A Primer on Plan Fees
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Fiduciary and Plan Governance Material Abstract: One of the many duties plan fiduciaries have is to understand the fees and expenses charged to their employer-sponsored defined contribution plan. This is a guide to the different plan fee pricing models and the steps to take to ensure fees are reasonable. Source: 401khelpcenter.com Are 401k 3(38) Services Worth the Price? Abstract: Designating a 3(38) investment advisor can be a beneficial choice for plan sponsors. But when reviewing this option, plan sponsors need to determine if it is in the best interest of the participants to hire this type of advisor. This article outlines some of the advantages and disadvantages that plan sponsors should investigate when considering this option. Source: 401kspecialistmag.com »» Click here for more Fiduciary and Plan Governance Material
403(b) Plans Abstract: The 403(b) market has changed fundamentally over the last decade leaving many plan sponsors confused about their requirements in managing a qualified 403(b) plan, including potential testing obligations which are detailed here. Source: Multnomahgroup.com »» Click here for More 403(b) Material
Insight: Studies, Research and White Papers Retirement Insecurity: A Multi-Generational View Abstract: Today's workers are grappling with retirement security and challenged by the wobbly three-legged stool comprising Social Security, employer-sponsored retirement benefits and personal savings. Transamerica Center for Retirement Studies has released new research evaluating the retirement outlook of American workers by generation. Source: 401khelpcenter.com 17th Annual Transamerica Retirement Survey Abstract: This survey of 4,161 workers reveals striking similarities across all generations of workers in terms of their insecurities about retirement, as well as key differences in their expectations and preparations. Source: Transamericacenter.org Abstract: Since launching its fee comparison service, Employee Fiduciary has accumulated a large database of 401k fees. This article is a summary of the fees they found for 121 401k plans with less than $2MM in assets. 401k fiduciaries can use this study to help evaluate their plan fees for reasonableness. Source: Employeefiduciary.com Third Party Administration Buyer's Guide Abstract: Some say that third-party administrator (TPA) services can surpass what most recordkeepers offer to aid with plan design and that this is broadening the TPA's use in the retirement industry. Our first annual PLANSPONSOR Third-Party Administrator Survey provides a detailed snapshot of each TPA respondent, revealing, by its numbers, how it compares with peers in the overall market landscape. Source: Plansponsor.com »» Click here for More Studies, Research and White Papers
Court and Other Legal Issues What the 403(b) Excessive Fee Lawsuits Do Not Consider Abstract: In the past two weeks, eight lawsuits have been filed against large universities concerning excessive investment and recordkeeping fees for their 403(b) plans. Attorneys point out distinctions between 403(b)s and 401ks, and lessons 403(b) plan sponsors can learn from these recent lawsuits. Source: Plansponsor.com DOL Complaint Alleges Fiduciary Failures by Adviser Abstract: A complaint filed in a Pennsylvania district court by the DOL's Employee Benefits Security Administration alleges a list of ERISA infractions related to fees, documents, disclosures and processes by a 3(21) fiduciary firm. Source: Planadviser.com Fidelity, HP, United Airlines Sued Over 401k Float Practice Abstract: HP, United Airlines, and Fidelity were hit with an ERISA class action by 401k plan participants challenging Fidelity's practice of allegedly diverting billions of dollars of plan assets for its own benefit. Source: Bna.com Edward Jones the Latest 401k Litigation Target Abstract: Another broker/dealer has been accused of larding its 401k plan menu with investment options from mutual fund families that paid hundreds of millions of dollars to the firm, despite what are alleged to be "high fees, poor performance prospects, and availability of better-performing, lower-cost alternatives." Source: Napa-net.org »» Click here for more Court and Other Legal Issues
State-Based Retirement Programs DOL Announces Final Rule on State Payroll Deduction IRA Programs Abstract: The DOL made public a final rule that assists states that create IRA programs for workers who do not have access to workplace savings arrangements. At the same time, in response to public comments, the department is making public a proposed rule that could facilitate a limited number of cities and other local governments doing the same. Source: Dol.gov
DOL's Fiduciary Rule Advisors on Track to Implement DOL Fiduciary Rule Abstract: A Nationwide Retirement Institute survey finds the new Department of Labor fiduciary rule has most advisors considering changes to their business model as they wait to learn their firm's new compliance procedures. Source: 401khelpcenter.com DOL Fiduciary Rule to Drive Institutional Share Class Pricing Demand Abstract: Strategic Insight announced a new study which reveals that implications stemming from the DOL fiduciary rule will accelerate demand for institutional pricing of mutual funds sold through intermediaries. This has implications for fund manager profitability, shareholder cost, and 12b-1 fees. Source: 401khelpcenter.com »» Click here for More on the DOL's Fiduciary Rule
Compliance and Regulatory One-Participant Plan Sponsors - Avoid Orphan Plans Abstract: Employers that sponsor one-participant plans should take necessary steps to prevent a qualified retirement plan from becoming an orphan plan: a plan that no longer has a plan sponsor. Source: Irs.gov New Procedure Helps People Making IRA and Retirement Plan Rollovers Abstract: The Internal Revenue Service has provided a self-certification procedure designed to help recipients of retirement plan distributions who inadvertently miss the 60-day time limit for properly rolling these amounts into another retirement plan or individual retirement arrangement. Source: Irs.gov »» Click here for More Compliance and Regulatory Material
Marketplace News Jeff Hornsby Joins Newport Group Sales Team Schwab Launches 8 Basis Point Target-Date Funds 401k Specialist Magazine to Offer CE Credit for CFP® Professionals New Program to Coordinate and Optimize 401k and HSA Deferrals Chip Moore Joins Hancock's Large Plan Consultant Relations Team
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