New Report Highlights 403b Retirement Plan Trends
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PSA
In This Issue
403b Plans New Report Highlights 403b Retirement Plan Trends Abstract: nonprofit organizations surveyed saw noticeable improvements in investment selections and auto-plan design features, such as increased default deferrals. The percentage of plans with a default deferral rate of more than 3 percent increased from 21.6 percent to 34 percent. In addition, organizations saw average employer contributions increase to 5 percent, up from 4.7 percent in 2015. Source: 401khelpcenter.com More 403b Plans Offering Target-Date Funds as QDIA Abstract: Target-date funds grew in popularity among 403b plans last year as more plans offered this option as a qualified default investment alternative, according to a report just issued. Source: Pionline.com »» Click here for More 403b Material General Items Harnessing Behavioral Economics to Reinvent Employee Education Abstract: Education in its current form does not work and a radically new approach is needed. An approach that incorporates behavioral economics and visually disruptive and intuitive design. Source: Investmentnews.com (registration may be required) Four Reasons You Should Never, Ever Take a 401k Loan Abstract: While it can theoretically seem like a smart financial move to use that money to pay off high-interest debt, put down a down payment on a house, or fulfill another immediate need, you should resist the urge and leave your 401k cash right where it is. Here are four big reasons why you should leave the money in your 401k alone so you don't have major regrets later. Source: Cnn.com Why Most Participant Communication Is Horribly Ineffective; and What You Can Do About It Abstract: Whether witty, entertaining, simplistic, or dramatic, plan sponsors should take steps to ensure their retirement communication is engaging for participants. Otherwise, the message, no matter how well-constructed, will be lost. Source: Cammackretirement.com Insight: Studies, Research, and White Papers Corporate DC Plans Report Flat Fees Abstract: NEPC published the results of its 12th Annual Defined Contribution Plan and Fee Survey, which looks at trends in the management of America's employee-fueled retirement plans. For the first time since 2010, the results show that recordkeeping, trust and custody fees bucked the long-standing trend of declining year-over-year and remained flat. Source: Nepc.com »» Click here for More Studies, Research, and White Papers Court and Other Legal Issues Standing and Plausibility in ERISA Abstract: A district court in New York has held that a plaintiff cannot assert claims against a plan in which she did not participate and cannot assert claims of fiduciary breach without plausible allegations of wrongdoing. Source: Erisa-employeebenefitslitigationblog.com Edison Hit With $7.5m Judgment in Long-Running 401k Suit Abstract: Edison International must pay more than $7.5 million to compensate employees for its decision to include high-fee retail share mutual funds in its 401k plan when identical institutional share classes were available at lower cost. Source: Bna.com (registration may be required) Excessive Fee Suit Alleges Fiduciary "Abdication" Abstract: A new excessive fee suit claims that plan fiduciaries "abdicated" their responsibilities, allowing the plans' trustee "to lard the Plans with high-cost mutual funds." Source: Napa-net.org »» Click here for more Court and Other Legal Issues Cybersecurity How to Guard Benefits Plans From Cyberattacks Abstract: Cyberattacks -- including incidents of ransomware -- are making headlines almost daily. Because employee health and retirement plans are often top targets, HR professionals should take precautions to defend against these assaults, especially since breaches can also result in penalties and fines. Source: Shrm.org »» Click here for more on Cybersecurity Issues DOL's Fiduciary Rule DOL Again Signals Death of Fiduciary Rule's Arbitration Ban Abstract: A legal challenge to the fiduciary rule's anti-arbitration provision will "likely be mooted in the near future," the Department of Labor told a federal district court. Source: Bna.com (registration may be required) Fiduciary Rule Best Interest Requirements: Creditor Protection in ERISA Plans Abstract: The DOL states that financial advisors need to determine the client's individual needs and circumstances. If they are an investor with debt or in a position that predisposes them to debt, that affects their suitability for a rollover into an IRA. Source: Rixtrema.com Fiduciary Rule Requirements Disrupting Annuity Market Abstract: Many annuity providers argue they won't be able to meet the best-interest contract exemption (BICE) requirements, because of the commission-focused distribution structures of fixed-indexed annuities. Therefore, many could turn to fee-based products. Source: Planadviser.com »» Click here for more on the DOL's Fiduciary Rule Compliance and Regulatory DOL Withdraws Rule Requiring Fee Disclosure Guide Abstract: The DOL has announced that it is withdrawing a rule requiring that employers provide a guide or similar material along with fee disclosures. The Obama administration had issued a notice of proposed rulemaking about the requirement on March 12, 2014. Source: Asppa.org »» Click here for more Compliance and Regulatory Material Marketplace News Captrust Acquires Tampa-Based CapTrust Advisors Hancock Appoints Nick McParland National Sales Manager »» Click here for More Marketplace News
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