403bs Boost Participation, Contributions, Financial Wellness
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In This Issue
403b Plans 403bs Boost Participation, Contributions, Financial Wellness Abstract: According to the 11th annual 403b plan survey from the Plan Sponsor Council of America, increased contributions by both participants and organizations continue to have a positive impact on retirement readiness. Also, the employers that sponsor those programs have a burgeoning interest in financial wellness; a quarter of organizations have a formal financial wellness program in place. Nearly half (47%) have plans or interest in implementing one. Source: Asppa.org »» Click here for More 403b Material General Items Overconfidence Versus Extreme Caution: Irrationality in Retirement Planning Abstract: Confidence and caution are generally sensible characteristics. However, when it comes to retirement planning, an excess of either can be disadvantageous. Further, neither is usually based on a person's true readiness. If recordkeepers, sponsors and employers understood the disconnect between retirement confidence and preparedness and its consequences, they could better identify those who need assistance and provide more targeted outreach. Source: Corporateinsight.com Insight: Studies, Research, and White Papers Retirement Pulse: Three Questions Today, an Improved DC Plan Tomorrow Abstract: The complexity of fiduciary requirements, an increasingly litigious operating environment, service provider consolidation, and a steady stream of legislative and regulatory actions can be a constant battle for plan sponsors. To help overcome these challenges, this paper identifies three questions that each plan sponsor should answer about their plan, all of which go beyond uncontrollable external influences and focus on situations where plan sponsors have control. Source: Troweprice.com Canadians Increasingly Putting Retirement Savings on Back Burner Abstract: As Canadians struggle to make ends meet and manage growing debt, they're increasingly putting their future financial plans -- including retirement -- on the back burner, according to a new survey by BDO Canada. The survey, which polled more than 2,000 Canadians, found more -- 39 percent compared to 31 percent in 2018 -- said they have no retirement savings, including 32 percent of baby boomers and seniors. Source: Benefitscanada.com »» Click here for More Studies, Research, and White Papers Court and Legal Supreme Court to Hear Three ERISA Cases in Upcoming Term Abstract: The upcoming term of the U.S. Supreme Court is shaping up to be a busy one with respect to cases arising under the Employee Retirement Income Security Act of 1974. There have been other terms with multiple ERISA cases -- for example, the 2015 term had at least three -- and it looks like the upcoming term will again be an extremely eventful one for ERISA in the Court. Source: Dechert.com 401k Lawsuits Get More Complex Abstract: Lawsuits targeting 401k plan sponsors increasingly involve issues that are complex and granular. It's a trend that's likely to continue as such litigation proliferates and one that some advisers and attorneys fear may leave employers paralyzed when it comes to retirement plan design. Source: Investmentnews.com (registration may be required) 401k Plan Participant Cannot Pursue Claims on Behalf of Plans in Which She Did Not Participate Abstract: A federal district court in Ohio concluded that a 401k plan participant could assert fiduciary breach and prohibited transaction claims only on behalf of the plan in which she participated, and not on behalf of other plans. In this case, the plaintiff was a participant in Andrus Wagstaff, PC's 401k plan, and she alleged that the plan's recordkeeper charged the plan excessive recordkeeping fees. Source: Erisapracticecenter.com CareerBuilder Sued by Former 401k Participant Abstract: A former participant in a 401k plan offered by CareerBuilder, Chicago, sued the company and plan fiduciaries, alleging violations of the Employee Retirement Income Security Act. The complaint said the plan contained "excessively expensive" mutual funds, causing participants to pay "excessive fees" to the plan's recordkeeper and investment adviser. Source: Pionline.com »» Click here for more Court and Other Legal Issues Multiple Employer Plans (MEP) Company Fiduciary Must Ask These Questions Before Joining a 401k MEP Abstract: September 30, 2019, may very well be remembered as the first day of a brand-new era. In July, the DOL finalized its rule which redefined "Employer" under Section 3(5) of ERISA. While not opening up the 401k MEP concept to all, the new regulation makes it clear that closed MEPs will have the advantages they notionally should have. Current 401k plan sponsors, however, may want to consider asking these questions before joining an association 401k MEP. Source: Fiduciarynews.com »» Click here for more on Multiple Employer Plans Compliance and Regulatory IRS Finalizes Changes in Hardship Distribution Rules Abstract: On September 23, the IRS published final regulations amending the rules governing hardship distributions from 401k and 403b plans pursuant to changes contained in the Bipartisan Budget Act of 2018. The final regulations, summarized here, largely mirror the proposed regulations that the IRS published in November 2018, and include helpful clarifications on the changes and plan amendment timing. Source: Groom.com IRS Revenue Procedure 2019-39 Establishes Recurring Remedial Amendment Periods for 403b Plans Abstract: The Internal Revenue Service issued Revenue Procedure 2019-39, which establishes recurring remedial amendment periods for individually designed and pre-approved 403b plans. Revenue Procedure 2019-39 also creates pre-approved plan cycles during which plan sponsors may submit proposed 403b pre-approved plans for IRS approval. Source: Westlaw.com When Must Summary Plan Descriptions and Summaries of Material Modifications Be Distributed? Abstract: All employee benefit plans subject to ERISA must distribute summary plan descriptions, which describe the material provisions of the employee benefit plan, and summaries of material modifications, which describe any material changes to plan provisions. These documents must be distributed to participants and beneficiaries within certain time periods following specified events. Source: Boutwellfay.com Required Minimum Distributions Abstract: As we approach the end of the calendar year, it is important to be reminded about one frequently overlooked retirement plan requirement. Upon attainment of age 70-1/2, certain participants of a tax-qualified retirement plan may be required by federal tax law to withdraw a minimum amount from the plan each year. This is a review of RMDs. Source: Legacyrsllc.com ERISA Tips: What Is an ERISA Fidelity Bond? Abstract: An ERISA fidelity bond is a type of insurance that protects the plan against losses caused by acts of fraud or dishonesty: larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction, wrongful conversion, willful misapplication, and other acts. An ERISA fidelity bond is not the same thing as fiduciary liability insurance. Source: Ntsa-net.org »» Click here for more Compliance and Regulatory Material Marketplace News Millennium Trust Launches Retirement Savings Selector Tool for Small Businesses »» Click here for More Marketplace News
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