Six Questions to Ask at Your Next Investment Committee Meeting
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Fiduciary and Plan Governance Material Six Questions to Ask at Your Next Investment Committee Meeting Abstract: Every plan, and every investment committee, is unique, and yet, conducted properly, there are inevitably areas of commonality. Here are some questions that could enhance the discussion, if not the outcome, at your next investment committee meeting. Source: Asppa.org In the Complicated World of ERISA, a Fiduciary Checklist Can Help Abstract: Checklists. Doctors use them. Engineers use them, Pilots use them. A checklist is a tool to manage complicated jobs. Now let's put that concept into the context of an individual who has fiduciary responsibilities for an ERISA plan. A checklist can help ensure that you are meeting all your responsibilities and accomplishing the plan's objective. Source: Retirementplanblog.com For DC Plans, Lowest Fees Aren't a Panacea Abstract: There's no question fees are a hot topic for defined contribution plan sponsors. But one risk of focusing too tightly on fees is creating a distortion that addresses cost while possibly overlooking other retirement-saving factors. With so many equal or greater concerns, it's important for plan sponsors to keep a broad perspective and maintain a comprehensive approach to their fiduciary duties. Source: Abglobal.com »» Click here for more Fiduciary and Plan Governance Material General Items Industry Veterans Answer: Shall We Praise the 401k or Bury It? Abstract: Are we burying the 401k to dredge up the rotted carcass of an extinct notion, or are we burying it as we bury a seed, to feed it, to nurture it, so it may grow into a mighty tree that bears fruit when we need it. Source: Fiduciarynews.com Roth 401k Deferrals - Answers to Common Questions Abstract: If your 401k plan allows Roth deferrals, now is a great time to give them a fresh look. The new White House administration and Congress have both indicated a desire to cut personal income tax rates. If that happens, Roth deferrals will be more affordable than ever. You can use this FAQ to help decide if Roth 401k deferrals are right for you. Source: Employeefiduciary.com 403(b) Plans Can Funds From an Inherited 403(b) Be Rolled Into an IRA? Abstract: Suppose an advisor has a 68-year old client whose uncle died, and she directly transferred his 403(b) account to an inherited IRA. She has her own 403(b) account and would now like to roll that 403(b) account into her inherited IRA. Is she permitted to do that? Source: Ntsa-net.org »» Click here for More 403(b) Material Insight: Studies, Research, and White Papers 401k Plans Make Big Fund Changes Following New Money Market Rules Abstract: Employers have drastically mixed up the "safe" investment options offered in their defined contribution plans in response to new rules that came into effect last year regarding money market funds. Source: Investmentnews.com (registration may be required) How Plan Sponsors Can Help Boost Participant Savings Abstract: Now that we face reduced return expectations, plan sponsors and providers cannot rely on the old way of thinking: that returns will take care of themselves. The time has come to rethink our approach to helping participants build and manage their retirement readiness. Here are three steps that plan sponsors may want to consider to help boost participant savings. Source: Blackrock.com »» Click here for More Studies, Research and White Papers Items of Special Interest to Service Providers More Disruptive Than the Fiduciary Rule? Abstract: Sure, you've spent a year getting ready for the fiduciary rule, but are you ready for this? Tax reform is the topic du jour in the nation's capital. The headlines have been filled with promises from both President Trump and nearly every one of his cabinet appointees to do something about tax reform. Source: Asppa.org Target-Date Funds TDF With Annuity That Restricts Transfers May Be Prudent Default Investment (but not QDIA) Abstract: The DOL recently concluded that a target-date fund with a fixed guaranteed annuity restricting transfers or withdrawals for a 12-month period does not meet the qualified default investment alternative requirements. But noting the need for lifetime income as a public policy issue, DOL said a fiduciary could prudently select a default investment that complies with all requirements of the QDIA regulation save the liquidity and transferability rules. Fiduciaries may be hard-pressed, however, to select such an investment as a plan default investment because it does not protect them from liability for investing contributions on behalf of employees. Source: Conduent.com A Better Methodology for Monitoring Target-Date Funds Abstract: Plan sponsors are challenged to create a prudent process for selecting and monitoring the plan's target-date fund, and for benchmarking their selection against other options available in the market, relative to performance, risk and fees. Cammack introduces their TDF methodology in this paper. Source: Cammackretirement.com Is Your Proprietary Target-Date Fund a Trojan Horse for Underperforming Managers? Abstract: Recognizing that not all managers excel in all asset classes, the marketplace has evolved and today most plans employ an open-architecture approach to core menu construction. In fact, it is unusual for a plan's menu to use the same investment manager for more than two or three different asset classes. Yet, with target-date funds expected to represent 48% of defined contribution assets by 2020, are sponsors unknowingly reverting to an antiquated plan design? Source: Rackcdn.com »» Click here for more on Target-Date Funds Plan Automation The Next Step for 401k Innovation: Auto-Portability Abstract: A new "auto" aims to drive retirement savings higher. It's called auto-portability, and it would enable a separating employee to easily roll assets into a new employer's plan. While the notion has been percolating for some time, a growing body of research is highlighting the benefits of consolidating employee assets so they can better grow their retirement nest eggs. Source: Institutionalinvestor.com »» Click here for more on Automatic 401k Plan Features DOL's Fiduciary Rule Trump Administration and the State of the DOL Fiduciary Rule Abstract: This brief represents the current understanding of the new administration's plan, but there are a couple of key steps that have yet to be fully explained. Nevertheless, it provides the latest information at this time. Source: Linkedin.com »» Click here for more on the DOL's Fiduciary Rule Compliance and Regulatory Using Forfeitures for Corrective Contributions: Look Before You Leap Abstract: On January 18, 2017, the IRS changed course by publishing a proposed regulation requiring that QNECs and QMACs be 100% vested only when they are allocated to an account, and need not be 100% vested when originally contributed to a plan. This means that forfeitures may be used to make QNECs and QMACs if the underlying plan document permits. Caution is advised, however, for plan sponsors wanting to make immediate use of forfeiture accounts for QNECs and QMACs. Source: Eforerisa.wordpress.com 2017 401k ERISA Compliance Calendar Abstract: This compliance calendar highlights critical compliance deadlines for DC retirement plans. Some deadlines apply only to particular plan types and there may be additional deadlines associated with individual plans that are not covered here. Also, plans with non-calendar plan years may be subject to different deadlines. Source: Cammackretirement.com »» Click here for more Compliance and Regulatory Material Marketplace News TIAA Introduces Custom Default Solutions Fiduciary Investment Advisors Announce Employee Promotions PSCA's 70th Annual National Conference Scheduled for May The Standard Hires Retirement Plan Consultant for East Sales Region Advisor Group Debuts New Brand Strategy Ascensus Rolls Out New TPA Support Tools »» Click here for More Marketplace News
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