Addressing Disasters & Emergencies: Giant, Large, Medium, Small, Individual
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Newsletter Sponsor Are All $5,000,000 401(k) Plans Created Equal? Just Published! The 401k Averages Book has released a new Special Report taking a closer look at two 401(k) Fee Benchmarks. The report compares two plans with the same assets with different average account balances. Click here for your copy of the report. In This Issue
General Items Addressing Disasters & Emergencies: Giant, Large, Medium, Small, Individual Abstract: Plan sponsors must have the skills of an acrobat -- balancing business needs, employee concerns, legal and compliance requirements -- and sometimes they must do this against a backdrop of emergencies and natural disasters. Source: Psca.org What Kind of Relief May Employers Offer to Affected Employees of Hurricane Harvey and Irma? Abstract: Employers with employees and operations impacted by the recent hurricanes are asking what type of compensation, employee benefits, and tax relief may be available to them and their affected employees. This is a 7-page review. Source: Ebglaw.com Fiduciary and Plan Governance Material Participants' Best Interests May Not Be Served by the "Race to the Bottom" Abstract: While lawsuits and investigations have served a purpose in lowering plan fees, a side effect is that many plan sponsors, in their concern to meet compliance standards, have made a search for the lowest fees such a priority that they have unwittingly overlooked the best way to serve plan participants. Source: Alliantwealth.com Abstract: The increased risk of litigation has caused many employers to reconsider the decision to offer employer stock as an investment option. There have been numerous participant claims regarding participant stock in employer-sponsored plans. Employers that elect to continue offering employer stock in 401k plans may find a initiatives can mitigate these concerns. Source: Milliman.com Do We Need a 'Harmonized' Fiduciary Standard? Abstract: Any efforts to "harmonize" the fiduciary standard of conduct between those who must legally place the interests of their principals above those of their clients -- stockbrokers and insurance agents -- and those who are legally required to place the interests of their clients before their own -- fiduciary registered investment advisors -- are therefore doomed from the start. That's why all such SEC efforts to date have failed. Source: Morningstar.com (registration may be required) »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Saving for Retirement Not Feasible for Many Women Abstract: Saving for retirement is not economically feasible for 44% of middle-income women, MassMutual found in a survey. By comparison, this is the case for only 14% of men with annual household incomes of between $35,000 and $150,000. Source: Plansponsor.com Do Older Americans Have More Income Than We Think? Abstract: Being prepared not just for a rainy day but for years -- perhaps many -- of post-workforce life drives strategies and safety nets. And analyses often warn that all the effort is insufficient. But panelists at a recent discussion concerning studies on retirement income suggest that the prospects for many are really quite good. Source: Asppa.org »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers 401k Services Market Heating Up Abstract: Fees are top of mind for defined contribution plan sponsors in 2017. A recent Callan survey shows that 26% of sponsors expect to conduct a search for a new recordkeeper this year. Therefore, it's important to closely evaluate what you're getting for your plan dollars when shopping around for new vendors. Source: 401ktv.com Court and Other Legal Issues Recent Plan Fiduciary Victories in ERISA Single-Stock Fund Litigation Abstract: Over the last few months, there have been a significant number of court decisions ruling against plaintiffs alleging ERISA breach of fiduciary claims related to single-stock funds. These recent decisions suggest a new era in the ongoing saga of ERISA single-stock fund litigation, and one that may bode well for ERISA plan fiduciaries. Source: Morganlewis.com Proving Loss Causation in Breach of Fiduciary Claims -- The Split Widens Abstract: Most circuit courts of appeals agree that ERISA requires that causation between the alleged breach and the claimed loss must be established before any liability may be imposed upon a breaching fiduciary. The courts are split, however, as to whether an ERISA plaintiff or the defendant-fiduciary bears the burden of proving the causal link between breach and loss. Source: Jacksonlewis.com DST, Ruane Cunniff Sued Again Over Valeant Stock in 401k Plan Abstract: Investment firm Ruane Cunniff & Goldfarb Inc. and DST Systems Inc. face a third lawsuit over the alleged imprudent investment of DST's 401k plan assets in Valeant Pharmaceuticals stock. Source: Bna.com (registration may be required) Edison International Agrees to Pay $13.2 Million in 401k Fee Lawsuit Abstract: Parties in the landmark Tibble v. Edison lawsuit have agreed the defendant, Edison International, will pay more than $13 million in damages to cover allegations of excessive 401k fees. Source: Investmentnews.com (registration may be required) »» Click here for more Court and Other Legal Issues State-Based Retirement Programs State Sponsored Retirement Savings Plans: New Approaches to Boost Retirement Plan Coverage Abstract: This 37-page paper describes and evaluates models and features used in emerging state-sponsored retirement saving plans such as Auto IRAs, open Multiple Employer Plans and Marketplaces. These plans have enormous potential to raise the number of Americans with access to payroll-deduction retirement saving plans. Source: Wharton.upenn.edu Compliance and Regulatory What Would a Government Investigation Reveal About Your Retirement Plan? Abstract: Many plan sponsors don't revisit the plans to ensure they are staying in compliance with ERISA and federal regulations, or do not consider governmental policy changes. A DOL investigation can uncover problems with retirement plans and subject employers to costly penalties. There are a number of steps employers can take before they are given notice of any investigation to reduce the risk of penalties. Source: Bsllp.com Hurricane Harvey Affects Retirement Plan Administration Abstract: The arrival of Hurricane Harvey in August significantly affected individuals and businesses in Texas. Recognizing this impact, the IRS, DOL, and the PBGC have granted extensions of certain deadlines for both plan sponsors and participants directly affected by this disaster. The IRS has also provided special rules for plan sponsors that want to offer hardship distributions or plan loans to employees or former employees that have been affected by Hurricane Harvey. Source: Prudential.com Significant Changes Proposed for Employee Benefit Plan Audit Reports Abstract: AICPA Auditing Standards Board has proposed changes to the reporting standards for annual audits of employee benefit plans that are covered by ERISA. The proposal, which was issued in April 2017, was in response to a request from the U.S. Department of Labor to re-examine the current audit reporting model for employee benefit plans. Source: Franczek.com »» Click here for more Compliance and Regulatory Material Marketplace News New Jersey Office Added to Pensionmark Network »» Click here for More Marketplace News
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