What You Need to Know About Selecting a 401k Plan Provider
|
Newsletter Sponsor NEW! 401k Averages Book 16th Edition - Fee Benchmarking Book Just Released! 16th Edition of the 401k Averages Book. All 401k fee charts and tables updated for 2016. Use the 401k Averages Book to better understand investment, recordkeeping, revenue sharing expenses for all size 401k plans. The 401k Averages Book is the only resource book available for non-biased, comparative 401k fee information. It is designed to provide professionals with essential fee information to help their clients determine if their plan costs are above or below average. Click here for more information. In This Issue
Fiduciary and Plan Governance Material What You Need to Know About Selecting a 401k Plan Provider Abstract: This 11-page white paper dives into common questions on the new DOL fiduciary rule, including: How does the regulation affect 401k plan provider selection, what should fiduciaries think about when selecting investments, and active vs. passive investments: what are the considerations? Source: Principal.com Employee Benefit Plans and Data Security Issues Abstract: In recent weeks, much of the discussion around a recent Supreme Court case, Gobeille, has focused on ERISA preemption. But for fiduciaries of benefit plans the case can serve as a reminder of important duties that often go unexplored: protecting the private data of participants. Article reviews a number of practical steps that plan sponsors and other fiduciaries can take in the hope of preventing problems. Source: Benefitslawadvisor.com Fiduciary Duty to Review Fees Goes Beyond Fee Benchmarking Abstract: Some recent fee dispute case decisions and settlements suggest that in addition to benchmarking fees, fiduciaries may also want to periodically undertake a more thorough review by conducting a Request for Proposal process. This requires obtaining bids from third-party vendors with in-depth analysis of administration, communication, investment, and compliance services and corresponding administration fees charged. Source: Xerox.com
Insight: Studies, Research and White Papers 401k Plan Asset Allocation, Account Balances, and Loan Activity Abstract: Since 1996 the Employee Benefit Research Institute and the Investment Company Institute have been collecting and analyzing data from millions of 401k plan participants on plan asset allocation, account balances, and loan activity. This just released 80-page report reflects the year-end 2014 data. Source: Ebri.org Do Better Investment Recommendations Equal Greater Returns? Abstract: The argument has been made that regulating the practice of acting in an investor's best interest will equate to greater returns as investors' will receive better investment recommendations. Although this presumption has never been actually tested, the deep belief is that conflicts of interest are the root cause of diminished returns. Source: 401khelpcenter.com What Moves the Retirement Readiness Needle: Quantification of Risk and Evaluation of New Proposals Abstract: With the United States facing an estimated national retirement savings shortfall of $4.13 trillion, how can more Americans be brought into a retirement savings plan, and how can they be persuaded to save enough to cover simulated costs in retirement? Those questions were explored by a panel of retirement experts in this paper. Source: Ebri.org
Court and Other Legal Issues District Court Applies Dudenhoeffer "More Harm Than Good" Standard to Closely-Held Corporation Abstract: A federal district court in Mississippi ruled for the first time that the "more harm than good" pleading standard established by the Supreme Court in Fifth Third Bancorp v. Dudenhoeffer applied to employer "stock drop" claims brought against the fiduciaries of plans sponsored by closely-held corporations. Source: Erisapracticecenter.com Kodak Fiduciaries Settle Stock-Drop Lawsuit for $9.7M Abstract: Fiduciaries of the Eastman Kodak Co. employee stock ownership plan and savings investment plan agreed to pay $9.7 million to settle a lawsuit accusing them of breaching their ERISA fiduciary duties by offering imprudent investment options. Source: Bna.com In the Ninth Circuit, a New Burden of Proof for Employers in Benefits Litigation Abstract: In Barton v. ADT Sec. Servs. Pension Plan, the US Court of Appeals for the Ninth Circuit held that if a pension plan claimant makes a prima facie case that he is entitled to benefits but lacks certain information (that the defendant-employer controls) to substantiate the claim, then the burden shifts to the defendant to produce this information. Source: Practicallaw.com Abstract: In Tibble v. Edison Int'l, on remand from the Supreme Court, the US Court of Appeals for the Ninth Circuit held that the plaintiffs forfeited their ongoing duty to monitor argument raised before the Supreme Court by failing to previously raise it before the district court or the Ninth Circuit during their initial appeal. Source: Practicallaw.com
