How Lawsuits Are Reshaping 401k Plans
|
Newsletter Sponsor
For more information, click here. In This Issue
Court and Other Legal Issues How Lawsuits Are Reshaping 401k Plans Abstract: The rash of excessive fee lawsuits started over a decade ago has picked up with over a dozen filed since September 2015. BNA asked a panel of ERISA lawyers how these suits are reshaping 401k plans and the industry as a whole. Source: 401ktv.com Lehman Brothers Again Found Not Liable in Stock Drop Suit Abstract: The 2nd Circuit used the same logic in prior decisions to determine plaintiffs had not proven Lehman plan fiduciaries violated the Employee Retirement Income Security Act. Source: Planadviser.com MassMutual Settles 401k Fee Lawsuit for $31M Abstract: Massachusetts Mutual will pay nearly $31 million to settle a lawsuit claiming that it mismanaged its 401k plan, according to recently filed court documents. Source: Bna.com
Fiduciary and Plan Governance Material 401k Self-Directed Brokerage Accounts: A Cautionary Tale Abstract: A recently filed lawsuit rekindled some old concerns about self-directed brokerage accounts. The lawsuit in question is Fleming v Fidelity Management Trust Company which was filed by a group of participants in the Delta Airlines retirement plan against Fidelity alleging breach of fiduciary responsibility for excessive fees charged to their brokerage accounts. Source: Retirementplanblog.com SDBAs: Undesired Elements for Plan Fiduciaries Abstract: Some retirement plans are utilizing Self-Directed Brokerage Accounts as the primary investment vehicle for plan participants, but using this element instead of a recordkeeping platform is potentially formulating undesired results. There are numerous fiduciary and participant related considerations that typically outweigh the investment flexibility benefit that SDBAs offer. Source: Bpp401k.com Safe Harbor IRAs: Searching for an Appropriate IRA Provider Abstract: When selecting a provider for a safe harbor IRA, a plan sponsor is acting as a fiduciary. The provider's fees must be fair and the plan sponsor must supply information about the automatic rollover provision by distributing to participants a summary of material modification. Source: Plansponsor.com
Insight: Studies, Research and White Papers The Current State of 401ks: The Employer's Perspective Abstract: This 45-page report examines the state of retirement plan offerings, automatic enrollment, leakage from retirement savings, differences between part-time and full-time workers and other topics. Source: Transamericacenter.org 62% of Canadians Would Pay for Better Retirement Benefit Abstract: Nearly two-thirds (62 per cent) of Canadian employees would be willing to pay more out of their paycheque in order to receive a more generous retirement benefit, according to a survey by Willis Towers Watson. The survey, which polled more than 2,000 Canadian employees, found a slightly higher number (65 per cent) would be willing to pay more in order to receive a pension that was guaranteed for life. Source: Benefitscanada.com Fiduciary Financial Advice to Retirement Savers: Don't Overlook the Prudent Investor Rule Abstract: This essay calls attention to the regulatory imposition of the prudent investor rule on financial advisers to retirement savers. The essay also canvasses the basic tenets of the prudent investor rule, highlighting its nature as principles-based rather than prescriptive, and the customary role of an investment policy statement in compliance by professional fiduciaries. Source: Ssrn.com The Importance of a Private Retirement System Abstract: EPI Economist Monique Morrissey, an economist at the Economic Policy Institute, delivered this testimony before the Philadelphia City Council's Labor and Civil Service Committee on the topic of our private retirement system. Source: Epi.org
DOL's Final Fiduciary Rule Rollovers Under the Fiduciary Rule Abstract: Article answers this question, "I'm an adviser who provides invest. advice to ERISA plan committees. I also provide wealth management and financial planning services to individuals. Under the final DOL fiduciary rule, will I be able to advise plan participants or wealth management clients about their distribution options under a plan or an IRA?" Source: Planadviser.com Fiduciary Rule's Impact on IRAs Should Be No Surprise Abstract: During the course of the DOL's development of its recently released final fiduciary rule, a common industry challenge has been whether IRAs should be covered by the rule. Considering the DOL was given rule making authority over Code section 4975 in 1978, it should come as no surprise that IRAs are subject to the same recently issued final rule. Source: Ascensus.com Under New Fiduciary Rule, DOL Has Reason to Pay Attention to Reverse Churning Abstract: In a nutshell, reverse churning occurs when an adviser places client assets in an advisory account, charges an ongoing management fee, and gets paid for doing little or nothing thereafter. The SEC and Finra have had this regulatory matter on their radar for years. Now, under the new fiduciary rule, the DOL has reason to pay attention to the problem and it's clear they will. Source: Investmentnews.com (registration may be required)
Compliance and Regulatory Must Participant Loans Be Paid Upon Termination? Abstract: If the plan (and recordkeeper) permits, loan repayments may continue to be made by the participants; however, if a participant was previously making repayments via payroll reduction, he/she would be required to make arrangements with the recordkeeper for direct repayment via check or electronic payments such as automated clearing house deduction from a participant's bank account. Source: Plansponsor.com What's Next for the Determination Letter Program? Abstract: This article describes the recommendations in a recent IRS on the Determination Letter Program and related considerations for individually designed plan sponsors in light the recommendations. Source: Drinkerbiddle.com No SEC Fiduciary Rule Till After Obama Departs: SEC Chief White Abstract: A uniform fiduciary rule by the SEC will not be released before the end of the Obama administration, but the agency will watch the unfolding of the Department of Labor's fiduciary rule to see if a "conflict develops," SEC Chairwoman Mary Jo White told Senate lawmakers. Source: Thinkadvisor.com
Marketplace News Capital One Investing Launches ROBO Service Spectrum Pension Acquires Plan Sponsor Services Empower Unveils New Website Design The Segal Group Names New President and CEO
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
|
