Co-Fiduciary Could Make DC Plan Sponsors Co-Defendants
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Fiduciary and Plan Governance Material "Co-Fiduciary" Could Make DC Plan Sponsors "Co-Defendants" Abstract: The new Fiduciary Rule from the US Department of Labor primarily affects financial advisors. But DC plan sponsors also face added responsibilities: some plan provider services may unexpectedly create a co-fiduciary status for plan sponsors that they didn't have before. Source: Abglobal.com
»» Click here for more Fiduciary and Plan Governance Material
General Items The Three Biggest Mistakes Retirement Savers Make During Down Markets Abstract: The key to not only surviving, but thriving, in the ups and downs of the market is summarized in one word: Discipline. Discipline is what makes you lean face first into the wind and hold your ground. Not everyone can do it, but many can learn how. The author describes how participants can avoid the three biggest mistakes they make during down markets. Source: Fiduciarynews.com
Insight: Studies, Research and White Papers Study: Portability and the Mobile Workforce Abstract: Study finds that retirement plan participants are overwhelmingly receptive to using their 401k plans as their primary retirement accounts during their working years -- particularly Millennials and Generation-Xers -- but they find the roll-in process confusing, difficult to decipher and time-consuming. The survey further presents specific recommendations for plan design, including a multi-pronged approach to dampen cash outs and to dramatically improve plan portability. Source: Rch1.com Helping Employees in Their Retirement: 401k Decisions, Decisions, Decisions! Abstract: This article examines plan design features and educational efforts as key components in helping employees make the right choices for their specific situations. Source: Milliman.com How Retirement Plan Sponsors Can Address Cognitive Decline Abstract: SSGA contends there are things retirement plan sponsors can do to help participants prepare for retirement before their mental capacity begins to wear away. Source: Planadviser.com »» Click here for More Studies, Research and White Papers
Items of Special Interest to Service Providers SEC Continues to Focus on Cybersecurity for Investment Advisers Abstract: As in 2015, the Securities and Exchange Commission Examination Priorities for 2016 identify cybersecurity as an area of "potentially heightened [market-wide] risk." Source: Ria-compliance-consultants.com Why Reverse Churning Is About to Become a Big Advisor Problem Abstract: This piece looks at the concept of "reverse churning," where an advisor charges an ongoing investment management fee, and how it is likely to be a growing regulatory concern in the coming years, as the DOL fiduciary rule spurs a massive shift towards various forms of fee-based brokerage and advisory accounts. Source: Kitces.com The Business of Being in the 401k Business Abstract: As we sit here just past the midpoint of 2016, the 401k industry continues to get a lot of attention in the media, with regulators and certainly from employers and their employees. However, what is not talked about very much is how the business of being a recordkeeper works and what employers should understand about the business models of their service providers. Podcast helps shed some light on the topic. Source: 401kfridays.com
Court and Other Legal Issues Franklin Templeton Sued by Employees for Self-Dealing in 401k plan Abstract: Franklin Resources has been sued for self-dealing in its own 401k, joining a growing list of similarly situated companies targeted by their employees for excessive retirement plan fees. Source: Investmentnews.com (registration may be required) Neuberger Berman Sued for Excessive 401k Fees Abstract: Neuberger Berman, an investment manager with $246 billion in assets under management, has been sued by a participant in the company's 401k plan for alleged self-dealing, whereby the firm offered a high-fee, poorly performing proprietary fund in the plan for its own profit. Source: Investmentnews.com (registration may be required) District Court Finds Forum Selection Clause Unenforceable in ERISA Action Abstract: A federal district court in Illinois ruled that a plan's forum selection was unenforceable because it conflicts with ERISA's public policy of providing plaintiffs "ready access to the Federal courts." Source: Erisapracticecenter.com New Canadian Court Decisions Reinforce Need for Benefit Communications Policy Abstract: Two recent cases dealing with employee benefits and pensions demonstrate how a benefit communications policy can make a difference to employers. Source: Employmentandlabour.com Retirement Plan Can Mandate Arbitration, Cost-Sharing Abstract: A federal judge upheld a provision in ETS's retirement plan requiring that claims over plan benefits be submitted to a binding arbitration process in which the claimant and the plan "equally share" in the arbitration costs. Source: Bna.com »» Click here for more Court and Other Legal Issues
DOL's Fiduciary Rule FAQ for Financial Advisors on the DOL Fiduciary Rule Abstract: This compilation of frequently asked questions was developed by the Insured Retirement Institute to provide general information for financial advisors about the Department of Labor's recently adopted fiduciary rule (sometimes referred to as the "conflicts of interest" rule). Source: Myirionline.org »» Click here for More on the DOL's Fiduciary Rule
Compliance and Regulatory A Blueprint for Maintaining a Plan after the IRS's Determination Letter Program Cutback Abstract: The IRS will continue to conduct random audits to assess plan compliance with plan document operational requirements. Beginning in 2017, the IRS expects plan sponsors to amend written plan documents in accordance with Revenue Procedure 2016-37 and without reliance on a determination letter. Sponsors of individually designed plans must develop new means for assuring they comply with the qualification requirements in the wake of Revenue Procedure 2016-37. Source: Mwe.com IRS Provides Note on Correcting Required Minimum Distribution Failures Abstract: In a note provided by the IRS, the IRS provides guidance on correcting required minimum distribution failures. This article reviews what the IRS said. Source: Erisalawyerblog.com »» Click here for More Compliance and Regulatory Material
Marketplace News Stephanie Roupe Joins the Multnomah Group Mark Lewis Now Representing TRA in TX, OK and LA Fitts Releases Book on Digital Marketing Strategy Pensionmark Partners With $7.5 Billion Asset Strategy Consultants
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