ERISA Litigation's Next Big Thing?
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Newsletter Sponsor Are all $5,000,000 401k Plans Created Equal? The findings might surprise you. This visually appealing infographic was created by using data from the 401k Averages Book to compare the average costs of two $5,000,000 401k plan benchmarks. Click here to receive a copy of the infographic and see what we found out. In This Issue
Court and Legal ERISA Litigation's Next Big Thing? Abstract: While there are many prudence and cost-efficiency related issues relating to variable annuities overall, an emerging issue involves the plan sponsor’s ability to carry out its fiduciary duties under ERISA. Variable annuities usually include numerous sub-accounts as investment options. This increases the odds of finding sub-accounts that are not prudent and need to be removed. Source: Iainsight.wordpress.com Without Infrastructure Fees, Recordkeepers Would Go Out of Business Abstract: This was one of Fidelity's arguments in a memorandum to support its motion to dismiss a consolidated lawsuit alleging it is receiving "secret" or "kickback" payments from providers on its FundsNetwork platform. Several lawsuits filed against the firm claim the payments were presented as infrastructure payments, or so-called relationship-level fees, in violation of the prohibited transaction rules of ERISA, as well as the statute's fiduciary rules. Source: Planadviser.com »» Click here for more Court and Other Legal Issues General Items Retirement Dilemma Continues to Vex Employers and Their Workers Abstract: When employees expect to retire versus when employers expect workers to retire can be two very different plans that often translate into a reality neither party imagined. Solutions remain elusive as experts say that delaying retirement is no sure-fire cure for either side. But there are ways employers can help employees get closer to meeting their expectations while holding company costs down. Source: Workforce.com Ten Tips for Better Retirement Savings Behavior Abstract: Here are 10 tips based on the principles of behavioral finance for helping workers achieve a secure retirement, according to The International Foundation of Employee Benefit Plans. Source: Tra401k.com What Is a Solo 401k and How Much Can You Contribute? Abstract: A solo 401k plan can be an excellent retirement plan option for those who are self-employed. They are easy to open and fund, and the contribution limits are high. Here are some details about these plans. Source: Thestreet.com Fiduciary and Plan Governance Abstract: The Center for Retirement Research at Boston College recently released a study outlining the major causes of 401k lawsuits. In particular, the study focuses on the fact that these types of lawsuits often hinge on whether the plan fiduciary was following a "prudent" process and how one would define a process as prudent. With most companies now offering 401k plans as their primary retirement offering, it's wise to pay attention to the major findings and engage ERISA counsel to guide implementation of a fiduciary legal compliance paradigm to mitigate exposure to these costly lawsuits. Source: Hallbenefitslaw.com Seizing Opportunity With an Annual Plan Review Abstract: Today's 401k plans offer employers a world of options. A mid-year plan review positions sponsors to identify areas where improvements are possible. Adopting new plan design features can significantly improve a 401k plan to meet organization needs and help employees build toward a secure financial future. Since many plan design changes require notice to participants 30 days before the beginning of a new plan year, now is a good time to schedule a review of plans with a December 31 year-end date. Source: Alliant401k.com »» Click here for more Fiduciary and Plan Governance Material Items of Special Interest to Service Providers Newly Allowed 401ks Will Need Advisers Abstract: Advisers may shy away from helping hemp and CBD companies with their 401ks because they may find themselves crossing into advising for a cannabis company as well, but there are protections and money to be made. Source: Planadviser.com Dangers That a 401k Provider Needs to Avoid Abstract: It can take almost a lifetime to build a sterling reputation in the retirement plan industry as a plan provider and it can be destroyed in an instant. The retirement plan business is very competitive, and you can't afford any problems that can negatively impact your business. There are dangers every day in the retirement plan business and you owe it to yourself and your employees in avoiding dangers that could lead you to exit the retirement plan business. Source: Jdsupra.com »» Click here for More 403b Material State-Based Private-Sector Retirement Programs The New CalSavers Law Takes Effect on July 1, 2019: What Employers Need to Do Now Abstract: The California Secure Choice Retirement Savings Trust Act takes effect on July 1, 2019. Large employers that have at least one eligible California based employee and who do not offer their own employer-sponsored retirement plan must register with the CalSavers program and begin auto-enrolling employees in the CalSavers plan no later than June 30, 2020. Source: Boutwellfay.com Oregon Retirement Savings Board Can Partner With Other States Abstract: The Oregon Retirement Savings Board (ORSB) now may partner with other states in providing services similar to those offered by OregonSaves, the Beaver State's the state-run auto-IRA program for private-sector employees whose employers do not offer a retirement plan. On June 27, Gov. Kate Brown signed into law a measure authorizing the ORSB to do so; it took effect immediately. Source: Ntsa-net.org Multiple Employer Plans (MEP) IRS Proposes Curtailing 'One Bad Apple' Rule for MEPs Abstract: The IRS issued a proposed regulation to water down the "one bad apple" rule that critics claim has prevented broader uptake of certain retirement plans by employers. Under current rules, if one of the employers in a MEP makes a mistake the entire plan is disqualified. The IRS's proposal would "significantly curtail" this rule. Source: Investmentnews.com (registration may be required) »» Click here for more on Multiple Employer Plans
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