DOL's Final Fiduciary Rule DOL New Fiduciary Regulation: Seven Action Items for the Next Year Abstract: Despite the fact that the new DOL fiduciary rule becomes effective 60 days after the date of publication in the Federal Register, it is not applicable until April 10, 2017. That provides a full year in which to adjust to the new fiduciary invest. advice landscape. Article provides a detailed review of the newest augmentation of the fiduciary rule and a short plan sponsor "to-do" list. Source: Findleydavies.com Webinar: The DOL's New Fiduciary Rule Abstract: This is a detailed and extensive look at the DOL's new fiduciary rule by Marcia Wagner of the Wagner Law Group. It is approximately one hour and 25 minutes in length. Source: Youtube.com Interesting Angles on the DOL's Fiduciary Rule - Part #2 Abstract: The legal requirement that advisers make prudent recommendations and act with a duty of loyalty is well understood in the retirement plan world, but is new to IRAs. Also, it's commonly conceded that the prudent man rule is more demanding than the suitability standard. But what is required of the adviser? The DOL answered that question in the context of fixed indexed annuities, and the answer may be surprising. Source: Fredreish.com
Compliance and Regulatory Puerto Rico Retirement Plans Face New Reporting Rules Abstract: The Puerto Rico Treasury Department recently changed the annual reporting requirements for retirement plans qualified in Puerto Rico. This change should lighten the compliance burden for these plan sponsors. It also makes filing Form 6042 doubly important, as failing to do so would now violate the annual reporting requirement for Puerto Rico qualified plans. The new rules take effect for plan years beginning on or after January 2015. Source: Towerswatson.com DOL Accuses Firm of Prohibited Retirement Plan Loans Abstract: The suit alleges a law firm president and owner caused the company's retirement plan to loan thousands of dollars to real estate deals he controlled. Source: Planadviser.com Compensation of Self-Employed Participants for Purposes of Qualified Retirement Plans Abstract: The use of limited liability companies and their election to be treated as a partnership for tax purposes has increased significantly in recent years. As a result, we have seen confusion regarding which compensation is used to determine contributions to the company's qualified retirement plan on behalf of the LLC members. Article examines the basic rules for determining the compensation. Source: Eisneramper.com
Marketplace News Josh Henry Joins TRA as Regional Sales Consultant Nationwide Adds New 401k Solution to Managed Accounts Platform TIAA Announces Unified and Expanded DCIO Team Chris Strother Joins Pensionmark, Denver MassMutual Enhances Fiduciary Protection Services
This eNewsletter is a digest of information published by a variety of web-based sources on 401k and related issues and is published as a service to our users. 401khelpcenter.com, LLC is not the author of the material unless specifically noted. Articles are copyrighted to their publishers. If you believe that your work has been copied in a way that constitutes copyright infringement, please contact the source site immediately. Hyperlinks in this document are provided as a convenience and we disclaim any responsibility for information, services or products found on websites linked hereto. All links were tested before this eNewsletter was e-mailed to you to ensure that they are still functional, but publishers do move or delete articles. Therefore, we can't guarantee that the links provided will remain operational. 401khelpcenter.com does not endorse, approve, certify, or control this material and does not guarantee or assume responsibility for the accuracy, completeness, efficacy, or timeliness of the material. Use of any information obtained from this material is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com. Opinions expressed are those of the author of the article and do not necessarily reflect the positions of 401khelpcenter.com. THIS NEWSLETTER IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE INVESTMENT, TAX, ACCOUNTING OR LEGAL ADVICE. Copyright © 2016 by 401khelpcenter.com, LLC. All rights reserved. No reproductions without prior authorization, but you are free to email this copy (in its entirety) along to colleagues or clients. This newsletter may not be posted to any website. 401khelpcenter.com, LLC
|
