2021 Hot Topics in Retirement and Financial Wellbeing
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Click Here for Our Resource Page on Retirement Plans and the Coronavirus PandemicIn This Issue
Insight: Studies, Research, and White Papers 2021 Hot Topics in Retirement and Financial Wellbeing In early 2020, few people could have predicted that COVID-19 would have the everlasting societal impact that it has. Fortunately, despite market pressures, many employers remained steadfastly committed to helping their workers save and plan for retirement. This 32-page report shares the latest trends and changes in employer-sponsored defined benefit and defined contribution plans. Source: Alight.com The Impact of 2020 on Retirement Without a doubt, 2020 was a historic year of turbulent and unprecedented change. Within the past year, the world has dealt with a global public health crisis, devastating environmental disasters, severe economic fallouts, and civic unrest. Everything about our lives has been affected, even retirement. This infographic explores how retirement has been impacted by 2020. Source: Fidelity.com »» Click here for More Studies, Research, and White Papers Fiduciary and Plan Governance The Problems and Perils in Changing Your 401k TPA This article is all about the TPA change, which involves a conversion process that can start a whole host of problems for you as a plan sponsor and fiduciary. Source: Jdsupra.com »» Click here for more Fiduciary and Plan Governance Material Items of Special Interest to Service Providers Four Big Trends for Retirement Plan Advisors in 2021 Pooled employer plans and the changes they will bring to the industry will lead many of the trends retirement advisors face in 2021, according to a panel of industry experts. Source: 401kspecialistmag.com What Labor Nominee Walsh Means for the Fiduciary Rule's Future President Biden named Boston Mayor Martin Walsh as his nominee for Secretary of Labor. Walsh's nomination raises questions for the future of the DOL's fiduciary rule, which regulates investment fiduciaries under ERISA. In particular, the new fiduciary rule guidelines promulgated by the DOL in December 2020 appear to be in jeopardy under a Biden administration with Walsh as Labor Secretary. Source: 401kspecialistmag.com 403b Plans 2021 403b Retirement Plan Compliance Calendar This plan compliance calendar for 2021 highlights critical compliance deadlines for 403b retirement plans. While all major dates are covered, some may only apply to particular plan types (and are noted accordingly) and there may be additional deadlines for specific plans that are not covered here. Plans with non-calendar plan years may be subject to different deadlines. Source: Cammackretirement.com 403b Plan Investment Lineups Have Changed Annuities were the only investment type 403b plans were allowed to use before the passage of ERISA. ERISA added custodial accounts, i.e., mutual funds, as permissible investments. Since regulations were passed in 2007, mutual funds have been embraced more by 403b plan sponsors and participants, and mutual fund fees have decreased. Source: Plansponsor.com »» Click here for More 403b Material Court and Legal DOL Objects to Terms of Excessive Fee Settlement The DOL has called "foul" on the terms of a proposed excessive fee litigation settlement involving DST Systems' 401k plan. The move comes following three class action settlements filed Jan. 8 in a federal district court by DST, investment manager Ruane, Cunniff & Goldfarb, and the former CEO of Ruane, in which the defendants agreed to pay nearly $80 million to settle claims made by participant-plaintiffs in the DST 401k profit-sharing plan. Source: Napa-net.org Defending Against Excessive Fee Cases: It's All About Procedure There has been a surge of excessive fee lawsuits filed against plan sponsors in recent years. But there are strategies retirement plan sponsors and their attorneys can take to defend themselves, Carol Buckmann, ERISA attorney and founding partner of Cohen & Buckmann. "Even if a trial progresses, there are a lot of effective arguments that fiduciaries can make," Buckmann says. Source: Plansponsor.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Rep. Neal Releases Policy Priorities for Equity in Retirement Security House Ways and Means Committee Chairman Richard Neal has laid out his party's vision for economic equity in health care and retirement. In a letter included in his Policies and Priorities report, Neal says one of their priorities is increasing retirement security for U.S. workers, which would be achieved by policies strengthening Social Security benefits, growing multiple employer plan participation, and mandating automatic enrollment for 401k plans. Source: Plansponsor.com 2021 Could See More Retirement and Health Legislation There is optimism that one or more savings-focused bills could be enacted in 2021. Several introduced during the past two years will likely be re-introduced in the 117th Congress. Source: Futureplan.com »» Click here for more on Legislative and Washington Actions Compliance and Regulatory Avoiding Retirement Plan Operational Errors Understanding the plan document, establishing a plan administrative policy, having good service providers, and doing regular checks can help plan sponsors avoid operational errors. Source: Plansponsor.com IRS Signals Compatibility of Pre-Approved Plan Documents and PEPs The IRS in its January 20, 2021 edition of Employee Plans News has revealed that pre-approved qualified retirement plan documents may be used to establish arrangements known as pooled employer plans, or PEPs. Source: Ascensus.com 2021 401k Catch-Up Contribution Rules When you turn 50, you become eligible to put aside more tax-shielded money into your 401k plan. The tax deduction for a catch-up contribution can save you more than $1,000 on your annual IRS bill. On top of that, you'll be earning investment returns and compounding interest on the additional money saved. Source: Myubiquity.com In Rehire Mode? Keep March 31, 2021, in Mind for Your 401k Plan If your business is one of the many that reduced employees in the early days of the COVID-19 pandemic, you need to keep March 31, 2021, marked on your calendar, particularly if you are fortunate enough to be ramping up activity and adding workers back to your payroll. Source: Eforerisa.wordpress.com Post-CARES Act: A Checklist for Retirement Plan Sponsors At this point in early 2021, the loan and distribution provisions of the CARES Act have not been extended. This means that these provisions expired on or before December 31, 2020. Plan sponsors should ensure that any CARES Act provisions added to their retirement plans are administered in accordance with this expiration date. Source: Cammackretirement.com »» Click here for more Compliance and Regulatory Material Marketplace News OneDigital Acquires Firm Overseeing $1 Billion in Retirement Plan Assets Fidelity Launches Pooled Employer Plan Fidelity Matches Vanguard Move to Lower Investment Minimum for Institutional TDFs
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