Newsletter for March 19, 2018
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In This Issue
Fiduciary Rule
Fifth Circuit Court of Appeals Rejects DOL Fiduciary Rule
Abstract: The Fifth Circuit Court of Appeals vacated the Labor Department's fiduciary rule in a split decision announced late Thursday afternoon, overturning a Dallas district court that was just as adamant in upholding the measure. By a 2-1 vote, the appellate judges held that the agency exceeded its statutory authority under ERISA in promulgating the measure.
Source: Investmentnews.com (registration may be required)
Industry Reacts to Fifth Circuit Fiduciary Rule Ruling
Abstract: Groups representing both sides of the fiduciary debate were quick to respond to news yesterday that the Fifth Circuit Court of Appeals vacated the entirety of the Department of Labor's fiduciary rule. Here's what some of them had to say.
Source: Investmentnews.com (registration may be required)
What's Next for the DOL Fiduciary Rule?
Abstract: The Department of Labor fiduciary rule does not exist anymore after a late-Thursday court ruling. That court decision opens the door for the Securities and Exchange Commission and state insurance departments to take over rulemaking. The Fifth Circuit Court of Appeals' 2-1 decision stunned the industry and has many asking the same question this morning: What now?
Source: Insurancenewsnet.com
»» Click here for more on the DOL's Fiduciary Rule
General Items
Target, Microsoft Lead Move Away From 401k Stock Investments
Abstract: Verizon, Target, Comcast, and Microsoft are among the growing number of public companies rethinking the wisdom behind offering their own stock as an investment option in their workers' 401k plans. In the last five years, some of the country's largest employers have taken steps to reduce or eliminate the company stock held in their retirement plans, according to securities filings reviewed by Bloomberg Law.
Source: Bna.com (registration may be required)
All Auto Everything, Shlomo Benartzi on 401ks in the Digital Age
Abstract: The famed behavioral economist compares autoenrollment and escalation to autopilot, get the altitude and heading wrong and it's all gonna crash. What's just over the horizon for 401k saving nudges, and what dynamic will digital innovation play? Here's what advisors need to know.
Source: 401kspecialistmag.com
Fiduciary and Plan Governance Material
Becoming a Retirement Plan Committee Member
Abstract: When a person is appointed or is being sought to be member of a retirement plan committee, the natural question is to understand exactly what the person is committing to. Simply stated, a committee member is a fiduciary, who is expected to always act on behalf of plan participants, using the care of a person familiar with retirement plans and investments. This article covers the specifics on the role and responsibilities of being a fiduciary.
Source: Planpilot.com
401k Fiduciaries: Is It Time to Hone Your Processes?
Abstract: Three key areas of vulnerability arise from last year's ERISA litigation. This article discusses these vulnerabilities in detail and suggest ways plan fiduciaries can defend against them and reduce their exposure to liability.
Source: Fiduciaryplangovernance.com
How Technology Is Transforming the Fiduciary Role
Abstract: While compliance pressures continue to rise for executives charged with overseeing their organizations' employee benefit plans that are qualified under ERISA, sophisticated technology solutions are beginning to offer a reassuring light at the end of a seemingly endless regulatory tunnel.
Source: Rolandcriss.com
»» Click here for more Fiduciary and Plan Governance Material
Insight: Studies, Research, and White Papers
PSCA Study Finds Roth Usage Doubled in Past Decade
Abstract: Roth availability doubled in the last decade according to the Plan Sponsor Council of America's 60th Annual Survey of Profit Sharing and 401k Plans. PSCA, part of the American Retirement Association, found Roth was offered in 63.1 percent of plans in 2016 compared to 30.3 percent in 2007.
Source: 401khelpcenter.com
More 401k Plans Moving From Revenue-Sharing Model
Abstract: Annual surveys by Callan show a steady decline in the use of revenue sharing. Many 401k plans are moving away from revenue sharing as executives cite the need for greater transparency, simplicity and democracy in how fees are assessed to participants. But confusion remains among some plan executives.
Source: Callan.com
The Mobile Workforce's Missing Participant Problem
Abstract: This 13-page survey on stale address records in employer-sponsored plans was conducted in collaboration with Retirement Clearinghouse. The report is the first of its kind to survey terminated participants themselves about the status of their accounts left behind in former-employer plans.
Source: Rch1.com
»» Click here for More Studies, Research, and White Papers
403b Plans
Litigation Against 403b Plan Fiduciaries
Abstract: The purpose of this article is to provide a brief overview of 403b plans, discuss when such plans are subject to ERISA, review the key allegations raised in ERISA breach of fiduciary duty lawsuits, and discuss the status of these cases.
Source: Groom.com
»» Click here for More 403(b) Material
Court and Legal
401k Service Providers Owe No Fiduciary Duty With Respect to Negotiating Their Fee Compensation
Abstract: Following the findings expressed in three other Circuits, the United States Court of Appeals for the Ninth Circuit recently held that plan administrators are not ERISA fiduciaries when negotiating their own compensation with prospective customers. Instead, because the employer/plan sponsor has the express duty under ERISA to defray reasonable expenses of administering a 401k plan, any claims that fully disclosed fee arrangements are unreasonable "lie against the employer, not the service provider."
Source: Masudafunai.com
Voya Escapes Lawsuit Over 401k Robo-Adviser Fees
Abstract: A 401k investor who accused Voya Financial and its subsidiaries of overcharging for invest. advice from robo-adviser Financial Engines Advisors won't get another chance to make her case. A federal judge on March 13 denied the investor's request to amend her complaint, effectively ending the proposed class action.
Source: Bna.com (registration may be required)
»» Click here for more Court and Other Legal Issues
Compliance and Regulatory
Can Bonuses Be Excluded From Retirement Plan Compensation?
Abstract: This article answers the question: "Is it possible to disregard signing bonuses from plan compensation or do we have to treat those the same as all other bonuses? If they must all be treated the same, could we carve out all bonus payments?"
Source: Dwc401k.com
Form 5500 -- Sponsors Forgetting to File Can Be a Costly Mistake
Abstract: It's important for plan sponsors to know the timing and requirements for filing the Form 5500. Doing so can help you avoid fines and other unnecessary plan expenses. It can also help you keep tabs on your 401k provider to make sure they're completing and filing the Form 5500 competently and on time, which is an important part of your fiduciary responsibility.
Source: 401ktv.com
»» Click here for more Compliance and Regulatory Material
Marketplace News
Empower Retirement Launches Advice and Planning Solution
»» Click here for More Marketplace News
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