Are Plan Fiduciaries Liable for Cyberattacks?
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Fiduciary and Plan Governance Material Are Plan Fiduciaries Liable for Cyberattacks? Abstract: These days much of that information lies in the hands (or, more accurately, the computers) of recordkeepers and third-party administrators (TPAs), though an analysis by attorneys at Pillsbury Winthrop Shaw Pittman LLP cautions that, due to the prolific nature of cyberattacks, it may be difficult to argue that a prudent person would not consider and react to cyber risks. Source: Asppa.org Four Things Before You Get to That RFP Abstract: Doing a RFP helps fiduciaries evaluate how their plan design, operation, fees, and investments compare with their peers. Know what you're looking for and documenting your decisions are just two of the four items covered in this article that you need to bear in mind when you do a RFP. Source: Napa-net.org Abstract: Without the discipline of a formal RFP and the guidance of a trained and experienced professional, a fiduciary can't begin to property benchmark their plan. Here are six things you should expect to get from a formal RFP. Source: Napa-net.org
General Items Does Focus on Communications Mean Retirement Plan Participants Will Actually Read Them? Abstract: The majority of employers struggle to get participants to open or read benefits material. To get retirement plan participants to read and act on benefits information, retirement plan providers should focus on the participant experience, just as marketers of some consumer brands have done, a new report said. Source: Bna.com
403(b) Plans PSCA's 2016 403(b) Plan Survey Questionnaire Open Abstract: PSCA is conducting its eighth annual survey of 403(b) plans. Participate in PSCA's 2016 403(b) Plan Survey and receive a free copy of the results. The report will show you what other plan sponsors are doing and will help you benchmark your plan. Source: Psca.org IRS Guidance Creates "Super Saver" Opportunity for 401k and 403(b) Retirement Plans Abstract: The annual limits on employee contributions to 401k and 403(b) plans are an unwelcome cap to many "super saver" employees who want to maximize their retirement savings. But recent IRS guidance creates a workaround to the regular limits on employee contributions. This "super saver" opportunity may be of interest to many employers that sponsor 401k plans or 403(b) plans. Source: Fiallc.com
Insight: Studies, Research and White Papers Sixteen Facts About Women's Retirement Outlook Abstract: Despite progress, women continue to be at greater risk of not achieving a financially secure retirement than men. These 16 facts aim to raise awareness of retirement risks that women face and highlight opportunities regarding how women can improve their retirement outlook. Source: Transamericacenter.org Better Information on Income Replacement Rates Needed to Help Workers Plan for Retirement Abstract: One tool for assessing the adequacy of retirement income is the replacement rate. However, recommendations for the replacement rate that a household should target vary widely, in part because of the diverse underlying assumptions used to develop the rates. GAO looked at what consumption in retirement looks like and how target replacement rates are developed. Source: Gao.gov Demographic Disparities in Retirement Assets Growing Abstract: "The State of American Retirement," a paper from the Economic Policy Institute, looks at the retirement prospects of working-age families, focusing especially on retirement account savings. The shift away from traditional pensions has widened retirement gaps, Monique Morrissey, an economist with the Institute, contends, and disparities in retirement savings balances have increased. High income, white, college-educated and married workers participate in DB plans at a higher rate than other workers. Participation gaps are much larger under DC plans. Source: Plansponsor.com
Items of Special Interest to Service Providers On the Benefits of Unbundled 401ks Abstract: Going forward, advisers working on company 401k plans are going be graded on how well they prepare their plan participants to meet their retirement needs. What an adviser should seek in a 401k partnership is the ability to provide the most cost-effective plan that produces the best result for clients. An unbundled plan approach makes participant outcomes the top priority. Source: Aspireonline.com Integrated HSA and 401k Savings Helps Optimize Benefits Abstract: Improving savings and reducing taxes through holistic coordination of 401k and HSA deferrals isn't just a path to more revenue. It's a way for strategically minded advisors and brokers to deliver more value to the C-suite. Source: Benefitnews.com (registration may be required) Abstract: An answer to the question, "I am a fiduciary investment adviser to ERISA plans and receive an advisory fee for my services. I also own a company that provides recordkeeping services to ERISA plans. May I recommend mutual fund investments to those plans that pay revenue sharing to my recordkeeper company?" Source: Planadviser.com
Target-Date Funds Study Shows Wide Misuse of Target-Date Funds Abstract: A new report by Financial Engines looks at why the majority of participants move away from target-date funds over time. It found that investor overconfidence and a desire for greater diversification -- not lack of understanding -- are behind target-date fund misuse. Source: 401khelpcenter.com Target-Date Fund Adoption in 2015 Abstract: In 2015, 48% of Vanguard participants were invested in a professionally managed account option, including 42% who were invested in a single target-date fund. Use of TDFs in DC plans continued to grow. At year-end 2015, 9 in 10 plans offered a TDF, 69% of all participants had a position in the funds, and the funds accounted for nearly half of total plan contributions. Source: Vanguard.com
Court and Other Legal Issues What a SCOTUS Vacancy Means for the Retirement Plan Industry Abstract: The late Supreme Court Justice Antonin Scalia had a direct, but not necessarily pivotal, role in shaping many of the SCOTUS decisions tracked in recent years by the retirement planning industry. Article looks at what a lasting SCOTUS fight means for advisers and their clients. Source: Planadviser.com Money Market Funds Come Under Fire in Spate of 401k Suits Abstract: Money market funds are feeling the heat following a string of recent 401k suits targeting the funds' low investment returns. Since December, at least three lawsuits have been filed alleging that respective 401k plan fiduciaries breached their duty under ERISA by retaining money market funds as an investment option rather than stable value funds. Source: Investmentnews.com (registration may be required)
Marketplace News Empower Retirement Realigns Recordkeeping Business AFS 401k Announces New Personal Finance Tool Hancock Launches Website With Tools and Services for TPA Owners
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