Lawsuit Against DOL Fiduciary Rule Seen as 'Weak'
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DOL's Final Fiduciary Rule Lawsuit Against DOL Fiduciary Rule Seen as 'Weak' Abstract: Opponents have finally filed an anticipated lawsuit challenging the Labor Department's rule to raise invest. advice standards for retirement accounts, but some observers say arguments levied against the regulation are flimsy and exaggerated. Knowledgeable sources say the DOL has the authority to write rules governing who is and isn't a fiduciary in both the ERISA-plan world and IRA market. Source: Investmentnews.com (registration may be required) Labor Secretary Perez Defends Fiduciary Rule Abstract: U.S. Secretary of Labor Thomas E. Perez today issued this statement regarding a lawsuit filed to stop the DOL's recently released fiduciary rule. Source: 401khelpcenter.com Challenging the DOL's Authority to Regulate the Annuity Marketplace Abstract: The second suit challenging the DOL's new fiduciary regulations is a more narrowly targeted action, brought by sellers of fixed annuities and charging that the Department of Labor, for various reasons, overreached when it included insurance agents and this product within the scope of the regulation. Source: Bostonerisalaw.com Quantifying "Best Interest," Reasonable Compensation and Suitability for investment Professionals Abstract: With the DOL's recent release of their new fiduciary rule and the related Best Interest Contract Exemption, there has been an increased interest in the concepts of "best interest" and prudence, two of the key concepts involved with both the Rule and BICE. Source: Iainsight.wordpress.com
Insight: Studies, Research and White Papers Achieving Retirement Income Security: A Comparison of Withdrawal Strategies Abstract: Many retirement income products attempt to satisfy multiple and sometimes conflicting objectives because retirees desire products that provide retirement security, inflation protection, liquidity, asset growth and the potential for an estate. In this 27-page paper, the authors used historical data over the past 90 years to conduct simulations and analyze how a Guaranteed Lifetime Withdrawal Benefit, systematic withdrawal, and partial Variable Immediate Annuity strategies performed in meeting these multiple objectives. Source: Tiaainstitute.org Employees Say They Cannot Afford to Save for Retirement Abstract: A survey found not being able to afford to contribute is the top reason employees say they do not participate in their employer-sponsored plans, and many are not confident about managing investments. Source: Plansponsor.com
Target-Date Funds Podcast: Three Key Pillars of Target-Date Fund Evaluation Abstract: Target-date funds are the fastest growing investment in 401k plans primarily due to their popularity with plan sponsors as the QDIA. As some fiduciaries are starting to realize, evaluating target-date funds can be a bit tricky due to the numerous variances in style from one fund to another. Podcast discusses the three pillars of differentiation amongst target-date fund managers, glide path construction, investment diversification, and management style. Source: 401kfridays.com
Court and Other Legal Issues Delta 401k Participants Sue Fidelity Alleging Fiduciary Breach Abstract: Participants in a Delta Air Lines Inc. 401k plan have sued units of Fidelity Investments, alleging fiduciary breaches in Fidelity's recordkeeping role. The case, Fleming et al. vs. Fidelity Management Trust Co. et al., was filed May 20 in the U.S. District Court in Boston. Source: Pionline.com Think Only Large Plans Get Sued? Think Again Abstract: Litigation trends tell us that, for billion dollar 401k plans, it is a matter of when, not if, they will face a participant lawsuit. So when a plan with only 114 active participants and just over $9 million in plan assets was sued on the same grounds as the biggest plans in America, the retirement industry and small employers everywhere were taken by surprise. But should they have been? Source: Amazonaws.com
State-Based Retirement Programs How States Are Working to Address the Retirement Savings Challenge Abstract: The Pew Charitable Trusts analyzed efforts in progress or under legislative consideration in 25 states. In this 41-page paper, Pew's analysis identifies three approaches to increase retirement savings for private sector workers that states are considering. Paper also looks at other specific choices and issues facing policymakers. Source: Pewtrusts.org Washington to Launch First State-Run Retirement Plan for Private-Sector Abstract: Starting January 1, 2017, Washington will be the first state to offer a state-run retirement plan for private-sector workers. Source: Planadviser.com
Compliance and Regulatory 401k Disclosure Rules Are Out of Date; It's Time for Common Sense Reform Abstract: The posterchild for bad 401k regulation is the ERISA participant disclosure rules. The disclosures need to be more streamlined and easier for 401k plans to deliver using modern technology. Article analyses the issue. Source: Employeefiduciary.com DOL Obtains Judgment to Restore Nearly $20k to 401k Abstract: US Labor Department obtains judgment to restore nearly $20k to 401k plan of contractor based in Jessup, Maryland. Source: Dol.gov How Long Should Retirement Plan Records Be Retained? Abstract: Maintaining an employer-sponsored retirement plan can be an onerous task. A lot of paper a can accumulate in short order. Before you go off and shred some of those old documents in an effort to clean up your fiduciary file, you should know that ERISA has specific requirements for the retention of records relating to employee benefit plans. Source: Axiaadvisory.com IRS Proposes New Nondiscrimination Rules Abstract: The IRS published proposed rules to provide additional nondiscrimination testing relief to both closed plans and ongoing plans that provide grandfathered benefits to closed groups of employees. The intent of these rules is to enable plan designs to continue to meet nondiscrimination requirements, even though the covered populations may become more discriminatory over time. Source: Prudential.com
Marketplace News 401kDIRECT Announces Service Enhancements Security Mutual Adds Functionality to Retirement Plan Proposal Platform vWise Introduces Online Enrollment Solution NFP Acquires ERISA Fiduciary Advisors American Funds Launch Target-Date Fund Evaluator Tool
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