HSAs Shine Brightly in the Retirement Savings Universe
|
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
Insight: Studies, Research, and White Papers HSAs Shine Brightly in the Retirement Savings Universe Abstract: In the universe of retirement options, there are a lot of bright stars, 401ks (and their nonprofit and public-sector counterparts, 403b and 457 plans), IRAs, and Roth 401ks and IRAs. And while each of these retirement savings options offers its own distinct advantages, shining brightest among them in the retirement stratosphere is the often-overlooked HSA (health savings account). Source: Plansponsor.com What a New Survey Reveals About ESG Adoption Abstract: Callan recently released its 2019 ESG Survey. Here are the key takeaways, analysis, and commentary. Source: Fiduciarygovernanceblog.com Abstract: Participants provide valuable insights for plan sponsors. The 2019 PLANSPONSOR Participant Survey found that a retirement plan's initial automatic deferral rate plays an important role in what employees save. Twenty-eight percent of plan participants said they accepted the default deferral rate. Perhaps because that rate is typically low, 41% of respondents save 5% or less -- a more sizable group than the 34% last year and 35% in 2017. Source: Plansponsor.com »» Click here for More Studies, Research, and White Papers Fiduciary and Plan Governance Misperceptions of Fiduciary Responsibilities Persist Abstract: Surveys still find that many plan sponsor representatives who oversee their companies' 401k or other DC plans don't realize that they are fiduciaries under ERISA. And some believe they can offload all of their fiduciary responsibilities for investments to a third party. Plan sponsors who harbor misperceptions like these or who are unaware of their fiduciary status risk violating ERISA's fiduciary standards, harming participants and exposing themselves and their firms to liability. A sound understanding of fiduciary status, responsibilities, liabilities, and protections can help ensure that plans are well administered and continue to evolve for the best interests of participants while protecting individual plan fiduciaries and their organizations. Source: Jpmorgan.com Plan Sponsors, Are You Leaving Important Questions Unanswered? Abstract: If you have an inexpensive provider, your plan seems to be in compliance, and your participants like the web features, there is a tendency to assume that you have answered all of the right questions and ticked all the correct boxes. You might even base a future provider search on asking those same questions. But there are several impactful questions that are often not asked enough. Source: Conradsiegel.com »» Click here for more Fiduciary and Plan Governance Material Items of Special Interest to Service Providers Innovation Is Key to Long-Term Success in the QDIA Space Abstract: Target-date products continue to dominate the Qualified Defined Investment Alternatives (QDIA) landscape; however, providers must innovate beyond current norms to deliver the guidance and custom retirement solutions that participants need, according to the latest research from Cerulli Associates. Providers should look for ways to improve upon engagement strategies, customization abilities, and retirement income options, all in the context of promoting broader financial wellness. Source: Cerulli.com Does the SEC Expect Investment Advisers to Make a Sweeping Compliance Upgrade? Abstract: The SEC's Final Interpretation Regarding Standard of Conduct for Investment Advisers "clarifies" the fiduciary duty of Investment Advisers in a succinct 42 pages. The Commission states that the Interpretation should affirm an IA's understanding of fiduciary duty, reduce uncertainty and facilitate compliance. Though REG BI may not apply to internal pension fiduciaries, it will apply to IAs handling 401k rollovers, not just with respect to invest. advice, but also with respect to the advice to roll over the 401k. Source: Cohenbuckmann.com 403b Plans 403b's 15-Year Long Service "Catch-Up" Is an "Attractive Nuisance" to Be Avoided Abstract: When you are restating your 403b plan documents, and you come across this election, your first impression may well be "why not? What a great benefit for the more senior employees!" You should, however, pause at that moment, and consider the details of what it takes to be able to support providing this benefit. It's not what it seems to be, and it truly has become an "attractive nuisance." Source: Businessofbenefits.com SEC Probing Compensation, Sales Practices in 403b Plans Abstract: The Securities and Exchange Commission appears to be launching a broad investigation of compensation and sales practices in defined-contribution plans for school districts, an atypical move that targets a segment of the market frequently lambasted for high fees and deceptive practices aimed at winning the business of plan participants. Source: Investmentnews.com (registration may be required) »» Click here for More 403b Material Court and Legal North Carolina Court Awards $41k for Failure to Produce Documents Requested by Plan Participants Abstract: A recent decision by the United States District Court for the Western District of North Carolina, Charlotte Division (Kinsinger v. Smartcore LLC, 2019 US Dist. LEXIS 145052 (August 27, 2019)), vividly illustrates the perils in failing to comply with document requests by participants. Source: Benefitslawadvisor.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Warren Labor Proposal Targets ERISA Preemption, Fiduciary Rulemaking Abstract: The presidential candidate released a 14-page proposal on Oct. 3, "Empowering American Workers and Raising Wages," that essentially calls for restoring worker protections and labor union rights by "returning power to working people." The proposal singles out the Department of Labor's conflict-of-interest rule that was vacated last year by the 5th U.S. Circuit Court of Appeals. Source: Asppa.org Government Fixes for the Retirement Problem Abstract: Companies want their older employees to afford a timely, secure retirement. That's not simply altruism: such workers tend to be highly paid, consume more health care, and miss work more often than others, and block the upward mobility of younger high achievers who may become frustrated and leave the company. While effective solutions to that cause may elude retirement plan-sponsoring companies, Congress is now positioned as their ally, with pending legislation that would do much to make it easier for people to retire on time. Source: Cfo.com »» Click here for more on Legislative and Washington Actions Cybersecurity Cybersecurity Risks to Retirement Plans Abstract: Given the potential dollar amounts at stake, plan fiduciaries should monitor evolving cybersecurity threats and industry standards for dealing with them and take steps to avoid potential attacks on their own plans. This 4-page article evaluates the current legal landscape and highlights some best practices for plan fiduciaries to reduce the cybersecurity risks to their plans. Source: Eversheds-sutherland.com »» Click here for more on Cybersecurity Issues Multiple Employer Plans (MEP) Multiple Changes for Multiple Employer Plans Abstract: While the SECURE Act and its promise of truly open multiple employer plans (MEPs) sat with the Senate this summer, the US Department of Labor and Internal Revenue Service both issued guidance addressing MEPs. These regulations help alleviate some of the uncertainty and risk that have made MEPs unpopular in recent years, but a number of questions remain unanswered. Source: Morganlewis.com »» Click here for more on Multiple Employer Plans Compliance and Regulatory While Popular, Default Electronic Delivery of Plan Documents Irks Some Abstract: Retirement plan service providers generally support making electronic delivery of documents the default, but print communication industry organizations and some consumer groups say the paper default should remain. Source: Planadviser.com Abstract: In May, the IRS proposed new regulations regarding the required tax withholding that will impact these individuals specifically. Currently, withholdings are required when distributions are made to individuals from retirement plans, IRAs, and other types of retirement plans. In certain circumstances, such as with an individual living abroad, they may want to elect out of the withholding and the proposed IRS regulations aim to clarify this rule. Source: Hallbenefitslaw.com »» Click here for more Compliance and Regulatory Material Marketplace News Millennium Trust Launches Small Business Retirement Solution »» 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
|
