Business as Unusual: Fiduciary Do's and Don'ts
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Fiduciary and Plan Governance Business as Unusual: Fiduciary Do's and Don'ts Abstract: In the marketplace, it's normal -- even expected -- that firms extend more favorable terms and/or discounts to those who do business with them across various offerings. But those "normal" practices can cause you trouble when it comes to doing business with ERISA-governed plans. Source: Ntsa-net.org How to Establish a Strong Investment-Focused Plan Committee Abstract: As a retirement plan sponsor, one of the biggest steps toward ensuring regulatory compliance includes establishing a committee to manage the plan. Setting forth clear objectives and direction for the composition and function of your retirement plan committee can be the key to its success. In this article, learn about some standard objectives and responsibilities for your committee, with a specific view towards its investment responsibilities. Source: Planpilot.com CITs Are Changing the Retail 401k World Abstract: The opening of Charles Dickens' "A Tale of Two Cities" is a fitting and eerie epitaph for the current state of the retail 401k and 403b market, as collective trusts fuel the winds of change and perhaps ignite a new wave of adviser lawsuits. The stakes are getting higher for defined-contribution plans. Source: Investmentnews.com (registration may be required) 401k Plan Sponsors Can Minimize Their Liability in Eight Easy Steps Abstract: When 401k plan sponsors are told about their duties in operating the plan, they zone out. So here is a breakdown of what plan sponsors need to know in order to curb their potential liability as a plan sponsor. They can minimize their liability by just following these eight easy steps. Source: Jdsupra.com »» Click here for more Fiduciary and Plan Governance Material Items of Special Interest to Service Providers The Emerging Best Interest and Fiduciary Duty Patchwork Abstract: By all accounts, 2019 will see the advancement of a number of fiduciary and best interest invest. advice regulations at both the federal and state levels. Firms subject to these regulations will face challenges in dealing with rules that will impose a host of new obligations, and that may overlap and conflict with one another. This 6-page chart is intended to help firms take stock of the evolving framework and aid firms in putting the pieces together. Source: Sutherland.com Product Development Moves Beyond the 401k Plan Abstract: Retirement plan advisers with established 401k businesses are finding new revenue streams and client engagement opportunities among nonprofits and educational institutions, and in the area of estate planning. Source: Planadviser.com DOL Sets Date to Propose New Fiduciary Rule Abstract: The Department of Labor will propose a new fiduciary rule in December, the opening salvo in what will likely prove to be another contentious battle to overhaul invest. advice standards in retirement accounts. Source: Investmentnews.com (registration may be required) 403b Plans Abstract: Problems may arise when employers change their 403b plan's TPA and do not notify the product providers, the plan participants or the former TPA. In the absence of such notification, all parties continue to interact with the former TPA, but plan transactions are not processed or approved. Delays occur, contributions are not processed, information is not provided, and a logjam develops. Here are general recommendations based on successful transitions that have been made in the 403b marketplace. Source: Ntsa-net.org »» Click here for More 403b Material Participant Communications and Education Is your 401k Education Program Helping or Hurting Participants? Abstract: An effective education program can help bridge the knowledge gap by teaching employees how to make the most of their workplace 401k plan. Such a program may improve participant engagement with the plan, along with improving participation and savings rates. Moreover, you can increase your education program's effectiveness by partnering with a financial advisor who can support your employees in making critical financial decisions and help them achieve better retirement outcomes. If you believe your participant education program isn't serving your participants, it may be time to consider making some changes. Source: Brightscope.com Tips for 401k Plan Sponsors: Information Overload Abstract: We're surrounded by volumes of information that is supposed to help us make better decisions, but unless we can corral, evaluate, and prioritize it, we're just left with a lot of noise. And it is very hard to get away from that noise. But with a bit of added perspective, participants will have just that much better of an understanding. So make sure you provide that context, all the while keeping the DOL delivery requirements in mind. Source: Conradsiegel.com »» Click here for more on Employee Communications and Education Court and Legal Supreme Court Could Soon Consider Several ERISA Cases Abstract: Marcia Wagner, founder and managing partner of the Wagner Law Group, recently offered PLANADVISER an overview of the current litigation landscape, pointing out that writs of certiorari have been filed with the U.S. Supreme Court in four cases involving DC retirement plans. The cases include examples of "stock drop" litigation, litigation about the burden of proof to establish loss, a case that tests the "actual knowledge" standard for statute of limitations purposes, and a case that examines pleading standards under ERISA. Source: Planadviser.com Court Rejects Attempt to Certify Class Against Third-Party Plan Administrator Under ERISA Abstract: ERISA claims can potentially involve significant amounts in controversy, and in an effort to broaden the pool of potential defendants, ERISA plaintiffs are often fond of arguing that the Supreme Court's Harris Trust decision makes a party's status as an ERISA fiduciary or nonfiduciary irrelevant in determining liability under ERISA. A recent case provides a reminder that fiduciary status can and does still matter and may be a defendant's ticket out of an ERISA class action. Source: Lexology.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Senators Call for Creation of Federal Retirement Commission Abstract: Bipartisan legislation to create a new federal commission that would study and recommend ways to improve Americans' retirement security has been reintroduced in the Senate. Source: Ntsa-net.org Abstract: In a 417-3 vote, the U.S. House of Representatives passed the "Setting Every Community Up for Retirement Enhancement Act," which would significantly overhaul current legislation governing retirement plans. The bill was approved with broad bipartisan support. It must be passed by the Senate and signed by the President before it becomes law. Source: Ascensus.com »» Click here for more on Legislative and Washington Actions Compliance and Regulatory Abstract: A recent, unpublished Ninth Circuit court opinion held that the Plan's choice of California law required the plan to provide spousal survivor rights to registered domestic partners, because California law affords registered domestic partners the same legal status as spouses, and because doing so did not conflict with any provision of the plan document, ERISA or the Internal Revenue Code. In light of the opinion, plan sponsors should examine their plan documents to determine whether or not choice of law provisions carry state domestic partner rights into their plan document, and if this is the case, should consult with counsel as to how that might impact their plan distribution and plan loan approval procedures, and QDRO procedures as well. Source: Eforerisa.wordpress.com Changes to Employee Benefit Plans May Create Unforeseen Disclosure Deadlines Abstract: Believe it or not, it may be time to distribute a new Summary Plan Description to include all changes made since the last issuance or a Summary of Material Modifications for any amendments adopted during the 2018 plan year. Source: Benefitslawadvisor.com »» Click here for more Compliance and Regulatory Material Marketplace News Ascensus Expands Arizona Footprint With Agreement to Acquire Pension Strategies »» Click here for More Marketplace News
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