Overseeing Retirement Plans in the Digital Age
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Fiduciary and Plan Governance Overseeing Retirement Plans in the Digital Age Abstract: This 17-page paper examines the potential influence that digital design can have on one's retirement savings decisions. As the use of digital and mobile technologies continues to increase, the paper proposes that plan sponsors and advisors have a responsibility to consider websites and apps that encourage better retirement decision-making, applying the same oversight and diligence that they currently utilize for plan design and investment selection. Source: Voya.com The Importance of Fiduciary Training for Retirement Plan Committees Abstract: One of the most important things a company can do to properly equip its retirement plan committee members is to provide comprehensive fiduciary training. It's an important step to minimize fiduciary risk through education and governance. Furthermore, the DOL views fiduciary training as a critical element of prudent oversight and is increasingly looking for evidence that fiduciary training has been provided during plan audits. Unfortunately, formal fiduciary training is still not very common within the industry. Source: Greenspringadvisors.com 401k Fiduciary: Critical Responsibilities and Duties Abstract: As someone responsible for 401k compliance and administration at your company -- whether you're signing Form 5500 each year or just handling part of the process -- there are some very big legal responsibilities you need to be aware of. This guide walks you through everything you need to know about being a 401k fiduciary: what it means, what your legal responsibilities are, and steps you can take can to offload some of that liability and make your plan's compliance as simple and easy as possible. Source: Forusall.com »» Click here for more Fiduciary and Plan Governance Material General Items Roth 401ks Are an Essential Employee Benefit Abstract: Many plan sponsors are adding the option for Roth 401k contributions of their plan. Having this feature as part of the employee benefits package will make your 401k plan more attractive and will allow your organization to remain competitive to attract and retain top talent. This article outlines important points to keep in mind if you're considering adding a Roth 401k option to your plan. Source: Planpilot.com Insight: Studies, Research, and White Papers This Is How Clueless Most Americans Are About Their 401ks Abstract: Surprising results from a survey from the founders of an AI-focused 401k firm. The authors discovered a large disconnect between the way 401k plans are designed and the average American's knowledge of financial terminology. Source: Marketwatch.com Average 401k Balances Dropped 10% in Fourth Quarter, Says Fidelity Abstract: The average 401k balance dropped 10%, to $95,600, in the fourth quarter of 2018, down from the record high balance of $106,500 in the third quarter, according to a quarterly analysis from Fidelity Investments. The year-over-year average 401k balance is down just over 8% from $104,300 in the fourth quarter of 2017. Source: Investmentnews.com (registration may be required) »» Click here for More Studies, Research, and White Papers Court and Legal Litigation Concerns Continue to Hamper 401k Plan Innovation Abstract: The percentage of employers citing the threat of lawsuits as a major factor hampering their innovation has tripled since last year. More than 60% of employers say the threat of lawsuits hampers their innovation; this level is up from 53% of respondents who said the same in a 2018 study. Among these respondents in the 2019 study, 12% said the threat of lawsuits is a "major factor," compared to only 4% in 2018. Source: Asppa.org ERISA Lawsuit Filed Over Managed Account Arrangement Abstract: The complaint alleges that Stadion Money Management and Mutual of Omaha abused their managed account arrangement by putting their own interests ahead of participants. Source: Planadviser.com Second Circuit Opens Potential ERISA Avenue for Plaintiffs in "Stock Drop" Lawsuits Abstract: The United States Court of Appeals for the Second Circuit issued a rare procedural victory to "stock drop" plaintiffs. The Jander ruling is a notable development that has already and will likely continue to encourage further stock drop litigation, and could also require plan fiduciaries to consider difficult questions about disclosure as a way to potentially limit litigation exposure. Source: Groom.com Johnson and Johnson Faces Stock Drop ERISA Lawsuit Abstract: Plaintiffs allege plan fiduciaries should have known the company's stock price was artificially inflated and that fiduciaries breached their duties of prudence and loyalty by continuing to offer J&J stock in the retirement plan. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC How Will the Midterm Elections Affect Retirement Policy? Abstract: The November 2018 midterm elections promise nothing if not change. As the Republican's hold on the Senate strengthened, the Democratic party took a majority in the House of Representatives. The Democrat and Republican parties historically hold very different positions in several important areas. As such, the change in leadership in the House may lead to sweeping changes in every area, particularly when it comes to retirement policy. Source: Hallbenefitslaw.com »» Click here for more on Legislative and Washington Actions Multiple Employer Plans (MEP) Abstract: One of the shiny new coins of the 401k realm is "Open MEPs." It's anticipated that Congress will pass legislation this year that permits Open MEPs. Legislation is needed because of DOL guidance that, in essence, prohibits MEPs that are "open" to all employers. But what is an Open Multiple Employer Plan? What other kinds of MEPs are there? How do the people that set up MEPs get paid? Source: Fredreish.com »» Click here for more on Multiple Employer Plans Compliance and Regulatory Department of Labor's Plan for Targeted EBSA Enforcement Abstract: The current Secretary of Labor, R. Alexander Acosta, issued a message laying out the DOL's Strategic Plan for Fiscal Years 2018-2022. As part of the strategic plan, an objective of the Employee Benefits Security Administration will be to "improve the security of retirement, health, and other workplace-related benefits for America's workers and their families." Source: Bsllp.com 2019 Key Administrative Dates and Deadlines for Calendar-year DC Plans Abstract: The calendar lists relevant 2019 administrative dates encountered by most defined contribution retirement plans, including deadlines for government filings and participant disclosures. The calendar also provides short descriptions of the actions required to meet each deadline. Source: Milliman.com Online VCP Filing System Up and Running Abstract: IRS Revenue Procedure 2018-52 mandates online filing of VCP submissions starting April 1, 2019. The IRS opened the online filing system for voluntary use starting January 1 of this year. Paper filing is optional through March 31, 2019. This article reports on first experiences with the online filing system. Source: Eforerisa.wordpress.com »» Click here for more Compliance and Regulatory Material Marketplace News CUNA Retirement Adds to Sales Team Fi360 Unveiled Agenda and Keynotes for 2019 Annual Conference Empower Retirement Expands Social Media Strategy to Reach Gen Z Registration Opens for PSCA's 2019 National Conference »» Click here for More Marketplace News
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