Exceptional Plan Governance: Beat Back the Coming Litigation Onslaught
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Fiduciary and Plan Governance Material Exceptional Plan Governance: Beat Back the Coming Litigation Onslaught Abstract: Exceptional plan governance means that, at a minimum, plan sponsors (and designated fiduciaries) should consider the items outlined here to help demonstrate that they are primarily operating their plans to the benefit of participants and their beneficiaries and then to reduce liability exposure for themselves. Source: Benefitsbryancave.com Abstract: Data breaches are also causing benefit plan administrators and other fiduciaries under ERISA to consider whether their ERISA responsibilities include securing online plan data from cyberattacks, especially as to 401k and other benefit plans that are not subject to HIPAA. Although definitive guidance has not been provided, fiduciaries would be well-advised to proceed on the assumption that cybersecurity is an ERISA issue. Source: Passwordprotectedlaw.com
General Items Why Canadian HR Professionals Should Demand a Benefit Communications Policy Abstract: Canadian courts and arbitrators have shown an increasing propensity to award damages, or provide restitution, to employees where it can be shown that employer communications are untrue, inaccurate, misleading, ambiguous or omit important details. The challenge for employers, therefore, is how best to effectively communicate the excellent pension and benefit programs while minimizing potential legal liability and ensuring that proposed future changes to those programs won't be hampered by the phantoms of past communications. Source: Employmentandlabour.com Company Stock in Your 401k? Don't Make My Costly Mistake Abstract: Company stock in your 401k has special rules, specifically an available tax treatment called Net Unrealized Appreciation. Under the right circumstances, you pay only the capital gains tax rate on appreciation, rather than regular income rates. Proceed with caution any time you consider selling, rolling over, or withdrawing shares of company stock in your plan. Source: Seekingalpha.com
Insight: Studies, Research and White Papers DC Plan Sponsors Say Less Is More in Investment Lineups Abstract: 401k plan sponsors are consolidating the number of DC investment manager relationships as well as the number of plan investment options in an effort to reduce plan costs, according to a recent Cogent study. Source: 401khelpcenter.com The Evolution of Collective Investment Trusts and Considerations for Plan Sponsors Abstract: Plan sponsors have increasingly focused on finding low-cost investments and more transparent fee structures for their retirement plans, in part due to the increasing number of headlines related to fee-based litigation issues. This paper provides an overview of and trends surrounding CITs, and outlines what plan sponsors should consider when looking at adding CITs to their plan lineup. Source: Porteval.com A Look at 401k Distribution Options Abstract: Where most 401k plans only offered a lump-sum distribution option, the new trend in retirement plans may have you facing a decision. Could additional options, such as installments and ad hoc distributions be the new featured value to plan participants? Could a lack of more distribution options be affecting participants' distribution behaviors? Article looks at the options and what they offer the participant. Source: Retirementtownhall.com The Four Phases of Saving and Investing for Retirement Abstract: The framework of Earn, Save, Grow, and Preserve can be a helpful way to think about the progression of accumulating for retirement. Each phase has its own unique issues to be navigated, and success in one phase leads to the challenges of the next. Source: Kitces.com
Items of Special Interest to Service Providers Small RIA Custodians Are Applying Tougher Love to Hobbyist RIAs Abstract: In part one of a three-part series, RIA.biz examines how seven small custodians -- starting with Trade PMR and Scottrade -- are evolving away from the utopian model of 100% inclusivity. Source: Riabiz.com Uptick in Fee Litigation Reshaping 401k Industry Abstract: Bloomberg BNA asked employee benefits attorneys how this litigation is reshaping the 401k industry. They pointed to lower industry wide fees and a reluctance by plans to embrace alternative financial strategies as potential side effects. They also predicted that companies would begin looking more closely at fiduciary liability insurance and the possibility of banding together through multiple employer plans. Source: Bna.com
DOL's Final Fiduciary Rule Two More Groups File Lawsuits Against the DOL Fiduciary Rule Abstract: The list of lawsuits against the Labor Department got longer as two more industry groups joined three others in taking aim at the fiduciary rule in court. Labor Secretary Thomas Perez has vowed to vigorously defend the rule. Source: Investmentnews.com (registration may be required) Trip to a Friendly North Texas Court to Upend the DOL Fiduciary Rule Looks More Like the Alamo Abstract: Article states, "Re-enacting the Alamo, the SIFMA-led fiduciary rule-haters have taken their posse to Texas in a last-stand effort to draw the DOL rule-makers into a losing position. The case relies on logic as mystifying as it is audacious." Source: Riabiz.com Conflict of Interest Rule Checklist Abstract: The DOL's new fiduciary rule primarily affects service providers and advisors rather than plan sponsors, but this simple checklist can help you understand how services may change for your retirement benefits. Source: Lockton.com Obama Vetoes Congress' Disapproval of Fiduciary Regulation Abstract: President Obama has vetoed Congress' resolution that would have nullified the Labor Department's fiduciary regulation. Source: Asppa.org
Compliance and Regulatory Form 5500 Preparation -- 10 Quick Considerations Abstract: It is critical to follow the Form 5500 instructions and carefully review the entries in order to avoid triggering an investigation. Article is a short list of considerations and questions aimed at helping avoid government inquiry otherwise prompted by a wrong answer on the Form 5500. Source: Erisalawgroup.com Exceptions to 10% Early Distribution Penalty Chart Abstract: Comparison chart of qualified plan and traditional IRA exceptions to the 10% penalty on distributions prior to age 59 1/2. Source: Mhco.com
Marketplace News Ascensus Announces New LPL 3(38) Offering Advisor Group Launches Retirement Plan Practice Management Platform LPL Opens D.C. Lobbying Office Pensionmark Expands Network in Houston
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