Advisors Must Up Their Game in New Fiduciary Rule Era
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PSA
In This Issue
Items of Special Interest to Service Providers Advisors Must Up Their Game in New Fiduciary Rule Era Abstract: The fiduciary rule effectively puts generalist advisors on notice to incorporate significant capabilities -- typically used by specialists -- into their practice to excel in this new, post-rule world. Source: 401kspecialistmag.com Abstract: Here is one more reason for financial services firms to target Millennials: 50% are likely to roll money out of plans with former employers into an IRA in the next year. Source: Marketstrategies.com General Items The 401k: A Benefit for Employers and Employees Alike Abstract: Since 401k retirement savings plans first appeared in the early 1980s, they have grown rapidly. Today, they are one of the most popular and widespread employee benefits. This article looks at some of the key benefits 401ks provide to both employees and employers, as well as some important practical considerations. Source: Blr.com Participant Site Retirement Educational Resources Abstract: One of the most prominent trends in the digital retirement space has been the proliferation and evolution of retirement educational resources. Here are some tips for improving your participant site's suite of educational resources. Source: Corporateinsight.com 403b Plans Reach Out to 403b Participants Maintaining Outside Businesses Abstract: Notifying 403b plan participants of annual additions limit rules under Internal Revenue Code Section 415(c) may not be just a best practice, it may be an affirmative obligation in the employer's 403b plan document. Source: Ntsa-net.org »» Click here for More 403b Material Fiduciary and Plan Governance Material Supervising Your Plan's Investment Manager and an Atmosphere of Misinformation Abstract: When a plan sponsor hires a Fiduciary Investment Manager, they have minimized their effort regarding plan investments and maximized their liability protection. However, they haven't eliminated their potential liability. The sponsor must continue to monitor the service provider. If the sponsor fails to monitor their FIM, and the FIM makes a mistake, the sponsor can be ultimately held liable. This is where misinformation may come into play. Source: Alliant401k.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Investors Who Held Steady After the Great Recession Have Been Rewarded Abstract: Those who did not flee to cash but remained invested have portfolios that are 50% higher than those who sought safety, Fidelity found. However, 25% of people have reassessed how much risk they can handle and have moved to more conservative portfolios, where they have remained in the past 10 years. Source: Planadviser.com Study Says African-Americans Want More Financial Education Abstract: Forty-five percent of African-Americans who bring home $75,000 or more say they feel less than financially secure compared with just 28% of other Americans in the same income category. Source: Planadviser.com Research: Few Workers React Negatively to Higher Default Savings Rates Abstract: Erring on the high side when choosing a 401k savings default-contribution rate won't likely discourage employees from participating in the plan, new research suggests. Plan sponsors' experiences seem to back up this finding. Source: Shrm.org »» Click here for More Studies, Research, and White Papers Court and Legal Xerox Nixes Challenge to Robo-Adviser Fees in Ford 401k Plans Abstract: Xerox HR Solutions escaped a lawsuit by participants in three Ford Motor Co. 401k plans challenging the allegedly excessive fees charged for invest. advice provided by robo-adviser Financial Engines Advisors. Source: Bna.com (registration may be required) Northrop Grumman's $16.8m Deal Leads to $5.6M in Attorneys' Fees Abstract: Law firm Schlichter Bogard & Denton was awarded $5.58 million in attorneys' fees following the $16.8 million deal it reached earlier this year in a case involving Northrop Grumman's retirement plans. Source: Bna.com (registration may be required) »» Click here for more Court and Other Legal Issues DOL's Fiduciary Rule Best Practices Arising From the DOL Fiduciary Rule Abstract: This article examines the manner in which the fiduciary rule, and in particular the BIC Exemption, affect business best practices regardless of whether any changes are made to the fiduciary rule and related exemptions. Source: Wagnerlawgroup.com Watchdog Group Sues DOL to See Records for Fiduciary Rule Rewrite Abstract: The independent watchdog group American Oversight filed a lawsuit in U.S. District Court for Washington to force the DOL to release records about revisions to the fiduciary rule now being considered. Source: Pionline.com »» Click here for more on the DOL's Fiduciary Rule Compliance and Regulatory DOL's Form 5500 Modernization Proposal Faces an Uncertain Future Abstract: Work on the Labor Department's effort to expand, streamline and modernize the Form 5500 Series has been halted until a new head of the DOL's Employee Benefits Security Administration (EBSA) is in place. Source: Asppa.org Paying Employee Benefit Plan Expenses Chart Abstract: This 6-page chart is a guide for employers to use in determining which types of expenses can be paid from the assets of an employee benefit plan governed by ERISA and the Internal Revenue Code. Source: Groom.com Chart: Retirement Saver's Credit Limitations for 2018 Abstract: Taxpayers who make eligible contributions to an employer-sponsored retirement plan or IRA may be able to take a tax credit on their income tax return. They may use this chart to calculate their Saver's Credit. Source: Transamericacenter.org »» Click here for more Compliance and Regulatory Material Marketplace News ASPPA Welcomes Adam Pozek as 49th President »» Click here for More Marketplace News
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