10th Annual Benchmarking Report
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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 10th Annual Benchmarking Report Abstract: T. Rowe Price has released their 10th annual Reference Point benchmarking report (55-pages) of employer-sponsored retirement plans, which is based on the firm's full-service recordkeeping client data for 2017. Source: Troweprice.com Less Is Not More: Information Presentation Complexity and 401k Planning Choices Abstract: This 40-page paper presents the results of an experiment that is designed to examine how information presentation and complexity impact retirement-savings behavior. The hypothesis is that providing concise information with helpful recommendations would improve choices over providing lengthy and detailed information. However, the data suggest that simplifying the presentation of 401k plan information to employees is unlikely to result in vastly improved retirement-planning choices. Source: Iza.org The Retirement Plan Coverage Gap Abstract: Despite all the change and innovation through good economic times and bad, one thing hasn't changed: the percentage of American workers covered by a workplace retirement plan. It's been an issue for a long time, but the tax reform debate has brought a whole new focus to the issue. Increasing access to coverage in a retirement savings plan is, without question, the next big policy issue for our industry. Source: Asppa.org »» Click here for More Studies, Research, and White Papers General Items The Benefit of Saving Regularly for Retirement Abstract: This article explains how saving at least 15% of gross income (including employer contributions) can allow individuals to save enough for retirement that could last decades. An automated approach to saving on a regular basis ensures it's a priority and helps take the emotion out of investing. Source: Troweprice.com Fiduciary and Plan Governance Top Fiduciary Questions 401k Plan Sponsors Must Ask Abstract: For many plan sponsors, their real job has nothing to do with running the company retirement plan. Yet, being named a plan sponsor may carry greater personal risk than their real job. This article identifies fiduciary questions every 401k plan sponsor must ask, what the best answers to those questions are, and why they are important. Source: Fiduciarynews.com Legal Risks Associated With a Retirement Plan's "Missing Participants" Abstract: Besides being an administrative problem, the inability to locate terminated participants can represent legal risks. The DOL has asserted that a plan's inability to locate terminated participants can constitute a breach of duty on the part of the plan's fiduciaries, in violation of ERISA. Lost or missing participants can also lead to plan disqualification risks. Source: Bsk.com »» Click here for more Fiduciary and Plan Governance Material Items of Special Interest to Service Providers 401k Data Dilemma Is Hurting the Industry Abstract: As the tech world moves at lightning speed to leverage consumer data to provide efficiencies and better client experiences, the defined contribution world is taking a Luddite stance, with no apparent solution in sight. Source: Investmentnews.com (registration may be required) How the DOL Fiduciary Rule Changed Norms Abstract: The Department of Labor fiduciary rule might be history, but many financial professionals will continue to feel the effects of its rules for some time to come. They will feel that impact in two ways: from the changing norms fueled by the three-year interaction with the DOL rule; and from lingering department guidance that lives on. Source: Insurancenewsnet.com Court and Legal Matrix Trust Company Accused of Making Unauthorized Transfers of 403b Plan Assets Abstract: Plan participants have filed a lawsuit against Matrix Trust Company for making several transfers to an unauthorized account held by recordkeeper Vantage Benefits Administrators. Source: Planadviser.com Recordkeeper Defeats Second Round of Robo-Adviser Fee Litigation Abstract: The court rejected the argument that constraining the plan's service provider choices amounted to de facto control since the plan had other alternatives to choose from (such as not using an investment adviser or changing recordkeepers) and dismissed the claim without leave to amend, ending the case at the district court. Source: Erisapracticecenter.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Ways & Means Responds on Rothification Rumors Abstract: Rumors notwithstanding, the House Ways & Means Committee tells the American Retirement Association, the committee has no plans to revisit Rothification as part of the new tax reform discussions. Source: Asppa.org »» Click here for more on Legislative Actions State-Based Retirement Programs OregonSaves Retirement Plan Nears $5 Million in Savings After One Year Abstract: Oregon's pioneering state-sponsored retirement plan reached its first birthday this week, after rapid growth during the past two months. OregonSaves now has enrolled more than 32,000 private-sector employees who previously didn't have access to a retirement savings option at work. They've so far set aside a combined $4.6 million of their own money through automatic payroll deductions, with an average withholding of 5.14 percent of salary. Source: Registerguard.com Compliance and Regulatory Top 10 Action Items for 401k Plans Abstract: This checklist includes 10 items to help employers establish their compliance controls. These internal controls are critical in the event of an audit. Source: Compliancedashboard.net Podcast: Fixing Retirement Plan Overpayments Abstract: This 8-minute podcast discusses how to fix retirement plan overpayments, based on (1) the type of plan, (2) whether the overpayment was with respect to a lump sum or ongoing payments, (3) the type of overpayment (whether it was to the wrong person or paid at the wrong time), and (4) who caused the overpayment. They discuss the requirements, the decisions involved, and certain ERISA and taxation issues that can arise when addressing these overpayments. Source: Benefitsbrief.podbean.com »» Click here for more Compliance and Regulatory Material Marketplace News Ascensus Acquires INTAC Actuarial Services »» Click here for More Marketplace News
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