Best Practices for Fund Replacements to Keep You in Compliance
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In This Issue
Fiduciary and Plan Governance Material Best Practices for Fund Replacements to Keep You in Compliance Abstract: Like good design, people know a good fiduciary process when they see it. When replacing a poorly performing investment in a fiduciary account, follow these best practices to ensure fiduciary compliance. Source: Fi360.com Tips for Meeting 401k Fiduciary Duties Abstract: The Department of Labor's fiduciary rule may be on hold indefinitely, but that doesn't mean that fiduciary duties similarly are in limbo. This article offers some tips for meeting them. Source: Asppa.org How Do You Measure the Success of Your Retirement Plan? Abstract: There can never be enough questions for your investment committee to ask as it reviews your organization's retirement plan. Understanding the underlying strategy of your plan's investment options -- and being able to communication them -- is critical. To better gauge the performance of your committee, this article suggests a few questions to ask at the next meeting. Source: Schneiderdowns.com »» Click here for more Fiduciary and Plan Governance Material General Items Competing Financial Needs Disrupt 401k Saving for Many Americans Abstract: It's not that U.S. workers don't want to save for retirement. In fact, more Americans than ever before say retirement security is important. However, many are experiencing financial stress, which in turn is inhibiting saving. Source: 401kspecialistmag.com Insight: Studies, Research, and White Papers 401k Plan Benchmark Report Released Abstract: Judy Diamond Associates has published the results of the third annual 401k Plan Benchmark Report. The in-depth analysis and report examine approximately 500,000 active 401k plans. Source: Prnewswire.com »» Click here for More Studies, Research, and White Papers 403b Plans The Parallel Universes of 403b Plans Abstract: There are some higher education, healthcare, and non-profit 403b plans that leave a lot to be desired. It is important not to generalize when reading about the failings of 403b plans or make assumptions about any one particular 403b plan, without close examination. Source: Cammackretirement.com The IRS's Gradual Shift on Applying 415 Limits to 403b Plans Abstract: There is a little noticed change in the IRS's recent update of Publication 571 (which is the IRS's 403b technical guide). In a highlighted box on page four is a statement on how the limits on "annual additions" -- otherwise known as the 415 limits -- apply. This innocuous statement is pretty outstanding, finalizing a quiet morphing over a generation of the way the IRS applies a regulation in a way we rarely see. Source: Businessofbenefits.com »» Click here for More 403b Material Court and Legal TPA Accused of Stealing Assets From Retirement Plans Abstract: Vantage Benefits has already been ordered to restore funds to one 401k plan; now a new lawsuit accuses it of stealing funds from MBA Engineering's 401k and cash balance plans as well as approximately 20 others. Source: Planadviser.com Gannett 401k Participant Sues Over Stock Holdings Abstract: A participant in the Gannett Co. Inc. 401k Savings Plan sued the company and plan executives, alleging they violated their fiduciary duties for holding too much stock in Gannett's former parent company in the 401k plan. Source: Investmentnews.com (registration may be required) Edward Jones Can't Escape 401k Fee Class Action Abstract: Edward Jones couldn't convince a federal judge to throw out claims that it violated federal benefits law by paying excessive recordkeeping fees and offering imprudent investment options in its 401k plan. Source: Bna.com (registration may be required) Court Orders Plan Fiduciary to Pay Restitution to 401k Plan Abstract: A fiduciary to the Southside Manufacturing Corp. Retirement 401k Savings Plan will pay restitution of $87,276 for stealing from an employee benefit plan, and failing to pay federal taxes. Source: Planadviser.com »» Click here for more Court and Other Legal Issues State-Based Retirement Programs Wyoming Task Force Tackles Retirement, State-Run Plan for Private Sector Abstract: Wyoming Gov. Matthew H. Mead has signed legislation (WY SF 116) creating a retirement income security task force to study the Equality State's retirement preparedness and retirement savings programs and the possibility of creating a state-run retirement plan for private-sector workers. Source: Asppa.org ERIC Strikes a Deal With Oregon on OregonSaves Reporting Requirement Abstract: The ERISA Industry Committee filed a lawsuit Oct. 12 against the Oregon Retirement Savings Board, saying that a provision of the state's OregonSaves retirement program for private-sector employees obstructs ERISA, specifically the employer reporting requirement imposed by the program. The trade group has settled its lawsuit against the ORSB, but the issue raised doesn't seem to be settled yet. Source: Asppa.org Compliance and Regulatory Contingent Workers -- Consequences for Qualified Retirement Plans Abstract: Distinguishing common-law employees from independent contractors can be challenging. Mistakes in this area can trigger dire consequences for qualified retirement plans, like plan disqualification and participant lawsuits under ERISA. Plans should periodically review worker classifications for compliance purposes, paying particular attention to eligibility terms and definitions, as well as proper inclusions and exclusions of classifications for testing purposes. Article reviews some proactive strategies. Source: Conduent.com Helping Plan Sponsors Deal With the Missing Participant Problem Abstract: When participants terminate employment, either through turnover or retirement, many often leave their DC accounts with their former employers. However, if the employer has lost track of the participant's location, it now has a missing participant. It may not be the fault of the sponsor, but it remains the responsibility of the sponsor to find the participant. Source: Napa-net.org What Is a Prohibited Transaction Under ERISA? Abstract: ERISA broadly prohibits plan fiduciaries from causing the plan to enter either a direct or an indirect transaction involving the plan or its assets that would have a potential for conflicts of interest. This one-page article provides an overview of these prohibited transactions. Source: Boutwellfay.com »» Click here for more Compliance and Regulatory Material Marketplace News Ascensus Expands Presence in Northeast With Acquisition »» Click here for More Marketplace News
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