401k Investment Committee Requirements Are Clear
|
In This Issue
Fiduciary and Plan Governance 401k Investment Committee Requirements Are Clear Abstract: 401k investment committees have a fiduciary responsibility to regularly monitor and periodically evaluate the quality of a plan's investment funds. However, the research is varied on whether or not a 401k investment committee's practice of swapping out the funds in a plan's investment menu actually results in better performance and improved outcomes. Source: 401ktv.com Tax Law Fallout Yields These Five Fiduciary Facts for Retirement Savings Abstract: Just as accounting firms and the CPAs that inhabit them can finally breathe a sigh of relief, a sudden realization has overtaken their tried-and-true maxims. The calculus for retirement saving has shifted dramatically. This can bear heavily on the retirement plan fiduciary. Why? Because it may no longer be in some people's best interest to save for retirement in the manner they've grown accustomed to. Source: Fiduciarynews.com The Need to Investigate Collective Trusts Abstract: Some recent Courts decisions have taken different approaches to the issue of a plan fiduciary's obligation to consider collective trusts and insurance company separate accounts as alternative investments to mutual funds. Source: Wagnerlawgroup.com »» Click here for more Fiduciary and Plan Governance Material General Items How do You Maximize Contributions to Your Plan With a Triple Stack Match? Abstract: Safe harbor plans guarantee that the HCEs and key employees will be able to contribute the maximum deferral amount -- $19,000 in 2019 without catch-up -- but not necessarily the maximum annual addition under Code Section 415. In those cases, the triple stack match formula may be the solution. Source: Belfint.com Insight: Studies, Research, and White Papers Retirement Delayed: Working Past 65 Hits 57-Year High Abstract: More older Americans are staying in the workforce past traditional retirement age and they tend to be highly educated, pushing up incomes for older workers. As of February, more than 20% of Americans aged 65 or older are working or looking for work, doubling the percentage from a low of 10% in 1985. Source: 401kspecialistmag.com Morningstar: DC Investment Menu Moves Matter Abstract: Morningstar researchers found what they termed "significant evidence" that replacement funds outperformed the replaced fund over both future one-year and three-year periods. The researchers noted as the "most surprising" finding, more specifically "unexpected in the context of past research, which has generally noted that replacement funds do no better (or worse) than the funds being replaced." Source: Napa-net.org Nearly One-Third of Employers Embracing Student Loan Debt Programs Abstract: Nearly one-third of employers, 32.4%, offer or are planning to offer some student loan debt program, such as debt consolidation, refinancing or employer-paid subsidies, according to EBRI's 2018 Financial Wellbeing Survey. Among those that are, they are more likely than others to have measured their employees' financial wellness. Source: Planadviser.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Recordkeeper Consolidation Creates a Smaller Pool of Plan Sponsor Choices Abstract: The announcement of Principal's acquisition of Wells Fargo's retirement plan business further reduced the list of recordkeepers from which plan sponsors can choose. The trend of recordkeeper consolidation has been ongoing since at least 2009. Recordkeeper consolidation is ongoing, but it offers an opportunity for plan sponsors to secure better services and software, and better fees. Source: Plansponsor.com 403b Plans Abstract: Because of a March 2020 deadline set by the IRS to implement a "safe harbor plan," many companies are now taking the time to review their 403b plans and ensure the plan and plan documentation meets IRS requirements. Source: Hallbenefitslaw.com »» Click here for More 403b Material Court and Legal Fee Litigation 2018 Round-Up: Recent Developments and Best Practices to Mitigate Risk Abstract: The enhanced role of 401k and 403b plans has put increased pressure on plan performance and, since 2006, has led to multiple waves of ERISA litigation challenging the fees and the selection of mutual fund and other investments offered in these plans. This article explores important fee litigation developments from late 2017 forward. Source: Jacksonlewis.com Settlement in Vanderbilt 403b Case Raises Plan Data Questions Abstract: The extent to which individuals should have control over their personal information and the data they generate in the on-line world has seized center stage in our national conversation. A new proposed settlement in Cassell