ERISA Industry Stakeholders Analyze Auto-Portability Potential
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General Items ERISA Industry Stakeholders Analyze Auto-Portability Potential Abstract: While enjoying broad support, at this early stage, it is unclear what responsibility a plan sponsor would retain for data security and accurate processing; in addition, auto-portability solutions may be limited by recordkeepers' willingness to share participants' personally identifiable information with a third party. Source: Planadviser.com Small Business Retirement Plan Options Abstract: This chart compares four common types of plan designs often utilized by small employers. Source: Consultrms.com A Guide to Vesting in Your 401k Plan Abstract: While you already own the amount you personally deposit in your 401k plan, you don't own your employer's contributions to the account until you vest in the 401k plan. This article deals with a number of vesting issues including, "How long does it take to fully vest in a 401k plan?" and " Should you stay at a job until you are vested in the 401k plan?" Source: Usnews.com Insight: Studies, Research, and White Papers Setting Defaults and Auto-Escalations Too Low May Undermine Their Power Abstract: BlackRock took a look at various cases where a plan sponsor made changes to plan design to see what the outcomes were and found some unintended consequences. They conclude that the three cases are an "argument for better data and deeper analysis." The company recommends that retirement plan advisers and sponsors "review plan objectives. Conduct plan and participant analysis, and test plan changes." Source: Planadviser.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Retirement Plan Audits - How CPAs Can Differentiate Themselves in a Competitive Environment Abstract: To avoid being seen as a commodity, you must deliver services beyond the list required in the audit. Of course, you should be timely, accurate, and professional, but how else should you set yourself apart from the rest of the pack or avoid being replaced by a lower cost alternative? The answer is to add value through a consultative approach. This article provides three steps. Source: Fiallc.com Court and Legal Recordkeeping Fee Charge Against Franklin Dropped; Other Parts of Suit to Continue Abstract: A federal judge in San Francisco delivered a mixed ruling in preliminary judgments on a lawsuit filed against Franklin Resources Inc. by former participants in the company's $1.4 billion 401k plan. In an order issued Nov. 16, Judge Claudia Wilken in the District Court for the Northern District of California, granted Franklin's request for summary judgment on the claim that the firm failed to monitor the plan's administrative arrangements, which allegedly led to excessive recordkeeping fees. Source: Pionline.com Plaintiffs Drop Claims Against Matrix in TPA Suit Abstract: The two plaintiffs, who are Texas A&M University retirees, voluntarily dismissed their complaint against Matrix on Nov. 16 in the U.S. District Court for the District of Colorado "without prejudice, with each party to bear its own costs, attorneys' fees, and expenses." Source: Ntsa-net.org Waddell & Reed Settles 401k Lawsuit for $4.9 Million Abstract: Waddell & Reed Financial Inc. is settling a lawsuit that alleges it loaded its company 401k plan with costly in-house investments by agreeing to pay nearly $5 million. Source: Investmentnews.com (registration may be required) »» Click here for more Court and Other Legal Issues Legislative and Washington DC Bill Would Resurrect myRAs, Replace Saver's Credit With Government Match Abstract: Senate Finance Committee ranking member Ron Wyden and four other senators have introduced the Encouraging Americans to Save Act (EASA). A similar bill with the same title was introduced by Senator Wyden in 2016, but did not reach the floor for a vote. The 2018 version of EASA contains the same provisions as the 2016 version, with a few minor changes. Source: Ascensus.com »» Click here for more on Legislative and Washington Actions Compliance and Regulatory 2018 California Wildfires - Guidance and Relief for Employee Benefit Plans Abstract: The DOL recognizes that these wildfires may impede efforts by plan fiduciaries, employers, labor organizations, service providers, and participants and beneficiaries to comply with ERISA over the next few months. The Department has published employee benefit plan compliance guidance and relief for victims of the California Camp, Hill, Woolsey and other 2018 California wildfires. Source: Dol.gov DOL Addresses Retirement Plan Concerns for California Wildfire Victims Abstract: The Department of Labor released an FAQ for participants and beneficiaries in benefit plans impacted by the recent California wildfires. Source: Dol.gov 2018 Plan Year: Year-End Compliance Reminders Abstract: Every year, plan sponsors must make sure their plans meet certain compliance requirements. This 5-page publication identifies the materials you need to review and will help you prepare for year-end. This information applies to qualified defined contribution plans and 403b plans that are subject to Title I of ERISA. Source: Prudential.com New Rule Takes Baby Steps on Auto Portability Abstract: The Department of Labor (DOL) has issued a proposed rule addressing "auto portability," a mechanism intended to automatically reconnect defined contribution plan participants with accounts they may have inadvertently left behind or forgotten about after leaving an employer. Source: Callan.com Minimum Distribution Problems -- Why Most Retirement Plans Have Them Abstract: The minimum distribution requirement can be difficult to satisfy, but there are some simple solutions that plan sponsors can implement to protect themselves and their participants. Plan sponsors should carefully review a list of current and former employees to determine who has not taken their RMDs; the plan's recordkeeper can help produce this report. Plan sponsors should then work with their recordkeeper to contact those individuals and remind them of the associated penalty for satisfying the RMD. Source: Cammackretirement.com »» Click here for more Compliance and Regulatory Material Marketplace News Pentegra Expands Availability of Its 403b MEP Vanguard to Offer Health Savings Accounts to 401k Participants »» Click here for More Marketplace News
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