Prudent Practices for Assessing Bundled Services
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Fiduciary and Plan Governance Prudent Practices for Assessing Bundled Services in This Era of 401k Plan Fee Litigation Abstract: Given the prevalence of ERISA fee litigation, 401k plan fiduciaries are very concerned about identifying and implementing best fee practices to insulate themselves from liability against such claims. Over 50 so-called "fee cases" have been filed to date, with the majority pursued as class actions. Like most fiduciary benefit claims, however, the liability risk can be substantially mitigated through preventive practices. Source: Bna.com Can Your 401k Plan Include Socially Responsible Investments? Abstract: Socially responsible investing includes funds that take environmental, social and governance factors into account when selecting the fund's underlying investments. They are often referred to as ESG Funds. Studies show that millennials want socially responsible investments. This article discusses what you should consider. Source: 401ktv.com Abstract: Determining whether a breach of fiduciary duty has occurred is a science. It is an organized way of gathering and analyzing evidence about the behaviors and methodologies of those who make choices. Source: 401khelpcenter.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Personality Influences Path to Retirement Abstract: Only about a third of the older people who are working full-time will go straight into retirement. Most take zigzag paths. These paths include gradually reducing their hours, occasional consulting, or finding a new job or an Uber stint that is only part-time. Other people "unretire," meaning that they retire temporarily from a full-time job only to decide to return to work for a while. A new study finds that the paths older workers choose are influenced by their personality and by how well they're able to hold the line against the natural cognitive decline that accompanies aging. Source: Bc.edu Target-Date Funds Widely Used by Younger Plan Participants Abstract: Younger 401k plan participants have large allocations to target-date and other types of balanced funds, according to a new joint study released today by the Investment Company Institute and the Employee Benefit Research Institute. At year-end 2016, 64 percent of 401k participants in their twenties held target-date funds, compared with 45 percent of 401k participants in their sixties. Source: Ebri.org College Debt Can Limit 401k Saving Abstract: The loan payments, which can be a few hundred dollars a month, take a big bite out of young adults' still-low levels of disposable income. The debt makes them more prone to bankruptcy and lower homeownership rates. A key question is whether this pressing financial obligation might affect their preparation for a retirement that is several decades away. Here's what researchers for the Center for Retirement Research learned about student debt. Source: Bc.edu »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers How to Keep Your 401k Clients Out of Court Abstract: While 401k lawsuits show no sign of letting up, the man at the forefront of class-action retirement plan litigation foresees a day when this will change. "Ultimately, it may be that 401k cases end because [retirement plan] sponsors change their practices." Source: Investmentnews.com (registration may be required) Best Interest and Best Practices: Improving Retirement Outcomes Abstract: This is the first of a series of articles by Fred Reish that will focus on Best Interest and Best Practices. Those topics will give flexibility to talk about a range of subjects that affect both service providers, including advisors, and plan sponsors, including 401k committees. This inaugural article deals with the meaning of "Best Interest." Source: Fredreish.com Referrals are Critical to 401k Business, But Where Do You Find Them? Abstract: Referrals are often an integral part of a firm's marketing strategy and yet, determining the best way to seek them out can stymie the savviest of advisors. There are a number of traditional methods that can be effective when asking for and receiving quality referrals from plan sponsors, as well as participants. However, experts also talk about techniques that can make an impression. Source: 401kspecialistmag.com Court and Legal Podcast: Steps to Reduce Risk of Claims Associated With 401k Plans Abstract: This 12-minute podcast discusses participant directed defined contribution plans and the lawsuits against the fiduciaries and service providers which are responsible for administering them. Also examines the best practices that can achieve favorable results for plan participants and the practices that can avert litigation or enable plan fiduciaries to effectively defend themselves if there is litigation. Source: Erisapracticecenter.com Fiduciary Best Practices Helped NYU Win ERISA Class Action Abstract: District Judge Katherine B. Forrest's opinion in Sacerdote highlights the various fiduciary governance practices the NYU fiduciaries followed in making the decisions at issue in the case. This article summarizes the fiduciary practices and explains how they helped the NYU fiduciaries prevail at the trial level. Source: Barclaydamon.com A Market Sell-Off Could Mean More 401k Lawsuits Abstract: The current bull market is nearly 10 years old. Unemployment is low in many industries, there are more 401k millionaires than ever before and wage growth is looking up. Anyone saving in a 401k is likely doing pretty well right now. However, markets don't maintain an upward trajectory forever. And in the world of employer-sponsored retirement plans, negative returns and fiduciary risk are positively correlated. Source: Investmentnews.com (registration may be required) »» Click here for more Court and Other Legal Issues Legislative and Washington DC Ways & Means Moves on MEPs, PEPs and Other Retirement Savings Provisions Abstract: Following a day-long and occasionally contentious markup session, the House Ways & Means Committee approved on party-line votes three tax bills as part of the Tax Reform 2.0 push, one of which focuses on retirement savings. Source: Ntsa-net.org Six Retirement Changes to Watch in House's Tax 2.0 Plan Abstract: Retirement savings is a centerpiece of House Republicans' bid to make last year's tax cuts permanent with changes that would benefit new parents, older retirees, and IRA contributors with less than $50,000 in their nest egg. Source: Bna.com »» Click here for more on Legislative Actions Compliance and Regulatory 401k Plan Management: How to Better Organize Participant Data Abstract: It would be wonderful if every 401k plan sponsor maintained meticulous participant data from day one, but that's rarely the case. Time, expense, and resource constraints can lead plan sponsors to focus on other priorities. Often, the consequence of outdated data isn't recognized until some major event occurs. Source: 401kspecialistmag.com Treatment of the Annual Compensation in DC Plans in a Short Plan Year Abstract: This article discusses how defined contribution retirement plan plans sponsors should adjust the annual compensation limit under Internal Revenue Code Section 401(a)(17) in a plan year of less than 12 months (a short plan year), such as a first plan year, an amended plan year, or a year of plan termination. Source: Eisneramper.com »» Click here for more Compliance and Regulatory Material Marketplace News Independent Retirement Hires Veteran Plan Consultant 401kplans.com Launches Digital Platform for Retirement Plan Due Diligence NAPA Announces the Retirement Industry's Top 100 DC Wholesalers »» Click here for More Marketplace News
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