Newsletter for February 27, 2017
We are a knowledge service that finds, reviews, selects, organizes and shares the most appropriate, relevant and fresh information for professionals involved with 401k and 403(b) plans.
This weekly newsletter is just one method we utilize to circulate a small part of the information we processed this past week. It is a free service made possible by this week's newsletter sponsor.
Please visit their site.
|
Newsletter Sponsor
Demonstrate Your Expertise! -- Become a Certified Retirement Counselor®
In light of the DOL fiduciary rule, Certified Retirement Counselor® (CRC®) certification can be an indication of competency, credibility and high ethical standards. The CRC® is also one of only seven designations to be independently accredited as listed by FINRA. The curriculum covers both accumulation and distribution planning. Click here for information about the CRC® and a 50% discount on study materials for a limited time or call 847-382-9032.
In This Issue
General Items
More Bad News on the 401k Front
Abstract: Based on new research, which relies on tax data instead of surveys, only about a third of workers are saving in a 401k or similar tax-deferred retirement plan. What's more, it now appears -- using this new research methodology -- that only about 14 percent of employers offer retirement plans at all! How can that be?
Source: Hreonline.com
Helping Millennials Save for Retirement
Abstract: Over the past several decades, employers have recognized that employees' physical health impacts the workplace, prompting them to introduce wellness programs designed to help workers lose weight, quit smoking, increase their activity levels and more. Now businesses are learning that employees' financial wellness is equally critical to individual and corporate health and are seeking ways to respond.
Source: Shrm.org
Participants and HR Will Love the MEP 401k
Abstract: A 401k MEPs offers much more than lower expenses, to both plan sponsors and plan participants. Most immediately, 401k MEPs permit corporate executives currently exposed to fiduciary liability to mitigate a significant portion of that liability.
Source: Benefitspro.com
Fiduciary and Plan Governance Material
Is the Prudent Man Standard Good Enough?
Abstract: Any law that holds human beings to the standards of an expert in any field is a high standard and one that can be difficult to meet even with the ablest of expert assistance. It's often said that ERISA's prudent man rule is the highest duty known to law. But is that enough?
Source: Napa-net.org
Education Is an Important Part of the Fiduciary Process
Abstract: There have been so many misconceptions that plan sponsors and advisors have had concerning ERISA 404(c) plans. They had this belief that if they just give a mutual fund lineup and some fund profiles to plan participants that they are exempt from liability. But, ERISA 404(c) protection is about following a process and fund profiles are just not enough education to give to plan participants. On the flip side, education to participants doesn't have to amount to an MBA education.
Source: Jdsupra.com
401k Index Funds -- They Make it Easy to Reduce Fiduciary Liability
Abstract: Investment in equity index funds -- and other passively managed investments designed to track a market index -- is exploding. If you are a 401k fiduciary, this trend is great news. While it can be difficult for 401k fiduciaries to insulate themselves from investment-related liability using actively-managed funds, this job can be dead simple using index funds.
Source: Employeefiduciary.com
»» Click here for more Fiduciary and Plan Governance Material
Insight: Studies, Research, and White Papers
BrightScope Releases Annual Top 30 401k Plans
Abstract: BrightScope announced the eighth BrightScope year-end ranking of the Top 30 401k Plans List, recognizing companies with the best 401k plans containing more than $1 billion in assets. Seven new companies in the list this year and some key statistics are provided.
Source: 401khelpcenter.com
DC Trends Survey
Abstract: In addition to a focus on fees. other trends include an increase in recordkeeper search activity, a movement to institutional fund structures, a de-emphasis on revenue sharing, and the adoption of fee policy statements.
Source: Callan.com
The Retirement System Diaries: The So-Called Retirement Crisis
Abstract: By "crisis" we don't mean anything obvious like war, famine, or national penury. Instead, "retirement crisis" has come to mean simply that people aren't saving as much as they should and won't be able to retire with enough money to maintain their late-career standard of living. This is not a crisis. The real crisis is fiscal and global. Simply put, we've promised ourselves more retirement benefits than we can afford.
Source: Pentegra.com
»» Click here for More Studies, Research, and White Papers
Items of Special Interest to Service Providers
The Impending Fiduciary Armageddon of (Most) Mutual Fund Share Classes
Abstract: Under a fiduciary rule, there is only a legitimate need for one or two share classes at most. Thus, whether it's the DOL fiduciary rule or one that follows within a few years from the SEC, what we'll soon see is an Armageddon that destroys most mutual fund and variable annuity share classes, as we complete the shift from selling whatever products we can get paid to sell, into advisors who actually sell advice and implement the best solutions we can at the lowest cost available.
Source: Kitces.com
Cybersecurity Issues
401k Service Providers and Cybersecurity: Questions to Ask
Abstract: 401k plan fiduciaries have an obligation to secure and keep private the personally identifiable information of plan participants and beneficiaries. Part of this essential task is ensuring that plan service providers take cybersecurity preparedness and plan data protection seriously.
Source: 401khelpcenter.com
Cybersecurity Risks and Liabilities for Employers, Retirement Plan Sponsors and Fiduciaries
Abstract: Many employers historically were only concerned with privacy and security for health plans under the privacy regulations. However, there are other references to protecting participant information in ERISA and employee information that should not be overlooked. Cybersecurity should be a consideration for every employer and retirement plan fiduciary.
Source: Winstead.com
Cybersecurity Considerations for Employee Benefit Plans
Abstract: One of the most significant challenges that face employee benefit plans is the reliance on service providers to manage daily activities of the plan. As a result, employee benefit plans typically share sensitive employee data and beneficiary and employer information with these service providers. Based upon historical cybersecurity breaches, third parties can be considered the weakest cybersecurity link.
Source: Schneiderdowns.com
»» Click here for more on Cybersecurity Issues
Compliance and Regulatory
2017 Retirement and Employee Benefits Compliance Calendar
Abstract: This 1-page chart is intended to provide plan sponsors with a list of notable retirement plan deadlines. The deadlines in this chart assume a calendar-year plan year.
Source: Strategicbenefitservices.com
Missed the PPA Restatement Deadline?
Abstract: If you missed the PPA restatement deadline and failed to update your 401k plan document, you can still update it. And if you update it by April 30, 2017, then there are discounted penalties from IRS.
Source: Benefit-Resources.com
2017 Compliance Checklist for Retirement Plans Subject to ERISA
Abstract: As a retirement plan sponsor, you know how important it is to comply with ERISA and the ever-changing reporting and disclosure requirements mandated by the federal government. This checklist incorporates defined benefit, defined contribution, and ERISA 403(b) requirements and provides information on the materials that you will need to file, filing due dates and agencies to which the filings should be made.
Source: Prudential.com
»» Click here for more Compliance and Regulatory Material
Marketplace News
TIAA Joins the Retirement Advisor Council
ABC Announces Election of New Board Chair, Officers
The Standard Hires Kate Tubesing as Retirement Plan Consultant
Groom Announces New Plan Document Compliance Service
»» Click here for More Marketplace News
Articles are copyrighted to their publishers. If you believe that your work has been copied in a way that constitutes copyright infringement, please contact the source site immediately.
Hyperlinks in this document are provided as a convenience and we disclaim any responsibility for information, services or products found on websites linked hereto. All links were tested before this eNewsletter was e-mailed to you to ensure that they are still functional, but publishers do move or delete articles. Therefore, we can't guarantee that the links provided will remain operational.
Copyright © 2017 by 401khelpcenter.com, LLC. All rights reserved. No reproductions without prior authorization, but you are free to email this copy (in its entirety) along to colleagues or clients. This newsletter may not be posted to any website.