Peeling Back the Fiduciary Layers and Unscrambling the Fiduciary Confusion
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Fiduciary and Plan Governance Material Peeling Back the Fiduciary Layers and Unscrambling the Fiduciary Confusion Abstract: In seeking clarity about the "type" of 401k professional it has retained, plan sponsors often find the answers they are given to be incoherent with a slant in favor of the 401k industry instead of plan participants. The residual fuzziness plan sponsors are left feeling about this topic is a source of significant irritation to them. This comprehensive article attempts to peel back the fiduciary layers and unscramble the fiduciary fuzziness. Source: 401khelpcenter.com Experts Still Expect Private Enforcement of Fiduciary Standard Abstract: Even if the DOL leadership under President Trump declines to enforce a strict fiduciary standard, private litigators will undoubtedly pick up any slack if the administration fails to fully eliminate the Obama-era conflict of interest rulemaking. Source: Planadviser.com Plan Sponsors Should Beware the Managed Account Default Option Abstract: The world of 401k and 403(b) retirement plan sponsors has been somewhat nightmarish in recent years, marked by countless lawsuits over fees paid by participants for investment services. Now, those hoping to avoid being the next company in the headlines for the wrong reason are having to undertake a comprehensive audit of every fee charged to participants. The latest place plan sponsors should audit in detail is fees charged on managed accounts. Source: Pionline.com (registration may be required) »» Click here for more Fiduciary and Plan Governance Material General Items Tax Credit for Small Employer Start-Up Plans Abstract: Many employers are unaware that, in certain circumstances, they may be eligible for a valuable tax credit in connection with their establishment of a retirement plan. Although this particular tax credit has been available for over a decade, it is still surprising to see the general lack of awareness that most plan sponsors have regarding this tax saving opportunity. This article is intended to familiarize readers with this tax credit so that they can attempt to evaluate its application to their (or their client's) tax situation. Source: Legacyrsllc.com
403(b) Plans IRS Updates 403(b) Self-Correction Procedure Info Abstract: The IRS has updated the portion of its website that addresses how to self-correct defective 403(b) plan provisions during the remedial amendment period (RAP). Source: Ntsa-net.org Conn. Bill Would Require 403(b) Service Providers to Describe Services, Disclose Compensation Abstract: On Feb. 23, Connecticut House Bill 7161 was introduced. Entitled "An Act Requiring Service Providers Under Certain Retirement Plans to Disclose Conflicts of Interest," the bill requires all service providers to 403(b) plans in Connecticut to describe their services and disclose all the direct and indirect compensation received for the services. Source: Ntsa-net.org »» Click here for More 403(b) Material Insight: Studies, Research, and White Papers New Research Offers Data on Financial Wellness ROI Abstract: AFS 401k has released new research on financial wellness designed to give c-suite executives and employee benefits professionals insight into the motivation for and return of investment on these programs for employees and companies. Source: 401khelpcenter.com Do Households Have a Good Sense of Their Retirement Preparedness? Abstract: The analysis finds that almost 60 percent of households have a good sense of whether they are on track for retirement. But about 20 percent incorrectly think they are prepared, in large part because they do not recognize that their 401k savings are inadequate. These households are in the most danger of saving too little, but even those who know they are unprepared may not act unless prodded. Source: Bc.edu Seventeen Facts That Sum Up Women's Retirement Risks Abstract: Transamerica Center for Retirement Studies has released a new research report, Seventeen Facts About Women's Retirement Outlook, which sheds light on vulnerabilities unique to women in their efforts to prepare for a secure retirement. The report is based on findings from TCRS' 17th Annual Transamerica Retirement Survey of Workers. Source: 401khelpcenter.com »» Click here for More Studies, Research, and White Papers Target-Date Funds Abstract: Use of target-date funds in DC plans continued to grow. At year-end 2016, 9 in 10 plans offered a TDF, 72% of all participants had a position in the funds, and the funds accounted for half of total plan contributions. Eight-page report. Source: Vanguard.com Target-Date Decisions: Getting the Biggest Bang for the Buck Abstract: There are a host of target-date and plan design initiatives that the DC plan sponsor community is considering today that might, in theory, improve the retirement outcomes for their employees. This 14-page paper tests many of them by measuring the incremental impact each would have had over a specific 40-year time frame. Source: Gmo.com »» Click here for more on Target-Date Funds Court and Other Legal Issues Why (Almost) Every Mutual Fund Company Can Expect to Be Sued Abstract: If your employer's 401k plan is full of mutual funds, you're not alone: the companies that issue those mutual funds put them in their 401k plans, too. But this long-standing practice may be about to change. A new wave of litigation is targeting companies that put their own investment products in their workers' 401k plans. Source: Bna.com Seventy Seven Energy Sued Over Chesapeake Stock in 401k Abstract: Fiduciaries of the Seventy Seven Energy Inc. 401k plan face accusations that they violated ERISA by allowing plan assets to be invested in the "extremely volatile" stock of Chesapeake Energy Corp. Source: Bna.com (registration may be required) »» Click here for more Court and Other Legal Issues DOL's Fiduciary Rule ERISA Attorneys Busy Analyzing Fiduciary Rule Delay Abstract: The move from DOL this week was not an extension of the applicability date of the fiduciary rule, just a proposal to extend it; there still needs to be a thorough regulatory process to implement it. Several ERISA attorneys have indicated that the 15-day comment period allowed for this extension is "extraordinarily short." Source: Planadviser.com »» Click here for more on the DOL's Fiduciary Rule Compliance and Regulatory IRS Publishes New Guidelines on Hardship Documentation Abstract: The IRS has published new examination guidelines for documenting a hardship distribution. Specifically, the memorandum sets forth substantiation guidelines for EP Examinations employees examining whether a 401k plan hardship distribution is "deemed to be on account of an immediate and heavy financial need" for safe harbor distributions. Source: Asppa.org 401k Plan Catch-up Contribution Eligibility Abstract: Elective deferrals by a participant in excess of limits imposed under the plan document or by statute are commonly referred to as "catch-up" contribution. This article analyzes who is eligible to make a catch-up contribution and includes examples. Source: Irs.gov »» Click here for more Compliance and Regulatory Material Marketplace News Pension Research Council Welcomes the Vanguard Group as Director Level Member MainStay Launches Retirement Institute to Assist Plan Advisers and Sponsors TPA Firm Pushes the Pace of Tech Advancement »» Click here for More Marketplace News
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