What 401k Plan Sponsors Need to Know About the Investment Policy Statement
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Fiduciary and Plan Governance
What 401k Plan Sponsors Need to Know About the Investment Policy StatementWhen you're a 401k plan sponsor, you hear a lot about an investment policy statement and how you need one. Yet many plan sponsors don't know what it is or what it does. This article breaks down what an IPS is, what it does, and what it doesn't do. Source: Jdsupra.com
Ten Reasons Why You Need Clean Retirement Plan DataSourcing and validating retirement plan data is key to a plan's success. However, the sheer abundance of data coming across the transom can be cumbersome and overwhelming to manage, leading to fiduciary and compliance risks. Having accurate information is important to everyone involved in managing and administering the plan. That's why it's vital to make sure plan data is current and error-free. Here are the top 10 reasons why clean data matters. Source: Fiduciarydecisions.com
What Advisers Would Like Plan Sponsors to Better UnderstandRetirement plan sponsors need to be knowledgeable about their investment lineups and deliver documentation to the DOL and IRS on time. Most retirement plan committee members already know this. However, there are some things that advisers and consultants wish their sponsor clients were better at, or that they prioritized more. Source: Plansponsor.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers
2021 Canadian Retirement SurveyNew research from HOOPP and Abacus Data shows two of three Canadians have saved nothing for retirement during COVID, retirement tops the list of worries. Most Canadians have not set aside anything for retirement in the past year (63%) which is up 5% since last year. The survey also found a widespread belief that better access to workplace pensions is needed to avoid a retirement crisis. Source: Pensionpulse.Blogspot.com
Tackling Retirement RisksResearch reveals a remarkable uniformity in the personal risks that people deem important as they approach retirement. Nearly two-thirds of pre-retirees express concern about healthcare costs in retirement; nearly 60% are concerned about depleting their savings; and most place a priority on maintaining a reasonable standard of living. Retirees are also exposed to financial market risks. Two key market risks they may face are a sequence of returns risk and inflation risk. This 10-page paper first describes these four important risks. It then examines four strategies that may help you mitigate these risks. Source: Bofaml.com
Abandoned Retirement Savings: White PaperRetirement savings abandonment is a rising concern connected to DC systems and default enrollment. Authors use tax data on Individual Retirement Accounts to establish that in 2017, 2.7% of 72.5-year-old account-holders in total abandoned $790 million; the median abandoned account held $5,400. Nearly all of these funds remain with plans and are not sent to state unclaimed property. Regression discontinuity estimates show that abandonment is 10 times higher in automatic rollover IRAs, a type of default account. They nest their findings in a model of retirement savings featuring forgetting to derive implications for passive and active savers. Source: Ssrn.com
The Economics of Providing 401k Plans: Services, Fees, and Expenses, 2020Key findings: 401k plan participants investing in mutual funds tend to hold lower-cost funds. The expense ratios that 401k plan participants incur for investing in mutual funds have declined substantially since 2000. The downward trend in the expense ratios that 401k plan participants incur for investing in hybrid and bond mutual funds continued in 2020. This is a 32-page report. Source: Ici.org
How Does Your 401k Plan Stack up?An annual 401k plan benchmarking report finds that the top five industries with the best 401k plans continue to outpace the competition in nearly all metrics. The results of Judy Diamond Associates' fifth annual 401k Plan Benchmark Report show that the top five industries with the best 401k plans in 2019. Source: Napa-net.org »» Click here for More Studies, Research, and White Papers Target-Date Funds
2021 Target-Date Fund SurveyIn the past decade, and particularly since the passage of the Pension Protection Act of 2006, asset allocation funds -- which include target-date funds -- have exploded both in terms of the number of products and assets amassed. They have also become more customized. This Target-Date Fund guide endeavors to present information about these funds and providers in an easy-to-use format for quick reference. Source: Plansponsor.com »» Click here for more on Target-Date Funds Court and Legal
Arbitration of ERISA Retirement Plan DisputesThis 13-page practice note discusses the general enforceability of arbitration clauses in certain disputes, including class actions, with a particular focus upon the enforceability of arbitration clauses involving legal claims made under the Employee Retirement Income Security Act. It also specifically analyzes the advantages and disadvantages of arbitration provisions for retirement plan sponsors. Source: Wagnerlawgroup.com
Using Mandatory Arbitration to Avoid ERISA Class ActionsWith the significant increase in fiduciary breach class actions, plan fiduciaries have added provisions, including mandatory arbitrations, to their contracts, to gain control of and rein in litigation. The burning question, however, is where do the courts stand on forcing ERISA plan participants to engage in arbitration. Source: Cohenbuckmann.com »» Click here for more Court and Other Legal Issues Cyber and Plan Security
Musings of Retirement Plan Fiduciaries on Cybersecurity: Episode OnePlan fiduciaries and their service providers likely have heard about the DOL's cybersecurity guidance. The Department of Labor's stepping into cybersecurity in this way has left plan fiduciaries with some questions. So, what are plan fiduciaries thinking? Here are snippets of conversations between plan fiduciaries that may provide some insight into that question. Source: Benefitslawadvisor.com »» Click here for more on Cybersecurity Issues State-Based Private-Sector Retirement Programs
Maine Poised to Offer State-Run PlanThe Pine Tree State is poised to become the latest state to offer a state-run retirement plan to provide coverage to those whose employers do not offer a plan. Source: Asppa.org Compliance and Regulatory
DOL Confirms Fiduciary Rule Rewrite, Other Agency PrioritiesThe 10-year saga of the fiduciary rule will continue. As various administration officials had been suggesting over the past few months, the DOL's Spring 2021 Regulatory Agenda confirms that the Employee Benefits Security Administration plans to issue a Notice of Proposed Rulemaking addressing the definition of fiduciary. The DOL agenda item shows that EBSA plans to issue the NPRM by December 2021. Source: Ntsa-net.org
The IRS Required Restatement of 401k Plans: A Plain Language Explanation in Q & A FormatIf you're an employer who has adopted an IRS pre-approved defined contribution plan such as 401k, you'll need to have the Compliant box checked no later than July 31, 2022. Plan document compliance to be specific. It's the IRS requirement that a retirement plan document must be up to date to qualify for favorable tax treatment. IRS pre-approved plans must be rewritten, reviewed, and approved every six years. Once approved, employers who use them must adopt the new plan documents by a certain date. This is called the Restatement process, and as noted in the headline, this Restatement is called Cycle 3 with a July 31, 2022 deadline. The Questions and Answers that follow provide a plain language explanation of what you should know about Cycle 3. Source: Retirementplanblog.com »» Click here for more Compliance and Regulatory Material Marketplace News Voya Enhances Retirement Plan Participant Website Experience
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