Employee Benefit Plan Best Practices
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In This Issue
Fiduciary and Plan Governance Material Employee Benefit Plan Best Practices Abstract: With the new Department of Labor fiduciary rules further pushed back to go into effect on January 1, 2019, plan fiduciaries have more time to review employee benefit plan best practices. Source: Bsllp.com Those Pesky Plan Documents: What Do They Have to Do With My Fiduciary Duties? Abstract: Worrying about plan documents probably is not keeping you up at night, but maybe is should. Although most plan fiduciaries are aware of their duties of prudence and loyalty, they may not be tuned into their equally important duty to follow the terms of their written plan documents. This "sleeper" duty could catch you by surprise. Source: Boutwellfay.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Three-Quarters of Americans Are in the Dark When it Comes to 401k Fees Abstract: A new TD Ameritrade survey of 1,000 investors shows that 96 percent of people know how much they pay each month for streaming media services like Netflix, Hulu and Spotify and yet just 27 percent know how much they're paying in fees on their 401k accounts. Source: Marketwatch.com Americans on Target to Have 80% of the Income They Will Need in Retirement Abstract: Americans' retirement score has reached a high of 80, meaning that they will have 80% of the income they will need in retirement, according to a survey of 3,100 people by Fidelity Investments. This is a marked improvement from 2005, when the score was 62. However, Fidelity ranks the score of 80 as fair, meaning that there is still a good amount of work that needs to be done. Source: Planadviser.com Millennial Benefit Trends Report Abstract: This report provides a look at exactly how millennial job seekers prioritize the variety of employee benefits that may be offered, as well as what the best practices are for this critical stage of the job hunt. The 14-page report aims to provide a resource for employers who want to better understand what this generation wants -- the millennial mindset -- when looking for a job. Source: Pentegra.com American Views on Defined Contribution Plan Saving Abstract: The survey polled respondents about their views on defined contribution (DC) retirement account saving and their confidence in 401k and other DC plan accounts. Survey responses indicated that households value the discipline and investment opportunity that 401k plans represent and that households were largely opposed to changing the tax preferences or investment control in those accounts. Report is 32 pages. Source: Ici.org »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Are Advisors Becoming Fee Litigation Defendants? What to Do About It Abstract: A 403b lawsuit against New York University has been amended to include Cammack LaRhette, the plan's investment advisor, as a defendant in addition to the plan committee. There are some actions that would put an advisor and a co-fiduciary plan committee in a better position to defend plan choices. Source: Cohenbuckman.com 2017 Retirement Plan Mobile Enhancements Abstract: Over the course of 2017, multiple Retirement Plan Monitor coverage group firms launched new mobile apps and revamped existing apps, integrating more account data, introducing transaction capabilities and harnessing new mobile technologies to add app features. These are all welcomed enhancements as Americans continue to increase their already-high level of dependency on mobile devices for internet access. Source: Corporateinsight.com Court and Legal Woman Sentenced for Retirement Plan Embezzlement Abstract: A former bookkeeper at Zenith American Solutions in Oklahoma City, was charged last year with wire fraud. In June, she pleaded guilty, admitting to making the fraudulent transfers to her own bank accounts between July 2014 and January 2017. Source: 401kspecialistmag.com Mutual of Omaha Sued Over Affiliated Funds in 401k Plan Abstract: The proposed class action accuses Mutual of Omaha of filling its 401k plan with affiliated investment funds that were essentially funds offered by third parties plus an extra layer of fees that went to the Nebraska-based insurer. The company also tacked on extra layers of fees to unaffiliated funds in the 401k plan, according to the complaint. Source: Bna.com (registration may be required) »» Click here for more Court and Other Legal Issues Cybersecurity Issues Preparation and Practice: Keys to Responding to a Cybersecurity Incident Abstract: Despite constant advances in available cybersecurity measures, there is no such thing as perfect security, and companies must be prepared to respond to a significant cybersecurity incident at a moment's notice. This article describes some key steps companies can take to respond to a cybersecurity incident in a swift, efficient, and effective manner. Source: Cov.com »» Click here for more on Cybersecurity Issues State-Based Retirement Programs Opt-Outs Running High in OregonSaves Program Abstract: The nation's first state-run retirement plan for private sector workers is picking up steam, but the opt-out rates are a bit of an eye-opener. Source: Asppa.org
Compliance and Regulatory EBSA Restores $1.1B to Benefit Plans, Participants and Beneficiaries Abstract: By enforcing ERISA, the DOL's Employee Benefits Security Administration restored more than $1.1 billion to retirement plans, health plans and other welfare benefit plans such as those providing life or disability insurance, in fiscal year 2017. Source: Planadviser.com Abstract: The tax code governing 401k plans was written to prevent qualified retirement plans from overly favoring Highly Compensated Employees. The ADP test uses mathematical equations to compare the participation and contribution rates of the HCEs to the NHCEs to determine whether the plan is discriminating in favor of the HCEs. This article reviews the test and how it works. Source: Legacyrsllc.com Definition of Compensation Failures Abstract: Compensation is used for many different purposes in a 401k Plan including the calculation of employee and employer contributions. During 401k audits, definition of compensation issues are among the most prevalent failures. Source: 5500audit.com IRS Wants Hurricane Distributions Reported as Penalty Tax Exception on 2017 Forms 1099-R Abstract: The IRS mandates the use of Code 2 on Form 1099-R to report hurricane Harvey, Irma, or Maria distributions made in 2017, known as "qualified hurricane distributions" under the relief provided to victims by both the IRS and Congress. Source: Ascensus.com »» Click here for more Compliance and Regulatory Material
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