New Challengers Take Aim at Leaders in 401k Market
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Items of Special Interest to Service Providers New Challengers Take Aim at Leaders in 401k Market Abstract: Three firms -- American Funds, Empower Retirement and Voya -- are giving Fidelity Investments and Vanguard a run for their money in the 401k market. Source: 401khelpcenter.com The Upside-Down 401k World Is About to Change Abstract: In the next three years, defined contribution plans will go through a transformation, driven by new laws and technology, whereby what is currently customized (plan design, investment menus and fiduciary services) will be mass produced and what is mass produced (participant services) will be customized. Source: Investmentnews.com (registration may be required) Can States Pick Up DOL Fiduciary Enforcement Slack? Abstract: There are certainly states that are attempting to do so, but it's unclear whether ERISA's preemption of state law will render their efforts toothless. Source: Planadviser.com Four Reasons for 401k Advisors to Partner With TPAs Abstract: TPAs also help bolster your firm by providing your client confidence and allow you to manage more. Here are four of many reasons why a TPA relationship is beneficial to your firm and your clients. Source: 401kspecialistmag.com Fiduciary and Plan Governance Material Avoid Getting Sheared by Revenue Sharing Abstract: One of the most common approaches to recordkeeping fee payment is revenue sharing. It's not easy to track investment revenue shared with 401k plan recordkeepers, but fiduciaries must. Source: Amazonaws.com Fiduciary Best Practices for Protecting Your Company Abstract: Failing to follow best practices may leave a fiduciary personally liable for losses to the plan and result in removal from their duties. There are a number of actions fiduciaries can take to limit potential liability. Source: Bsllp.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers More Americans Participate in Retirement Plans, Upsetting Conventional Wisdom Abstract: Data shows that 63 percent of all workers aged 26 to 64 participated in an employer-sponsored retirement plan either directly or through a spouse. The data provide an alternative measure to the most commonly cited data on retirement plan participation. Source: Ici.org Comparison Across Two Generations of 401k Savers in Their 20s Shows Contrast in Asset Allocations Abstract: The asset allocations of 401k retirement plan savers in their 20s at the end of 2015 differed significantly from the allocations of 401k participants in their 20s in the mid-1990s, according to the Employee Benefit Research Institute. Source: Ebri.org »» Click here for More Studies, Research, and White Papers Target-Date Funds 401k Plans Sponsors Reject Proprietary Fund Products Abstract: Study reveals a dramatically shifting target-date landscape where recordkeepers who offer their own target-date funds are losing share of assets on their own platforms as plan sponsors are increasingly choosing funds from other providers. Source: 401kspecialistmag.com RFP for Target-Date Funds? It's a Good Idea Abstract: Although target-date funds may be very popular, they are widely misunderstood. TDFs must be prudently selected and have reasonable fees to satisfy the DOL's default investment safe harbor and analyzing them isn't easy. Source: 401ktv.com »» Click here for more on Target-Date Funds Court and Other Legal Issues Winning Early Motions to Dismiss Breach of Fiduciary Claims, the Ministerial Defense Abstract: One argument to use in seeking early dismissal of breach of fiduciary duty claims is the ministerial defense. The recent case that highlights the point is Turner v. Volkswagen Group of America, Inc. Source: Boomerisablog.com Reliance Escapes Lawsuit Over SandRidge's 401k Stock Losses Abstract: Reliance Trust isn't liable for the losses suffered by SandRidge Energy employees who invested their retirement savings in the natural gas company's stock as it declined into bankruptcy, a federal court ruled. Source: Bna.com (registration may be required) Target Defeats Challenge Over Company Stock in Its 401k Plan Abstract: Target Corp. defeated a lawsuit by employees challenging the retailer's decision to allow company stock in its 401k plan despite allegedly knowing its value was artificially inflated because of its now-defunct Canada operations. Source: Bna.com (registration may be required) »» Click here for more Court and Other Legal Issues DOL's Fiduciary Rule Abstract: This FAQ provides information on (1) a "fiduciary status disclosure" issue under the DOL's ERISA section 408(b)(2) service provider disclosure regulation that applies to ERISA pension plans, (2) whether recommendations to plan participants and IRA owners to contribute to or increase contributions to a plan or IRA constitute fiduciary invest. advice under the Fiduciary Rule, and (3) whether recommendations to employers and other plan fiduciaries on plan design changes intended to increase plan participation and contribution rates constitute fiduciary invest. advice under the Fiduciary Rule. Source: Dol.gov »» Click here for more on the DOL's Fiduciary Rule Compliance and Regulatory Voluntary Compliance Program Fees Abstract: The following general fees apply to single submissions involving qualified retirement plans established under IRC 401(a) or IRC 403(b). Source: Boutwellfay.com Penalties Hit ERISA Plans in Spite of CPA Audits Abstract: The DOL is concerned about the increasing number of deficiencies it sees for plans that receive a CPA's annual financial audit. Mistakes on an ERISA plan's Form 5500 create a nice target for the Internal Revenue Service's auditors, too. Source: 401ktv.com Red Flags on Form 5500 Alert IRS and DOL to Plan Issues Abstract: Plan mistakes happen and can generally be corrected, but here's four red flags that the IRS and DOL look for and want to make sure are fully corrected. Source: Retirementplanblog.com The Hardship of Administering 401k Plan Hardship Withdrawals Abstract: Many employers contract with a third-party administrator or platform vendor to administer the hardship application and approval process. But, even if outsourced, employers are the ones at risk of tax liabilities or plan disqualification if the process is not consistent with the very limited authority for early distributions on account of hardship contained in the Code and related regulations. Source: Frostbrowntodd.com »» Click here for more Compliance and Regulatory Material Marketplace News PSCA Announces 2017 Board of Directors DiMeo Schneider Introduces SMART PLAN 401k Service Industry Expert Bob Kaplan Joins the American Retirement Association »» Click here for More Marketplace News
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