Understanding Revenue Sharing and the Flow of Money in Retirement Plans
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In This Issue
Fiduciary and Plan Governance Understanding Revenue Sharing and the Flow of Money in Retirement Plans Abstract: it's critical for employers to understand the various components of their retirement plans' fees, particularly indirect fees like revenue sharing arrangements. This 4-page article describes common ways in which money flows through retirement plans. Each provider may operate differently, so be sure to check with your provider for information specific to your plan. Source: Grinkmeyerleonard.com »» Click here for more Fiduciary and Plan Governance Material General Items The Ins and Outs of Pairing a 401k Plan Match With Student Loan Repayment Abstract: One large employer thought of a design for its 401k plan to match for student loan payments. Broadly stated, there are two benefits to this arrangement. The first is that the employees participate in the plan early in their careers and, as a result, probably will be more engaged along the way. The second is that it shows that the plan sponsor understands the financial pressures created by student loans and wants to be helpful. But, there are "devils in the details." Source: Investmentnews.com (registration may be required) Abstract: Most employers are confused about what makes Financial Wellness different from other workplace benefits, despite knowing the dramatic impact it can have on their business. This article features a helpful infographic explaining key factors that separate financial wellness from typical offerings currently on the market. Source: Fiduciaryeducation.com Insight: Studies, Research, and White Papers Insights from Callan's DC Trends Study Abstract: Callan's 2018 Defined Contribution Trends Survey report, like the ten that have preceded it, contains a lot of information, especially for anyone willing to work through all 50 pages of statistics and commentary. This article covers some basics about the sampling, as well as design features like automatic enrollment, escalation and default options, Roth features, and plan sponsor priorities for 2018. Source: Fiduciaryplangovernance.com Retirement Security Has Improved Since Pre-Recession Levels Abstract: American workers are more secure in their retirement preparations now than before the Great Recession, but much more can and should be done, according to a comparative analysis of survey findings released today, Source: 401khelpcenter.com Retirement Savers Report Roadblocks to Working With a Financial Advisor Abstract: Just 4 out of 10 retirement plan participants use a financial advisor, with misperceptions over affordability and applicability driving their hesitancy, according to a new OneAmerica online survey. Source: 401khelpcenter.com Plan-Design Nudges Need to Take Into Account Participants' Emotions Abstract: As defined contribution plan sponsors employ "nudges" to increase participation and savings, they shouldn't ignore the role of emotion in participants' decision-making, said Punam Keller, professor of management at the Tuck School of Business at Dartmouth College. Current nudges such as auto features and an opt-out vs. opt-in strategy "do not manage emotions." Source: Pionline.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers New Jersey to Follow Its Own Fiduciary Rule Abstract: Unfazed that the Department of Labor fiduciary rule has been rendered moribund, the Garden State is forging ahead with its own. The New Jersey Bureau of Securities is initiating work on the standards, which would impose a fiduciary duty on all New Jersey investment professionals and require them to place their clients' interests above their own when recommending investments. Source: Asppa.org TPA Issues in DOL Investigations of Client Plans Abstract: When the DOL makes contact with a TPA during the investigation of a client's plan, the TPA and its staff should understand the issues in responding or failing to respond. If, during the course of an investigation, an issue arises that suggests potential liability for the TPA, the TPA should immediately consult with its lawyer for assistance with the response and to avoid possible loss of E&O coverage. Source: Drinkerbiddle.com Standing Up for the Little Plan Requires Efficiency Abstract: Advisers that specialize in smaller plans say the fiduciary mindset has irreversibly changed the marketplace, for the better. And US advisers use minimum fees and pared-down services to take on these smaller employers. Source: Ft.com 403b Plans Annual 403b Retirement Plan Survey: Organizations Adopting Best Practice Plan Designs Abstract: Organizations that sponsor 403b plans are accelerating adoption of plan automatic features to improve plan design and participant outcomes, according to the 2018 403b Plan Survey from the Plan Sponsor Council of America. The report also confirms more organizations are working with advisors. This year marks the 10th year of the survey and significant trends have emerged over that period. Source: Psca.org »» Click here for More 403b Material Legislative and Washington DC Lifetime Income Safe Harbor Now in Tax Reform 2.0 Mix Abstract: With the House of Representatives poised to take up the second round of tax reform, a couple of changes have been made to the retirement section of the legislation. On Sept. 25, House Ways and Means Committee Chairman Kevin Brady offered a "manager's amendment" to the Family Savings Act (H.R. 6757) to incorporate a safe harbor for the selection of a lifetime income provider within a defined contribution plan. Source: Asppa.org Retirement Component of Tax Reform 2.0 Moves to Senate Abstract: The House of Representatives approved legislation Sept. 27 that seeks to make it easier for businesses to offer retirement plans and for individuals to save for retirement. The Family Savings Act (H.R. 6757) now moves to the Senate, which may take up similar legislation in a lame duck session following the congressional midterm elections. Source: Asppa.org »» Click here for more on Legislative Actions Compliance and Regulatory IRS Retirement Plan Correction Program to Go Paperless Abstract: The IRS will begin accepting applications and payments under its Voluntary Correction Program (VCP) online through the www.pay.gov website beginning on January 1, 2019. Plan sponsors will continue to be permitted to file VCP submissions in paper form during a transition period ending April 1, 2019, at which point all VCP submissions will need to be made through the www.pay.gov website. Source: Ktserisacorner.com IRS Issues Draft 2018 Form 5500-EZ Abstract: The draft of the 2018 Form 5500-EZ does not show any changes from the 2017 Form 5500-EZ, with the exception of the calendar year the data being reported concerns. The IRS cautions, however, that while it generally does not release draft forms until it believes that all changes have been incorporated in the form in question, "unexpected issues sometimes arise, or legislation is passed, necessitating a change to a draft form." Source: Asppa.org DOL Sends "Open MEP" Proposal to OMB Abstract: The Department of Labor this week sent a proposed rule to the Office of Management and Budget to increase access to multiple employer retirement plans. The proposal comes in response to an executive order issued by President Trump on August 31, 2018. Source: Ascensus.com »» Click here for more Compliance and Regulatory Material Marketplace News John Hancock Retirement Plan Services Offers Cybersecurity Guarantee Financial Times Announces Top 401 Retirement Plan Advisers of 2018 Drinker Biddle Announces Formation of Best Interest Compliance Team Pensionmark Partners With Hooker & Holcombe's Investment Advisory Group CUNA Mutual Retirement Solutions Hires Will Blackall as RVP PCS Expands Sales Team, Creates New Territories »» Click here for More Marketplace News
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