Seven Rules Every Professional Fiduciary Must Follow
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Fiduciary and Plan Governance Seven Rules Every Professional Fiduciary Must Follow Abstract: There are legal rules, then there are common sense rules. This article is about the common-sense rules. Common sense refers to those standards and practices that helps one excel in the front lines of the real world. Here are seven very practical rules every professional fiduciary must follow. Source: Fiduciarynews.com Fiduciary Litigation: Best Practices for DC Plan Fiduciaries Abstract: When employees allege the employer or plan sponsor has not acted in the sole interest of the participants or followed the plan requirements, the plan sponsor may be liable for losses and damages which result. However, by following the best practices for defined contribution plan fiduciaries, plan sponsors can avoid litigation and limit potential losses. Source: Bsllp.com What Makes a 401k Plan Sponsor a "Mark" for Litigation Abstract: Certain 401k plan sponsors can be targets for litigation because they're showing something glaring that shows that they are not exercising their fiduciary duty in a prudent manner. To avoid being a "mark" for 401k litigation, the plan sponsor should avoid the items noted in this article. Source: Jdsupra.com »» Click here for more Fiduciary and Plan Governance Material General Items The Reason Many DC Participant Communication Programs Fail Abstract: One facet many participant communication professionals don't consider is intent, whether the individual participant is planning to make a change to his or her retirement plan account. Depending on their level of intent, participants will either require more specific information to inform their upcoming decision, or content that validates their current retirement saving strategies or motivates necessary changes. Source: Marketstrategies.com Evaluating Retirement Income Solutions Abstract: Long-term financial security is an ultimate goal of any retirement plan and account. And as average lifespans grow, the term "long-term" takes on heightened importance. Thus, the rise of retirement income solutions that seek to help provide financial resources for a lifetime. But a retirement plan professional needs to be able to evaluate the effectiveness and worth of those solutions. A recent paper offers suggestions on doing just that. Source: Asppa.org Insight: Studies, Research, and White Papers 2018 Defined Contribution Plan Participant Survey Findings Abstract: This survey reveals that, although participants are making progress and gaining confidence overall, more work is needed. In a series of three articles, J.P. Morgan discusses their findings and the steps plan sponsors can take to further strengthen their plans. Source: Jpmorgan.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Almost Three Quarters of DC Advisors Offer Financial Wellness Abstract: According to LIMRA Secure Retirement Institute, 73 percent of advisors report that they specifically offer financial wellness support in their defined contribution plans. Financial wellness programs offer the advisor an opportunity to use creative ways to provide value-added services and programs to their plan sponsor clients. Source: Limra.com SEC Best Interest Proposals: What They Mean for Investment Advisors Abstract: This 16-page paper focuses on the RIA Interpretation and its impact on investment advisors. In addition, it briefly discusses the proposed Form CRS relationship summaries and highlights some of the provisions that impact RIAs. Source: Tdainstitutional.com Court and Legal Appeals Court Upholds Dismissal of Wells Fargo 401k Lawsuit Abstract: A federal appeals court in St. Louis upheld a U.S. District Court judge's dismissal of an ERISA breach claim against Wells Fargo & Co. by a participant in the company's 401k plan, who alleged fiduciaries could have offered a better-performing nonproprietary investment choice. Source: Investmentnews.com (registration may be required) Court Orders Business Owner to Prison for Embezzling 401k Funds Abstract: The court-ordered restitution includes $69,000 in employee and matching employer contributions, as well as lost earnings due to the 401k plan, and approximately $4.3 million for fraudulent loans and identity theft. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Will Congress Enact Retirement Legislation This Year? Abstract: Conventional wisdom suggests that chances are slim that retirement policy legislation will be enacted in the remaining days of the legislative calendar going into the mid-term elections, but this year might be different. Source: Asppa.org »» Click here for more on Legislative Actions Compliance and Regulatory SEC Proposed "Modernization" of Fund Report Delivery Rules Impacts Both 403b and 401a Plans Abstract: As a reminder that retirement plans do not exist in an ERISA "bubble," the SEC proposed Rule 30e-3 3 this past June which will fundamentally rework the manner in which mutual fund prospectuses, proxy material and other fund reports are delivered to shareholders. Why should this matter to retirement plans? Source: Businessofbenefits.com Less Is More: 401k/403b Account Consolidation Abstract: The presence of inactive, small-balance accounts within the plan can be costly for participants and sponsors alike. The best option available for staving off the headaches associated with large numbers of these accounts is consolidation. A quick look at the causes and costs of this trend can help highlight the need for an effective plan for implementing account rollovers. Source: Planpilot.com IRS Issues 2018 Version of Form 1099-R for Retirement Plan Distributions Abstract: Retirement plan administrators (including administrators of 401k plans) are required to report plan distributions on Form 1099-R, which they file with the IRS and deliver to the plan participant or beneficiary. While the 2018 form and instructions largely mirror the 2017 version, there are a few changes. Source: Thomsonreuters.com »» Click here for more Compliance and Regulatory Material Marketplace News USI Consulting Group Hires VP, Retirement Services Transamerica Hires for Retirement Plan Distribution Roles »» Click here for More Marketplace News
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