What the New DOL Fiduciary Rule Will Probably Look Like
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In This Issue
Items of Special Interest to Service Providers What the New DOL Fiduciary Rule Will Probably Look Like Abstract: The form and substance of the Department of Labor's new fiduciary rule, set to be unveiled by the end of the year, is anybody's guess. But there are a few clues, and attorneys who specialize in fiduciary and retirement law have mined them to offer some likely scenarios. Source: Investmentnews.com (registration may be required) Two Strategies to Stay Top of Mind With Plan Sponsors Abstract: With today's constant stream of information, doesn't it feel more challenging than ever to gain shelf space within the minds of 401k prospects? This article shares ideas on how you can create awareness that evolves into inbound leads. You'll learn to leverage two of the most time-efficient and affordable ways to deliver your message to plan sponsors and retirement plan decision makers. Source: 401k-marketing.com Establishing Relationships With Public School Systems Abstract: When approaching employers for approval of a new product choice, it is important to know which products are currently offered in the employer's plan to ensure that the new products do not duplicate an option already available to participants. It will also be important to remind employers approving a new product and provider that the new provider must be added to the list of authorized product providers in the plan document since providers are required to be identified. Lastly, it is essential that you understand each employer's approval process, which can vary greatly. Source: Ntsa-net.org General Items Is Roth Participation in DC Plans Being Suppressed by Recordkeepers? Abstract: Vanguard recently disclosed that between 2013 and 2017, the percentage of plans offering Roth 401ks in Vanguard's full-service business increased from 52% to 68%, while the portion of participants choosing the Roth deferral actually declined between 2016 and 2017, from 13% to 12%. One of the causes of the lower market penetration of Roth plans might be the recordkeeper advisers' assets-under-management compensation model. Companies are juggling a conflict of interest issue in that they reap 50% greater earnings on $600 in AUM in a traditional DC plan than they do on $400 in AUM in a Roth plan. Source: Investmentnews.com (registration may be required) Fiduciary and Plan Governance Plan Participant Data Ownership Creates Concerns Abstract: Plan participant data ownership is a confusing topic for retirement plan fiduciaries. Plan participant data ownership is unquestionably a sensitive issue as an agenda item at many retirement plan committee meetings. At issue is the use of retirement plan participant data by financial advisors, recordkeepers and other service providers. Source: 401ktv.com 401k RFP Template: Evaluate Top 401k Plan Providers Today Abstract: Looking to save time and make your 401k RFP process easier? Here is a comprehensive, easy-to-use 401k RFP Template to save you time and allow you to easily compare providers side-by-side. This template includes the questions you need to ask, as well as editable fields for the provider to write their answers. Source: Forusall.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Behavioral Risk and Designing Retirement Income Strategies Abstract: Many factors are in play when you're designing retirement income strategies. A recent analysis from T. Rowe Price argues that investors' preferences and tolerance for risk should be most prominent. Source: Ntsa-net.org Abstract: This white paper examines IRS Private Letter Ruling (PLR 201833012), issued May 22, 2018. In the PLR, the IRS ruled that a student loan repayment program included in an employer-sponsored 401k plan did not violate the "contingent benefit" prohibition. Under the program, employees received employer contributions that were conditioned on making student loan repayments in lieu of receiving regular matching contributions under the plan. Employers may want to adopt an SLR program in order to attract and retain employees with outstanding student loans, who may lack the funds to make 401k contributions and receive employer matching contributions. Source: Newportgroup.com »» Click here for More Studies, Research, and White Papers 403b Plans Roth 403b Plans: Rules, Tax Benefits and More Abstract: A Roth 403b plan is one type of tax-advantaged, employer-sponsored retirement savings account. While these plans share some similarities with 401k plans, they have certain characteristics that set them apart. If you have the option to save for retirement in a Roth 403b through your employer, this guide can help you understand how they work and what tax benefits they offer. Source: Ktva.com Communicating a 403b Plan to Employees Abstract: While many employers offer 403b plans to employees, most do not adequately educate the employees on the importance of retirement savings or promote participation in the 403b plan as a valuable employee benefit. Many fail to recognize the correlation between higher participation rates and earlier retirement patterns for older workers. Source: Ntsa-net.org »» Click here for More 403b Material Court and Legal An ERISA Litigation Conversation With Jerry Schlichter Abstract: Jerry Schlichter's firm has remained highly active in the space, representing a variety of classes of plaintiffs suing their employers for alleged mismanagement of retirement plan assets. In this interview, Schlichter reflected on changes he has seen in the industry over the last five years. In his estimation, a lot of good has come from the significant amount of litigation that has occurred under ERISA. At the very least, he said, many participants in defined contribution (DC) retirement plans today pay lower fees for investments and recordkeeping. Source: Plansponsor.com Law Professors Ask SCOTUS to Expand Court Choice in ERISA Suits Abstract: Eleven law professors called on the U.S. Supreme Court to rule that companies can't unilaterally limit the courts in which workers can sue over their health and retirement benefits. The case asks whether benefit plans governed by ERISA can force lawsuits over plan benefits into the company's preferred court. These plan provisions -- called forum selection clauses -- violate the statute's policy of giving benefit plan participants "ready access to the Federal courts," the professors said in a May 28 brief filed by Sandals & Associates PC. Source: Bloomberglaw.com Can Employees Release ERISA Fiduciary Breach Claims? Abstract: Plan fiduciaries looking to avoid protracted court cases filed by their plan participants are trying to develop the best fiduciary practices. They are also considering other options to control or restrict litigation, including trying to require mandatory arbitration of ERISA claims, seeking to designate a specific court to hear cases, and setting shorter periods to file claims for benefits in their plan documents. The courts are still trying to define the extent to which there are limits on these practices. However, a recent court case highlights an additional option, obtaining releases from terminating employees that cover ERISA fiduciary breach claims. Source: Cohenbuckmann.com »» Click here for more Court and Other Legal Issues Compliance and Regulatory IRS Regulations Address Withholding on Retirement Payments Made Outside the U.S. Abstract: Scheduled for publication in the Federal Register are proposed IRS regulations on circumstances when income tax withholding must be applied to certain payments from retirement arrangements and commercial annuities. Specifically, these regulations address required withholding for payments made to destinations outside the United States or made to a U.S. financial institution by a person with no U.S. address. The proposed regulations are intended to replace IRS Notice 87-7, the primary guidance currently governing such withholding. Source: Ascensus.com For 401k Errors, It Seems to Be All Payroll These Days Abstract: For a 401k plan sponsor, many of the problems that also seems to be getting government attention are payroll issues. This article is about the many different issues from payroll that are causing headaches for plan sponsors. Source: Jdsupra.com »» Click here for more Compliance and Regulatory Material
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