401k Providers See Participant Calls Surge in Wake of Brexit
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General Items 401k Providers See Participant Calls Surge in Wake of Brexit Abstract: Retirement plan participants phoned their providers in a frenzy Friday morning as news of Britain's exit from the European Union caused severe market gyrations and investors wanted to know what it meant for their nest eggs. Fidelity Investments, the largest record keeper of defined contribution plans, saw call volume for its 401k business increase 50% over regular levels for the first hour of business Friday morning. Source: Investmentnews.com (registration may be required) Average Investors Shouldn't Panic Over Brexit Storm Abstract: Britain's unprecedented decision to leave the European Union sent global financial markets into tailspins Friday, but analysts say that average investors shouldn't panic over their personal investments or retirement plans. Source: Detroitnews.com Because of Brexit, Don't Check Your 401k Abstract: What does all this mean for you, the ordinary person saving for retirement? First, it was a good day not to look at anything financial. Instead of asking yourself what is going to happen to the value of your retirement accounts, the question to ask is: How does this play out for me financially, years down the road? Source: Bankrate.com
403(b) Plans Abstract: A close look at the DOL's fiduciary rule reveals interesting twists in the manner in which the rule affects (or doesn't) 403(b) plans, which simply do not apply to other participant directed defined contribution plans. Two really are the most obvious. Source: Businessofbenefits.com
Fiduciary and Plan Governance Material How to Conduct an Annual Investment Review Abstract: A well-established and implemented investment policy statement is one of your best defenses against potential legal challenges in light of recent court rulings. But it's not enough just to create an investment policy statement, you must follow through on the review procedures it outlines. Source: Investmentnews.com (registration may be required) The Problem With Investment Committees Abstract: The decisions which have the most negative impact on investment results tend to be associated with capitulating on a good strategy after a stretch of bad performance. In fact, capitulation can evolve into a pattern of selling low and buying high as the investor seeks to recoup foregone returns. Source: Russell.com 401k Plan Fees: Can Benchmarking Determine Value and Reasonableness? Abstract: 401k plan fees have been the hot topic of discussion amongst both plan sponsors and the industry. With fee disclosure regulations, a growing number of lawsuits and the press all swirling around the issue the need for plan fiduciaries to have a process to both understand and evaluate plan fees for reasonableness has never been more important. Tom Kmak, the CEO and co-founder of the firm Fiduciary Benchmarks, shares his experience and perspective on how to create a meaningful fee benchmarking process. Source: 401kfridays.com
Insight: Studies, Research and White Papers Abstract: PLANSPONSOR's 18th annual Recordkeeping Survey questionnaire was distributed to known providers of full-service and unbundled recordkeeping for both qualified and nonqualified DC plans. The survey data provides insight into each provider's experience, services, and capabilities. Source: Plansponsor.com Abstract: It may be quite surprising to some is that participants' best interests are not necessarily the top motivation for plan sponsors' shifting strategies. Rather, research shows that many decisions about plans, including shifting the mix of investment options available to participants, are made primarily with an eye to avoid being sued. And that's sparking discussion as to whether companies' plan or investment committees, often headed by CFOs, are properly exercising their fiduciary duties. Source: Cfo.com Steps Employers Can Take to Help Women Close the Retirement Savings Gap Abstract: Men and women are on equal footing when it comes to 401k plan participation, but research from Aon Hewitt shows that this equality doesn't hold true when evaluating overall retirement readiness. Suggests three steps employers can take to help women close the retirement savings gap. Source: 401khelpcenter.com
Target-Date Funds Is the Time Ripe for a Move to Custom Target-Date Funds? Abstract: As target-date fund assets swell, a growing number of large plans have moved to custom TDFs -- the idea is custom target-date funds are just better than off-the-shelf target date funds. But plan sponsors shouldn't assume they ought to follow this trend. Source: Napa-net.org
Issue of Lifetime Income The Ease of Automation and Guaranteed Lifetime Income Abstract: Are there plan design features plan sponsors could use to drive better participant behaviors and outcomes? This 16-page paper offers answers. It is aimed at CFOs, HR directors and other plan sponsor decision-makers who want to get the most from their DC plans. Source: Prudential.com Abstract: The DOL can take certain regulatory actions to facilitate the adoption of lifetime income programs by sponsors of defined contribution retirement plans. This article outlines the simple steps the DOL can take, without the need of legislative change, that would support plan sponsors in these efforts. Source: Iijournals.com
Legislative and Washington DC A Federal 'Lost and Found' for Retirement Accounts? Abstract: U.S. Senators Elizabeth Warren and Steve Daines have teamed up to introduce legislation that would create a federal lost and found designed to help stem leakage from retirement accounts. According to its sponsors, the bill uses the data employers are already required to report to create a national online lost and found for Americans' retirement accounts. Source: Napa-net.org
Court and Other Legal Issues Great-West Loses Another Round in ERISA Class Action Abstract: Great-West lost another battle in a lawsuit challenging the money it makes off annuity contracts sold to 401k investors. A federal judge in Colorado certified the case as a class action on behalf of more than 270,000 investors in about 13,600 different retirement plans. The judge also denied Great-West's attempt to block expert testimony on the amount of money at stake in the lawsuit. Source: Bna.com Overpaid Former Plan Participant Found to Be a Fiduciary Abstract: A federal court said that by not repaying the overpaid funds, the former participant became a fiduciary and breached her ERISA fiduciary duties by not returning the funds. Source: Planadviser.com
Marketplace News Fidelity Rolls Out 'FidelityConnect' for Advisors Trust Builders Expands Online Retirement Readiness Tools Rich Zytko Now Representing TRA in NY, NJ and PA Nationwide Retirement Institute Offers New DOL Education Series Pensionmark Expands Network in Nashville Pentegra Enhances Online User Experience
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