Avoiding Fiduciary Traps: Eight Tips for DC Plan Sponsors
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PSA 
In This Issue
Fiduciary and Plan Governance Material Avoiding Fiduciary Traps: Eight Tips for DC Plan Sponsors Abstract: Defined contribution plan sponsors often worry about landing in hot water for doing the wrong thing. However, many fiduciary issues crop up because plan sponsors have failed to act. Here, we list eight potential fiduciary traps and suggest ways to avoid them. Source: Callan.com Aon Drops Company Stock Fund From Its $5.3B 401k Plan Abstract: Aon is terminating the company stock fund as an investment option in its $5.3 billion 401k plan. The Aon Stock Fund will be liquidated and removed from the plan by the end of December 2017, the company said in its latest filing with the Securities and Exchange Commission. Source: Bna.com (registration may be required) »» Click here for more Fiduciary and Plan Governance Material 403(b) Plans What You Need to Know About 403b Loans Abstract: If you find yourself in a tight spot financially -- a surprise medical procedure or fewer hours resulting in less income -- then in some cases, you might be able to borrow money from your 403(b) retirement account rather than taking an early distribution or using higher-interest debt. Source: 403bwise.com »» Click here for More 403(b) Material Insight: Studies, Research, and White Papers Transforming the Participant Experience Abstract: Retirement communications have reached a tipping point and leading plan providers are looking to embrace a new path. New solutions are coming to the forefront: self-service workflow tools hosted securely in the cloud; software that makes it easy to streamline content management; the ability to orchestrate experiences based on personas. With these recent innovations, market leaders are transforming their participant engagement strategies into more profitable realities. Source: Broadridge.com The Small Business Retirement Savings Challenge Abstract: New research reveals opportunities to increase retirement plan coverage among small employers. This research demonstrates the importance of small, reasonable tax incentives in motivating small businesses to adopt and enhance retirement plans. Source: Lpl.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Managed Accounts Look Attractive to 401k Advisers Abstract: For 401k advisers, managed accounts are a tough nut to crack. On one hand, many advisers believe managed accounts will compete with target-date funds as the most popular type of default investment option in 401k plans as soon as they become a bit more cost-competitive. But benchmarking is an area that could present a snag for advisers. Source: Investmentnews.com (registration may be required) Shifting DCIO Distribution Offers Opportunity for 401k Advisers Abstract: In the large defined-contribution-plan market -- the realm of plans larger than $1 billion -- the norm is for money managers to sell directly to plan sponsors and work cooperatively with the plan's consultants. For smaller plans, the defined contribution investment-only groups at these asset managers have generally sold only through advisers. But that's about to change. Source: Investmentnews.com (registration may be required) Plan Automation What's Wrong With Automatic Enrollment? Abstract: Automatic enrollment has long been touted -- and proven -- to be an effective way to overcome retirement savings inertia in 401k plans. But these days automatic enrollment plan design seems to be suffering from its own inertia. Source: Asppa.org »» Click here for more on Automatic 401k Plan Features Court and Other Legal Issues Sears Hit With 401k Class Action Over Company Stock Abstract: Sears kept its own stock as an investment option in the 401k plan although it knew or should have known that the retailer was in "extremely poor financial condition," workers allege in a new lawsuit. Source: Bna.com (registration may be required) »» Click here for more Court and Other Legal Issues Legislative and Washington DC Senators Urge DOL to Issue Guidance on Auto Portability Abstract: To help prevent retirement plan cash out leakage when workers change jobs, Sen. Tim Scott and 10 other Senators sent a letter to Labor Secretary Alexander Acosta asking the DOL to issue guidance clarifying the application of ERISA to auto portability features, that is, ones that help facilitate the movement of a participant's retirement account from one employer to another. Source: Asppa.org »» Click here for more on Legislative Actions Cybersecurity Issues Is Cybersecurity a Fiduciary Duty? Abstract: Fiduciary duties and functions have been discussed over the last few years. But a recent blog entry suggests that cybersecurity should be added to them. Source: Asppa.org »» Click here for more on Cybersecurity Issues State-Based Retirement Programs OregonSaves Pilot Launch "Successful," State Board Says Abstract: The July 1 launch of the Oregon Retirement Savings Program pilot has been a success, according to a report by the Oregon Retirement Savings Board that looks at the program's first few weeks, as well as what lies ahead. Source: Asppa.org OregonSaves: New State-Run Retirement Plan Requires Employer Action Beginning November 15, 2017 Abstract: Are you an employer with employees in Oregon? If you do not offer a retirement plan to any of your employees, this article reviews your obligations under a new state-run retirement savings program called OregonSaves. You should be aware of the first compliance deadline on November 15, 2017. Source: Dwt.com Compliance and Regulatory Why the SEC Will Not and Cannot Adopt a Fiduciary Standard Abstract: In recent appearances on Capitol Hill, SEC Chairman Jay Clayton and DOL Secretary Alexander Acosta pledged to work together on a fiduciary rule applying to stockbrokers and other financial advisers providing invest. advice to the public. Both men are on record as saying any fiduciary rule must not curb the public's access to advice or products. The articles author writes, "That's all you need to know. Mr. Clayton and Mr. Acosta are clearly drinking the Kool-Aid supplied by the investment industry." Source: Iainsight.wordpress.com Timeliness of 401k Participant Deposits Abstract: Today's 401k plan sponsors are subject to an array of what often seem complex fiduciary responsibilities with respect to carrying out their duties to plan participants and beneficiaries. However, meeting these duties need not be difficult, and for some functions, there are specific rules to help guide the employer. For example, the DOL has guidance to help clarify regulations regarding the timeliness for depositing participant payroll deductions that represent contributions or loan payments to the plan. Source: Kushnerco.com Audit Survival Tips for Retirement Plans Abstract: Although the odds of your plan being audited are low, if the DOL or the IRS perceives some elevated risk of noncompliance, your chances of an audit will go up substantially. As a plan sponsor, there are three things you can do to make your plan audit-ready, should that letter arrive from the DOL or the IRS: organize, review, and retain. Article provides a list of action steps. Source: Findleydavies.com »» Click here for more Compliance and Regulatory Material Marketplace News Pensionmark Expands Proprietary Investment Tool Suite ABG Partners With KnowHow 401k on Workshops United Benefit Advisors Announces New President USI Consulting Hires Vice President for Retirement Services »» Click here for More Marketplace News
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