Two Approaches to Benchmarking Plan Fees
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Fiduciary and Plan Governance Two Approaches to Benchmarking Plan Fees Benchmarking retirement plan fees has become more complex in recent years, as it has moved beyond just scrutinizing recordkeeping and administrative fees. There are two ways sponsors can benchmark their fees. There is the traditional approach of doing an external benchmark by issuing an RFI or RFP. The other approach is to use information from a database of plan sponsors to compare fees paid. Source: Plansponsor.com Substitutions That 401k Plan Sponsors Can't Afford to Make 401k plan sponsors think they can substitute a part of their job with something else. As plan fiduciaries, they do so at their financial peril. This article is all about four substitutions that plan sponsors can't afford to make. Source: Jdsupra.com Updating Your 401k Retirement Plan Committee's Responsibilities If you are like many 401k plan sponsors, you worry about whether your retirement plan committee is using its time wisely talking about what is important? The author believes that your retirement plan committee should focus on six main areas which are reviewed here. Source: Lawtonrpc.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Plan Sponsor Views on Adopting Dynamic QDIAs The DCIIA Retirement Research Center completed a project in late 2020 focused on investments in DC plans, specifically the plan sponsor's use of the dynamic or hybrid qualified default investment alternative. The dynamic QDIA can be defined as an investment option that starts a participant off in one investment product or solution and, upon reaching a certain threshold, automatically transitions the participant into a second, more retirement-focused product or solution. This structure is the focus of this paper. Source: Ymaws.com Retirement Plan Fees Worsen Enterprise Risk A new era of employee activism is underway in which plaintiff lawyers find fertile ground for litigation opportunities, catching many employers unprepared. The focal point of the growing number of such lawsuits is the compensation that employers arrange for payment to the vendors of services to the ERISA plans. Underestimating the economic and reputational risks related to deficiencies in the prudent management of ERISA plans threatens an entire enterprise. Source: Rolandcriss.com 2021 401k Universe Benchmarks Report This annual report illustrates how workers are saving and investing in defined contribution plans. This year's version features data from 100 plans covering more than three million eligible participants. It highlights the most common benchmarking statistics, including plan participation rates, savings rates, balances, investment, and trading activity and distributions from accounts (e.g., loans, withdrawals, cash-outs, and rollovers). Source: Alight.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers As a Retirement Plan Adviser, if the DOL Investigates You Here are five FAQs about Department of Labor investigations of retirement plan advisers, and answers from attorneys at the prominent ERISA law firm Faegre Drinker. Source: Retirementincomejournal.com The All-Out Battle Over the 401k Default Option The fight for the 401k default option, like the competition to be a plan's recordkeeper or adviser, could change the largely cooperative DCIO landscape. Source: Investmentnews.com (registration may be required) Court and Legal Could a Quick Appeal Signal a Shift in ERISA Litigation? A class action involving a $1.6 billion 401k plan has been fast-tracked to the U.S. Court of Appeals for the Third Circuit for a ruling on an issue of emerging concern in ERISA excessive fee litigation. The issue under consideration might produce a shift in litigation strategy, if not results. Source: Napa-net.org 401k Lawsuit Claims Caesars Gambled and Lost A class-action lawsuit alleges that the company breached its fiduciary duties in connection with a change in the investment menu. Most of the assets in the $1.4 billion plan went into Russell Investment target-date funds, according to the complaint. Source: Investmentnews.com (registration may be required) »» Click here for more Court and Other Legal Issues Legislative and Washington DC Bill Would Allow Retirement Plans to Use ESG Investments U.S. Senators Tina Smith and Patty Murray and U.S. Representative Suzan DelBene have introduced legislation in both chambers of Congress that they say would provide legal certainty to workplace retirement plans that choose to consider environmental, social, and governance factors in their investment decisions or offer ESG investment options. Source: Planadviser.com Portman, Cardin Reintroduce Sweeping Retirement Reform Bill In what may be their final act teaming up on retirement security legislation, the bipartisan duo of Sens. Rob Portman and Ben Cardin on May 21 reintroduced their Retirement Security and Savings Act (S. 1770). Like the previous version introduced in the last session of Congress, the 163-page bill includes more than 50 provisions designed to strengthen Americans' retirement security by addressing four major opportunities in the existing retirement system. Source: Napa-net.org »» Click here for more on Legislative and Washington Actions State-Based Private-Sector Retirement Programs Delaware Joins the State Auto-IRA Push The First State has now entered the push to provide its private-sector workers who do not have access to an employer-sponsored retirement plan with access to a state-facilitated retirement plan. The legislation (HB 205), which was spearheaded by State Treasurer Colleen Davis and introduced May 20 by State Representative Larry Lambert in the Delaware House of Representatives, would establish the Delaware Expanding Access for Retirement and Necessary Savings program. Source: Asppa.org Compliance and Regulatory Use of Nonelective or Matching Contributions to Satisfy the Nondiscrimination Safe Harbor Question: We are redesigning our 401k plan to use the Code Section 401(k)(13) nondiscrimination safe harbor for plans that make automatic deferrals. That safe harbor will also require our company to make nonelective or matching contributions. How do we decide which type of employer contribution to make? Source: Thomsonreuters.com Requesting Plan Documents: What's Included? A participant has requested copies of plan committee meeting minutes and notes for the last four quarters. Does the committee have to comply with this request? Source: Retirementlc.com »» Click here for more Compliance and Regulatory Material Marketplace News T. Rowe Shifts RK Ops, Technology Development to FIS New E-Book for Advisors Focuses on Group 401k Plans & Benefits
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