Vanguard Drops S&P 500 Index Fund From Its Employees' 401k Plans
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General Items Vanguard Drops S&P 500 Index Fund From Its Employees' 401k Plans Abstract: The S&P 500 index fund, one of the low-cost examples of passive investing that put the firm on the investing map, will be dropped this month from the mutual fund giant's menu of options for its employees' 401(k) plans. Source: Philly.com Four Ways Modern Plan Design is Driving Better Retirement Results Abstract: While part of the responsibility for successful planning falls on employees themselves, employers have a critical role to play, too. By providing access to plan features that encourage habits of success, plan sponsors can help employees achieve their retirement goals. Source: 401kspecialistmag.com Insight: Studies, Research, and White Papers Accurately Evaluating the "Retirement Crisis" Abstract: In this 17-page paper, researchers from the Employee Benefit Research Institute apply the EBRI RSPM to assess the potential size of the U.S. retirement deficit, and to understand the impact of various related policy initiatives currently under consideration. Source: Ebri.org Cerulli Foresees 401ks Embracing Retirement Income Abstract: With millions of Baby Boomers now retiring, Cerulli expects the next big development will be plans embracing retirement income. Cerulli says the first step retirement plan stakeholders can take is to encourage plan sponsors to work to keep retired participants in their plan, to "embrace a more holistic view toward their participants." Source: Planadviser.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers How 401k Financial Advisors Can Thrive Around Narrowing Margins Abstract: There was a time when a 401k advisor could get 75 to 100 basis point working on a plan, but now an advisor charging 25 basis points on a large plan is considered expensive. These are the pitfalls of a transparent marketplace focusing on increased fiduciary oversight and narrowing margins. This article is about giving ideas to advisors on how they can better market themselves in an increasingly more competitive marketplace. Source: Jdsupra.com Why 401k Advisers Should Heed TPA Consolidation Abstract: Third-party administrators have been in the spotlight following a string of recent acquisitions, and retirement plan advisers should take note. TPAs have been getting more attention largely because of an aggressive roll-up strategy being executed by the private-equity backed firm Ascensus. Source: Investmentnews.com (registration may be required) 401k Advisers, Is Your Value Proposition Even Valuable? Abstract: If you talk to any marketing consultant, one of the top things they bring up is having a value proposition. Retirement plan advisers' most frequent value proposition centers around the investment review process. But there's a big issue with that: It isn't really what plan sponsors value or why they hire an adviser. Source: Investmentnews.com (registration may be required) 403b Plans Deadline Looming in the Distance for 403b Plans Abstract: Last year when the IRS announced that the initial remedial amendment period for 403b plans will end March 31, 2020, the natural reaction to this very important (but rather remote) deadline was to immediately put it on the to-do list, somewhere near the bottom, where it has been languishing ever since. If this describes your reaction, it's time to move it to the front burner and take some action. Source: Benefitsbryancave.com »» Click here for More 403b Material Court and Legal Bank of America Wins 401k Asset Transfer Appeal Abstract: Bank of America Corp. defeated an appeal challenging a 20-year-old, $3 billion transfer from the company's 401k plan to its pension plan. A federal district court didn't err in using the bank's approach to determine whether it profited from the transfers and then conclude that since it didn't, the workers weren't entitled to any monetary recovery. Source: Bna.com (registration may be required) Invesco Sued for 'Indiscriminately' Loading 401k Plan With In-house Funds Abstract: Invesco has been sued for allegedly stacking its 401k plan with proprietary investments, joining the ranks of more than 20 asset managers who have had to defend against similar claims of mismanagement by employees seeking to claw back lost retirement savings. Source: Investmentnews.com (registration may be required) Judge Scales Back Workers' Claims Ahead of Deutsche 401k Fee Trial Abstract: The workers can move forward with their claims of fiduciary breach based on the offering of in-house funds that carried excessive fees and performed poorly, as well as Deutsche's alleged failure to monitor high fees and fiduciaries, Judge Lorna G. Schofield of the U.S. District Court for the Southern District of New York held June 6. The workers, however, can't proceed with their claims that Deutsche engaged in prohibited transactions under ERISA by offering proprietary mutual funds in the plan. Source: Bna.com (registration may be required) Vanderbilt University Faces New Claim Over Product Marketing to 403b Participants Abstract: The new claim in the 403b plan lawsuit says the defendants should have protected participant data as plan assets and not allowed TIAA to use it to market its products and services to participants. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Compliance and Regulatory Tax Reform Makes Now a Good Time for a 401k Plan Compensation Definition Audit Abstract: The Tax Cuts and Jobs Act made several changes to the tax code that eliminated the ability for employers to deduct and employees to exclude from income certain fringe benefits received by the employee. As a result, plan administrators will need to review their 401k plan's definition of compensation and may need to make appropriate changes. Source: Ktserisacorner.com IRS Proposed Regulations Would Require More Preparers to File Returns Electronically Abstract: The IRS published proposed Treasury regulations on June 1, 2018 that would alter the rules for required electronic filing of certain information returns. This would include information returns in the Forms 1098, 1099, 1042 and 5498 series, which are used to report information for IRAs, retirement plans, health savings accounts, and other plans. Source: Ascensus.com ARA Recommends Expanding Determination Letter Program Abstract: The American Retirement Association has recommended that the IRS expand its determination letter program to cover specific situations, which the ARA believes "would resolve the most critical open issues that impact the qualified status of the form of the plan and would reduce burdens on the plan sponsors." Source: Asppa.org EBSA Threats of "Alternative Enforcement Actions" Trigger ARA Response Abstract: The ARA has filed formal comments concerning a regional office of EBSA that has been threatening enforcement actions against plan sponsors who correct the late deposit of participant contributions or loan repayments without making a formal VFCP submission. Source: Asppa.org »» Click here for more Compliance and Regulatory Material Marketplace News USI Consulting Group Hires VP, Retirement Services Kelso & Company to Make Significant Investment in Newport Group Jeffrey Schreiber Joins TRA as Director of Sales Transamerica Adds to Mid-Market Retirement Distribution Team Securian Adds Open MEP to Portfolio of Retirement Plan Solutions NTSA Updates 'The Source' to Reflect Impact of Tax Reform and Fiduciary Rule Vestwell Partners With Allianz Life Ventures Columbia Benefit Consultants Joins the Alliance Benefit Group »» Click here for More Marketplace News
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