Jerry Schlichter's Fee Lawsuits Have Left an Indelible Mark on the 401k Industry
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PSA
In This Issue
Court and Legal Jerry Schlichter's Fee Lawsuits Have Left an Indelible Mark on the 401k Industry Abstract: It's had a tremendous impact and brought awareness to the fees being charged in plans. But, observers say the litigation has also contributed to fee hysteria among employers and, following some large monetary settlements, resulted in a plaintiff's bar that seems to be unnecessarily piling on the litigation to score a quick payday. Source: Investmentnews.com (registration may be required) Gucci Sued Over 401k Plan Fees, Transamerica Funds Abstract: The lawsuit challenges Gucci's relationship with its 401k service provider, Transamerica Retirement Solutions. Gucci allowed Transamerica to fill its $96.5 million plan with expensive, proprietary funds that earned fees for Transamerica at the expense of plan participants, according to the complaint. Source: Bna.com (registration may be required) Novitex Sued Over 401k Plan Fees, Not First Modest Plan Hit Abstract: Novitex Enterprise Solutions is the latest company to be accused in federal court of letting its 401k plan participants be charged excessive recordkeeping and administrative fees. The lawsuit is the latest to target a company with a modest 401k plan. Source: Bna.com (registration may be required) University of Pennsylvania Wins Dismissal of Case Against 403b Abstract: U.S. District Judge Gene E. K. Pratter of the U.S. District Court for the Eastern District of Pennsylvania dismissed all claims against the University of Pennsylvania and its vice president of human resources. The case had challenged multiple recordkeepers, multiple investment options and the use of retail share class funds. Source: Planadviser.com »» Click here for more Court and Other Legal Issues General Items When Technology Meets Benefits Abstract: Considering that employee benefits at many organizations remains a paper-based, pencil-pushing operation, enormous opportunities for technological advancement are emerging for CEOs and benefits managers alike. Three benefits pros share how they've used technology to improve their organizations' benefits operations in this Q&A. Source: Workforce.com Leveraging - A Hidden Advantage of Roth 401k Accounts Abstract: There have been numerous articles published about the advantages of Roth IRAs and Roth 401k accounts. When combined with the ability for leveraging (subject to payment of unrelated business income tax (UBIT)), some interesting planning and tax saving opportunities arise. One such opportunity may be the ability to leverage a Roth account to enhance the deferral and tax-free distribution power of the Roth. Source: Foxrothschild.com 403b Plans Collective Investment Trusts and 403b Plans: An Update Abstract: It may be possible for CITs to be offered in a governmental 403b plan (the limitations on being able to offer CITs in a private tax-exempt 403b plan remain applicable), if certain conditions are met. Source: Cammackretirement.com What You Need to Know About 403b Loans Abstract: If you find yourself in a tight spot financially, then in some cases you might be able to borrow money from your 403b retirement account rather than taking an early distribution or using higher-interest debt. However, retirement accounts shouldn't be treated like bank accounts and one should borrow with caution. Source: 403bwise.com Pre-approved 403b Plans -- Effective Date Addendum Abstract: Adopting employers may use an effective date addendum to depict plan operational changes that have occurred at different points in time, which otherwise wouldn't be accurately reflected by the plan's general effective date. Source: Irs.gov »» Click here for More 403b Material Fiduciary and Plan Governance Material Maximizing Recordkeeper Relationships Abstract: While the DOL has provided guidance on the overall responsibilities of plan sponsors, these guidelines fall short of speaking to best practices when dealing with recordkeepers. This 7-page paper aims to help plan fiduciaries maximize their recordkeeper relationships with the end goal of better retirement outcomes. Source: Porteval.com The Misperception of Fiduciary Risk and Active Management in DC Plans: A Legal Perspective Abstract: In the complex and litigation-prone world DC plans occupy, it is important to underline what the real focal points for fiduciaries should be. Here are five guiding principles under ERISA that can aid fiduciaries in selecting and monitoring investment options and assessing active strategies within their plan lineups. Source: Troweprice.com A Primer on Reviewing Statements of Investment Policies and Procedures Abstract: For Canadian plans sponsors that haven't comprehensively reviewed their statements of investment policies and procedures in a while, it may be time to refresh the document to ensure it correctly reflects the details of the plan and is in line with current regulations. Source: Benefitscanada.com Education Policy Statement -- Should Your Policy Have One? Abstract: Should Your Plan Have an Education Policy Statement? The DOL doesn't require qualified retirement plans to have one, but here are some thoughts on why you should consider adopting an EPS for your plan. Source: 401ktv.com »» Click here for more Fiduciary and Plan Governance Material Legislative and Washington DC What's Cooking in Congress for Retirement Plans? Abstract: This article takes a deeper dive into what has been cooking in Congress for retirement plans over the past few months. Source: Cammackretirement.com »» Click here for more on Legislative Actions Compliance and Regulatory Is It Time to Ditch Some Retirement Plan Disclosures? Abstract: Employers are required to provide their retirement plan participants with a host of disclosures throughout the year and a deadline for one of those disclosures is fast approaching. The summary annual report for DC plans -- mostly 401k plans -- is required to be sent out to participants by Sept. 30 each year, but lately employers are questioning what value it provides their workers. Source: Bna.com (registration may be required) Comments May Enhance ERISA Council's Attempt to Streamline Plan Disclosures Abstract: This year, the DOL's ERISA Advisory Council is focusing on "Mandated Disclosures for Retirement Plans." The council is considering testimony submitted by plan sponsors, administrators, communications experts, and participant representatives, among others. This column analyzes comment letters received to date relating to retirement plans' required disclosures. Source: Hrdailyadvisor.blr.com »» Click here for more Compliance and Regulatory Material Marketplace News Captrust Announces Merger With Davidson & Garrard »» Click here for More Marketplace News
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