Quarterly Fiduciary Checklist
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Fiduciary and Plan Governance Material Abstract: This 7-page checklist sets an agenda for quarterly retirement committee meetings and helps document plan topics that should be addressed at least annually. Each quarter's focus subject is intended to be a primary topic discussion for the committee, though other matters will also be discussed. Source: Lockton.com Good Advice for Plan Sponsors: Monitor Advisers Abstract: Many external advisers to plans already commit in their contracts with their clients to act as fiduciaries. Some don't, though, particularly those who advise small plans. Executives and fiduciaries responsible for overseeing these plans shouldn't just sit back and relax; rather, they should reevaluate their agreements with their advisers, experts say. And there are implications for large plan sponsors as well. Source: Cfo.com Three Companies Removing Company Stock Funds From DC Plans Abstract: Three companies are removing or have removed employer-stock funds from six defined contribution plans, according to the companies' recent 11-K filings with the Securities and Exchange Commission. Source: Pionline.com
General Items Corporate Pension Sponsors Fight for Ex-Employees' 401k Assets Abstract: Robin Diamonte, United Technologies' CIO, grew tired of watching retiring and separating plan participants become fodder for call centers trolling to open new IRA accounts. To counter this pressure, she and her peers at International Paper Co. and IBM Corp. have launched campaigns to inform employees of their choices when it comes to their 401k accounts. Source: Institutionalinvestor.com Brexit: What It Is and Its Impact on Retirement Plans Abstract: The UK referendum vote in favor of leaving the European Union has had a negative effect on world markets. The market upheaval has affected defined contribution plan participants as well. Rebalancing and staying the course will be key. Source: Xerox.com Best Practices for Benefit Plans During a Merger or Acquisition Abstract: Merger or acquisition can impact on retirement and benefit plans and requires careful planning and strategy. This 4-page paper discusses considerations for organizations that may be looking at such a corporate event now or in the future. Source: Baml.com
Items of Special Interest to Service Providers After Trading Halt, Betterment Suffers Its Own Brexit Shock Abstract: It was a move intended to protect investors from market volatility. But a decision by Betterment to temporarily suspend trading the morning after the Brexit vote -- shutting out its retail and institutional clients until nearly noon -- has the wealth management industry wondering aloud if the robo adviser harmed its reputation instead. Source: Financial-Planning.com
Legislative and Washington DC Legislation to Call for Federal Mandate on Retirement Savings, Matches Abstract: Look for a bill to be introduced in Congress next month that some have called "auto-IRA on steroids." It's not a new proposal, but it would, at a federal level, mandate that employers with 10 or more employees to open individualized retirement accounts for every employee, if they do not already offer a retirement plan. Source: Napa-net.org Proposed Tax Reforms Would Affect Retirement, Education Abstract: Serious tax reform efforts are not expected before the next presidential administration takes office, but a recent legislative proposal does contain some changes to retirement saving incentives, changes considered necessary by its authors in order to offset tax revenue lost in the tax rate reduction process. This article notes some findings from a preliminary examination of this proposed tax reform document. Source: Ascensus.com
DOL's Final Fiduciary Rule Litigation Schedule Set for Suits Against DOL Fiduciary Rule Abstract: Financial industry trade groups and the DOL have agreed to a litigation schedule that could render a decision in October on several lawsuits seeking to stop an invest. advice regulation. Source: Investmentnews.com (registration may be required) Podcast: DOL Rule From a Sales vs. Advisory Cultural Perspective Abstract: Sales and advisory organizations are fundamentally different. That is the premise of the Labor Department's new conflict-of-interest rule. They have different priorities, which shape the culture and practices that exist in each. Consequently, they must be regulated differently and should be distinguishable to the public. Twelve minutes. Source: Fi360.com Tips for Drafting Best-Interest Contracts Under DOL Rule Abstract: The DOL's fiduciary rule provides for a new best interest contract exemption available to broker-dealers in connection with their activity with respect to individual retirement accounts. This article discuss what practitioners should consider when drafting BIC contracts in order to provide protections to their firm. Source: Sutherland.com DOL's Fiduciary Rule and Its Impact on the Retail Investor Marketplace Abstract: The purpose of this 16-page paper is to: (i) provide a summary of the definition of "invest. Advice" under the Final Regulation; (ii) discuss the impact of the Final Regulation and the prohibited transaction exemptions, particularly the BIC and PTE 84-24, on the distribution of products and services; and (iii) provide some recommendations on how to proceed. Source: Groom.com Fiduciary Booby Traps With Broker-of-Record Changes Abstract: Historically, takeover business is assumed via a "broker-of-record" change without a rep necessarily taking on any fiduciary role or liability. Under the new DOL fiduciary rules, the rep, upon receipt of a signed BOR, becomes a fiduciary on the plan. This carries with it a significant booby trap for the inexperienced and uninformed rep. Source: Emoneyadvisor.com
Compliance and Regulatory Record Retention Requirements for ERISA Plans Abstract: Sponsoring a plan that is covered under ERISA requires the collection of a large amount of information related to the plan itself and to the plan participants. As the years pass the amount of information grows leaving employers to wonder how long plan-level and participant-level information must be retained. ERISA Sections 107 and 209 speak to record retention of employee plans. Source: Voya.com DOL Increases Certain ERISA Civil Penalties Abstract: The DOL has issued an interim final rule identifying increases in certain ERISA civil penalties as a result of enactment of the Federal Civil Penalties Inflation Adjustment Improvements Act of 2015. This 2015 legislation required federal agencies to adjust certain civil penalties under their jurisdictions to reflect cost-of-living-adjustment increases. Source: Ascensus.com
Marketplace News Ameritas Signs Agreement to Acquire Guardian's 401k Plan Business vWise Launches Two Participant Apps Ascensus to Increase Retirement Plan Sales Team by More Than 40% PSCA Announces 59th Annual Plan Benchmarking Survey NFP Completes Sale of Majority Stake in Kestra Financial
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