Seven Industry Trends That Will Shape the Future
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Insight: Studies, Research, and White Papers Seven Industry Trends That Will Shape the Future Abstract: Step inside the chamber, and we will gaze at the crystal ball. American Retirement Association Chief Content Officer Nevin Adams shared his insights on major factors whose impact will be felt for years to come. Source: Asppa.org Retirement Is in Peril for Most Working-Class Americans, Warns New Report Abstract: Retirement is in peril for most working-class Americans cautions a new report by the National Institute on Retirement Security, a Washington think tank. The report contends nearly four out of five working Americans are falling short of conservative retirement savings targets. Roughly the same number have less than one year's income saved in retirement accounts, according to the study. Source: Forbes.com Auto-Portability Would Help Reduce the Retirement Deficit Significantly Abstract: If combined with the Automatic Retirement Plan Act of 2017, the retirement savings shortfall would be reduced by $932 billion, or 22.6%, according to EBRI. Source: Planadviser.com »» Click here for More Studies, Research, and White Papers General Items They Say Their Plan is OK, but Plan Sponsors Usually Have No Idea Abstract: Plan sponsors say their 401k plan is OK without having any background or information to make that affirmative statement. Plan sponsors can claim that their 401k is fine, but that doesn't mean that's true. This article is to show 401k plan sponsors the idea that their plan is in good shape may not be grounded in reality. Source: Jdsupra.com Fiduciary and Plan Governance Case Study: Progressive Thinking and Fiduciary Oversight Lead to Participants Positioned for Success Abstract: The plan sponsor has shown progressive thinking and exemplary fiduciary oversight by adopting a fund revenue equalization process that considers the actual net cost of an investment option, and their successful negotiations with their recordkeeper have resulted in a significant reduction to plan fees. Their constant focus on participants' retirement readiness has resulted in strong participation rates, overall proper diversification and healthy account balances, positioning their participants for success. Source: Cammackretirement.com »» Click here for more Fiduciary and Plan Governance Material Items of Special Interest to Service Providers Plan Distribution and Rollover Guidance After Chamber of Commerce v. DOL Abstract: This paper examines how a plan service provider (such as a trustee, recordkeeper, broker-dealer, or investment adviser) can offer participant-level distribution and rollover guidance under the US Department of Labor's Advisory Opinion to Deseret Mutual Benefit Administrators (the Deseret Letter) in compliance with ERISA. Source: Morganlewis.com Best Practices for Reaching a Busy Plan Sponsor Abstract: This article reviews six strategies to consider when getting in front of companies and how to successfully reach out to a busy plan sponsor. Source: Rixtrema.com Prominent 401k Plan Adviser Is Pivoting to Wealth Management Abstract: Captrust Financial Advisors is a powerhouse in the realm of retirement plan advisers. However, the firm -- which has $278 billion in client assets under advisement -- is shifting focus, looking to retail rather than institutional clients to drive its next phase of growth. Source: Investmentnews.com (registration may be required) SEI Goes Hard After 401k Plan Sponsors by Poaching a Star From Northern Trust Abstract: SEI Investments Co. has hired long-time Northern Trust Asset Management executive Scott Muench and charged him with presiding over a plan to push deeper into the 401k market by going against a growing consensus that retirement products can be sold in pieces. Source: Riabiz.com Participant Education and Communication Math Without Meaning: A Hidden Flaw in 401k Education Abstract: In basic 401k information, investment jargon needs to be eliminated or clearly defined repeatedly. If employees don't understand the words in 401k meetings or materials, not much learning will ensure. So, what about employees who don’t understand the math your 401k educator is using? Math illiteracy might be a greater learning obstacle in 401k education than jargon. Source: Dennisackley.com »» Click here for more on Participant Education and Communication Court and Legal Federal Court Orders Prison Term After Benefit Plan Theft Abstract: A Maryland business owner will serve one year and one day of imprisonment and pay more than $350,000 in restitution for violations of the Employee Retirement Income Security Act. Source: Planadviser.com Excessive Fee Suit Defendants Now Seek Sanctions Against Schlichter Abstract: Having won their case in court, the targets of a 403b university excessive fee suit are pressing for a federal judge to impose monetary sanctions against the six employee-plaintiffs and the law firm of Schlichter Bogard & Denton LLP that represented them. Source: Napa-net.org »» Click here for more Court and Other Legal Issues Compliance and Regulatory IRS Updates Safe Harbor Tax Notices for Eligible Rollover Distribution Recipients Abstract: Section 402(f) of the Internal Revenue Code requires qualified plan sponsors to give written explanations of the tax implications to recipients of taking qualified retirement plan distributions eligible for rollover treatment. Often termed a "special tax notice," the IRS just reissued in Notice 2018-74 updated model special tax notices that the IRS states provide a "safe harbor" for meeting the Notice requirements of Code section 402(f). Source: Ktserisacorner.com Borrowing Limits for Participants With Multiple Plan Loans Abstract: In situations in which they are approving plan loans, plan sponsors should understand how the maximum loan amount available to a plan participant is calculated to ensure that violations of IRC section 72(p)(2)(A) do not occur. If the plan sponsor is not required to approve loans, they should ensure that the third-party recordkeeper is appropriately limiting loans to participants as the plan sponsor is ultimately responsible for the plan's compliance with the rules. Source: Eisneramper.com Avoid Making Incomplete VCP Submissions Abstract: The IRS Employee Plans Voluntary Compliance area has streamlined its processes to identify Voluntary Correction Program submissions that can be closed quickly. During the process they noticed mistakes applicants make that result in incomplete submissions. This article explains how to avoid common mistakes in Voluntary Compliance Program submissions. Source: Irs.gov A Hidden Hazard of Plan Administration -- A Mishandled Power of Attorney Abstract: As plan sponsors and administrators, you are the plan's fiduciaries who are ultimately responsible for determining the validity of a power of attorney. When it comes to a power of attorney, state laws govern, and your work becomes a bit more burdensome. If you haven't already done so, determine who is reviewing the POAs submitted to your plan. Make sure there is a process that considers the state law applicable to POAs and notarization. Source: Findley.com »» Click here for more Compliance and Regulatory Material Marketplace News NAPA Announces the Retirement Industry's Top 10 DC Wholesalers »» Click here for More Marketplace News
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