How to Gauge Retirement Plan Effectiveness
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General Items How to Gauge Retirement Plan Effectiveness Abstract: It's not easy to get a good sense of whether the 401k or 403b plan your institution offers stacks up favorably with employee expectations. However, it's essential for sponsors to have a good idea of what makes their plan attractive (or not), how to measure it and the overall impact on employee satisfaction. Here's how to start tracking your retirement plan and its effect on the bottom line. Source: Planpilot.com A Top Factor That Determines Happiness in Retirement Has Nothing to do With Money Abstract: Most people accept that the U.S. has a retirement savings crisis. The facts and figures illustrating this crunch are so profuse you can pick them off like low-hanging fruit on a tree. But there are other, less well-known, aspects to retirement beyond finances that weigh heavily on the joy you'll derive from the last third of your life. Source: Aspireonline.com Insight: Studies, Research, and White Papers How America Saves 2018: Small Business Edition Abstract: Small businesses account for 99.7% of all employer firms and more than half of all private-sector employees, according to the Small Business Administration. So how are small businesses preparing their employees enrolled in defined contribution plans for retirement? And how effectively are small-business employees using this benefit? Vanguard addresses questions surrounding small-business retirement behavior in this research. Source: Vanguard.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Uncovering Opportunity in the Small-Plan Market Abstract: Pete Kirtland discusses why many advisors have avoided the small-plan market, what the key is to an advisor making a small- market solution successful and profitable, and some new or different solutions to support this market space. Source: Aspireonline.com Beware 401k Robo-Fiduciaries -- Especially the Human Ones Abstract: There's a lot of talk about robo-advisers, many of which would be troubling to traditional 401k plan advisers if they had a viable business and distribution model. But, retirement plan advisers should be more concerned about robo-fiduciaries, especially "human robos." Source: Investmentnews.com (registration may be required) Fidelity Backs Away From Being 'Point in Time' Fiduciary for 401k Plans Abstract: Fidelity Investments will no longer serve as a fiduciary when it helps employers select investments for their 401k plans, moving away from a policy the firm adopted last year in response to the Department of Labor's fiduciary rule. Source: Investmentnews.com (registration may be required) Participant Communications and Education Inexpensive Ways to Promote Your 401k Plan to Employees Abstract: There are some very simple and inexpensive ways to increase awareness of your retirement plan that as a bonus can be done at almost any time. Yes, boosting awareness of your retirement plan can be a big undertaking. However, on the simple/inexpensive side of things, here are two interesting ideas. Source: Conradsiegel.com Eight Ways for Plan Sponsors to Increase Participation and Employee Deferrals Abstract: Increasing participation is an admirable goal, and for some employers, there is a strong desire to invest in employees to retain them. Often an employer will feel morally obligated to help employees prepare for the future, and with employee populations progressing toward retirement age, it's in an employer's best interest to help them retire on time. Here are some ways we've seen plan sponsors use elements of plan design and communication to successfully increase participation and deferrals. Source: Belr.com »» Click here for more on Employee Communications and Education Court and Legal ERISA Litigation Surging -- Focus on Fees Abstract: After a few years of decline, litigation involving 401k plans "has surged again recently," according to a study published by the Center for Retirement Research at Boston College. This is likely not news to 401k sponsors and service providers, who are confronted with this reality on a near daily basis. The authors of the study point to some consequences -- good, bad, and mixed -- of the 401k litigation trends they've identified. Source: Insidecompensation.com Untimely Small Plan Excessive Fee Suit Dismissed Abstract: An excessive fee suit that had alleged "astronomical" fees in a $25 million plan has been dismissed. The suit was filed in 2016 in the U.S. District Court for the Southern District of Ohio against payday lender CheckSmart Financial LLC's 401k plan. Source: Napa-net.org Brown University Wins Dismissal of Many Claims in 403b Plans Challenge Abstract: While many claims in a lawsuit challenging administration and fees for Brown University's 403b plans were dismissed, a federal district court judge allowed several claims to move forward. The lawsuit alleges fiduciaries approved a TIAA loan program that required collateral as security for repayment of the loan, charged "grossly excessive" fees for administration of the loan, and violated DOL rules for participant loan programs. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Here's Why DC's Latest Plan to Fix Retirement Crisis Is Probably Already Doomed Abstract: Lawmakers in both chambers are trying to build momentum for a variety of legislative fixes that would make it easier for workers to save in tax-preferred retirement accounts, and perhaps build up their short-term savings, which are also depressingly meager. Despite creating an alphabet soup of tax preferences for retirement savings, a crisis yet exists. Source: Bankrate.com Legislation Boosting SIMPLE Plans for Small Businesses Introduced Abstract: A bipartisan bill that its sponsors say will provide greater flexibility and access to small business employees and their employers seeking to utilize SIMPLE plans as an option for saving for retirement has been introduced in the U.S. Senate. Source: Napa-net.org »» Click here for more on Legislative Actions Compliance and Regulatory Peering Through the Regulatory Kaleidoscope Abstract: Attend any retirement industry conference held in 2018 and it will almost certainly include presentations on the topic of evolving and conflicting regulation. One question that comes up repeatedly is: "What is the real source of the almost comical amount of regulatory uncertainty impacting retirement plans, and how can plan sponsors or even their skilled advisers be expected to keep up with the myriad twists and turns?" The article explores the question. Source: Planadviser.com IRS Issues Final Regulations Approving Forfeitures to Fund QNECs, QMACs Abstract: The IRS and Department of the Treasury have issued final regulations amending the definitions of qualified nonelective contribution and qualified matching contribution, settling the issue of whether participant forfeitures can be used to fund QNECs and QMACs. Source: Ascensus.com »» Click here for more Compliance and Regulatory Material Marketplace News Fidelity Launches Advice Solution for Workplace Plan Participants Alliance Benefit Group Expands Footprint in Florida »» Click here for More Marketplace News
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