A Plan Sponsor's Responsibilities
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Fiduciary and Plan Governance A Plan Sponsor's Responsibilities Congratulations! You have an employee retirement plan in place. Of course, you want to do the right things to run your plan. Here are some tips from the IRS that will help you stay on course. Source: Irs.gov DOL Proposed Regulation Highlights the Risks of ESG Investing for ERISA Fiduciaries The DOL issued a proposed regulation outlining the duties of an ERISA fiduciary when considering an investment that incorporates environmental, social, and corporate governance factors. Some believe that the DOL will likely move quickly to finalize the regulation before the end of the current administration's first term. The proposed regulation would make five basic changes to the current regulation. Source: Verrill-law.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Generational Views on Financial Advice, Investing, and Retirement A new Vanguard survey finds millennials are redefining retirement. This age cohort is challenging traditional norms like retiring at the target age of 65 and are instead aspiring to retire early or pursue a new career after reaching retirement age. Source: Vanguard.com More Employees are Taking Coronavirus-Related Distributions The U.S. opened up retirement plans for participant withdrawals under the CARES Act, to act as a temporary solution for those without emergency savings. Almost a quarter of U.S. workers (22%) have borrowed money from their retirement accounts. That's what American Consumer Credit Counseling found in its new financial health index, which measured financial confidence among workers. Source: Planadviser.com »» Click here for More Studies, Research, and White Papers Court and Legal iHeart Communications Faces 401k Excessive Fee Suit A proposed class-action lawsuit has been filed against iHeart Communications, its board of directors and its retirement benefits committee alleging excessive investment and recordkeeping fees for its 401k plan. Source: Plansponsor.com Plaintiffs Press Participant Data Claims Citing the "imminent harm of being solicited for non-Plan services," the plaintiffs in an excessive fee suit have filed a response to a motion to dismiss the case by fiduciaries of the $4.4 billion ADP TotalSource Retirement Savings Plan. Source: Napa-net.org Medical Device Manufacturer Hit With ERISA Excessive Fee Suit Law firm Capozzi Adler has filed an ERISA lawsuit on behalf of former participants of the B. Braun Medical Inc. Savings Plan alleging plan fiduciaries failed in their duties to ensure investment fees were reasonable and not excessive. The case contains allegations similar to those in many complaints filed this year. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Biden Retirement Proposal Would Upend Traditional 401k Plans A little-noticed feature of Democratic presidential nominee Joe Biden's tax plan would flip the incentive structure of a retirement system grounded for nearly a century on the tax-deductibility of saving. Instead of pretax contributions, everyone would get a flat tax credit. Source: Rollcall.com Examining Joe Biden's Retirement Savings Tax Credit Proposal One of the provisions in Democratic presidential candidate Joe Biden's platform would replace the tax deduction that workers get when they contribute to their workplace retirement plan with a tax credit. Experts steeped in the retirement planning industry wonder if the Democratic candidate's proposed incentives are enough to prompt lower-income workers to save sufficiently for retirement. Source: Planadviser.com »» Click here for more on Legislative and Washington Actions State-Based Private-Sector Retirement Programs Colorado Enacts State-Run Auto-IRA Program Most private-sector employers in Colorado that don't offer a retirement plan will have to enroll workers in a state-run, payroll-deduction IRA program, under legislation enacted earlier this summer. The legislation does not set the implementation date, so exactly when the program will get up and running is unclear. Source: Mercer.com Compliance and Regulatory SEC Urges Firms to Take Precautions on COVID-19 Retirement Account Distributions Considering that many firms have modified their normal operating procedures and moved to a company-wide telework environment, the Securities and Exchange Commission is urging firms to take extra steps to ensure the safety of its investors’ assets. Source: Asppa.org DOL Presses Forward With Lifetime Income Disclosure in DC Plans The DOL issued an interim final rule implementing Section 203 of the Setting Every Community Up for Retirement Enhancement Act of 2019, which requires an annual lifetime income disclosure for 401k and other ERISA defined contribution plan participants. This article reviews the key takeaways. Source: Groom.com IRS Offers New Guidance for Qualified Plan Loan Offsets Earlier this week the IRS issued proposed regulations regarding an extension of the rollover period for certain plan loan offset amounts. The proposed rules implement portions of the Tax Cuts and Jobs Act, which provides for an extended rollover period for a Qualified Plan Loan Offset, which is a type of plan loan offset. Even though the rules are proposed, they can be relied on immediately, and it is important to know what is in them. Source: Graydon.law Coronavirus and Retirement Plan Extension Relief Due to the COVID-19 pandemic, new guidance from the U.S. Department of Labor, the IRS, and the Department of the Treasury extends several deadlines for retirement plan notifications and benefit plan claims required by Title I of ERISA. Source: Hallbenefitslaw.com DOL Proposed Pooled Plan Provider Registration Rule The SECURE Act created a new structure through which completely unrelated employers can participate in a single defined contribution plan beginning on January 1, 2021. These Pooled Employer Plans must have a Pooled Plan Provider, and each PPP must register with the Department of Labor prior to beginning operations. On August 20, 2020, DOL released a proposed regulation detailing the PPP registration requirements. Source: Groom.com Changes to Retirement Plan Distribution and Disclosure Information The IRS has updated its safe harbor Special Tax Notice required to be provided to plan participants about to receive a distribution from a tax-qualified plan as part of the election package. Further out on the horizon, individual account plans will be required to provide "lifetime income illustrations" on at least one benefit statement provided to participants during a 12-month period as a result of provisions included in the SECURE Act. Here are five key points for plan fiduciaries. Source: Troutman.com »» Click here for more Compliance and Regulatory Material Marketplace News ARA Launches Women in Retirement Council Principal® Offers New 401k Solution for Start-up Retirement Plans Rebalance Launches New Small Business 401k Product
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