DOL Rule Change Forces Due Diligence Process Makeover
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Fiduciary and Plan Governance Material DOL Rule Change Forces Due Diligence Process Makeover Abstract: For retirement plan sponsors, the risks of choosing the wrong investment advisor or consultant just became a lot greater. Spurred by new DOL guidelines, fiduciaries of plans of all sizes are scrambling to evaluate qualified retirement plan investment advisors/consultants using the request for proposal solicitation method. Typically, the process involves a large number of subjective questions and a small set of objective data. Plan fiduciaries can and should ask three key questions that will go some way toward identifying any conflicts of interest issues, helping to significantly reduce the confusion and complexity associated with the RFP process. Source: Linkedin.com The Evolution of Advice: Digital Investment Advisers as Fiduciaries Abstract: The landscape for retirement advice is shifting, and an innovative model has emerged that combines technology and investment expertise to deliver high-quality advice at a lower cost than traditional investment advisory services. This 19-page white paper explores the application of fiduciary standards to digital advisers. It concludes that fiduciary standards, such as those incorporated into the Advisers Act, are flexible principles that digital advisers and their non-digital counterparts (traditional advisers) are equally capable of satisfying. Source: Morganlewis.com »» Click here for more Fiduciary and Plan Governance Material
403(b) Plans 403(b) Plans Looking a Lot Like 401k Plans by Making Similar Mistakes Abstract: With 403(b) plans now look similar to 401k plans, the mistakes that plan sponsors are making are, not surprisingly, also similar. Here are the mistakes the IRS sees most often on 403(b) examinations. Source: Retirementplanblog.com Buying Power for Higher Education Institutions: When You Have It and When You Don't Abstract: This article reviews ways to create increased buying power in within 403(b) plans in an environment where participant directed legacy contracts control a large portion of the plan value. Source: Fiduciaryplangovernance.com Abstract: This question is illustrative of the differences of 403(b) plans from other plan types with respect to permissible investments. Generally, unless your 403(b) plan is a 403(b)(9) Retirement Income Account offered by a church, investments are restricted to two types: 1) 403(b) annuity contracts, and 2) 403(b)(7) custodial accounts, i.e., mutual funds. Source: Plansponsor.com »» Click here for More 403(b) Material
Insight: Studies, Research and White Papers More DC Plans Embrace Open Architecture Abstract: More DC plans are moving to an open-architecture investment lineup strategy, seeking greater flexibility and less reliance on proprietary products offered by their recordkeepers. Consultants and ERISA attorneys say the strategic shift has many causes including a quest for greater diversification, tougher negotiating over fees and services, federal fee transparency regulations, and fiduciary breach lawsuits. Source: Pionline.com (registration may be required) 401k Recordkeeper: What They Do and What to Look For Abstract: According to PlanSponsor's 2016 Recordkeeping Survey, 401k recordkeepers hold $4.2 trillion of American's retirement savings on their platform. So what exactly does a recordkeeper do? What do they not do? And what should you expect in fees? Source: Forusall.com 2016 Retirement Confidence Monitor Abstract: This 16-page survey digs into the experiences and confidence levels of DC plan participants and members in Ireland, the United Kingdom, and the United States. Source: Ssga.com »» Click here for More Studies, Research and White Papers
Court and Other Legal Issues 401k Accused of Investing in "Patent Troll" Abstract: A Florida optometry practice is the latest small employer to be sued for 401k mismanagement, with a newly filed lawsuit accusing the practice of over-investing in alleged "patent troll" VirnetX. Source: Bna.com (registration may be required) Sanofi Avoids ERISA Challenge to Stock Losses in Its 401k Plan Abstract: Sanofi-Aventis U.S. LLC is the latest company to dodge a lawsuit accusing it of breaching its ERISA fiduciary duties by allowing participants in its 401k plan to continue investing in company stock despite knowing its value was artificially inflated. Source: Bna.com (registration may be required) BICs Litigation Provisions Trigger Another DOL Suit Abstract: A new lawsuit has been filed challenging the Department of Labor's fiduciary regulation's interference with existing arbitration structures. Source: Asppa.org »» Click here for more Court and Other Legal Issues
State-Based Retirement Programs New California Retirement Plan Brings Many Risks Abstract: Workers, employers, and taxpayers in California all face risks from the state's new "Secure Choice" plan. ICI's Chief Economist Brian Reid gives the details in this 3-minute video. Source: Ici.org
DOL's Fiduciary Rule Abstract: This is about an implementation of the DOL's fiduciary rule for phone centers and websites that will eliminate the high risks, high costs and long time or limiting service that other solutions require. Source: Dalbar.com Outsourced 401k Fiduciary Services Emerge After DOL Rule Abstract: With the Labor Department's fiduciary rule upping the ante for many 401k advisors and their broker-dealers, providers from around the retirement market are looking at ways to defray fiduciary responsibility, and in some cases, possibly replace the adviser altogether. Providers such as MassMutual and Mercer have recently unveiled new services, part of this trend seeking to capitalize on the disruption caused by the DOL fiduciary rule. Source: Investmentnews.com (registration may be required) »» Click here for More on the DOL's Fiduciary Rule
Compliance and Regulatory Canada's OSFI Releases New Guides for DC, DB Disclosure Requirements Abstract: Canada's Office of the Superintendent of Financial Institutions has published updated guides for the disclosure requirements of defined contribution and defined benefit plans. The new guides incorporate changes set out in the Pension Benefits Standard Act and the Pension Benefits Standards Regulations. Source: Benefitscanada.com Without Fanfare, IRS Issues New Revenue Procedure on EPCRS Abstract: The current EPCRS, which was issued in 2013, was a bit "long in the tooth" because it contained outdated references and had been modified several times through subsequent guidance. The IRS has updated the EPCRS and wrapped up all of these changes in a new package. Source: Morganlewis.com »» Click here for More Compliance and Regulatory Material
Marketplace News Envestnet Creates Solutions to Assist Advisors With Fiduciary Rule New Fiduciary Training Program Introduced
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