When Must a Fiduciary Say No to No-Fee Funds?
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Fiduciary and Plan Governance When Must a Fiduciary Say No to No-Fee Funds? Abstract: Fidelity recently debuted two "no fee" mutual funds, a domestic and an international index fund. This concept raises significant fiduciary questions. Beyond the fact they have no investment performance history, the very concept of the business model has no history. No mutual fund has ever been offered that has been fully subsidized by the management company. Source: Fiduciarynews.com Abstract: The duty of loyalty has been cited as the highest known to law. The Supreme Court in Pegram v. Herdrich stated that the duty of loyalty requires fiduciaries to make decisions with a single eye towards participants and beneficiaries. Source: Wagnerlawgroup.com What Is the Baseline for a Committee to Act in the Best Interest of Its Participants? Abstract: Retirement plan committees should have formal programs for fiduciary education. The fiduciary education should cover, at the least: Who is a fiduciary and what are the fiduciary responsibilities? How do fiduciaries fulfill those duties in the real world? How do fiduciaries review and examine the advice that they receive? And, how do fiduciaries monitor the costs and compensation related to their service providers and plan investments? That education should be reinforced at least annually, together with updates on current developments. Source: Fredreish.com Why You Should Conduct a Retirement Plan Recordkeeper RFP Abstract: Despite the time, money, and employee disruption, there are just too many benefits to an RFP to go for long without doing one. Three benefits are reviewed in this short article. Source: Cammackretirement.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers DC Plan Customization to Drive Next Wave of Innovation Abstract: The defined contribution world is poised for change. It will take time -- $20 trillion systems aren't transformed overnight -- but don't let that fool you into underestimating just how big the change will be. This article reviews some of the themes to watch for. Source: Pionline.com The Unique and Varied Challenges Women Face Planning and Preparing for Retirement Abstract: Planning for retirement is not a one-size-fits-all model. While savings, health, cost of living, and lifestyle expectations are major factors, research shows that gender can play a large role in retirement planning and that women may have additional challenges that should to be considered. These factors exacerbate the current challenges of living a longer life with inadequate savings and can create a greater sense of retirement insecurity for women. Source: Georgetown.edu »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers How to Capitalize on 401k Industry Consolidation Abstract: Modeled off market forces in employee benefits and property/casualty, the retirement plan industry is about to take its turn, with pundits and prognosticators predicting massive change in the next five years. A new firm, Wise Rhino, recently crashed the space to capitalize on the trend. Source: 401kspecialistmag.com As a Plan Provider It Won't Matter If You Can't Fix This Abstract: This article is citing some of the problems that you may experience as a plan provider that you must clean up before you can even think about marketing your services to potential clients. Source: Jdsupra.com »» Click here for More 403b Material Participant Education and Communication Understanding the Participant Mind Abstract: Obtaining data on participants from retirement readiness tools, recordkeepers and aggregation tools is important in order to tailor effective communications. Source: Planadviser.com »» Click here for more on Participant Education and Communication Court and Legal Judge Dismisses 401k Fiduciary Breach Lawsuit Against Gannett Abstract: A U.S. District Court judge in Alexandria, Va., dismissed a 401k plan participant lawsuit against Gannett Co. and plan executives alleging they violated their fiduciary duties for holding too much stock in Gannett's former parent company in the 401k plan. Source: Pionline.com Another 403b Plan Sponsor Beats Back Fee Lawsuit Abstract: Washington University in St. Louis has won the dismissal of a lawsuit alleging it caused employees participating in the school's 403b plan to pay excessive fees for recordkeeping and investment management. Judge Ronnie L. White dismissed the lawsuit with prejudice, meaning it can't be brought back at the district-court level. Source: Investmentnews.com (registration may be required) Court Deems Principal Not a Fiduciary in Lawsuit Over GICs Abstract: The U.S. District Court for the Southern District of Iowa has ruled against plaintiffs in an ERISA lawsuit. The court granted the Principal defendants' motion for summary judgment on all counts in a case questioning guaranteed investment contract arrangements. Source: Plansponsor.com Neuberger Berman Dismissed as Defendant in 401k Self-Dealing Suit Abstract: A federal judge has pulled apart a lawsuit against Neuberger Berman and other defendants alleging they violated ERISA by maintaining the Value Equity Fund, which it says "was larded with high fees and has suffered from consistently abysmal performance," in its 401k plan. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Ready for a Government-Run 401k? Abstract: Legislation has been introduced in the U. S. House of Representatives that would create a parallel government-run retirement savings program, and one that could undermine the 401k, particularly for small business owners. Source: Asppa.org »» Click here for more on Legislative Actions Compliance and Regulatory Playing the Game of 401k Audit Roulette: The Odds Are Getting Shorter Abstract: If you're in the retirement plan business, you've heard the term "audit roulette." It refers to the belief by some employers that the odds of their retirement plan getting audited by the IRS are in their favor. Well, those odds are getting worse. The IRS is taking technology to the next level using "data driven decisions." Source: Retirementplanblog.com Determination of Proper Earnings When Correcting a Qualification Mistake Abstract: The determination of proper earnings may seem like a small issue when correcting a qualification mistake. However, both the IRS and the DOL treat this part of your correction seriously, so you should, too. Source: Ferenczylaw.com »» Click here for more Compliance and Regulatory Material Marketplace News SageView Opens Dallas Fort-Worth Office Pentegra Names Thad Coward Director, TPA Operations ASPPA's Annual National Conference Topics Detailed »» Click here for More Marketplace News
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