v. Vanderbilt Univ. highlights the importance of these issues in the retirement plan marketplace. Source: Groom.com »» Click here for more Court and Other Legal Issues Multiple Employer Plans (MEP) Abstract: Legislation in the U.S. House proposes sweeping changes that could disrupt the current status quo in the retirement industry, increase the attractiveness in having a retirement plan for small employers, and result in an archetype shift for the advisers and recordkeeping providers who serve them. There are two potential pathways for the broad adoption of open multiple employer plans by small businesses, one driven by advisers and the other by recordkeepers. Source: Planadviser.com »» Click here for more on Multiple Employer Plans State-Based Retirement Programs New Jersey to Require Certain Employers to Participate in a State "Auto-IRA" Retirement Program Abstract: New Jersey became the sixth state to pass legislation requiring that certain employers offer to employees a state-sponsored individual retirement account program with automatic enrollment and pre-tax payroll deduction contributions. Source: Ebglaw.com Compliance and Regulatory DOL Enforcement Results and Priorities Abstract: The DOL's Employee Benefits Security Administration recently released 2018 statistics for its enforcement of ERISA. When combined with EBSA's recent commentary on its enforcement initiatives, fiduciaries can be better prepared to address compliance issues before a DOL audit. This is an analysis of the recently released 2018 statistics, as well as a look at the "national enforcement projects" for EBSA investigators. Source: Euclidspecialty.com IRS Makes Significant Improvements to EPCRS in Rev. Proc. 2019-19 Abstract: Effective April 19, 2019, new rules under the Employee Plans Compliance Resolution System will greatly expand the types of disqualifying defects that may be corrected under the Self-Correction Program. SCP is a component of EPCRS under which certain types of disqualifying defects may be corrected without the need for an IRS filing or payment of a user fee. For many years, Congress and the private sector have urged the IRS to expand SCP. This expansion is a welcome update to EPCRS containing significant and beneficial improvements to the program. Source: Truckerhuss.com Proposed Overtime Rule May Affect Employee Benefit Plans Abstract: A recent DOL proposal would increase the salary and compensation levels for workers to be exempt from minimum wage and overtime requirements under the Fair Labor Standards Act. DOL estimates about a million people could become eligible for overtime under the revised salary thresholds. Along with assessing the proposal's direct impact on payroll, employers should evaluate the possible indirect impact on some employee benefit plans. Source: Mercer.com »» Click here for more Compliance and Regulatory Material Marketplace News 401k Marketing Survey Opens to Retirement Plan Advisors Morningstar Launches RIA Managed Retirement Accounts Platform LeafHouse to Help Integrate ESG Investments into Retirement Plans »» Click here for More Marketplace News
This eNewsletter is a digest of information published by a variety of web-based sources on 401k and related issues and is published as a service to our users. 401khelpcenter.com, LLC is not the author of the material unless specifically noted. Articles are copyrighted to their publishers. If you believe that your work has been copied in a way that constitutes copyright infringement, please contact the source site immediately. Hyperlinks in this document are provided as a convenience and we disclaim any responsibility for information, services or products found on websites linked hereto. All links were tested before this eNewsletter was e-mailed to you to ensure that they are still functional, but publishers do move or delete articles. Therefore, we can't guarantee that the links provided will remain operational. 401khelpcenter.com does not endorse, approve, certify, or control this material and does not guarantee or assume responsibility for the accuracy, completeness, efficacy, or timeliness of the material. Use of any information obtained from this material is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com. Opinions expressed are those of the author of the article and do not necessarily reflect the positions of 401khelpcenter.com. THIS NEWSLETTER IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE INVESTMENT, TAX, ACCOUNTING, OR LEGAL ADVICE. Copyright © 2019 by 401khelpcenter.com, LLC. All rights reserved. No reproductions without prior authorization, but you are free to email this copy (in its entirety) along to colleagues or clients. This newsletter may not be posted to any website. 401khelpcenter.com, LLC
|
