Retirement Fiduciary Calendar for 2021
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Click Here for Our Resource Page on Retirement Plans and the Coronavirus PandemicNewsletter Sponsor 401k Averages Book 20th Edition Infographic With the release of the 401k Averages Book 20th Edition, we have updated our infographic "Are all $5,000,000 401k Plans Created Equal?" …and the findings might surprise you. The infographic compares 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
Fiduciary and Plan Governance Retirement Fiduciary Calendar for 2021 TRI-AD seeks to make it fast, simple, and easy for plan fiduciaries to keep their retirement plans in compliance with the Internal Revenue Service, Department of Labor, and ERISA regulations. They have created this useful calendar to help you stay in front of such administrative deadlines and submission complexities. Source: Tri-ad.com Employers Beware! Retirement Plan Disclosures Are Required Under 408(b)(2) To fulfill their fiduciary obligations, plan sponsors need to ensure that service providers subject to 408(b)(2) rules satisfy their disclosure requirements under ERISA. If a service provider fails to meet their reporting requirements under 408(b)(2), the plan sponsor is required to act by sending the service provider a written request for compliance. Source: Hallbenefitslaw.com When You May Have to Fire Your 401k Advisor For most 401k plan sponsors, it's the financial advisor that serves as their ombudsman. When things aren't going so well it is often the result of the financial advisor not doing their job competently. This article is about situations where, as a plan sponsor, you may have to fire your financial advisor. Source: Jdsupra.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Analysis Shows Participant Fees Higher in Plans With Revenue Sharing Mutual funds that pay revenue sharing to recordkeepers of DC plans are more likely to be added to plan investment menus and are less likely to be deleted from them, according to researchers from Vanderbilt University; the University of Texas at Austin, and the National Bureau of Economic Research; and the Board of Governors of the Federal Reserve System. In a paper, the researchers also noted that Investment Company Institute data shows that in 2018, mutual funds managed more than 60% of the $5.2 trillion invested in 401k plans. Source: Planadviser.com Poll Finds 60% Raided Retirement Accounts During Pandemic While we've often seen studies showing that people have largely refrained from raiding their 401ks to help cover expenses during the COVID-19 pandemic, every now and then we hear differently. According to a new poll released Jan. 6, nearly 60% of Americans withdrew or borrowed money from an IRA or 401k during the pandemic, and nearly two-thirds (63%) used those retirement savings to cover basic living expenses. Source: 401kspecialistmag.com Value Taking Center Stage When It Comes to Canadian DC Investment Fees Anyone flipping through a prospectus for an employer's DC pension plan or group registered retirement savings plan will notice a recurring theme when it comes to statements on investment fees: "Better than retail!" they might as well scream. It's a familiar refrain from both capital accumulation plan sponsors and providers trumpeting the lower rates available with group offerings, but it doesn't do much for Michelle Loder, a partner in DC solutions at Morneau Shepell Ltd. "It's a very low bar to clear," she says. "There's not much cause for celebration when you realize that Canada is one of the worst places in the world for retail investment fees." Source: Benefitscanada.com »» Click here for More Studies, Research, and White Papers Court and Legal Allstate Faces Additional ERISA Fiduciary Breach Lawsuit A new complaint filed in the U.S. District Court for the Northern District of Illinois, Eastern Division, accuses Allstate of various breaches of fiduciary duty and prohibited transactions under ERISA. A new complaint echoes allegations leveled against the insurance company in a complaint from November. Source: Planadviser.com Plaintiffs Claim Fiduciary Breach in Recent Retirement Plan Class Action Nestle USA and its board of directors have been served with an ERISA class action on behalf of 401k plan participants and their beneficiaries. The suit alleges that Nestle and its representatives failed to monitor fees or act to reduce expenses passed along to plan participants. Plaintiffs claim fiduciary breach while acknowledging insufficient data to determine reasonable fee levels. Source: Hallbenefitslaw.com Vail Resorts on Wednesday won dismissal of a lawsuit over the Colorado-based skiing company's 401k plan. The plaintiff failed to raise issues with the company's process of selecting and monitoring funds, a judge wrote. Source: Investmentnews.com (registration may be required) »» Click here for more Court and Other Legal Issues Legislative and Washington DC Senate Tilt Portends Big Policy Shifts The election of the two Georgia Senate Democratic candidates and the resulting shift in control of the U.S. Senate could have profound implications for President-elect Joe Biden's policy agenda, including retirement plans. Source: Asppa.org Qualified Retirement Plan Relief in the Consolidated Appropriations Act of 2021 The Consolidated Appropriations Act of 2021 contains various relief provisions applicable to qualified retirement plans. This article summarizes provisions in the Act, including the temporary rule preventing partial plan terminations, coronavirus-related distributions, and qualified disaster distribution and loan relief provisions. Source: Shermanhoward.com 2020 ERISA Litigation Trends Hint at What's Ahead This Year By any measure, 2020 was a record-setting year for litigation under the Employee Retirement Income Security Act. The U.S. Supreme Court issued four ERISA decisions, more than it has issued in a single year in the 45-year history of the statute. And just over 200 new ERISA class actions were filed, a record that represents an 80% increase over the number of ERISA class actions filed in 2019 and more than double the number filed in 2018. This trend shows no sign of slowing down, with important developing issues related to fee and performance litigation for smaller retirement plans, COBRA notices, arbitration clauses and class action waivers, actuarial assumptions, cyber theft, and employee stock ownership plans, or ESOPs. Source: Groom.com »» Click here for more on Legislative and Washington Actions Compliance and Regulatory Benefits-Plan Sponsors Face a Tough Year on Compliance The pandemic, remote work, and changing needs have created unique and novel challenges that have necessarily dominated employer attention in the past nine months. The pandemic hasn't affected, however, the constant drum of change to employee benefit plan requirements. Here are some things for plan sponsors to look out for this year. Source: Wagnerlawgroup.com Partial Employee Benefit Plan Terminations The AICPA Employee Benefit Plan Audit Quality Center has prepared this 18-page advisory to provide plan sponsors, administrators, or trustees with an understanding of partial plan terminations under ERISA and your related responsibilities. As a plan fiduciary, you are subject to certain responsibilities, such as following the plan document and prudently carrying out your responsibilities. Source: Aicpa.org IRS Rev. Proc. 2021-4 Updates the Determination Letter Program The Internal Revenue Service (IRS) issued Revenue Procedure 2021-4, which makes several changes to the determination letter program and Voluntary Correction Program fees. Source: Westlaw.com Annual Plan Deadlines for the Plan Year Ending December 31, 2021 This 7-page chart explains key plan events and the deadline for each for Section 401(a) and 401k defined contribution plans with a plan year ending December 31, 2021. Off-calendar year plans should adjust the deadlines accordingly based on the time frames described in the chart. The chart is intended as a tool to assist employers with monitoring the key annual plan requirements. Source: Voya.com »» Click here for more Compliance and Regulatory Material Marketplace News Securian to Offer Education Benefits to Retirement Plan Clients Biden Picks Boston Mayor to Lead DOL Empower, Ascensus Acquire Recordkeeping Business of Truist Marsh & McLennan Acquires Compass Financial Partners The 401k Plan Company Launches California PEP PCS Retirement Acquires Alliance Benefit Group -- Rocky Mountain Empower Retirement Closes Acquisition of MassMutual Retirement Plan Business Sageview Acquired by Aquiline Capital Partners
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