Take Advantage of ERISA Safe Harbors: They Can Help Penetrate the ERISA Fog
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General Items Take Advantage of ERISA Safe Harbors: They Can Help Penetrate the ERISA Fog Abstract: Attorneys would define a Safe Harbor as a provision of a statute or a regulation that specifies that certain conduct will be deemed not to violate a given rule. In our ERISA world, a Safe Harbor is a provision of the retirement plan law that can cut through the sometimes fog of ERISA and provide fiduciary protection to plan sponsors and at the same time make their retirement plans more efficient and effective. Here is a brief description of some of them. Source: Retirementplanblog.com Fiduciary and Plan Governance Strategies and Tips for a Well-Run Retirement Plan Committee Abstract: An organized and effective retirement plan committee forms the essential foundation for a sound fiduciary process, meaning a process that plan fiduciaries can be proud of and that will stand up to scrutiny. The most effective committees commit to an approach that emphasizes both committee engagement and adherence to a disciplined process. This 4-page article reviews some best practices that consistently lead to high functioning retirement plan committees. Source: Fiallc.com The Shocking Truth About Participant Directed 401k Plans Abstract: ERISA 404(c) participant-directed plans can help a plan sponsor limit their liability for losses sustained by the participant. On paper, it's too good to be true. The problem is that it is on paper and there may be some shocking truths that a plan sponsor fiduciary is unaware of about these participant directed 401k plans. Source: Jdsupra.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Financial Wellness Programs Take Center Stage with Employers Abstract: Five years ago, employers were just starting to provide workers with financial benefits beyond their retirement plan, but now financial wellness appears to be firmly entrenched in the benefits space, according to a recent report. Nearly two-thirds of employers say they are very likely to take steps in 2019 to create or focus on the financial wellbeing of their workers in ways that go beyond retirement savings. Source: Napa-net.org Retirees Say They Live as Well or Better in Retirement Than During Their Working Years Abstract: More than two-thirds of retirees say they live as well or better in retirement as they did when they were working, according to a recent study focused on retirees conducted by T. Rowe Price. Meanwhile, only 39 percent of current workers believe they will live as well or better in retirement. Source: Troweprice.com Five Ways to Increase Retirement Plan Participation Among Millennials Abstract: The trick to getting your workforce's youngest members to begin contributing to a retirement plan in earnest lies in just a few key principles. This article covers five ways plan sponsors can increase retirement plan participation rates among their Millennial employees. Source: Planpilot.com American Views on Defined Contribution Plan Saving, 2018 Abstract: This report presents survey results that reflect individuals' responses collected during December 2018. The survey polled respondents about their views on DC retirement account saving and their confidence in 401k and other DC plan accounts. Survey responses indicated that Americans value the discipline and investment opportunity that 401k plans represent and that individuals were largely opposed to changing the tax preferences or investment control in those accounts. A majority of respondents also affirmed a preference for control of their retirement accounts and opposed proposals to require retirement accounts to be converted into a fair contract promising them income for life from either the government or an insurance company. Source: Ici.org »» Click here for More Studies, Research, and White Papers 403b Plans The 403b Hardship Distribution Which is Not a Hardship Distribution Under Proposed Regulations Abstract: One of the more curious results of the failure of the Bipartisan Budget Act of 2018 to amend 403(b)(11) to provide for the same hardship relief that was granted to 401k plans is that the "hardship" distribution of 403b QNECs and QMACs aren't really hardship distributions. This has a very real practical and operational effect. Source: Businessofbenefits.com »» Click here for More 403b Material Legislative and Washington DC SIMPLE Plan Modernization Act Introduced in Senate Abstract: Senators Susan Collins, chair of the Aging Committee, and Mark Warner, have introduced the SIMPLE Plan Modernization Act to provide greater access to SIMPLE plans among small businesses. It aims to make SIMPLE plans more accessible among small businesses and would raise the contribution and catch-up limits. Source: Planadviser.com Retirement Savings Bill Re-Introduced in House With Bipartisan Backing Abstract: Legislation that would help small businesses offer retirement plans to their employees and ease the use of annuities in them was re-introduced in the House on Wednesday with bipartisan backing. The Retirement Enhancement and Savings Act contains several provisions designed to increase the number of workers covered by workplace programs, according to a summary of the measure. Source: Investmentnews.com (registration may be required) »» Click here for more on Legislative and Washington Actions Cybersecurity Cybersecurity "Patchwork" Leaving Retirement Industry Vulnerable Abstract: The retirement industry has no unified cybersecurity approach to protect sensitive data and an amalgam of federal and state regulations don't offer any clear approach for security within the retirement space, industry sources said. Source: Pionline.com »» Click here for more on Cybersecurity Issues Compliance and Regulatory It's Time to Improve the "Kitchen Sink" SPD Abstract: SPD standards declined when the requirement to send SPDs to the Department of Labor was eliminated. This coincided with the expansion of pre-approved plans. Pre-approved plans have lots of design choices, and vendors did not want to prepare different versions of their SPDs for plans with particular provisions, so they developed what I call the "kitchen sink" SPD that didn't spell out which particular provisions the plan sponsor had elected. Many of these are ineffective communications documents. Source: Cohenbuckmann.com Updated 401k Plan Fix-It Guide - Participant Loans Don't Conform to IRC Section 72(p) Abstract: Many 401k plans permit loans to participants. But often participant loans don't conform to the requirements of IRC Section 72(p) or are prohibited transactions under IRC Section 4975. This article reviews how to avoid and fix such mistakes. Source: Irs.gov Abstract: The Employee Benefits Security Administration enforces ERISA laws and regulations, including conducting civil and criminal investigations. EBSA enforcement of ERISA laws often results in recovering money from enforcement actions, voluntary fiduciary correction programs, abandoned plan programs, and informal complaint resolution. Enforcement statistics from 2018 and the Department of Labor strategic plan for the future provide some insights on enforcement for 2019. Source: Bsllp.com 401k Administration: Your Responsibilities Explained Abstract: 401k plan administration is the process of maintaining a retirement plan and keeping it compliant with the Employee Retirement Income Security Act of 1974. Basically, all the day-to-day tasks that keep the 401k running. To help keep things as simple as possible, this article breaks the work into two types: Ongoing Administration, and Annual Compliance. Source: Forusall.com Correcting Average Deferral Percentage Test Failures Abstract: The tax code governing 401k plans was written to prevent qualified retirement plans from overly favoring highly compensated employees. A series of non-discrimination tests were devised to measure whether a plan's design or operation tends to favoring the HCEs over the nonhighly compensated employees. This article dives into the different methods of correcting for an ADP test failure. Source: Legacyrsllc.com »» Click here for more Compliance and Regulatory Material Marketplace News Fi360 Enhances Stable Value Navigator Product With Acquisition »» Click here for More Marketplace News
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