Your Plan Will Face a Cyber-Attack. Here's How to Prepare
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Cybersecurity Your Plan Will Face a Cyber-Attack. Here's How to Prepare Abstract: One of the most difficult challenges for plan sponsors is determining where to start in their efforts to defend against increasingly sophisticated cyber-attacks. This article is designed to assist plan sponsors with formulating and executing their strategy to protect their information and their assets. Source: Callan.com Cybersecurity and Retirement Plans Abstract: This article discusses whether retirement plans are really at risk and, if so, why. It concludes with some helpful hints and practical advice to reduce cybersecurity risks, some of which are tips employers can share with retirement plan participants. Source: Passwordprotectedlaw.com »» Click here for more on Cybersecurity Issues Fiduciary and Plan Governance What are the "Reasonable" Expenses That Can Be Paid Out From Plan Assets? Abstract: Under ERISA, retirement plan sponsors have a fiduciary duty that requires them to act solely in the interest of plan participants and beneficiaries. Plan sponsors are also limited to using plan assets for the reasonable expenses of administering the plan. Using plan assets for other plan expenses could be a breach of the sponsor's fiduciary duty and lead to potential fines and costly litigation. Source: Bsllp.com Should Participant Behavior Influence Investment Lineup Offerings? Abstract: If you are holding onto a fund in your 401k plan that is underperforming short-term, but participants are signaling their dissatisfaction by transferring their money out, should you consider replacing the fund with something they'd find more attractive? The article gives some thoughts on this question. Source: Fiduciaryplangovernance.com 401k Fee Levelization -- It Can Make Revenue Sharing Worse Abstract: Direct fees are more transparent and fairer than revenue sharing payments, making it easier for 401k plan sponsors to keep their 401k fees in check. However, some 401k providers are now claiming to have fixed the problems with revenue sharing using a recordkeeping process called "fee levelization." This article discusses what "you should understand...about fee levelization." Source: Employeefiduciary.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers 2018 Retirement Preparedness Study Abstract: Many retirees are enjoying a secure retirement, but many pre-retirees envision that the "dream retirement" is becoming more elusive. This study explores how well individuals are preparing for retirement and how they are responding to the challenges they face. Source: Pgim.com Will Working in Retirement Be the New Norm? Abstract: While few current retirees take a job in their "golden years," a new study suggests that large percentages of future retirees expect to continue working during retirement, driven by uncertainty about Social Security and their own financial preparedness. Source: Asppa.org Millennials Benefiting From Retirement Plan Modernization Abstract: Millennials are the first generation to fully benefit from improvements made to retirement plans over the last decade, according to a survey from the Empower Institute. They are on track to replace 75% of their income in retirement, compared to 64% for Americans overall, 61% for Gen Xers and 58% for Baby Boomers. Source: Planadviser.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers When (If Ever) Can a Fiduciary Legally Engage in Self-Dealing? Abstract: While all the talk has been about the now-vacated DOL Fiduciary Rule, we may have forgotten about the ongoing debate pertaining to the matter of self-dealing in circumstances where a fiduciary relationship clearly does exist. On the face of it, there appears to be little room for debate. Upon closer examination, however, the specifics of particular circumstances can muddle things up. Source: Fiduciarynews.com The Benefits of a Non-Producing TPA Abstract: As an advisor, you will need to decide which TPA to partner with when managing your client's 401k plan. As you are determining which provider to use, it is important to understand the distinct roles within the plan and how your partnership decisions could impact your client's experience. Source: Rpgconsultants.com Participant Communications and Education Five Trends in Participant Communications Abstract: Retirement communications have reached a tipping point and leading plan providers are looking to embrace a new path. One that enables powerful and empowering participant experiences. Leaders see five converging trends. Any one of them would be challenging to manage. Taken together, they require fresh perspectives to find opportunities. Source: Broadridge.com Why Plan Participant Education Is Essential Abstract: Plan participants often lack a solid understanding of what drives the success of their retirement savings, and increasingly, their unawareness is leaving them unprepared to leave work. Participant education is a crucial component of accountable sponsorship. This article discusses how to begin a consistent, effective program of participant education. Source: Planpilot.com »» Click here for more on Employee Communications and Education Legislative and Washington DC Retirement Savings Lost and Found Act Reintroduced in Congress Abstract: Previously introduced in 2016, U.S. Senators Elizabeth Warren and Steve Daines have reintroduced legislation aimed at addressing the retirement plan missing participant problem. Source: Planadviser.com »» Click here for more on Legislative Actions Compliance and Regulatory ERISA Bond: What Is It and Do I Need One? Abstract: Almost every sponsor of every tax-qualified retirement plan must obtain a fidelity bond in accordance with section 412 of ERISA. Despite the broad application of this requirement, a surprising number of plan sponsors are unaware of this requirement and, in fact, do not have a bond at all or do not have a bond in the proper amount. This article helps explain the requirement to ensure that those who are subject to this requirement satisfy it. Source: Legacyrsllc.com Hardship Distribution Cannot Be Taken for Repayment of Student Loans Abstract: In Information Letter 2018-1, the IRS responded to a U.S. Congressman who asked why his constituent could not take a hardship distribution from his 401k plan to pay off his daughter's college student loans. The IRS explained that a hardship distribution must, among other things, be necessary to satisfy an immediate and heavy financial need. The IRS confirmed in the Letter that because a safe harbor hardship distribution may be made only for the prospective payment of education expenses, it cannot be made for the repayment of student loans. Source: Drinkerbiddle.com In the Era of Electronic Enforcement, Fidelity Bond Issues Easily Revealed on Form 5500 Abstract: The fidelity bond requirement is high up on the DOL's compliance priorities, and it's not a great leap in logic to assume that the they monitor this on Form 5500. After all, it's the DOL who publishes the database. It could be a red flag for the DOL to take a closer look at the plan. Source: Retirementplanblog.com »» Click here for more Compliance and Regulatory Material Marketplace News Ladenburg Launches Retirement Plan Consulting Platform Rights to The ERISA Outline Book Transferred to ARA Arnerich Massena Announces Hire of Senior Consultant Findley Acquires Hallett Associates Benefit Plans Plus Expands to Ohio and Northern Kentucky BPAS Names SVP of Fiduciary Services »» Click here for More Marketplace News
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