How Not to Operate a 401k Plan
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Fiduciary and Plan Governance Material How Not to Operate a 401k Plan Abstract: Recent ERISA case offers key takeaways for plan fiduciaries that receive revenue in exchange for providing services to their own retirement plan. Source: Morningstar.com Podcast: No Rest for the Disorganized Fiduciary Abstract: Having a thoughtfully organized investment committee is an important step employers can take to ensure they're fulfilling the fiduciary responsibilities for their retirement plans, according to Wendy Tyson, a senior ERISA consultant and manager in Vanguard Strategic Retirement Consulting. Key elements of a well-organized committee include its structure and size, the appointment process, the frequency of meetings, training, and insurance, Ms. Tyson says in this 11-minute podcast. Source: Vanguard.com
DOL's Final Fiduciary Rule How Phyllis Borzi Got Her Way on Fiduciary Abstract: Phyllis Borzi was the main architect of the so-called DOL fiduciary rule, which requires financial advisers to 401k and individual retirement accounts to act in their clients' best interests. She is credited with pushing through a nearly unprecedented wall of opposition by using her moxie, her might and her friends in high places. Source: Investmentnews.com (registration may be required) DOL Fiduciary Rule -- Q&As for Employers and Plan Sponsors on Investment Education Abstract: Employers and plan sponsors should consider reviewing their policies and procedures for providing investment information to make sure they have not crossed the line into providing invest.advice, thus becoming "invest. advice" fiduciaries under ERISA. Prepared by the law firm Proskauer Rose, this Q&A will help. Source: Proskauer.com Interesting Angles on the DOL's Fiduciary Rule - Part #3 Abstract: The DOL's concern about the impact of incentive compensation goes beyond payments to advisers. The new fiduciary rules will impact almost every aspect of the sales of investments and insurance products to plans, and especially to IRAs. Source: Fredreish.com Q&A on the DOL Fiduciary Rule: Product Impact Abstract: This piece looks at questions having to do with the impact of the new DOL fiduciary rule on various products. There are four questions answered. Source: Fi360.com Q&A on the DOL Rule: Compensation Abstract: This piece looks at technical questions around compensation requirements under the DOL's fiduciary rule. There are nine questions answered. Source: Fi360.com The DOL's New Fiduciary Rule: The Details on Disclosure Abstract: The final DOL fiduciary rule provides for two new prohibited transaction exemptions, the Best Interest Contract Exemption and the Principal Transaction Exemption. Financial institutions seeking to rely on these exemptions must make detailed disclosures to their retail clients, the DOL, and the general public. This publication focuses on these disclosure requirements. Source: Shearman.com
403(b) Plans Best Practices for 403(b) Plans Abstract: 403(b)s are still catching up with plan design and fiduciary best practices including automatically enroll participants, automatically escalate deferrals each year, and re-enrollment. Source: Plansponsor.com
Insight: Studies, Research and White Papers Brand Drives DC Plan Fund Usage Abstract: Fidelity, Vanguard, American Funds and T. Rowe Price are the four most frequently used mutual fund families by investors in DC retirement plans. The evidence suggests that a stronger brand can help a fund firm get used more often by plan participants, Ignites Retirement Research concludes. Source: 401khelpcenter.com Benefit Programs Important for Attracting and Retaining Workers Abstract: Research found small business owners are focusing on developing competitive benefit programs as part of their approach to attracting and retaining their workers. The research findings also uncovered that financial professionals have tremendous influence over small business owners' purchasing decisions. An advisor has 35 times more influence than a supplier representative. Source: Irionline.org
Items of Special Interest to Service Providers How a TPA Can Be a 401k Financial Advisor's Best Friend Abstract: One of the most important relationships that a financial advisor can develop to augment their practice to current and future clients is finding a few third party administrators (TPAs) to work with. In many ways, the TPA's can be the financial advisor's best friend and this article will show you why. Source: Jdsupra.com The B2C Robo-Advisor Movement Is Dying Abstract: The early growth of robo-advisors since their start in early 2012, coupled with a surge of media coverage, suggested that they could become the future of financial advice for consumers. However, in the year since established players like Schwab and Vanguard launched 'competing' services, a fresh look at the robo-advisor landscape reveals that their growth rates are falling rapidly. Source: Kitces.com How to Help Educate Plan Committee Members Abstract: The Department of Labor is beginning to examine the training of plan committee fiduciaries. Training has also come up in 401k lawsuits lately and the fact that a committee has received fiduciary training has been viewed as favorable. Article discuss why advisers should consider helping plan sponsors with this task. Source: Planadviser.com
State-Based Retirement Programs Connecticut Bill Creating Private-Sector Retirement Accounts Passes Abstract: With the help of Lt. Gov. Nancy Wyman, Connecticut lawmakers have passed legislation creating a retirement savings program for eligible private-sector employees. The bill creates an agency that will establish a Roth individual retirement account program for workers whose employers have at least five employees paid at least $5,000 in the preceding year. The employers will be required to automatically enroll each worker, who can opt out. Source: Ctpost.com Colorado Postpones Bill to Create Savings Plan for Private-Sector Employees Abstract: A bill to establish the Colorado Secure Savings Plan was postponed indefinitely in light of lawmakers' concerns that a compromise solution could not be reached this legislative session. Source: Pionline.com
Marketplace News Ascensus Appoints Retirement Chief Operating Officer SPARK Announces Formation of Data Security Oversight Board PSCA Announces 2016 Board and Committee Chairs
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