MEPs: On the Cusp of Proliferating?
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General Items MEPs: On the Cusp of Proliferating? Abstract: Are multiple employer plans (MEPs) -- single retirement plans involving two or more unrelated employers -- on the brink of becoming more widespread and a more important part of the retirement plan universe? Perhaps. Source: Asppa-net.org Fiduciary and Plan Governance Material A Prudent Process: The Key to Demonstrating Fiduciary Compliance Abstract: This 9-page paper starts by understanding the decades-old federal law that establishes the duties of a fiduciary and then explore how advisors who find themselves in a fiduciary role can demonstrate compliance. Source: Sourcemedia.com Three Influencers Driving Today's Fiduciary Best Practices Abstract: Regulators are but one of the three key influencers shaping best practices for new fiduciaries. Financial institutions are working aggressively to comply with the DOL's new rule; however, advisors can take actionable steps today to better identify the needs and best interests of retirement plan participants and IRA holders. Source: Manning-Napier.com Things That Won't Help a Retirement Plan Sponsor Limit Their Liability Abstract: When it comes to retirement plans, plan sponsors think that there are certain services or products will limit their liability and it turns out not to be true. This article is about those things that will not limit the liability of plan sponsors. Source: Jdsupra.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research and White Papers New Generation of Workers Want Next-Generation Retirement Savings Plans Abstract: American workers are falling short of their retirement savings goals, and according to survey findings published today by Natixis Global Asset Management, the youngest members of the workforce, age 18-34, are pioneering a new set of standards for employer-sponsored retirement savings plans. The survey found that most (86%) recognize their own responsibility to fund retirement, but they need more help from employers including better education, stronger incentives, and assistance with other financial pressures. Source: 401khelpcenter.com Outdated 401k Rules Are Shortchanging Americans Abstract: Many company 401k retirement savings plans could use a swift kick into the 21st century, according to a new report from the U.S. Government Accountability Office. A number of longtime 401k plan designs fail to reflect a new, more mobile workforce, hurting employees' ability to save. Source: Bloombergquint.com Effects of Eligibility and Vesting Policies on Workers' Retirement Savings Abstract: ERISA allows 401k sponsors to set eligibility and vesting policies for the plans. The GAO was asked to examine 40k plans' use of these policies. Among other objectives, this report examines 1) what is known about the prevalence of these policies and why plans use them, and 2) the potential effects of these policies on workers' retirement savings. Source: Gao.gov »» Click here for More Studies, Research and White Papers Legislative and Washington DC Retirement Bill Reportedly on 2016 Senate Calendar Abstract: The Retirement Enhancement and Savings Act (RESA) of 2016 is reported to have been put on the Senate calendar for the limited period of time Congress has remaining on its 2016 schedule. Source: Ascensus.com »» Click here for more Legislative and Washington Material Court and Other Legal Issues Wells Fargo Hit With Class Action Over Target-Date Funds Abstract: Wells Fargo enriched itself at its employees' expense by including costly, in-house target date funds in its 401k plan, a new class action complaint alleges. Source: Bna.com (registration may be required) Stock Drop Lawsuit Did Not Satisfy Dudenhoeffer Pleading Standard Abstract: In this appeal, the Fifth Circuit reversed, ruling that the amended pleadings did not plausibly allege alternative actions as required by the Supreme Court. The court found that it was not reasonable to say that a prudent fiduciary at that time could not have concluded that disclosure of nonpublic information or freezing employer stock trades -- both of which would likely lower the stock price -- would do more harm than good. Source: Thomsonreuters.com Disney Fiduciaries Beat Lawsuit Over Valeant Stock in 401k Plan Abstract: Fiduciaries of Walt Disney Co.'s 401k plan convinced a federal judge in California to toss out a proposed class action challenging their decision to allow participants to invest their plan assets in the Sequoia Fund and Valeant Pharmaceuticals' stock. Source: Bna.com (registration may be required) FMC Sued Over 401k Stake in Sequoia Fund, Valeant Abstract: FMC Corp. is accused in a new lawsuit of mishandling workers' retirement savings by allowing more than $40 million in 401k assets to be invested in the Sequoia Fund and the stock of controversial drug maker Valeant Pharmaceuticals. Source: Pionline.com (registration may be required) »» Click here for more Court and Other Legal Issues DOL's Fiduciary Rule The Amazing Vanishing DOL Fiduciary Rule? Abstract: When it comes to the Labor Department's new fiduciary regulation, the first question on the table must be: Will it survive this historic election? The answer: a definite "maybe not." Source: Investmentnews.com (registration may be required) »» Click here for more on the DOL's Fiduciary Rule Compliance and Regulatory Qualified Retirement Plan Amendments and IRS Filings - Upcoming Deadlines Abstract: This advisory reminds plan sponsors of deadlines for amending qualified retirement plans and for submitting certain plans to the IRS for a determination letter, as well as other significant changes to the determination letter process. Source: Alston.com Witness the Creation of Ontario's Modern Pension Regulator Abstract: To remain relevant and effective, industry regulators need to stay current. They must be attentive to economic realities, adapt to new technology and evolve with the industries they regulate. Ontario's pension regulator is overdue for a major overhaul that will bring it into the 21st century. Source: Employmentandlabour.com Forfeitures Can Be a Compliance Headache Abstract: Defined contribution plans have a forfeiture provision if there are contributions in the plan that are not immediately vested. The problem with the forfeiture provision is that they are usually neglected and can be a big headache for compliance. Source: Jdsupra.com »» Click here for more Compliance and Regulatory Material
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