Important Considerations for the RFP Process
|
Click Here for Our Resource Page on Retirement Plans and the Coronavirus Pandemic2020 SPARK Forum - Our Flagship Conference Has Gone Digital We're offering complimentary registration, during these unprecedented times, for professionals throughout the retirement industry. Information and registration. In This Issue
Fiduciary and Plan Governance Important Considerations for the RFP Process Selecting a defined contribution plan recordkeeper, financial adviser, or another service provider through a request for proposals process can ensure it is best suited to the plan. When conducting a service provider request for proposals, being specific can help ensure the plan and participant needs are met, as well as compliance with fiduciary duties. Source: Plansponsor.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers How Might Coronavirus-Related Distributions Impact Retirement Benefits? The CARES Act allows greater access to defined contribution plan balances. In this 1-page report, EBRI considers the impact on the future retirement security of American workers. Source: Ebri.org Few Divorcing Couples Know About QDROs The GAO sent a report to the Senate Health, Education, Labor, and Pensions Committee, "Retirement Security: DOL Could Better Inform Parties About Dividing Savings," in which it explored how often divorcing parties seek access to their spouse's retirement savings. The overwhelming result was that very few do. Older couples and women, in particular, are often put at a retirement disadvantage when faced with a divorce, a GAO report finds. Source: Planadviser.com Pandemic Prompts Shifts in Attitudes About Employee Benefits Employees are mostly satisfied with their company's response to COVID-19, but there has been a change in sentiment concerning employee benefits, according to a series of surveys. The Hartford's Future of Benefits Study, which polled U.S. workers and human resources benefit decision-makers in early March 2020 just before the COVID-19 outbreak and again in mid-June, found that many employees continue to view their benefits positively, but their perceived value of the benefits provided and their trust in the company to make the best benefits decisions have declined. Source: Ntsa-net.org »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers DOL Takes Fire From All Sides on Fiduciary Advice Proposal The Department of Labor heard from an array of witnesses on its proposed fiduciary advice rulemaking package, ranging from calls to withdraw the proposal altogether to making significant changes before proceeding. In the nearly six-hour-long virtual hearing -- which experienced a few technical difficulties -- the DOL heard from six panels comprised of 21 witnesses where the arguments could generally be broken into four groups. Source: Napa-net.org Advisors Talk About Fraud in 401k Plans It is well known that fraud follows the money, so it may seem like it was only a matter of time before fraudsters expanded into what are many consumers' largest individual accounts: their 401k plans. The Secure Retirement Institute has been exploring the evolution of this threat with consumers, plan sponsors, and major recordkeepers. In a recent survey, the SRI asked more than 250 financial advisors in the defined contribution industry to describe the impact of financial fraud and the importance of fraud prevention programs within the institutional retirement space. Source: Insurancenewsnet.com The Rising Tide of the Roth 401k Many employer-sponsored retirement plan participants are conflicted in deciding which type of account is best for their 401k contributions: traditional or Roth? Often having no idea which is best for their situation, they need the help of an advisor. You can advise them with confidence if you know just two things. Source: 401kspecialistmag.com 403b Plans New SECURE Act Guidance: Lifetime Income Disclosures for 401k and 403b Plans The DOL announced new guidance on lifetime income disclosures that must be included in pension benefit statements furnished to participants in defined contribution plans, such as 401k and 403b plans. This guidance, issued in the form of an interim final rule, sets forth the rules that plan administrators must follow in implementing the lifetime income disclosure requirement that was added to ERISA by Section 203 of the 2019 SECURE Act. Source: Insidecompensation.com »» Click here for More 403b Material Court and Legal A "Vaccine" for COVID-19 ERISA litigation ERISA litigation tends to spike when economic uncertainty or turmoil rises. Although many things contribute to this historically verifiable trend, it is easiest for employers to think about just two of them. First, an employer-sponsored retirement plan, like a 401k or pension plan, is likely to suffer from market volatility. Second, employer-sponsored health and welfare plans will see upticks in claims issues during a health crisis. Here are some key considerations and preventive measures that every plan sponsor and fiduciary can monitor and implement to avoid a COVID-19-related spike in ERISA litigation. Source: Constangy.com Latest 401k Lawsuit Filed in an Avalanche of COVID-19 Litigation B. Braun Medical is among the latest companies sued so far this year in an unusual wave of 401k litigation. That company, which was sued Aug. 26 in U.S. District Court in the Eastern District of Pennsylvania, is among more than 60 others facing new claims this year, according to an analysis by Bloomberg Law. Source: Investmentnews.com (registration may be required) »» Click here for more Court and Other Legal Issues Legislative and Washington DC Election 2020: Retirement Policy Positions We are nearing the final stretch of the 2020 campaign. What have the parties proposed for the future of the U.S. retirement system? Here is a chart that summarizes the policy documents prepared by the parties outlining their goals for both the private retirement system and Social Security. Source: Groom.com »» Click here for more on Legislative and Washington Actions Cyber and Plan Security The Uncertain Legal Landscape for Plan Fiduciaries Over Cybersecurity Challenges It is hard to imagine that the drafters of ERISA envisioned a day would come when retirement plans would be administered electronically and distribution of paper notices and disclosures to plan participants might become a thing of the past. However, the retirement industry seems to be swiftly moving that direction. This creates a new liability source for the plan and its service providers. Source: Wagnerlawgroup.com »» Click here for more on Cybersecurity Issues Compliance and Regulatory Retirement Plan Records: To Purge, or Not to Purge Record retention rules are found in both the DOL Regulations and ERISA, plus there are statutes of limitation concerning plan sponsor liability for just about everything administrative in a retirement plan. While most plans have policies for loans, investments, and qualified domestic relations orders, very few plan sponsors seem to have a record retention policy to provide guidance on what to retain, what to purge, and when to do it all. Depending on the document category, there are different standards for how long documents need to be kept. Source: Ferenczylaw.com Coronavirus-Related Relief for Retirement Plans Section 2202 of the CARES Act, enacted on March 27, 2020, provides for special distribution options and rollover rules for retirement plans and IRAs and expands permissible loans from certain retirement plans. In these questions and answers, the IRS provides Coronavirus-related relief for retirement plans and IRAs. Source: Irs.gov IRS Requesting Comments on Form 5500 The IRS is soliciting comments concerning the Form 5500 Annual Return/Report of Employee Benefit Plan. Proposed changes include adding a new checkbox to Form 5500, Form 5500-SF, and Form 5500-EZ for an initial plan retroactively adopted as permitted by the SECURE Act Section 201 and adding checkboxes for requesting an extension of time. Source: Planadviser.com IRS Q&As Tackle Auto-Enrollment Credit, Part-time Vesting, Adoption The IRS has provided some answers to questions concerning the small employer automatic enrollment credit, part-time vesting rules, and other provisions under the SECURE Act. IRS Notice 2020-68, issued September 2, provides guidance on some of the outstanding SECURE Act issues in a questions and answers format. Source: Napa-net.org »» Click here for more Compliance and Regulatory Material Marketplace News EdgeCo Brings Unified Trust Under Its American Trust Umbrella
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 © 2020 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 on any website. 401khelpcenter.com, LLC
|
