DC Plan Trends That Plan Sponsors Need to Know
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In This Issue
Insight: Studies, Research, and White Papers DC Plan Trends That Plan Sponsors Need to Know Abstract: Research from Deloitte and Callan observed defined contribution plan trends and priorities for 2018 as plan sponsors strive to create better long-term outcomes for participants. Plan sponsors heavily cited the already mentioned retirement readiness as a main concern in addition to continued effort to address fees and improve participant communication. Here are some industry trends that are reshaping how employers approach their DC plans now. Source: Planpilot.com What Explains the Widening Gap in Retirement Ages by Education? Abstract: Over the last three decades, the average retirement age has increased by about three years, to 64.6 for men and 62.3 for women. But this trend is not uniform across socioeconomic groups. This 8-page paper examines several potential causes of the unequal increases in retirement ages. Source: Bc.edu Work for Fun in Retirement? Many Say They Will Abstract: Asked about the major reasons they want to work beyond the traditional retirement age, Americans point to both wants and needs. The most common response is that people want to stay active and involved, or that they simply enjoy working; a fifth say they expect to need to work. Source: Plansponsor.com »» Click here for More Studies, Research, and White Papers General Items Four Key Benefits of a Strong Financial Wellness Program Abstract: When designed properly, financial wellness programs can help employers enhance their benefits packages and realize significant cost savings by helping employees retire on time, be more productive, and enjoy better health. Source: Strategicbenefitservices.com Groups Call for New Social Contract for Retirement Abstract: Nearly half of today's workers and retirees fear that future generations of retirees will be worse off than those currently in retirement, cited by 49% globally and 46% in the U.S, according to "The New Social Contract: A Blueprint for Retirement in the 21st Century." The report is based on a survey of 16,000 workers and retirees in 15 countries. Survey finds that to prevent future retirees from challenges, governments and employers will have to step up to the plate. Source: Plansponsor.com Fiduciary and Plan Governance Fiduciaries, Protect Yourselves - Hire a Great Adviser Abstract: Caveat emptor is a common Latin phrase meaning "buyer beware." Now that it appears that the decision striking down the Fiduciary Rule will not be appealed to the Supreme Court, plan fiduciaries should keep that warning in mind when dealing with anyone providing advice. Smart fiduciaries will take it upon themselves to make sure they are getting outside advice from someone who puts the plan participants first and stands behind the advice, and won't wait for the SEC or states to protect them. Source: Cohenbuckmann.com »» Click here for more Fiduciary and Plan Governance Material 403b Plans Paying "Reasonable" 403b Plan Expenses Abstract: One of the perennial issues facing the sponsors, participants and fiduciaries of 403b plans, as well as the consultants servicing or advising such individuals or plans, is plan expenses. Section 403b plans, particularly those that are covered ERISA, must carefully watch what they spend with their limited resources. Source: Ntsa-net.org »» Click here for More 403b Material Plan Automation Debt "Limits" -- Causation, Correlation or Coincidence? Abstract: The "crowding out" concern -- that automatic enrollment would stretch already strained financial resources, particularly among lower-income workers -- has long been a sticking point for those advocating caution regarding automatic enrollment. Source: Asppa.org »» Click here for more on Automatic 401k Plan Features Court and Legal Abstract: The following topics are covered in this presentation slide deck: 401k and 403b fee litigation, fiduciary risk on alternative investments. proof of causation on breach and damages, and ESOP trials and valuation issues. Source: Americanbar.org Northwestern University Beats Jerry Schlichter 403b Lawsuit Abstract: Northwestern University has become the second college to beat back allegations of retirement-plan mismanagement, prevailing in a lawsuit brought by prominent plaintiffs' attorney Jerry Schlichter. Source: Investmentnews.com (registration may be required) Edison Executives Beat Latest Challenge to Stock Losses in 401k Abstract: Two Edison International top executives defeated again a worker's lawsuit challenging their decision to retain allegedly inflated Edison stock in the company's 401k plan. Source: Bna.com (registration may be required) »» Click here for more Court and Other Legal Issues Legislative and Washington DC Could Small Plans Duck Fiduciary Responsibility? Abstract: There's a bill currently in Congress that would essentially remove fiduciary responsibility for small plan sponsors, and perhaps the need for retirement plan advisors. The bill (H.R. 4523, which is also known as the Automatic Retirement Plan Act of 2017) was introduced by Rep. Richie Neal last December. Source: Napa-net.org »» Click here for more on Legislative Actions State-Based Retirement Programs Lawsuit Seeks to Halt Rollout of California Secure Choice Savings Abstract: The Howard Jarvis Taxpayers Association wants a federal district court to halt the program, based on ERISA preemption and the possibility that home-owning Californians could be called on to pay additional taxes to support Secure Choice, which aims at opening up retirement investing opportunities. Source: Planadviser.com Compliance and Regulatory Podcast: Top Ten Workplace Retirement Plan Administration Mistakes Abstract: Mistakes are made when running workplace retirement plans. Marcia Wagner, the founder of The Wagner Law Group, brings her over thirty years of experience working on ERISA matters to this podcast and shares her list of the top 10 mistakes she sees retirement plan sponsors make. Source: 401kfridays.com ERISA Tips: Participant Plan and Investment Fee Disclosures Abstract: Title I of ERISA sets basic requirements for the disclosure of information; among those requirements are rules for disclosures concerning the plan and investment fees that are to be made to participants and beneficiaries with the authority to direct their own investments in individual account plans. Source: Ntsa-net.org Abstract: The Tax Cuts and Jobs Act enacted late in 2017 and the Bipartisan Budget Act enacted in early February this year both made changes to the laws regarding rollovers from retirement plans and when a plan must accept certain rollovers. The tax notices that all qualified retirement plans provide to participants when their employment terminates need to be updated to reflect the changes to these rules. Source: Winstead.com »» Click here for more Compliance and Regulatory Material
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