Annual Benchmarking Report Released
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Newsletter Sponsor NEW! 401k Averages Book 16th Edition - Fee Benchmarking Book All 401k fee charts and tables updated for 2016. Use the 401k Averages Book to better understand investment, recordkeeping, revenue sharing expenses for all size 401k plans. The 401k Averages Book is the only resource book available for non-biased, comparative 401k fee information. It is designed to provide professionals with essential fee information to help their clients determine if their plan costs are above or below average. Click here for more information. In This Issue
Insight: Studies, Research and White Papers Annual Benchmarking Report Released Abstract: T. Rowe Price Retirement Plan Services, Inc. has released the latest version of Reference, an annual benchmarking report based on T. Rowe Price's full service recordkeeping client data. This report provides plan sponsors the ability to review retirement plan trends and plan participant behavior patterns to help them make more informed plan decisions. Source: 401khelpcenter.com Generational Expert Talks Impact of Shifting Attitudes on Workplace Benefits Abstract: Lockton Retirement Consultant Rick Unser spoke with Dr. Joe Coughlin, Founder and Director of MIT's AgeLab, about the dramatic change the generational shifts in workplace attitudes will have on the future of employee benefits. Source: 401khelpcenter.com »» Click here for More Studies, Research and White Papers
General Items 401k Loans: Myth Busters Edition Abstract: There's a fair amount of confusion about how 401k loans work: the payback terms, tax issues, and how much (if any) compounding the 401k borrower actually misses out on. Here are some of the most common myths surrounding the loans, as well as the reality about them. Source: Morningstar.com Abstract: Employers can offer 401k plan participants the opportunity to make Roth 401k contributions. If you're lucky enough to work for an employer who offers this option, Roth contributions could play an important role in maximizing your retirement income. Source: Captrustadvisors.com
403(b) Plans 2016 PSCA Survey Highlights 403(b) Plan Trends Abstract: The eighth annual benchmarking survey of 403(b) plans shows upward trends in deferral rates, employer matches and adoption of automatic enrollment. Source: 401khelpcenter.com Isn't a 403(b) Plan Just Like a 401k Plan? Abstract: While both are forms of defined contribution plans and have accounts with balances that fluctuate with market changes, a 403(b) and a 401k Plan are different in many ways. This article provides information on the differences. Source: Sdflaw.com A Few 403(b) Compliance Quirks Abstract: Some 403(b) plan compliance issues can arise due to idiosyncratic characteristics of 403(b) plans rather than statutory or regulatory requirements different from other defined contribution plans such as 401k plans. Source: Aon.com »» Click here for More 403(b) Material
Fiduciary and Plan Governance Material For the First Time, Fiduciary Responsibility Tops Plan Sponsors' Reasons for Hiring Advisors Abstract: Thirty-eight percent of the plan sponsors surveyed are concerned about their fiduciary duty, a significant increase from 24 percent last year. Sixty-nine percent ranked an advisor's willingness to take on a formal fiduciary role as important. This study surveyed employers who have set up retirement plans that use a wide variety of recordkeepers and range in size from 25 to 10,000 participants. Source: Businesswire.com »» Click here for more Fiduciary and Plan Governance Material
Items of Special Interest to Service Providers Advisors Looking at Business Changes Ahead of Fiduciary Regulation Abstract: A new survey finds that 87% of advisors are considering changes to how they do business ahead of the implementation of the Labor Department's fiduciary regulation. Source: Napa-net.org Is the DOL Fiduciary Rule the End of Solicitor Arrangements? Abstract: The new DOL Fiduciary Rule has not prohibited the solicitor structure, but the DOL has made a solicitor a fiduciary under ERISA; and as a fiduciary the solicitor now has more liability and responsibility. What impact this change will have on this popular structure one can only guess. Source: Fraplantools.com Don't Forget About Sweep Programs Abstract: A sweep program, fund or similar device is a common means used by retirement plan advisers and their affiliates to hold account assets on a short-term basis pending an investment or other transaction. These programs may give rise to prohibited transaction issues under the IRC or ERISA, particularly when the adviser acts as a fiduciary. Source: Planadviser.com
Court and Other Legal Issues The Legal Conflict at the Heart of U.S. Retirement Plans Abstract: Last week, yet another slew of private retirement plan managers became the target of class-action lawsuits. Author of the opinion piece offers his reasons why these suits are sending shock waves through the world of private retirement plans. Source: Bloomberg.com More Ivy Leagues Ensnared in Fiduciary Lawsuits Abstract: Columbia University and Northwestern University are the latest institutions for higher learning to be accused of mismanaging their employees' retirement plans. Source: 401kspecialistmag.com »» Click here for more Court and Other Legal Issues
DOL's Fiduciary Rule DOL's Fiduciary Rule Poses New Litigation Threat to IRA Advice Abstract: Financial advisors working with individual investors need to take note since the Fiduciary Rule holds financial planners providing investors with IRA advice to an ERISA-like standard of care. In addition to holding planners providing IRA advice to the highest standard under law, the Fiduciary Rule also opens the door to unhappy clients filing class action lawsuits. Source: Manning-Napier.com »» Click here for More on the DOL's Fiduciary Rule
Compliance and Regulatory ERISA Advisory Council Highlights Importance of Cybersecurity Oversight Abstract: The 2016 ERISA Advisory Council is gathering to study ways to encourage benefit plan sponsors and managers to adopt strategies that minimize the exposure of plan participants' data from cyber-attack. This article touches on what the Council is considering Source: Gtlaw.com Failure to Obtain Spousal Consent Abstract: If a Qualified Joint and Sponsor Annuity is required by your Plan, a married participant cannot elect a different form of benefit distribution without the consent of their spouse. A failure to obtain spousal consent is considered operational in nature and can lead to plan disqualification. Source: Ekonbenefits.com »» Click here for More Compliance and Regulatory Material
Marketplace News Capital One Adds to Its Small Business Product Suite Nationwide Offers Advisers Access to Small Plan Fiduciary Services Ekon Announces Enhanced Sponsor Access Portal
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