Don't Be a Target -- Retirement Plan Fees and Expenses
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In This Issue
Fiduciary and Plan Governance Material Don't Be a Target -- Retirement Plan Fees and Expenses Abstract: A rising number of challenges are being initiated by the plaintiffs' bar and DOL investigators in the area of retirement plan asset charges and retirement plan expenses. Retirement plan sponsors and other plan fiduciaries should take heed of this trend and consider taking the actions outlined here. Source: Poynerspruill.com Determining the Reasonableness of Retirement Plan Fees Abstract: Fees paid for retirement plan investments and services have always been an important consideration for ERISA fiduciaries. However, in recent years these fees have come under increased scrutiny. This 8-page Vanguard paper walks plan sponsors through their fiduciary duties pertaining to fees. The paper discusses a variety of steps and tools to help determine the reasonableness of plan fees. Source: Vanguard.com DOL and SEC Opine on How Fiduciaries May React to Inside Information Abstract: In separate amicus briefs in Whitley v. BP, P.L.C., the DOL and SEC clarify the responsibilities of a fiduciary under ERISA with control of an employee stock ownership plan, as a company stock fund investment option of a 401k plan. Source: Groom.com What to Avoid When Creating an IPS Abstract: An Investment Policy Statement is integral to your employee retirement plan benefit. It lays out your goals, approach, methodology and overall mission for this valuable benefit. Like all operating documents its effectiveness is a function of its clarity and flexibility. Here is a brief overview of what to avoid when writing your IPS. Source: Fiduciaryplangovernance.com
Insight: Studies, Research and White Papers 2015 PLANADVISER Micro Plan Survey Abstract: Plans with less than $5 million in defined contribution assets qualified as micro plans. PLANADVISER has published the results of its 2015 Micro Plan Survey, including detailed micro industry data, top 10 providers, and the 'best in class' providers. Source: Planadviser.com 2016 Retirement Confidence Survey Abstract: The 26th Retirement Confidence Survey (40-pages), the longest-running survey of its kind in the nation, finds that American workers' confidence in their ability to afford a comfortable retirement has maintained its increase after the record lows experienced between 2009 and 2013. However, retiree confidence in their ability to afford a comfortable retirement continued to increase in 2016. Source: Ebri.org Reimagining Retirement for the 'Gig' Economy Abstract: As a growing number of Americans take part in the so-called "gig economy," in which a single worker may simultaneously fill part-time and freelance positions with multiple employers, reforms are needed to make the retirement-savings system less tied to employers, argues this 12-page white paper. Source: Rstreet.org
Items of Special Interest to Service Providers Will Referral Fees in DC Plans Survive? Abstract: Many benefit brokers, CPAs and even attorneys also receive referral fees, with some "accommodating" BDs set up just to help these unlicensed professionals get paid. Fred Barstein looks at whether these fees survive greater disclosure and the pending DOL fiduciary rule. Source: Napa-net.org Abstract: NAPA polled its readers on the question of RFPs and evaluating plan designs and plan providers. Nevin Adams shares the results and reader comments here. Source: Napa-net.org On Eve of Fiduciary Rule, Financial Engines Sees Opportunity Abstract: Opponents of the DOL's proposed fiduciary rule claim low income Americans and small-value retirement account holders will be priced out of the financial advisory market. Christopher Jones, chief investment officer of Financial Engines, calls that argument a red herring. "We think the DOL is taking a big step forward," said Jones. He expects the rule's affects to be "profound" and "long-lasting." Source: Benefitspro.com
Court and Other Legal Issues On Remand, North Carolina District Court Rules for the Fiduciaries in Tatum v. R.J. Reynolds Abstract: The R.J. Reynolds defendants have again prevailed against allegations that they breached their fiduciary duties by divesting the RJR 401k plan of funds invested in Nabisco stock. Following remand by the Fourth Circuit, the district court held that a hypothetical fiduciary "would" have divested the plan of the Nabisco investments in the same time and manner as defendants. Source: Natlawreview.com
Compliance and Regulatory Proposed Regulation Could Be a Small Business Retirement Plan Killer Abstract: Buried in a recent Treasury Department regulation is a provision that will make it harder for small businesses to form new retirement plans or maintain their current ones. Not only would this proposal set aside an objective nondiscrimination testing process that has been in place for more than two decades, it would result in a dramatic increase in costs for many small business retirement plan sponsors. Source: Usaretirement.org What Is a Prohibited Transaction? Abstract: The term "prohibited transaction" is actually quite complex and the author provides a good basic overview of the type of transactions that qualify. Source: Plansponsor.com What's New With the Ontario Pension Regulator Abstract: The Financial Services Commission of Ontario issued a new policy that describes the roles and responsibilities of administrators of registered pension plans (policy A300-101). It replaces aging policies which were published in 1990 and 1992 (policies A300-100 and A300-150). Source: Employmentandlabour.com DOL Secures Fiduciary to Distribute Nearly $1M to Participants Abstract: The U.S. Department of Labor has secured a consent judgment appointing an independent fiduciary to oversee the 401k of a now defunct biopharma company, which failed to take the appropriate steps to terminate its 401k plan. Source: Planadviser.com Puerto Rico Establishes New Filing Requirements and Deadlines for Qualified Retirement Plans Abstract: As a result of new filing requirements, sponsors or participating employers of Puerto Rico qualified plans must determine when and how Form 6042 should be filed. As discussed here, the answer will depend on whether the employer is required to file a Puerto Rico corporation income tax return. Source: Littler.com
Marketplace News MassMutual Appoints Eight New Sales Representatives Ascensus Sponsors Employee Resource Group Program Pensionmark Expands East Coast Corporate Office
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