Duty, Opportunity, Mastery: Investment Committee Best Practices
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Fiduciary and Plan Governance Material Duty, Opportunity, Mastery: Investment Committee Best Practices Abstract: The purpose of this 21-page paper is to provide investment committee members with practical guidance on meeting their fiduciary responsibility through proper debate and documentation, constructing their committee thoughtfully with well-vetted leaders and members with diverse skills and backgrounds, conducting well-structured and productive meetings, and anticipating and resisting counterproductive behaviors. Source: Vanguard.com Five Best Practices for Investment Committees Abstract: Maintaining an institutional investment program, including the oversight and responsibilities of acting as fiduciary, can be daunting to even the most seasoned investment committees. With so much involved in managing an investment portfolio, it's easy for committees to get lost in the details and lose sight of the big picture. The most successful investment committees support their organizations by using five best practices. Source: Plantemoran.com »» Click here for more Fiduciary and Plan Governance Material General Items Transforming the Participant Experience Abstract: Retirement communications have reached a tipping point and leading plan providers are looking to embrace a new path. They see converging trends: changing workplace demographics, technological innovations, evolving participant demands, increasing margin pressure, low savings rates, and added regulatory scrutiny. Any one of these trends would be challenging to manage. Taken together, they require fresh perspectives to find opportunities. Source: Broadridge.com Insight: Studies, Research, and White Papers Agency Predicts $224 Trillion Retirement Gap (Seriously) Abstract: The World Economic Forum predicts a coming retirement funding shortfall of an eye-popping $224 trillion deficit by 2050 in the world's largest pension systems. The obvious inference is that demographic changes in longevity mean defined benefits can no longer get it done, and it makes the case (again) for 401k-style defined contribution plans. Source: 401kspecialistmag.com People With Student Loans Have Trouble Saving for Retirement Abstract: A crushing load of student debt is preventing young people from saving for retirement, buying a home or even deciding to start a family, Prudential Financial found in a survey of 2,369 people last September. Source: Plansponsor.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers How to Not Be a Low Hanging Fruit for Litigation Attorneys Abstract: On June 9, anyone advising on retirement assets (including rollovers) effectively becomes an ERISA fiduciary, subject to one of the strictest legal standards every devised. If you are without a documented prudent process, you could become the low hanging fruit for litigation attorneys. Source: Rixtrema.com SEC Issues Ransomware Risk Alert Highlighting Cybersecurity Best Practices Abstract: The SEC published a Risk Alert regarding the "WannaCry" ransomware worm that infected hundreds of thousands of computers in over 150 nations earlier this month. The Alert provides background and resources and additionally highlighted cybersecurity best practices. Source: Sutherland.com Court and Other Legal Issues University of Chicago Latest College Hit With Retirement Plan Suit Abstract: The University of Chicago is accused in a new lawsuit of carrying high fees and offering a poor selection of investment funds in its two retirement plans ( Daugherty v. The University of Chicago). Source: Bna.com (registration may be required) Princeton Joins List of Schools Sued Over Retirement Plans Abstract: Princeton University is the latest college to be hit with a proposed class action challenging the fees and investment options offered through the school's retirement plans. Source: Bna.com (registration may be required) »» Click here for more Court and Other Legal Issues Cybersecurity Issues 401k Service Providers and Cybersecurity: Questions to Ask (Updated) 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 »» Click here for more on Cybersecurity Issues DOL's Fiduciary Rule Acosta's DOL Approach to the Fiduciary Rule Abstract: In an op-ed in the Wall Street Journal, Secretary Acosta announced that the DOL will not delay the June 9, 2017, Applicability Date of the new fiduciary rule. Secretary Acosta wrote, "The fiduciary rule as written may not align with President Trump's deregulatory goals." However, DOL concluded there was "no principled legal basis to change the June 9 date." Source: Groom.com DOL's Fiduciary Rule Enforcement: Field Assistance Bulletin No. 2017-02 Abstract: This document announces a temporary enforcement policy related to the DOL's final rule defining who is a fiduciary under ERISA and the Internal Revenue Code, and the related prohibited transaction exemptions, including the Best Interest Contract Exemption, the Class Exemption for Principal Transactions In Certain Assets Between Invest. Advice Fiduciaries and Employee Benefit Plans and IRAs, and certain amended prohibited transaction exemptions. Source: Dol.gov DOL's Conflict of Interest FAQ (Transition Period) Abstract: This 11-page FAQ was just released by the DOL and provides additional information on the transition period from June 9, 2017 to January 1, 2018. This guidance, like the Fiduciary Rule and related exemptions, is generally limited to advice concerning investments in IRAs, ERISA-covered plans, and other plans covered by section 4975 of the Internal Revenue Code. Source: Dol.gov DOL Announces No Claims Against Fiduciaries During Phased Implementation Period Abstract: DOL Issues FAB 2017-02 Announcing that the DOL will not pursue claims against fiduciaries working in good faith to comply with the fiduciary invest. advice regulation and the related prohibited transaction exemptions before January 1, 2018. Source: Westlaw.com Fiduciary Rule: Some Conflict, Lots of Interest Abstract: Now that the new DOL secretary, Alexander Acosta, has announced that the DOL will not be seeking a further delay of the applicability date of the fiduciary rule and will be focusing its efforts on the examination, attention is shifting to the institution comment letters. What did they urge the DOL to do with its examination? This article summarizes the institution comment letters and offers a few observations regarding key issues and concerns. Source: Sutherland.com »» Click here for more on the DOL's Fiduciary Rule Compliance and Regulatory Treatment of "Collateral" Employees Under Retirement Plans Abstract: It is common for employers to contract with one or more third parties to provide individuals to perform services for the employer. Various issues may arise regarding the treatment of such individuals under a retirement plan maintained by the employer. Source: Spencerfane.com Reimbursement of Sponsor Expenses Abstract: Some plan sponsors bill their plans for the services the sponsor provides to them. That practice -- while permitted under certain circumstances -- does present certain issues under ERISA. This article briefly reviews the rules under which a sponsor/fiduciary may be reimbursed for expenses, some of the pitfalls those rules present, and some recent litigation on the issue. Source: Octoberthree.com What Expenses Can Be Paid From a 401k Plan? Abstract: From a regulatory standpoint, it is legal for the Plan to pay eligible expenses (such as 401k audit fees, invest. advisor charges, TPA fees, etc.) if the Plan has been properly structured and doesn't contain language which would expressly forbid. Source: 5500audit.com »» Click here for more Compliance and Regulatory Material Marketplace News Cafaro Greenleaf Welcomes Two Experienced Consultants to Team Pensionmark Picks Up Sixth Texas Office David Benedict Joins Consulting Group at Beltz Ianni PSCA Surveys Plan Sponsors on Impact of Tax Reform on Retirement Savings »» Click here for More Marketplace News
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