cybersecurity Issues Affecting Retirement Plans Abstract: In order to minimize a retirement plan's overall cyber risk profile, its sponsor(s) must implement a cyber risk management strategy, including focusing on evaluating its third-party service providers' cybersecurity programs, performing periodic assessments of such programs, and ensuring that the retirement plan has mitigated risks from losses in the event of a cyberattack. Source: Pillsburylaw.com Using Investment Menu Design to Improve Participant Outcomes Abstract: The investment menu structure may be just as important as the actual investment options themselves. Properly done, a well-designed investment menu can direct behaviors and give participants the confidence they need to feel comfortable with their investment decisions. Source: Strategicbenefitservices.com DC Outsourcing: A Compendium of White Papers on Fiduciary Solutions Abstract: The argument for outsourcing is clear. Tasks requiring special expertise that is not part of the sponsor's core competency should be outsourced to the experts. If you are interested in selecting an outsourcing provider to manage certain aspects of your DC plan, this 24-page paper deals with many questions and concerns. Source: Russell.com
Items of Special Interest to Service Providers FINRA Issues Sweep Letter on Firm's Cultural Values Abstract: FINRA announced that it had issued a targeted exam letter, or sweep, to firms seeking information about how firms establish, communicate and implement cultural values. FINRA's stated goal "is to better understand industry practices and determine whether firms are taking reasonable steps to properly establish and implement their own cultural values within the firm." Source: Subjecttoinquiry.com Expect 401k Adviser Pay to Fall if Recent Lawsuits Go Unchecked Abstract: Two big lawsuits have been filed recently by St. Louis based law firm Schlichter, Bogard, & Denton. "Cheap" is at the heart of both suits. If these suits go through as written, plan sponsors will be looking to make sure that their fees are the cheapest, including those of their 401k plan advisor. Source: Qpsteno.com
Court and Other Legal Issues Will Increased 401k Fee Scrutiny Trump DOL's New Fiduciary Rule? Abstract: With the advent of new fee disclosure rules and the fallout from class action lawsuits, 401k plan sponsors appear to have become more serious about the potential liability of breaching their fiduciary duty. Is this increased scrutiny enough to make the DOL's new Fiduciary Rule moot? That's the discussion here. Source: Fiduciarynews.com On Remand, Plan Fiduciaries' Decision to Divest Nabisco Stock Fund Found Prudent Abstract: In Tatum v. R.J. Reynolds Tobacco Co., on remand from the US Court of Appeals for the Fourth Circuit, the Middle District of North Carolina applied the standard provided by the Fourth Circuit and held that a hypothetical prudent fiduciary would have decided to divest Nabisco company stock funds from its 401k plan, and that the plan fiduciaries were therefore not personally liable for damages. Source: Practicallaw.com Failure to Furnish Copy of 401k Plan's Custodial Agreement Violated ERISA Abstract: ERISA obligates plan administrators to furnish copies of trust agreements upon request, but custodial agreements are not mentioned in the statute. A trial court has ruled that a 401k plan administrator violated ERISA when it failed to furnish a copy of a custodial agreement between the plan sponsor and a trust company in response to a participant's request. Source: Ebia.com
DOL's Re-Proposed Fiduciary Rule Audio: SEC Retirement Targeted Industry Reviews and Examinations Initiative Abstract: Fi360's Executive Chairman Blaine Aikin and fi360's Senior Policy Analyst Duane Thompson review SEC Retirement Targeted Industry Reviews and Examinations Initiative in this 12-minute audio presentation. Source: Fi360.com DOL Fiduciary Rule Will Transform the Annuity Industry Abstract: The department's pending fiduciary rule, if finalized in its proposed form, would have profound effects on variable annuities sold in retail retirement accounts, from sales to product development and adviser compensation. Source: Investmentnews.com (registration may be required) DOL, SEC Clashed Over Retirement Advice Rule: Report Abstract: Staffers at the U.S. Securities and Exchange Commission and the U.S. Labor Department clashed over a controversial plan to curb potential conflicts of interest among brokers who give retirement advice, Senate panel Republicans said in a report on Wednesday. Source: Reuters.com
Compliance and Regulatory Abstract: The Compliance Checklist incorporates defined benefit, defined contribution, and ERISA 403(b) requirements and provides information on the materials that you will need to file, filing due dates and agencies to which the filings should be made. Source: Prudential.com What Small Businesses Need to Know About 401k Testing Abstract: While most employers hire a professional TPA to complete the annual plan testing, all employers should understand testing basics to confirm all necessary tests are completed and any failed tests are corrected each year. Otherwise, costly penalties, disqualification or fiduciary liability are more likely. Article covers the basics. Source: Employeefiduciary.com IRS Provides Guidance on New Form 5500 Compliance Questions Abstract: When the 2015 Forms 5500 and 5500-SF and supporting schedules were released in December 2015, they included various IRS "compliance questions." According to the instructions released with the forms, these questions were "optional," but filers were "encouraged" to answer them. However, the IRS has just provided clarification regarding new "compliance questions." These questions should not be answered. Source: Mcguirewoods.com
Marketplace News T. Rowe Price Enhances Financial Wellness Solution PSCA Schedules 2016 National Conference, Releases Topics Paragon Introduces Improved Mobile-Friendly Website TRA Searches for Acquisition Opportunities TIAA-CREF Has New Name, New Look
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