What Drives Fiduciary Liability?
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Fiduciary and Plan Governance What Drives Fiduciary Liability? Aon surveyed 12 top carriers for fiduciary liability insurance to understand their views on the biggest sources of fiduciary risk within the control of fiduciaries for defined benefit and defined contribution plans subject to ERISA. Read to learn more about the key takeaways from the results. Source: Aon.com A Fiduciary Checklist for 401k Sponsors Is 79 Items Long A checklist unveiled this week by a fiduciary training group is designed to help 401k sponsors protect themselves from lawsuits. The new checklist, which the group calls FORT, or Fiduciary Oversight of Responsibilities and Tasks, will make them aware, outlining 79 different items that retirement plans must have covered, said Don Trone, CEO of CBCF. Given how rampant 401k litigation has become, that is crucial, he said. Source: Investmentnews.com (registration may be required) Fiduciary Update | August 2021 In this article, CAPTRUST's Drew McCorkle dishes out the latest in fiduciary updates for the third quarter of 2021. Read on for a rundown of a fee litigations case the Supreme Court is considering, the use of ESG investments in 401k and other individual account retirement plans, why inherited 401k accounts are protected from creditors, and more. Source: Captrust.com Don't Ignore Often-Overlooked Fiduciary Duties Fiduciary duties must be fulfilled. But some are often overlooked, an industry expert warns. "When a job becomes too familiar it's easy to start taking things for granted," writes Christopher Carosa in Fiduciary News. He adds that the belief that a plan can run itself if "the right pieces" are in place is "a dangerous misperception." Advisors may find Carosa's identification of overlooked duties useful in serving their clients. Source: Asppa.org »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Use of CITs in 401ks Continues Growth The use of collective investment trusts has surpassed the use of mutual funds in 401k plans with more than $1 billion in assets, according to data from BrightScope, part of ISS Market Intelligence. CITs more strongly dominate the large plan market, particularly within target-date funds, BrightScope says. Source: Planadviser.com Retirement Plan Access, Participation Vary Highly Geography is more than maps and topographic features, it also can suggest how much work there is to do in various regions and states to increase access to retirement plans and participation in them. Source: Ntsa-net.org »» Click here for More Studies, Research, and White Papers 403b Plans Which is better? It depends! That's the verdict from an industry insider who compared and contrasted the two in a June 29 session of the 2021 NTSA Summit. "A vexing issue," said Mark Heisler, CEO of ADMIN Partners, LLC, of the question. Not only that, he said, it is "probably the number one question he gets." And the answer, he said, "very much depends" on the particular client involved. Source: Asppa.org »» Click here for More 403b Material Court and Legal Great-West Wins (Again) in Excessive Fee Suit An excessive fee suit that had been dismissed -- and wound up triggering a sanction (and fine) against the plaintiffs' counsel -- has once again fallen short in its appeal. The suit -- which was dismissed last August -- was two suits, brought by participants (Obeslo, Hall, and Gorrell-Deyerle) in plans that had chosen Empower as recordkeeper, and investment options from Great-West and other fund complexes from which participants could choose. Source: Napa-net.org Fifth Circuit Holds Participants Lack Standing to Challenge Plan Investment Options Last year, a judge in the Northern District of Texas dismissed the case, holding that plaintiffs lacked Article III standing to pursue their claims. In so holding, the court explained that any harm from defendants' failure to offer a stable value fund was speculative since: (i) plaintiffs did not show they would have invested in a stable value fund had it been available to them; and (ii) even when it did become available, plaintiffs did not invest in it. The Fifth Circuit agreed with the district court's conclusion that the plaintiffs lacked standing to bring their claims, but employed slightly different reasoning. Source: Erisapracticecenter.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Biden's Nominee to Head EBSA Reflects Aggressive Rulemaking Agenda President Joe Biden's nominee to head the Labor Department's Employee Benefits Security Administration, Lisa Gomez, hints that the DOL is serious about rulemaking. Her career is rooted in ERISA, and her keen understanding of the law would help the DOL as it seeks to implement new rules, lawyers said. Source: Investmentnews.com (registration may be required) »» Click here for more on Legislative and Washington Actions Cyber and Plan Security Texas Retirement Plan Hit by Cyber Theft Another retirement plan cyber theft scheme has come to light and the perpetrators sentenced. This particular intrusion involved the Texas Employees Retirement System and the machinations of Olumide Bankole Morakinyo, 38, a Nigerian national residing in Canada, and Lukman Shina Aminu, a resident of New Hampshire, who created unauthorized accounts for participants in the Employees Retirement System of Texas internet portal. Source: Napa-net.org »» Click here for more on Cybersecurity Issues State-Based Private-Sector Retirement Programs Connecticut to Launch Pilot of Auto-IRA Program The Connecticut Retirement Security Authority has announced the launch of a pilot of MyCTSavings, the state-run retirement savings program intended to provide coverage for private-sector employees whose employers do not offer them a plan. The pilot program is slated to begin in September. Source: Napa-net.org Illinois Expands its Secure Choice Mandatory Retirement Savings Program Employers in Illinois with at least 5 employees must soon comply with the Illinois Secure Choice Savings Program Act or offer employees an employer-sponsored retirement plan. Source: Benefitslawadvisor.com Compliance and Regulatory How to Prepare for a Retirement Plan Audit In most cases, the odds of receiving notice from the IRS or DOL stating that they plan to audit your retirement plan are slim. However, if that situation arises, it is important to be prepared for what lies ahead. Knowing what is involved can enable you to stay on top of your legal and regulatory obligations, as well as help you successfully navigate through a plan audit. Source: Orba.com Good News: IRS Issues Updated Guidance Enhancing Plan Correction Programs On July 15, 2021, the IRS updated its Employee Plans Compliance Resolution System by issuing Revenue Procedure 2021-30. The EPCRS changes and revisions, which generally became effective on July 16, 2021, are beneficial to plan sponsors, participants, and the retirement plan community. Noteworthy changes made by the IRS in Rev. Proc. 2021-30 are reviewed here. Source: Workforcebulletin.com Plans Retroactively Adopted After the End of the Plan Year Have No 2020 Form 5500 Filing Requirement The Internal Revenue Service has announced a significant update with regard to Form 5500 filing requirements. Section 201 of the SECURE Act permits an employer to adopt a retirement plan after the close of the employer's taxable year (by the due date, including extensions, for filing its tax return for the taxable year) and elect to treat the plan as having been adopted as of the last day of the taxable year, a provision that applies to plans adopted for taxable years beginning after Dec. 31, 2019. Source: Asppa-net.org »» Click here for more Compliance and Regulatory Material Marketplace News LT Trust Launches Mobile App for Participants OneDigital, Ascensus Team on Small Market Offering Hub Unveils New Data Analytics Tool RIA Aggregators Aim for Small-Plan Market Expansion American Retirement Association and ASPPA to Hold Joint Annual Business Meeting
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