Newsletter for February 19, 2019
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In This Issue
Insight: Studies, Research, and White Papers
Best in Class 401k Plans
Abstract: PLANSPONSOR is pleased to announce the fifth "class" of companies winning the Best in Class 401k Plan designation. Plans were rated by way of a proprietary system that weighted usage/implementation of more than 30 criteria related to plan design, oversight/governance and participant outcomes.
Source: Plansponsor.com
Global DC Pension Assets Exceed DB Assets for First Time
Abstract: The report also found that DC assets now account for over 50% of total assets across the seven largest pension markets, for the first time. This continues the trend of DC growing at a faster pace over the last ten years, with DC assets growing by 8.9%, while defined benefit assets have grown by 4.6% during this time.
Source: Willistowerswatson.com
»» Click here for More Studies, Research, and White Papers
Fiduciary and Plan Governance
Arbitrability of ERISA Fiduciary Breach Cases
Abstract: Although the viability of arbitration rather than litigation in ERISA fiduciary breach claims remains to be seen, there are several considerations for employers who may, in the future, need to decide whether to incorporate arbitration provisions and class action waiver provisions in their plans and employment agreements.
Source: Truckerhuss.com
Why Your Retirement Committee Needs to Take Meeting Minutes
Abstract: It's been said that the DOL and Courts take the position that "if it wasn't documented, it didn't happen." In the case of ERISA, the best defense for retirement committees is always a strong offense which means taking a proactive approach to implementing a comprehensive fiduciary governance process. One of the cornerstone practices to demonstrate that the retirement committee has made prudent decisions as required by ERISA is to take official minutes at each meeting.
Source: Greenspringadvisors.com
»» Click here for more Fiduciary and Plan Governance Material
Items of Special Interest to Service Providers
Fred Reish: Novel Compliance Approach to 401k Fiduciary Standard
Abstract: This article discusses a novel approach for compliance with the fiduciary standard for the selection of investments for 401k plans. All the more interesting, the approach was part of an opinion of the U.S. First Circuit Court of Appeals.
Source: 401kspecialistmag.com
What Is a DOL Adviser Investigation Like?
Abstract: The number of Department of Labor investigations of financial advisers has steadily increased over the years; here is a primer on the DOL's sources of authority, and what to expect when examiners come knocking.
Source: Planadviser.com
Court and Legal
Charles Schwab 401k Lawsuit Trimmed but Moves Forward
Abstract: Charles Schwab convinced a federal judge to dismiss all but one claim in a proposed class action targeting investments in its 401k plan.
Source: Bna.com
403b Plan Participants Drop ERISA Lawsuit Against Long Island University
Abstract: Participants in a 403b plan run by Long Island University have dropped their ERISA lawsuit after having accused plan manager of having allowed excessive fees. The three-sentence notice, filed Feb. 8 without explanation in U.S. District Court in Brooklyn, concludes the case of Mulligan et al. vs. Long Island University et al. "with each party to bear its own fees and costs."
Source: Pionline.com
»» Click here for more Court and Other Legal Issues
Legislative and Washington DC
Familiar Retirement Reforms Already in Play in New Congress
Abstract: Familiar retirement legislation has been introduced in the brief period since the new Congress convened in January. Despite the U.S. House of Representatives flipping to Democratic control in November's midterm elections, retirement reform remains an issue where significant bipartisan support is evident, and clearly growing. Several significant items included in the bill and intended to address the bill's objectives are described.
Source: Ascensus.com
»» Click here for more on Legislative and Washington Actions
Cyber and Plan Security
Identity Theft: The Rising Threat to Retirement
Abstract: The day starts as any other. A distribution form comes in for processing. It has a participant signature. The spousal consent section is completed and notarized. The Plan Administrator has signed the form. No problem. So, you process the $450,000 in-service distribution and give it no further thought. Three days later, the real participant calls in a panic wondering where his money went. Yikes. As a third party administrator (TPA), what can you do to help thwart this brazen, growing band of thieves? Do you have an obligation to do anything? What if your firm is acting as an ERISA 3(16) delegated fiduciary? Lot of questions, but we have no concrete guidance from any federal agency.
Source: Ferenczylaw.com
Consumers May Have "Blind Spot" When It Comes to Retirement Fraud
Abstract: Consumers tend to worry about "high-touch" products, such as credit cards and bank accounts, more than they worry about long-term savings accounts, such as their workplace retirement plans and IRAs, a new study warns. Concern about credit card fraud was found to be the most prevalent at 83% of American cardholders. At the same time, however, only 53% of retirement plan savers are concerned about fraud with their workplace retirement plan.
Source: Napa-net.org
Expansion of Technology Will Increase Cybersecurity Threats
Abstract: Aon released its 2019 Cybersecurity Risk Report, which details the greatest cyber security threats and challenges organizations are currently facing. Among other risk areas shared are expansion of data into mobile devices and sharing of data with third-party vendors and service providers.
Source: Plansponsor.com
»» Click here for more on Cybersecurity Issues
State-Based Retirement Programs
Frequently Asked Questions About CalSavers
Abstract: CalSavers is a new California law designed to encourage employees to save for retirement. CalSavers was originally called California Secure Choice and was approved by the State Legislature in 2016. Most employers with at least five employees, that do not already offer an employer-sponsored retirement plan, will be required to begin offering a retirement plan or provide their employees access to CalSavers. This article is a FAQ about the CalSavers program.
Source: Benefitslawadvisor.com
Compliance and Regulatory
2019 Compliance Calendar for Defined Contribution Plans
Abstract: A qualified retirement plan must meet various requirements throughout the year in order to retain the qualified status. If you are responsible for administering your company's defined contribution plan, it's critical to meet these deadlines. From processing failed ADP/ACP test refunds to delivering the participant fee disclosures, it can feel overwhelming. This DC plan compliance calendar will help you stay on track.
Source: Watkinsross.com
Nitty Gritty Tasks That 401k Plan Sponsors Must Complete
Abstract: Despite how tedious some plan sponsors tasks are, they are all required tasks and failure to complete a task can cause a whole host of problems and money. This article is about tedious tasks that plan sponsors need to make sure is done and done correctly.
Source: Jdsupra.com
2019 Hardship Distribution Rules Are Changing
Abstract: Occasionally an employee may experience a serious financial need. With no other help available, raiding a retirement plan may be the only option. Prior to 2019, employees and employers alike may have faced hurdles when wrestling with a hardship distribution. Due to new laws, however, hardship distribution rules are changing in 2019.
Source: Hallbenefitslaw.com
»» Click here for more Compliance and Regulatory Material
Marketplace News
TRA Acquires Quality Pension Services
Ascensus Restructures Elite Advisor Program
»» Click here for More Marketplace News
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