Fiduciary Awareness Among DC Plan Sponsors Continues to Slip
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Newsletter Sponsor Are All $5,000,000 401(k) Plans Created Equal? 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
Fiduciary and Plan Governance Material Fiduciary Awareness Among DC Plan Sponsors Continues to Slip Abstract: AllianceBernstein announced new research showing that fiduciary awareness among defined contribution plan sponsors has deteriorated significantly in recent years. Even though all survey participants qualified as plan fiduciaries, nearly half (49%) of plan sponsors did not consider themselves fiduciaries. Source: 401khelpcenter.com Outside Plan Counsel -- When Should I Call? Abstract: It doesn't make sense to consult your ERISA plan counsel about ordinary recordkeeping and testing matters, but here is a list of issues that call for legal advice from an expert at the earliest possible time. Source: 401ktv.com »» Click here for more Fiduciary and Plan Governance Material General Items Defined Contribution Plans: Ten New Definitions for 2018 Abstract: The defined contribution landscape is changing rapidly. When this happens, we need to redefine terms to better reflect the new environment. This article identifies 10 terms rendered outdated by change. In each case, Willis Towers Watson provides a more robust, accurate and current definition. Source: Willistowerswatson.com Four Retirement Savings Benchmarks That (Generally) Miss the Mark Abstract: Behavioral finance tells us that human beings are prone to relying on heuristics -- mental shortcuts -- to solve complex problems. While these may not be very accurate, survey data and anecdotal evidence suggest that participants often rely on these benchmarks. Here are four that workers use more often than we'd perhaps like to admit. Source: Ntsa-net.org A Couple's Guide to Retirement Planning Abstract: When youre married or in a committed relationship and approaching retirement, planning your golden years is a dual effort. Aside from money, the onset of extra free time in retirement can challenge a couple's relationship in new ways. Setting expectations early on and planning for changes ahead of time can help couples design their ideal retirement. Source: Usnews.com Insight: Studies, Research, and White Papers Canadian Xennials Worried About Retirement Savings: Survey Abstract: Canadian xennials, those aged 34 to 40, are finding that the pressing expenses of daily life are getting in the way of saving for retirement, according to a new survey by TD Canada Trust. The survey polled Canadians of all ages, including this micro generation between generation X and millennials. Source: Benefitscanada.com More Advisers Expect Increased ESG Demand Abstract: More than one-third, 35%, of asset managers have made the introduction of environmental, social and governance (ESG) investing a high priority, and another 57% say they are placing a moderate level of priority on the task. Together, this makes for a full 92% of asset managers on the path to or considering offering ESG investing options, according to the December issue of The Cerulli Edge. Source: Planadviser.com »» Click here for More Studies, Research, and White Papers 403b Plans Delinquent 401k and 403b Deposits: Same Prohibited Transaction, but Only One is Subject to Penalties Abstract: The IRS Code Section that assesses a penalty on delinquent deferrals, Code Section 4975, does not apply to 403b plans. Unlike parents, who must be fair to all their children and treat them the same, the government doesn't have to penalize all types of plans equally when they commit the same exact prohibited transaction. Source: Belfint.com »» Click here for More 403b Material Court and Legal Fraud Scheme Targeting 401k Accounts Uncovered Abstract: A scheme targeting individual 401k accounts, potentially at multiple recordkeepers, has resulted in a lawsuit by the U.S. Attorney's office in Colorado to recover as much as $2 million in losses. Source: Asppa.org CenturyLink Accused of Giving Workers Bad 401k Investment Abstract: A new lawsuit claims CenturyLink offered its workers a poorly managed and underperforming stock fund in their 401k plan that caused them to lose out on retirement savings. Source: Bna.com (registration may be required) »» Click here for more Court and Other Legal Issues DOL's Fiduciary Rule Plan Sponsors Should Take Action during the New Fiduciary Rule Transition Relief Period Abstract: Sponsors of retirement plans should take advantage of this significantly extended transition period to confirm that advisors to individual plan participants have taken steps to comply with the rule's requirements and prohibited transaction exemptions that are now due to become fully effective on July 1, 2019. Source: Bradley.com DOL Fiduciary Rule -- Still Very Much Alive Abstract: While certain requirements of the Fiduciary Rule have been delayed, the expanded definition of a fiduciary -- the standards to which such fiduciaries are to be held -- is in effect. During the transition period, the DOL is requiring providers to exercise good faith compliance with the Fiduciary Rule. Source: Truckerhuss.com »» Click here for more on the DOL's Fiduciary Rule Compliance and Regulatory 2017 Plan Year-End Compliance Reminders Abstract: Every year, plan sponsors must make sure their plans meet certain compliance requirements. This publication identifies the materials you need to review and will help you prepare for year-end. It only applies to qualified defined contribution plans and 403b plans that are subject to ERISA. Source: Prudential.com Employer's Failure to Deduct Plan Loan Repayments Resulted in Deemed Distribution Abstract: This is a cautionary tale of how a poorly administered participant loan program can result in adverse tax consequences to participants. While this participant's reasonable reliance on the employer and recordkeeper allowed her to avoid the accuracy-related penalty, it did not protect her from the deemed distribution. Source: Thomsonreuters.com Participant Notice Requirements for Safe Harbor 401k Plans Abstract: Employers sponsoring Safe Harbor 401k plans must satisfy certain notice requirements. The notice requirements are satisfied if each eligible employee for the plan year is given written notice of the employee's rights and obligations under the plan and the notice satisfies the content and timing requirements. Source: Qbillc.com Retention Practices: Fiduciary Records Are (Almost) Forever Abstract: How long should fiduciary records be kept? The Court has said that although the statute of limitations for bringing an action against a plan fiduciary for an imprudent investment begins on the date of the investment, the limitation period begins anew if at any time during that period the fiduciary should have reviewed its portfolio and replaced the investment. Source: Fiduciaryplangovernance.com »» Click here for more Compliance and Regulatory Material Marketplace News Millennium Trust Announces Acquisition of InspiraFS GF Pension Corp Merges With Paragon Alliance Group Pensionmark Expands With Indianapolis Based ProCourse Fiduciary Advisors The Standard Hires Brad Weber as Retirement Plan Consultant »» Click here for More Marketplace News
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