How Employers Can Improve Retirement Readiness
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Newsletter Sponsor Participants Benefiting From Falling 401k Fees Just released and updated, the 401k Averages Book is the most recognized source for comparative, non-biased 401k average cost information. Use the 401k Averages Book to better understand the investment, recordkeeping, and revenue sharing expenses for all size 401k plans. It is designed to provide professionals with essential fee information to help their clients determine if their plan costs are above or below average. All data and charts have been updated for the new 17th Edition. Click here for more information. In This Issue
General Items How Employers Can Improve Retirement Readiness Abstract: There is a real need for participant education, and not just about investments. Recent headlines underscore the need for plan sponsors to recognize that they must engage in more effective participant education now that 401ks and similar plans have become the primary source of retirement income for most employees. Source: Penchecks.com 403(b) Plans When to Expect 403(b) Pre-Approved Plans Abstract: The IRS was expected to issue approval letters for the model 403(b) plan documents in early 2017. However, the IRS has neither done so yet nor provided any update on when that may happen. Source: Plansponsor.com A Road Map to 403(b) Transactions Abstract: It is always good to review transactions, especially the definitions, since saying the wrong thing -- or worse, filling out the wrong form -- could prove disastrous for the plan participant. This is a review of common transactions for 403(b) plans. Source: Ntsa-net.org »» Click here for More 403(b) Material Insight: Studies, Research, and White Papers Is Home Equity an Underutilized Retirement Asset? Abstract: Retirement planning generally focuses on the use of financial assets. However, home equity is the largest store of savings for most households entering retirement. This 9-page paper reviews studies by the Social Security Administration's Retirement Research Consortium and others that assess whether home equity is an underutilized retirement asset and, if so, why. Source: Bc.edu A Study of EBP Audits and Auditors Abstract: This short study found that there is a great deal of "movement" going on currently with some firms growing their practice and others leaving that part of their practice to be served by other firms. Therefore, firms of all sizes can benefit by prospecting for new plan audit opportunities. Source: Erisapedia.com Conservative Options in Defined Contribution Plans Abstract: This 11-page paper evaluates the most heavily represented Defined Contribution capital preservation plan options and provides a framework for constructing and communicating the most appropriate line-up for participants. The paper seeks to provide educational information on capital preservation options. Importantly, developing a process for the evaluation of the appropriate capital preservation option within a DC plan is critical. Source: Rocaton.com »» Click here for More Studies, Research, and White Papers Court and Other Legal Issues Anthem Workers Advance Challenge to 401k Plan Fees Abstract: Anthem Inc.'s pension committee must defend allegations that the company's 401k plan carried excessive fees. The proposed class action accuses the committee of including high-fee mutual fund share classes in Anthem's 401k plan and paying excessive record-keeping fees to Vanguard. Source: Bna.com (registration may be required) Eaton Executives Escape Lawsuit Over Stock in Retirement Plan Abstract: Eaton Corp. executives dodged a proposed class action accusing them of breaching their ERISA fiduciary duties by allegedly allowing artificially inflated stock to be invested in the company's retirement plan. Source: Bna.com (registration may be required) Oracle 401k Challenge Jumps Another Legal Hurdle Abstract: A federal district court judge has granted the recommendation of a magistrate judge, to the effect that an ERISA lawsuit filed against Oracle will not be dismissed before trial. Source: Planadviser.com Embezzlement of 401k Deferrals by COO of Architecture Firm is (Doubly) Costly Abstract: On March 22, 2017, the U.S. Court of Appeals for the Second Circuit ruled against Christine Bodouva that her restoration of funds to her Company's 401k Plan should be offset against the District Court's order for forfeiture in her criminal trial. Source: Lexology.com Arbitration Provision Not Binding on Plan Participants' Claim for Breach of Fiduciary Duty Abstract: In making its ruling, the court held that the participants' ability to bring claims of fiduciary breach under the Employee Retirement Income Security Act is unaffected by their arbitration agreements. Source: Bsllp.com Investment Firm CEO Liable for Retirement Plan's Penny Stock Abstract: The president of a defunct investment firm is liable for investing the firm's retirement plan in penny stock that he'd personally invested more than $500,000 in. Source: Bna.com (registration may be required) »» Click here for more Court and Other Legal Issues Legislative and Washington DC Abstract: So, while the current retirement savings vehicles -- like the 401k -- will not be removed from the tax code under the House Republican plan, those vehicles could be combined into one "cookie cutter" approach. Source: Asppa.org »» Click here for more on Legislative Actions Cybersecurity Issues Cybersecurity More Than an Individual Concern Abstract: Cybersecurity is a special concern for the financial industry, a lawyer who handles cybersecurity cases said recently. But its importance goes well beyond the integrity of clients' and plan participants' sensitive information, it pervades inter-corporate business functions as well. Source: Asppa.org »» Click here for more on Cybersecurity Issues State-Based Retirement Programs Senate Votes to Overturn DOL Rules on Government-Run Retirement Plans Abstract: The Senate has voted to overturn DOL rules that help state and local governments set up retirement savings plans for private-sector workers who have no access to such plans. Following resolutions introduced in the House, Senator Orrin Hatch introduced a joint resolution in the Senate aimed at dialing back DOL rules. Source: Plansponsor.com Compliance and Regulatory What to Collect When Processing a Hardship Distribution Abstract: This is a list of specific documents that the employer must collect based on each type of hardship. The employee must keep these documents available for the employer at all times. Source: Castlerockinvesting.com »» Click here for more Compliance and Regulatory Material Marketplace News NAPA Welcomes D'Aiutolo as President Hanson Bridgett Announces IRS Determination Letter Replacement Program Sikich Acquires Evolution Retirement Services Firms Launch HSA Solution for Retirement Plan Participants »» Click here for More Marketplace News
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