SEC Adopts Best Interest Standard, Disclosure Duties
|
Newsletter Sponsor Infographic: Breakdown of Small Plan 401k Fees A new infographic "Breakdown of Small Plan 401k Fees" has been created in conjunction with the release of the 401k Averages Book 19th Edition. Please feel free to use the visually appealing infographic for your clients and prospects. The 401k Averages Book remains the most recognized source for comparative, non-biased 401k average cost information. Click here to get your copy of the infographic. In This Issue
Items of Special Interest to Service Providers SEC Adopts Best Interest Standard, Disclosure Duties Abstract: At an Open Meeting on June 5, 2019, and after over a year of consideration, approximately 6,000 comment letters and investor testing, the SEC formally adopted four regulatory measures intended to enhance the protection of retail investors while preserving existing investment industry business models and the ability of investors to choose among different types of providers. This is a summary of the Commission's actions. Source: Klgates.com Fiduciary and Plan Governance Retirement Plan Committees: Consider Investment Trends Abstract: Plan fiduciaries and retirement plan committees would do well to consider the trends in the ways that retirement plan funds are invested and the behaviors and attitudes of plan participants, recommends a recent analysis. Source: Ntsa-net.org Deal-Breaking M&A Issues Related to Employee Benefit Plans and Executive Compensation Abstract: Employee benefit and executive compensation issues can disrupt merger and acquisition transactions when overlooked until the last minute, or cause major post-transaction problems if not properly addressed before closing. This list is intended to facilitate the detection, negotiation, and resolution of possible employee benefit plan and executive compensation-related problems. Source: Wagnerlawgroup.com The Fiduciary Duty to Investigate Conflicts-of-Interests With "Zero" and "Negative" Fee Funds Abstract: It started as an oddity last year when Fidelity loudly proclaimed they would begin offering "Zero" fee funds. Now the SEC has approved a "Negative" fee fund. A diligent fiduciary will nonetheless seek to kick the tires most thoroughly on "Zero" and "Negative" fee funds. It starts by analyzing the very motivation behind these financial product marketing innovations. Source: Fiduciarynews.com »» Click here for more Fiduciary and Plan Governance Material 403b Plans Sweeping 403b Changes in Portman-Cardin Legislation Leaves Unanswered Questions Abstract: The Portman-Cardin Bill, the Retirement Security and Savings Act - 2019, introduces sweeping changes to 403b plans by expanding their investment universe. These changes, however, also required modification to the Securities Laws otherwise applicable to 403b plans in order for them to work. A few critical issues have gone unanswered in the legislation, and there are a number of transition issues which we will have to be addressed. Source: Businessofbenefits.com Rolling 403b Funds Back to a Prior 403b Abstract: An employee left our charitable foundation to work for another. When she left, she took a distribution and rolled it over to the plan of the other foundation. However, after a few months, she decided that the new position was not for her and returned to her former position. Can she roll the funds that she rolled over to her new employer's 403b plan right back to the former 403b plan? Source: Plansponsor.com »» Click here for More 403b Material Court and Legal Supreme Court to Hear 401k Stock-Drop Case Abstract: The Supreme Court accepted a 401k lawsuit Monday that could reframe how employers think about company stock in their retirement plans. Plaintiffs in the case, Retirement Plans Committee of IBM v. Larry W. Jander, allege that plan fiduciaries acted imprudently by continuing to offer IBM stock as an investment option to retirement plan participants despite knowledge of "undisclosed troubles" relating to the company's microelectronics business. Source: Investmentnews.com (registration may be required) Abstract: In an unpublished decision dated May 16, 2019, the Ninth Circuit held that a plan administrator abused its discretion by denying surviving spouse benefits under an ERISA retirement benefit plan to a participant's domestic partner. Source: Seyfarth.com Plan's Investment in Flailing SunEdison Stock Did Not Violate ERISA Abstract: A U.S. appeals court on Tuesday tossed out claims that a former SunEdison Inc subsidiary violated federal law by failing to dump the renewable energy company's stock from an employee retirement plan before it declared bankruptcy. Source: Reuters.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC House Passes the Secure Act Which Moves to Senate, Would Affect 401k Plans in Big Ways Abstract: Should the proposed legislation become law, it could represent the most significant pension legislation since the Pension Protection Act of 2006. In its current form, the SECURE Act is an amalgamation of a number of pension-related proposals that have been offered on and off during the course of the past several years. This article reviews the major provisions that apply directly to 401k plans. Source: Compliancedashboard.net »» Click here for more on Legislative and Washington Actions State-Based Private-Sector Retirement Programs Consider Retirement Plan Mandates When Expanding Operations to New States Abstract: As employers add small employee groups, resulting from multistate expansion through organic growth or acquisitions, they should be aware of state-run retirement plan mandates to ensure compliance and avoid the accumulation of penalties. The article provides a brief overview of two examples. Source: Natlawreview.com Employers Now Face Penalties for Failure to Comply With Oregonsaves Abstract: Employers with workers in Oregon now face investigation and penalties if they fail to comply with OregonSaves, the country's first state-run mandatory auto-IRA program for private-sector workers. A new law (SB 164), signed by Gov. Kate Brown on May 22, sets procedures for filing complaints against noncompliant employers and establishes civil penalties of up to $5,000 per calendar year. The law takes effect Jan. 1, 2020. Source: Mercer.com CalSavers Moves to Dismiss Amended Complaint Challenging Program Under ERISA Abstract: On April 11, 2019, the Howard Jarvis Taxpayer's Association filed its amended complaint challenging the propriety of California's new CalSavers retirement program after a federal district court dismissed its first complaint on March 28, 2019, but granted leave to amend the complaint due to the Court's awareness of the importance of the case. On May 28, 2019, lawyers for CalSavers again filed a motion to dismiss the suit. Source: Thebenefitofbenefits.com Compliance and Regulatory Groups Ask DOL to Make 401k Electronic Delivery the Default Abstract: Eight organizations associated with defined contribution plans, including the Investment Company Institute and the SPARK Institute, have submitted a letter to the Department of Labor asking it to propose regulations that would permit plan sponsors to make electronic delivery the default method of delivery for retirement plan disclosures and notices. If employees did not want electronic delivery, they would have the ability to request paper copies. Source: Planadviser.com How to Prepare for a 401k Audit Abstract: It is that time of year again, time to prepare for your annual 401k audit. Here are some tips and best practices to make the audit preparation as smooth as possible for both the plan sponsor and service providers. Source: Lindquistcpa.com What is the Effect of Prohibited Transactions on the EBP Audit Opinion? Abstract: When it comes to reporting prohibited transactions with parties-in-interest, it's better to come clean, confess, and report on the supplementary schedules to the audited financial statements than to deny any wrongdoing. Withholding information results in inaccurate supplementary schedules, which compels a modified opinion on the schedules. Reporting the transaction makes the supplementary schedules accurate, which means the auditor can issue an unmodified opinion on the supplementary statements. Source: Belfint.com »» Click here for more Compliance and Regulatory Material Marketplace News Ascensus Acquires United Retirement Plan Consultants »» 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
|
