Briefing Paper: The Work Behind BICE Paperwork
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DOL's Fiduciary Rule Briefing Paper: The Work Behind BICE Paperwork Abstract: Complying with the Best Interest Contract Exemption (BICE) requires a mountain of paperwork that commits, promises, and makes disclosures. Developing this paperwork is an enormous challenge. This 22-page paper summarizes the activities necessary to support the commitments, promises, and disclosures required for those who choose to enter into a BIC. Source: Dalbar.com IRA Rollover Assets "At-Risk" Post-DOL Conflict of Interest Rule Abstract: New research from global analytics firm Cerulli Associates assesses the future of the IRA rollover market post-implementation of the Conflict of Interest Rule. While the $7.3 trillion IRA market is the largest and fastest-growing segment of the U.S. retirement market, this new regulation will impose greater scrutiny and complexity on the rollover market and potentially disrupt future flows. Source: 401khelpcenter.com »» Click here for More on the DOL's Fiduciary Rule
Fiduciary and Plan Governance Material Cybersecurity and the Role of ERISA Fiduciaries Abstract: Recent technological advancements, especially in the area of cybersecurity, have only now become the focus of most ERISA fiduciaries. Due to the increasing frequency and sophistication of cyber-related threats to employee benefit plans, their trustees and third-party plan administrators and the potential financial repercussions, compliance with ERISA fiduciary standards will require implementation of a prudent cyber risk management strategy. This article is dedicated to understanding cybersecurity issues in the context of ERISA benefit programs. Source: Pillsburylaw.com »» Click here for more Fiduciary and Plan Governance Material
Insight: Studies, Research and White Papers Top Canadian DC Plans: A Look at the Latest Governance Trends Abstract: DC plan governance is a growing concern for Canadian plan sponsors. With all of the changes in mind, here are six key governance trends for employers to be aware of. Source: Benefitscanada.com Lifetime Income Poll: Perspectives of DC Plan Sponsors on Regulatory Developments Abstract: Plan sponsors are increasingly being called upon to help their DC plan participants achieve successful retirement outcomes. Critical to that success is ensuring that participants have easy access to lifetime income options. This 12-page survey helps understand plan sponsors' current perspectives about the core purpose of a DC plan, including the most effective ways to deliver lifetime income to plan participants. Source: Metlife.com Ten Important Facts About 401k Plans Abstract: 401k plans have grown to become the most common employer-sponsored defined contribution (DC) retirement plan in the United States. In this 14-page paper, the Investment Company Institute reviews 10 important facts about 401k plans. Source: Ici.org 401k Plans: DOL Could Improve Use of Lifetime Income Options Abstract: This report examines, among other things, what is known about the adoption of lifetime income options in 401k plans, barriers that deter plan sponsors from offering such options, and the defaults that exist for participants who do not choose a lifetime income option. GAO administered a non-generalizable questionnaire to recordkeepers, conducted a non-generalizable survey of 54 plan sponsors, and interviewed a range of stakeholders. Source: Gao.gov Only 28% of Small Businesses Offer a 401k Abstract: Sixty-six percent of small businesses do not offer their employees a 401k plan, according to the August 2015 SurePayroll Small Business Scorecard. Forty-two percent of these companies say they do not see the value in it, 35% say the fees are too expensive, and 23% say they do not know how to manage a 401k. Source: Plansponsor.com »» Click here for More Studies, Research and White Papers
Target-Date Funds Target-Date Fund Diversification: Don't Settle for Simple Abstract: Plain-vanilla portfolios have become a major presence in the target-date world after a difficult period for diversification. The author of this article doesn't think it's a good idea to bet that "plain and simple" will continue to win. Source: Abglobal.com »» Click here for more on Target-Date Funds
Legislative and Washington DC Discussion Draft of the Retirement Improvements and Savings Enhancements Act Released Abstract: Senate Finance Committee Ranking Member Ron Wyden, D-Ore., today released a discussion draft of legislation titled the Retirement Improvements and Savings Enhancements (RISE) Act, which would help more working families and recent college graduates save for retirement, while cracking down on unfair strategies used by the privileged to rake in subsidies and dodge tax bills with so-called "mega Roth IRAs." Source: Senate.gov »» Click here for more on Legislative Actions
Court and Other Legal Issues IBM Defeats Twin Challenges to Stock Drop Abstract: IBM and its executives won dismissal of lawsuits claiming that a 17 percent drop in the company's stock price implicated federal securities laws and caused workers to lose retirement savings in violation of ERISA. Source: Bna.com Federal District Court Enforces Forum Selection Clause Contained in ERISA Plan Abstract: A federal district court in the Eastern District of Pennsylvania transferred an ERISA lawsuit against Caterpillar Inc. to the Northern District of Illinois after finding the forum selection clause contained in the governing plan was valid and enforceable. Source: Erisapracticecenter.com »» Click here for more Court and Other Legal Issues
Compliance and Regulatory The Shape of Things to Come - New IRS Guidance on Downsized DL Program Abstract: Last summer, the Internal Revenue Service announced dramatic changes in its longstanding determination letter program for tax-qualified plans (Announcement 2015-19). This article describes key changes made by the Revenue Procedure, including changes applicable to all individually designed plans generally. The article also highlights special rules applicable to IDPs maintained by governmental and tax-exempt entities and covers expected changes for preapproved plans. Source: Groom.com IRS Final Rules Include Same-Sex Spouses in Terms Related to Marital Status Abstract: The IRS has finalized regulations that amend existing regulations to provide that, for federal tax purposes, certain terms involving marital status (for example, "husband" or "wife") are interpreted in a neutral way to include same-sex and opposite-sex spouses. The changes do not extend to individuals in domestic partnerships, civil unions, or similar relationships. Source: Practicallaw.com Employing the Proper Definition of Compensation Abstract: This article is intended to briefly highlight some of the issues that can occur when the incorrect definition of compensation is employed as well as to provide an explanation of some of the differences between the most commonly employed definitions of compensation. Source: Legacyrsllc.com Is It "Buyer Beware" With New Rollover Self-Certification? Abstract: The IRS has provided what at first glance seems like a very generous option for taxpayers to claim eligibility for an extension of the 60-day limitation on executing rollovers. Obtaining a waiver from a rule that could otherwise yield unpleasant tax consequences is obviously of great benefit to a taxpayer moving assets from one savings arrangement to another, and missing the deadline. But this guidance is not without some "maybes." Source: Erisanews.blogspot.com »» Click here for More Compliance and Regulatory Material
Marketplace News Sales Staff Growth at DCIO Firms Slow
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