ERISA 403(b) Lawsuits: Are Hospital Plans Sick and University Plans Dumb?
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403(b) Plans ERISA 403(b) Lawsuits: Are Hospital Plans Sick and University Plans Dumb? Abstract: Regulatory changes enacted in the past decade have resulted in many more 403(b) plans becoming ERISA plans and the impact of the ERISA fiduciary requirements is now being felt. The two core fiduciary duties under ERISA are prudent investigation and always placing the interest of the participant first. It is apparent that many of these plans, including some very large plans, were unaware of these fiduciary duties. The result of that is increased litigation with more than a dozen lawsuits being filed just this year. Source: Unifiedtrust.com 401k vs 403(b): Differences in Investments, Compliance, and Administration Abstract: Today, many 403(b) plans have to follow similar ERISA compliance requirements, without the typical 401k benefits. So, whether you're benchmarking your nonprofit's current retirement benefit or growing out of your current solution, this article compares the main differences between 403(b) and 401k plans. Source: Forusall.com How to Prepare for a 403(b) Plan IRS Audit Abstract: A 13-page paper on how employers can prepare for an IRS Audit of their 403(b) and/ or 457(b) Plan, potential areas of focus during an IRS examination, and best practices for strengthening tax compliance. Source: Nagdca.org »» Click here for More 403(b) Material
Insight: Studies, Research and White Papers Balancing Benefits Costs and Outcomes Is Critical to Enterprise Success Abstract: Finance executives' efforts to manage benefits risks and costs, while trying to enhance benefits outcomes, will be critical to their companies' ability to succeed in the future. This is the key finding of a recent CFO Research survey of 180 senior finance executives at U.S. companies. The survey gauged finance executives' current thinking on a range of retirement and benefits issues. Source: Cfo.com Small Business Owners Rethinking Retirement Benefits to Retain, Recruit Employees Abstract: In new research, small business owners are finding that the implementation of the Affordable Care Act has decreased the appeal of health care benefits to employees and increased retirement plans' importance as a tool to recruit and retain employees. Source: 401khelpcenter.com How Does Student Debt Affect Early-Career Retirement Saving? Abstract: This 38-page paper examines the relationship between student loans and retirement saving behavior by 30-year-old workers. The analysis focuses on participation in an employer-sponsored retirement plan and retirement assets as of age 30. Source: Bc.edu »» Click here for More Studies, Research and White Papers
Items of Special Interest to Service Providers New Report Explores Current Robo Advisor Models and Their Future Abstract: This new report examines the trends driving the adoption of digital and human (hybrid) advisory and the opportunities for asset managers with or without their own robo advisor offering. Source: Dstsystems.com State Farm, Citing DOL Fiduciary Rule, Cuts Agents From Mutual Fund and VA Sales Abstract: The insurer, which is moving to a "self-directed call center" approach for certain investment products, is among the few companies which has publicized plans for compliance with the DOL rule. Source: Investmentnews.com (registration may be required)
Legislative and Washington DC 'Small Business Employee Retirement Savings Act' Introduced in Senate Abstract: Senators Richard Burr and Michael Bennet introduced bipartisan legislation to make it easier for small businesses to set up retirement programs for employees. The 'Small Business Employee Retirement Savings Act' increases the retirement plan start up tax credit to $5,000, "incentivizes" auto enrollment, and removes restrictions to increase employee participation in retirement plans. Source: Senate.gov »» Click here for more on Legislative Actions
Court and Other Legal Issues Is Your 401k Plan Income "Floating" Away? New Lawsuit Challenges Fidelity's Practices Abstract: A recent class action suit filed against Fidelity and two plan sponsors, United Airlines and Hewlett-Packard, claims that the income on "float" accounts should have been credited for the benefit of the plans and that Fidelity committed fiduciary breaches by keeping the float. The suit also names the plan fiduciaries for allowing Fidelity to engage in these practices, which plaintiffs contend are prohibited transactions. Source: Cohenbuckmann.com Voya Accused of Layering 401ks With Unnecessary Fees Abstract: A new lawsuit accuses Voya Financial Inc. of creating a system for retirement investors to receive invest. advice that allowed the company to skim undeserved fees from investors' accounts in violation of federal law. Source: Bna.com Newest 401k Fee Suit Challenges Admin, RK, Investment Fees Abstract: Another major employer has been charged in an excessive fee lawsuit that not only contests the fees paid by the plan, but administrative fees paid by the plan to the plan sponsor as well. The suit claims that Northrop Grumman employees were "motivated to, and did, charge time and expenses to the Plan which were impermissible in nature, unreasonable, and unnecessary." Source: Asppa.org »» Click here for more Court and Other Legal Issues
Compliance and Regulatory Increase in Retirement Plan Audits Further Illustrate the Need to Focus on Administrative Compliance Abstract: The reports of increased audit activity and the DOL findings on the quality of plan audits illustrate the importance for plan sponsors to continually monitor their employee benefit plans for compliance with the requirements of ERISA and the Internal Revenue Code. Source: Employeebenefitsblog.com Breaking Down Barriers for Non-ERISA Automatic Enrollment Abstract: The PPA left intact state law barriers if a DC plan was not subject to ERISA. As a result, an employer with a non-ERISA DC plan could add an automatic enrollment feature only if there were no state payroll protection laws in place. At that time, several states had such laws, which prevented an employer from taking amounts from an employee's wages without that employee's prior written consent. Ten years later, state laws continue to evolve. Source: Ntsa-net.org Louisiana Storm Relief and Guidance for Plan Sponsors, Service Providers, and Participants Abstract: The IRS and the DOL have issued temporary relief provisions and compliance guidance for plan sponsors, service providers, and plan participants affected by the storms and flooding in Louisiana that began on August 11, 2016. Here are some highlights. Source: Thomsonreuters.com Rules for Posting an SPD on Company's Intranet Website Abstract: The DOL provides a safe harbor for electronic disclosure of plan documents including the use of an intranet. The safe harbor sets forth general requirements for all electronic disclosures and additional requirements for recipients that do not have computer access at work. Source: Kushnerco.com »» Click here for More Compliance and Regulatory Material
Marketplace News ERISApedia Announces New Business Development Tool Alpine Trust & Investment Group Adopts PCS 401k Platform Financial Engines Launches New Brand Identity Fidelity's Adds $65 Billion in New DC Assets
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