Small 401k Plan Fees Decoded
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Newsletter Sponsor The Fiduciary Rule and Fee Disclosure Keep 401k Fees a Hot Topic With the Department of Labor's Fiduciary Rule and 408(b)(2) requirements creating a focus on fees, the new 401k Averages Book is a must have resource guide. Now you can choose from $10,000, $50,000, and $100,000 Average Account Balances to benchmark your clients and prospects. This easy to use to book provides benchmark fee information on investment, revenue sharing, recordkeeping and total plan costs. The 401k Averages Book is the most recognized source for comparative non-biased 401k information. Click here for more information. In This Issue
Insight: Studies, Research, and White Papers Abstract: Understanding small plan 401k fees can be confusing for employers. This infographic can help employers by showing them how small plan fees are divided and what the average plan pays. Source: 401khelpcenter.com PSCA Study Shows Retirement Plan Participation Rates Rising Abstract: The percentage of employees signing up and making contributions to their qualified retirement plan has risen almost ten percent since 2010 according to the PSCA's 60th Annual Survey of Profit Sharing and 401k Plans. PSCA found 84.9 percent of employees made contributions to their plan in 2016 compared to 76.9 percent in 2010. Source: 401khelpcenter.com The Shifting Landscape for Variable Benefits From Canadian DC Plans Abstract: There has been a lot of talk about variable benefits from defined contribution pension plans recently. Ontario has changes in the works to allow them, while a number of provinces have moved on the issue in recent years. And while it's not yet common for plan sponsors to offer variable benefits, some organizations have had the option in place for some time. Source: Benefitscanada.com »» Click here for More Studies, Research, and White Papers General Items How Living Longer Will Impact Your Retirement Abstract: Adjusting investment strategies is just one way in which longevity is changing the face of retirement. Living longer has also translated to seniors having more time to do the things they want and added opportunity for expensive health care expenses to emerge. With older Americans living longer than expected, it's key to get your financial plan in order. Source: Usnews.com Multiple Employer Plans (MEPs): Employer Considerations Abstract: Much of the attraction to MEPs is attributed to economies of scale: by joining forces, smaller organizations look to garner interest from larger providers in terms of pricing, fund offerings and services. As a result, some view MEPs as an all-in-one solution. However, is bigger always better? Source: Cammackretirement.com Fiduciary and Plan Governance ERISA 3(16) Administrative Fiduciary Responsibilities Abstract: Under ERISA, those who administer, manage, or control plan assets have a fiduciary duty to plan participants. This fiduciary duty requires them to act solely in the interest of plan participants and beneficiaries. It is important for plan fiduciaries to understand their roles and responsibilities in deciding whether to outsource some of the administrative tasks to a 3(16) administrative service provider. Source: Bsllp.com Understanding Retirement Plan Sponsors' Responsibilities Abstract: Retirement savings, pensions, and health plans provide enormous value to existing workers and prospective talent, but administering these benefits also comes with strong administrative and even regulatory challenges. Organizations that decide to act as retirement plan sponsors and offer such plans have several key responsibilities to keep in mind. Source: Planpilot.com »» Click here for more Fiduciary and Plan Governance Material Court and Legal University of Chicago Settles 403b Lawsuit for $6.5 Million Abstract: The University of Chicago has agreed to settle a retirement-plan lawsuit for $6.5 million, becoming the first of about 20 prominent universities facing allegations over 403b-plan mismanagement to take such a step. Observers say it's difficult to determine if this is a harbinger of the outcome in the roughly 20 outstanding lawsuits. Source: Investmentnews.com (registration may be required) Court Dismisses Claims Regarding Investments in Former Parent Company's Stock Abstract: A federal district court has dismissed all claims against the fiduciaries of a DC plan over their retention of investments in the stock of the plan sponsor's former parent company. Together, this case and Tatum show how spun-off employers may risk litigation whether they keep investments in their former parent company's stock or force a divestiture. But the outcome here also illustrates how plan fiduciaries who take the frozen fund approach used here can benefit from Dudenhoefer. Source: Thomsonreuters.com Court Orders Independent Plan Fiduciary for Cambridge Technology Group Abstract: The U.S. District Court for the Eastern District of Virginia has ordered the appointment of an independent fiduciary to distribute $535,790 in assets to 24 participants of the Cambridge Technology Group Inc. 401k Plan. Source: Plansponsor.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Video: Retirement Policy and Where Washington Is Focused Abstract: Doug Fisher, Washington Strategy and Advocacy, sits down with Emily Wrightson to discuss the current state of legislative affairs as it pertains to retirement plans, including the proposed Retirement Enhancement and Savings Act. Source: Cammackretirement.com »» Click here for more on Legislative Actions Cybersecurity Cybersecurity and Employee Benefit Plans: Questions and Answers Abstract: This 8-page document was prepared by the EBPAQC to help plan auditors understand cybersecurity risk in employee benefit plans, and to discuss cybersecurity risk, responsibilities, preparedness, and response with plan clients. Source: Aicpa.org »» Click here for more on Cybersecurity Issues Compliance and Regulatory The Quick-Start Guide to 401k Plan Documents and Records Abstract: Whether you're staring down the barrel of a DOL audit or just being proactive, knowing the details on your 401k plan documents (and keeping them organized) can save you a lot of pain. Here is a breakdown of your key 401k plan documents, including some industry-insider tips. Source: Forusall.com What to Do About Missing Participants: Practical Steps for Plan Sponsors Abstract: Sponsors of qualified retirement plans often need to locate missing or unresponsive participants or beneficiaries. There are a number of steps a plan sponsor can take to do so, as well as a number of practices and procedures a plan sponsor can implement to minimize the occurrence of missing participants. Read this article for background information on the issue and steps to take to keep your plan compliant. Source: Drinkerbiddle.com Have You Checked Your Plan's Definition of Compensation Lately? Abstract: If it has been awhile since you have compared your payroll files to the definition of compensation in your plan document, it's recommended that you do an internal audit of payroll now. Don't assume that you know your plan's definition of compensation, but check the actual document. The earlier that any mistakes are detected the less the error will cost you. Source: Graydon.law Tax Reform Requires Plan Sponsors to Update 401k Plan Special Tax Notices Abstract: In several places in the 2009 IRS model 402(f) special tax notice as modified by Notice 2014-74, references are made to the 60-day rollover requirement and consequences that flow from failing to make a rollover within that time. Because TCJA creates an exception to these consequences, the model special tax notice no longer accurately describes the relevant law and needs to be updated to avoid any inaccuracies or correct any statements that have now become misleading due to the new legislation. Source: Ktserisacorner.com »» Click here for more Compliance and Regulatory Material Marketplace News Ascensus Appoints Lisa Massena as VP of Business Development GuidedChoice and dailyVest Partner on PlanAnalytics Upgrade »» Click here for More Marketplace News
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