DC Plan Sponsor Priorities for 2018
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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
Insight: Studies, Research, and White Papers DC Plan Sponsor Priorities for 2018 Abstract: Mercer details priority areas of focus for defined contribution plan sponsors as they manage their plans and seek to enable participant success. Sponsors look to improve plan participant outcomes, mitigate excessive fee litigation risks, and manage fiduciary responsibilities. Source: Mercer.com Changes, Trends and Best Practices for 401k Administration in 2018 Abstract: It's important for HR to understand 2018's changes and trends in 401ks, but its just as important to ensure that your workforce understands what you're offering and how best to use it to meet their current and future needs. Source: Hrdive.com Abstract: This 30-page study explores plan sponsors' familiarity with the SEC's MMF reform and the extent to which they have taken steps to evaluate the use of money market funds in their DC plans. The study also looks at other trends, such as the use of stable value in target-date funds. Source: Metlife.com Canadian Plans Sponsors Not Measuring Impact of DC Pensions Abstract: Few Canadian employers are tracking the impact of their DC plans or measuring their outcomes, according to new research by Willis Towers Watson. It found only 26 percent of survey respondents measure the retirement readiness of their employees at least every three years, while 30 percent monitor it periodically and 40 percent take no action at all. Source: Benefitscanada.com »» Click here for More Studies, Research, and White Papers General Items Behavioral Finance: How Participants Make Decisions Abstract: Behavioral finance research shows most 401k participants are not active decision-makers. In fact, most participants are dominated by five key behavioral traits: inertia, procrastination, choice overload, endorsement and framing. Dr. Greg Kasten of Unified Trust explains these behaviors and how appropriate strategies can be enacted to allow for participant success despite these behaviors. Source: Fi360.com How Anchoring Hurts 401k Retirement Savers Abstract: With the introduction of the concept of anchoring, Tversky and Kahneman opened the door to a new way of thinking about and addressing the financial decision-making process. For more than four decades, subsequent research has expanded upon their idea. Yet, plan sponsors and participants continue to remain uninformed of the dangers of anchoring. Source: Fiduciarynews.com Fiduciary and Plan Governance Material Employer Fiduciary Exposure/Risks to Employers in Vendor Agreements Abstract: The topic is the fiduciary risk to plan sponsors in vendor contracts as a result of the DOL Fiduciary Rule. Source: Fiduciaryplangovernance.com Retirement Plan Sponsors Can't Afford to Be Cheap Abstract: Paying reasonable plan expenses isn't about paying as little as possible, so it means that plan sponsors don't need to be cheap. They can't afford to be cheap because being cheap can cost a plan sponsor a lot more in the long run. Source: Jdsupra.com »» Click here for more Fiduciary and Plan Governance Material Items of Special Interest to Service Providers How Merrill Lynch 'Shot to Hell' the RIA Fiduciary Citadel Abstract: The DOL's fiduciary rule has created an oddity in the 401k business where 401k RIAs are the giants protecting market share against upstart RIAs. The result, in the case of Merrill Lynch at least, is a new effort that has all the hallmarks of innovation and all the resources of the fatted cow. Source: Riabiz.com 403b Plans Spousal Consent/J&S Issues Under 403b Plans May Trigger Document Conflicts Abstract: The application of the Spousal Consent and Joint and Survivor Annuity rules is an issue which needs to be considered. Article deal with documenting the rules as they apply to 403b plans. Source: Businessofbenefits.com »» Click here for More 403b Material Legislative and Washington DC Automatic Retirement Plan Act Proposes Mandatory Retirement Plans Abstract: Rep. Richard Neal recently introduced the Automatic Retirement Plan Act of 2017. ARPA would require many employers to maintain an automatic contribution plan. In addition, ARPA would enhance employers' ability to participate in multiple employer plans, limit formation of new state-sponsored automatic-enrollment IRA programs, and propose certain other miscellaneous retirement plan provisions. Source: Ascensus.com Legislation Permitting E-Delivery of Plan Information Introduced Abstract: Bipartisan legislation that would allow for electronic delivery of pension and retirement plan information was introduced in the U.S. House of Representatives Dec 11. Source: Asppa.org Lawmakers Introduce Legislation to Increase Plan Access and Lifetime Income Abstract: U.S. House Representatives Ron Kind and Dave Reichert introduced The Small Businesses Add Value for Employees (SAVE) Act of 2017, H.R. 4637. In addition to expanding access to MEPs, the bill would facilitate lifetime income disclosure and clarify the current annuity selection safe harbor. Source: Planadviser.com »» Click here for more on Legislative Actions Compliance and Regulatory Why It's Dangerous to Ignore Undeliverable Mail Sent by Your Retirement Plan Abstract: Plan sponsor's usually find out a participant is missing when a required notice is sent back as undeliverable. Not being able to locate plan participants is a compliance issue when those participants reach age 70 1/2. And the IRS and DOL have recently made RMD compliance a focus of their audits and investigations. Source: Graydon.law The Importance of Internal Controls and Audit and Investigation Readiness Abstract: Diane Wasser, partner-in-charge of EisnerAmper's Pension Services Group, recently sat down with Callan Carter, special counsel at Trucker Huss, APC, a firm of ERISA and employee benefits attorneys, to discuss common retirement plan errors and how to avoid them. Source: Eisneramper.com Plans Should Get Rid of Those Forfeitures Abstract: Forfeitures that occur when people terminate service from retirement plans is usually a problem when the plan sponsor and their providers forget about them. Whether forfeitures are used to pay expenses, reduce employer contributions or is reallocated is specified in the plan document. The problem is when they just left there to collect dust. Source: Jdsupra.com »» Click here for more Compliance and Regulatory Material Marketplace News StoneStreet Advisor Group Announces Name Change Pentegra Joins the Retirement Advisor Council Fi360 Enhances Technology With Redesigned Fee Benchmarker Tool »» Click here for More Marketplace News
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