Uber-Betterment Collaboration Draws in 2,500 Retirement Savers
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PSA
In This Issue
General Items Uber-Betterment Collaboration Draws in 2,500 Retirement Savers Abstract: More than 2,500 Uber drivers used Betterment, an online financial advice service, to get on the road to retirement in the first year of the ride-share giant's collaboration with the robo-adviser. Source: Bna.com (registration may be required) Five Ways to Make 401k Portability a 2018 Priority Abstract: Many sponsors could miss an important opportunity to make straightforward changes to enhance portability, changes that can significantly improve participants' financial wellness, reduce plan expenses and minimize fiduciary liability. Source: 401kspecialistmag.com 403b Plans IRS on 403b Tax-Sheltered Annuities Abstract: Revised 4-page IRS document that looks at common 403b plan mistakes and IRS products (including the 403b Fix-It Guide), services, and assistance to help you keep your 403b plan healthy. Source: Irs.gov New Pre-Approved 403b Retirement Plan Restatement Period Now Open Abstract: Sponsors of 403b retirement plans received welcomed news from the IRS in 2013 that it would allow them to adopt a pre-approved 403b plan. This means that for the first time, employers can adopt a written 403b plan document that the IRS has reviewed and approved. While more than three years have passed since the IRS announced this change, the time to take advantage of this new opportunity by adopting a pre-approved 403b retirement plan document has finally arrived. Source: Wnj.com »» Click here for More 403b Material Fiduciary and Plan Governance Material Does Your Investment Policy Statement Have Gaps? Abstract: If your IPS has problems or gaps, they can create legal problems, but it is not too late to fix them. Your IPS should be reviewed regularly for needed changes. Here are some red flags. Source: 401ktv.com Fiduciary Education Is Key for Plan Sponsor Investment Committees Abstract: As advisers and others serving plans will attest, greater awareness doesn't necessarily mean that committee members understand their legal responsibilities or precisely what they should be doing as a plan fiduciary. Source: Investmentnews.com (registration may be required) »» Click here for more Fiduciary and Plan Governance Material Items of Special Interest to Service Providers How Retirement Plan Advisers Can Combat 'Dramatic' Fee Compression Abstract: As with other service providers to defined contribution plans, price compression for adviser services has been rapid and deep. Price compression in the retirement plan arena isn't new, but it's gotten to a point where observers believe advisers could be in trouble? absent some sort of change Source: Investmentnews.com (registration may be required) Regulation of Robo-Advisers by the DOL Abstract: As the use of robo-advisers to provide invest. advice and discretionary management services has become more popular and as related technologies have developed, regulators are beginning to take note. Robo-advisers should consider their legal responsibilities under ERISA and the IRS Code in addition to those under the Advisers Act and other applicable law. This 20-page paper provides an in-depth review. Source: Groom.com Qualified Default Investment Alternatives A Decade After PPA and the QDIA Debate Continues Abstract: The transition period, from five years before retirement to five years after, is the most critical phase of lifecycle investing and potentially the most difficult to manage with a standard TDF glide path. Source: Planadviser.com »» Click here for more on QDIAs Court and Other Legal Issues NYU Retirement Plan Suit Trimmed by Judge but Moving Forward Abstract: New York University convinced a federal judge to dismiss several challenges to its retirement plans, but claims attacking the plans' recordkeeping fees and actively managed funds are moving forward. Source: Bna.com (registration may be required) Morningstar and Prudential Deny Racketeering Claims Abstract: Another ERISA lawsuit has emerged in federal court, this one naming both Morningstar and various Prudential companies as defendants in the U.S. District Court for the Northern District of Illinois. The complaint suggests the companies engaged in "Tammany-like" collusion to steer assets into more favorable investments; both providers have issued strong denials and requests for summary judgment. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Cybersecurity Cybersecurity and Online Privacy Issues for Employee Benefit Plans Abstract: When most plan participants think about security involving their retirement plan, they are typically thinking along the lines of financial security and how their investments perform. However, like other financial institutions, retirement accounts are subject to cyber threats that could threaten users' privacy and other account information. Source: Bsllp.com »» Click here for more on Cybersecurity Issues DOL's Fiduciary Rule DOL Proposes 18-Month Delay in Applicability Date for Portions of Fiduciary Rule Abstract: The DOL stated that the delay is primarily intended to give it more time to consider possible changes or alternatives to the rule and exemptions, and to coordinate with the SEC on any changes. The proposal also indicates that the DOL plans to release, in the near future, a new, "more streamlined" exemption based on new developments in the financial services industry. Source: Ropesgray.com
»» Click here for more on the DOL's Fiduciary Rule Compliance and Regulatory Hurricane Harvey Victims Eligible for Emergency Retirement Withdrawals Abstract: Hurricane Harvey survivors are now eligible to take loans and hardship distributions from 401k plans and similar types of retirement accounts, due to relaxed IRS rules. Retirees who haven't received their scheduled Social Security payments also have several options to pick up their checks. Here's how your retirement savings can be used to help cope with the costs of the storm. Source: Usnews.com IRS and DOL Provide Relief for Plan Sponsors and Participants Affected by Hurricane Harvey Abstract: The Internal Revenue Service and Department of Labor issued temporary relief on deadlines and procedural requirements applicable to employee benefit plans for employers impacted by Hurricane Harvey. This article is a good review of the relief provided. Source: Seyfarth.com Abstract: The intent behind most of the changes to the EPCRS program that are highlight in this 4-page article is to conform the correction program with the changes being made to the determination letter program, and to help plan sponsors manage the risks that the loss of the determination letter cycle program has on audit. Source: Groom.com Redesigning the Audit Reporting Model for ERISA Plan Financial Statements Abstract: The Auditing Standards Board created a special task force in 2015 to consider a proposal to improve the quality of employee benefit plan audits by strengthening the EBP auditors' report. The Chief Accountant of the Department of Labor requested the ASB enhance the ERISA plan audit report to provide better insight regarding the scope of the responsibilities of management and the auditor. Source: Belfint.com »» Click here for more Compliance and Regulatory Material
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