Newsletter for December 12, 2016
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In This Issue
General Items
How to Optimize a 401k Plan for Employer, Employees
Abstract: Plan sponsors wanted out of the DB business largely because their costs were unpredictable. But with a properly designed market-return cash balance plan, costs should be easy to budget for and within very tight margins.
Source: Cfo.com
Are 401k Robo Recordkeepers for Real?
Abstract: The question is whether robo recordkeepers are for real and whether employers should consider them? Are they just for small companies and tech start-ups or will they go mainstream?
Source: 401ktv.com
Fiduciary and Plan Governance Material
How Lawsuits and DOL Audits Are Changing the 401k Landscape for Employers
Abstract: There are two main drivers transforming the 401k industry for employers that affect your role as a fiduciary for your workforce: a spate of class-action lawsuits and the reality of the Department of Labor's plan audits. You can no longer afford to put your company's 401k on autopilot as companies have learned in litigation and DOL audits.
Source: Forbes.com
ERISA Liability From 401k Plan Revenue Sharing
Abstract: While popular for many reasons, 'revenue sharing' arrangements have been a magnet for class action litigation, and teachings from recent cases (and the accompanying sizable settlements), suggest that employers should review their 401k plans to stay out of the litigation "line of fire." This article analyzes two recent cases where plaintiffs challenged revenue sharing arrangements under ERISA and provide recommendations for an employer to reduce the risk of costly litigation involving revenue sharing arrangements.
Source: Weil.com
Build a Better Fiduciary: Operational Duties
Abstract: When you establish an employer-sponsored retirement plan, you assume certain duties pertaining to plan operation. A vital step in being a fiduciary is understanding what these duties require of you and how they affect participant outcomes.
Source: Ekonbenefits.com
»» Click here for more Fiduciary and Plan Governance Material
Insight: Studies, Research and White Papers
DC Retirement Plans: Who Has Them and What Do They Cost?
Abstract: This article looks at five types of employer-sponsored defined contribution retirement plans in private industry. The article shows the overall employee participation rates, employee participation rates by type of plan, and overall employer costs and worker participation costs for all types of plans.
Source: Bls.gov
Impact Investing: What Role for Defined Contribution Plans?
Abstract: Impact investments can be viewed as an offshoot of socially responsible investing and have the stated intent of delivering measurable social impact. This 8-page study delves into impact investing to gauge thoughts and attitudes on the concept as a whole, as well as within defined contribution plans.
Source: Prudential.com
Two-Thirds of Americans Fail 401k Wellness Survey
Abstract: A new 401k survey, released today by Fisher Investments 401k Solutions, suggests a startling knowledge gap among Americans when it comes to the 401k plans offered by their employer. While most people may think they understand their 401k, 71 percent of respondents failed Fisher's 401k IQ in the Workplace Quiz, missing at least three of the nine basic questions.
Source: 401khelpcenter.com
»» Click here for More Studies, Research and White Papers
Items of Special Interest to Service Providers
Compliance and Fee Compression Are Top Advisors Concerns
Abstract: A survey of 275 financial advisors released by SEI Advisor Network reveals that in the wake of the impending DOL Fiduciary Rule, compliance issues followed by fee compression and an increased investment in technology are the top issues for financial advisors going into 2017.
Source: 401khelpcenter.com
Robos Set Their Sights on Retirement Plan Providers
Abstract: It is no surprise that the retirement industry -- with entrenched players and complex arrangements between multiple vendors for services like fund lineups, administration, and recordkeeping -- is proving difficult for the "robos" to disrupt. Recent announcements, however, hint that these alternative retirement plan providers may be gaining traction.
Source: Corporateinsight.com
Court and Other Legal Issues
ERISA Stock Drop Suit Filed Against Exxon Mobil
Abstract: Misrepresentations regarding climate change caused Exxon Mobil's stock price to be artificially inflated, the complaint says.
Source: Planadviser.com
»» Click here for more Court and Other Legal Issues
Legislative and Washington DC
Trump's Pension Policy
Abstract: With Democrats worried about the repeal of the ACA and Republicans focused on reinvigorating their legislative and administrative agendas, national pension and retirement policy questions aren't at the forefront of Donald Trump's first-100-days agenda. But given recent regulatory moves in retirement and the current shaky foundation for the future of U.S. retirement, both he and Congress are likely to focus on some of these issues in the days ahead.
Source: Cfo.com
Andy Puzder Picked to Lead the DOL
Abstract: President-elect Donald Trump has formally named Andy Puzder as his choice to be the next Secretary of Labor. When viewed in context, Puzder's positions on various DOL developments paint a nuanced picture of how he would lead the agency in the coming years.
Source: Littler.com
»» Click here for more on Legislative Actions
DOL's Fiduciary Rule
Trumped: The Future of the Conflicted Advice Rule
Abstract: There are many pathways to repeal or revision of the DOL's Conflict of Interest Rule. Each bears its own risks and uncertainties for financial institutions and advisors. So, what's going to happen? No one knows for sure, but a few things are certain.
Source: Fiduciaryplangovernance.com
»» Click here for more on the DOL's Fiduciary Rule
Compliance and Regulatory
SPARK Institute Comment Letter Regarding Proposed Form 5500 Reporting Changes
Abstract: SPARK expresses concerned that the Agencies' Proposed Reporting Changes include many elements that would frustrate their call for a simplified reporting process. They are concerned that many of the new information requests would unnecessarily expand the reporting requirements in a way that would increase the administrative burdens and costs associated with Form 5500 reporting.
Source: Sparkinstitute.org
Explanations of Vesting, Eligibility Rules Leave Some Plan Participants in the Dark
Abstract: Employers are not giving their 401k plan participants clear enough explanations on the impact of the plan's eligibility and vesting policies, a report by the Government Accountability Office said. Part of the problem may lie with the summary plan description.
Source: Bna.com (registration may be required)
»» Click here for more Compliance and Regulatory Material
Marketplace News
NTSA 2017 Elite Advisor Award Semi-Finalists Named
DOL Announces New Appointments, Leadership for 2017 ERISA Advisory Council
Oregon Selects Ascensus to Administer Private-Sector Retirement Plan
TD Ameritrade Introduces Fiduciary Rule Resource Center
Alliance Benefit Group Unveils New Identity
QBI Launches Secure Client Dashboard
»» Click here for More Marketplace News
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