How to Create an Effective 401k Education Program
|
Newsletter Sponsor Free Infographic on Small Plan 401k Fees From the 401k Averages Book Newly released and updated Infographic on the Breakdown of Small Plan 401k Fees. Produced using the 401k Averages Book's average cost data, this informative and visually appealing infographic illustrates average costs and how they breakdown for a 100-participant plan. The 401k Averages Book is the only resource book available for non-biased, comparative 401k fee information. Click here to receive your free Infographic. In This Issue
General Items How to Create an Effective 401k Education Program Abstract: Developing a program that will actively engage and educate your participants requires partnering with their educator to create a program tailored to your participants rather than uncritically accepting some off-the-shelf program. Source: Penchecks.com Abstract: Use of video to educate a workforce about their benefits has seen increased interest in and use. As technology evolves, the cost of professionally produced videos is decreasing, making them an affordable communication solution for employers. Source: Willistowerswatson.com Fiduciary and Plan Governance Material United Airlines and the Fiduciary Paradox: Providing a Margin of Excellence Abstract: If our objective is to provide those we serve a margin of excellence, we need to convince regulators that more rules will not translate into better outcomes. In turn, we need to accept responsibility to educate and inform fiduciaries of the leadership and stewardship behaviors that will amplify and improve their governance procedures. Source: 401khelpcenter.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Why Employers Should Care About the Cost of Delayed Retirements Abstract: Having employees able to retire "on time" is a win/win scenario for both employees and employers. But these days many employees are expected to delay their retirements beyond their desired retirement ages because they don't have adequate savings to sustain them throughout their retirement. To quantify the impact of delayed retirements on employers' costs, Prudential conducted research using workforce composition and cost assumptions based on national averages for private sector workers. Source: Prudential.com Study of Retirement Plan Investment Expense Finds Over $17 Billion of Annual Waste Abstract: Based on a conservative analysis, this study estimated that plan participants could save on average .25% per year by switching to lower cost investments that are quantitatively very similar to those they already hold, but with a better track record. With total defined contribution plan assets of $6.8 trillion, the potential savings is at least $17 billion. Source: 401khelpcenter.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Five Major 401k Lawsuits That Directly Impact Advisors Abstract: There's a clear need to increase awareness about litigation risk and to understand the key issues that have made their way to the highest courts. These decisions have implications for 401k retirement plan advisors, plan sponsors and other plan fiduciaries alike. Recent decisions should help shape compliance strategies for those responsible for managing defined contribution plans. Source: 401kspecialistmag.com NAPA Interactive Black Book: Third Party Administrators Abstract: A TPA can be a plan advisor's best friend. But it's important to understand the various types of TPAs and how to best leverage them depending on the plan profile and size. Source: Napa-net.org Court and Other Legal Issues How to Avoid Costly Beneficiary Designation Litigation Abstract: A recent federal district court opinion in Florida demonstrates the potential pitfalls that plan administrators may face with respect to disputes over beneficiary status and provides guidance as to how administrators may avoid costly disputes. Source: Lexology.com Fujitsu Loses Early Bid to Toss 401k Fee Lawsuit Abstract: Fujitsu Technology couldn't convince a federal court in California to dismiss a lawsuit accusing it of breaching fiduciary duties by making imprudent investments in its 401k plan. Source: Bna.com (registration may be required) »» Click here for more Court and Other Legal Issues Cybersecurity Issues What Retirement Plan Sponsors and Employers Need to Know About Cybersecurity Risk and Liabilities Abstract: Many employers historically were only concerned with privacy and security for health plans under the Health Insurance Portability and Accountability Act and state laws. However, cybersecurity should also be a consideration for every retirement plan fiduciary. To preserve fiduciary protection while making required disclosures electronically, retirement plan fiduciaries should consider whether their duties of loyalty, prudence and to administer the plan for the exclusive benefit of the participants might require them to protect their participants' personal information. Source: Winstead.com »» Click here for more on Cybersecurity Issues State-Based Retirement Programs Trump to Sign Resolution Nixing City-Run Auto-IRAs for Small Businesses Abstract: Cities and counties will soon be barred from requiring small businesses without 401k-type retirement plans to enroll workers into a government-run individual retirement account. Meanwhile, a measure to block a requirement for similar small businesses to participate in auto-enroll IRAs run by the state still awaits a Senate vote. Source: Shrm.org DOL's Fiduciary Rule Rollovers Under the DOL's Final Fiduciary Rule Abstract: The DOL issued its final regulation on the extension of the applicability date for the fiduciary definition and the related exemptions. This article discusses the impact of those changes on fiduciary status for recommendations to plan participants to take distributions and roll it over to IRAs. Source: Fredreish.com Investors Can Go After Fiduciary Advisers Even if DOL Doesn't Abstract: There is a threat of litigation hanging over advisers' heads, even as the DOL says it will focus on compliance around the fiduciary rule. The rule invites the plaintiffs' bar to go after bad actors, making any temporary freezes on enforcement of limited value. Source: Bna.com (registration may be required) »» Click here for more on the DOL's Fiduciary Rule Compliance and Regulatory ERISA Fidelity Bond vs. Fiduciary Liability Insurance Abstract: As a small business owner sponsoring a 401k retirement plan, are your personal assets at risk? What kind of coverage can you get with Fiduciary Liability Insurance and how does it differ from the required ERISA Fidelity Bond? Source: Rpgconsultants.com Puerto Rico Legislation May Require Changes to Retirement Plans Abstract: Puerto Rico enacted new legislation in February that will require changes to tax-qualified retirement plans covering Puerto Rico employees, including both Puerto Rico-only and dual-qualified (US and Puerto Rico) retirement plans. Act No. 9-2017 revises a number of Puerto Rico qualified retirement plan rules including contribution limits, rules related to nondiscrimination testing and employer deductions for retirement plan contributions. Source: Natlawreview.com DOL Sends Revised 2017 Form 5500 to OMB Abstract: The Department of Labor has submitted to the Office of Management and Budget the current, 2017 version of the Form 5500 and instructions as a non-material/non-substantive change request. The DOL is not making any program changes to the forms and instructions for 2017. Source: Asppa.org »» Click here for more Compliance and Regulatory Material Marketplace News Nationwide Adds 3(21) Co-Fiduciary Service From IRON Financial »» Click here for More Marketplace News
This eNewsletter is a digest of information published by a variety of web-based sources on 401k and related issues and is published as a service to our users. 401khelpcenter.com, LLC is not the author of the material unless specifically noted. 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. 401khelpcenter.com does not endorse, approve, certify, or control this material and does not guarantee or assume responsibility for the accuracy, completeness, efficacy, or timeliness of the material. Use of any information obtained from this material is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com. Opinions expressed are those of the author of the article and do not necessarily reflect the positions of 401khelpcenter.com. THIS NEWSLETTER IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE INVESTMENT, TAX, ACCOUNTING, OR LEGAL ADVICE. 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. 401khelpcenter.com, LLC
|
