Questioning 401k Lawsuits Based on Investment Outcomes
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Court and Other Legal Issues Questioning 401k Lawsuits Based on Investment Outcomes Abstract: No one can predict the excess return relative to a benchmark (Alpha) that is usually associated with active investment management. Then it should come as no surprise that no one can predict the market (beta). Choosing investments is a subjective endeavor. So why are so many legal actions and allegations against Employer Retirement Plans Sponsored Plans based on subjective endeavors with unknown outcomes? Source: 401khelpcenter.com Another Court Dismisses Conclusory 401k Fee Suit Abstract: We have now had a second case in Minnesota in which a judge looked under the hood and found no substance there. The Minnesota judge dismissed the case with prejudice (meaning plaintiffs won't have a second bite at the apple.) Is this the beginning of a trend? Source: Cohenbuckmann.com Chicago Bridge & Iron Inflated Stock, 401k Participants Say Abstract: Chicago Bridge & Iron Co. allowed artificially inflated company stock as an investment option in its retirement plans, causing its employees millions of dollars in losses, the workers allege. Source: Bna.com (registration may be required) »» Click here for more Court and Other Legal Issues General Items Questions 401k and 403(b) Participants Should Ask When the Plan Advisor is Changed Abstract: The DOL rule will force many advisors to act as a fiduciary which will in turn force many of the over 200,000 advisors without necessary experience or training to either opt out or get serious creating massive turnover. So, what questions should plan participants be asking when a 401k or 403(b) change their plan advisor? Source: 401ktv.com Insight: Studies, Research, and White Papers Survey Finds Financial Wellness Programs Are Gaining Momentum With Employers Abstract: A new survey from Charles Schwab reveals that financial wellness programs are quickly becoming a core part of employee benefit and compensation packages. Employers are increasingly finding that financial wellness programs can potentially drive better financial outcomes for employees, promote higher utilization of employer-sponsored savings and investment programs, and lead to productivity gains from a reduction of financial-related stress. Source: 401khelpcenter.com Defined Contribution Plan Participants' Activities, 2016 Abstract: Defined contribution plan assets are a significant component of Americans' retirement assets, representing more than one-quarter of the total retirement market and about one-tenth of US households' aggregate financial assets at year-end 2016. To measure participant-directed changes in DC plans, ICI has been tracking participant activity through recordkeeper surveys since 2008. This 12-page report updates results. Source: Ici.org Sponsors Implemented Meaningful Changes to 401k Plans Over Past Decade Abstract: Implementation of automated features in defined contribution plans has skyrocketed over the past decade, driving up plan participation rates, saving rates, and balanced asset allocation strategies, according to the 110-page 'How America Saves 2017' report. Source: Vanguard.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Stepping Out of the Defined Contribution 'Echo Chamber' Abstract: With the competition among DC plan advisers tough and expected to get even tougher as the DOL's fiduciary rule forces inexperienced advisers to exit the market, plan advisers need to step out of the DC "echo chamber" and bring new ideas to clients. What is the DC echo chamber and how can you exit it? Source: Investmentnews.com (registration may be required) Qualified Default Investment Alternatives Hybrids: The Next Generation of QDIA Abstract: Qualified Default Investment Alternatives (QDIAs) are a fairly recent invention but have already become a central component of the corporate defined contribution retirement system. Although target-date funds have been the most popular choice to date, recently introduced hybrid forms of QDIA represent a notable new variation. Source: Russellinvestments.com »» Click here for more on QDIAs DOL's Fiduciary Rule Fiduciary Rule's Future Even More Uncertain as SEC Steps In Abstract: SEC Chairman Jay Clayton in his first policy announcement said the SEC would seek comment on a range of issues related to the DOL's Obama-era rule that aimed to reduce the allegedly conflicted invest. advice given to retirement savers. Opponents of the rule may be pleased, but this isn't the first time the head of the SEC has expressed interest in tackling the topic. Source: Bna.com (registration may be required) DOL FAQs Guide Compliance Efforts During Fiduciary Rule Transition Period Abstract: The Department of Labor has issued guidance in the form of 'Frequently Asked Questions' to help firms and their advisers impacted by the Fiduciary Rule know what is expected on and after June 9, 2017, on and after January 1, 2018, and during the period between. Source: Benefitsbryancave.com Compliance With the ERISA Fiduciary Advice Rule: Beginning June 9, 2017 Abstract: The DOL's fiduciary rule significantly expands the categories of persons who are deemed a fiduciary when dealing with retirement investors. It is therefore important that financial services entities who deal with employee benefit plans and IRAs, consider the points reviewed here in connection with compliance with the Rule. Source: Kattenlaw.com »» Click here for more on the DOL's Fiduciary Rule Compliance and Regulatory Audits and Other Form 5500 Developments Abstract: Changes are afoot for ERISA-mandated Form 5500 filing requirements, though it is unclear at this time when and which changes will actually be implemented. IRS has once again allowed a pass on their compliance questions by omitting them from the 2017 draft forms. Source: Conduent.com Why Should My 401k Plan Use a Calendar Plan Year? Abstract: Off-calendar plan years are typically structured to follow the company's fiscal year, with the rationale that the profit-sharing contributions would be tied to fiscal year performance. This logic is somewhat flawed. Source: Rpgconsultants.com Abstract: As a plan sponsor or financial advisor, it is paramount that you maintain an open line of communication with your TPA or recordkeeper responsible for preparing this filing in order to avoid potential penalties and fines from both the IRS and the DOL. In order to avoid delays in the preparation and filing of the form, here are some things you can do as the plan sponsor to assist your service provider. Source: Legacyrsllc.com Handling QDROs for Your Retirement Plan Abstract: When couples divorce, one spouse's retirement benefits may be divided as part of a property settlement. Although federal law generally does not allow plan participants to assign or alienate their retirement plan interests, there is a limited exception. Retirement benefits may be assigned to a spouse, former spouse, child, or other dependent to satisfy family support or marital property obligations through a domestic relations order if the plan administrator determines it is a qualified domestic relations order (QDRO). Source: Pentegra.com »» Click here for more Compliance and Regulatory Material Marketplace News Nationwide Offers Participants Access to Retirement Readiness Report »» Click here for More Marketplace News
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