Will 2022 Retirement Plan Limits Soar?
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 In This Issue
General Items Will 2022 Retirement Plan Limits Soar? The short answer is yes. Almost every key Internal Revenue Code limit for qualified retirement plans will increase significantly in 2022, Mercer projects. The 2022 limits will reflect increases in the Consumer Price Index for All Urban Consumers from the third quarter of 2020 to the third quarter of 2021. Using this measure, inflation will likely reach its highest level since 2008 -- possibly since 1990 -- and cause some limits to rise by the equivalent of up to three years' worth of ordinary increases. Source: Mercer.com You Need to Be Organized As a 401k Plan Sponsor When it comes to the 401k plan you sponsor, as a plan fiduciary you need to understand that a lack of organization can lead to chaos and chaos can lead to potential fiscal liability. This article is all about organization and how it will minimize your financial liability. Source: Jdsupra.com 401k Plan Sponsors Need to Sweat the Small Stuff So many people spend so much of their life energy "sweating the small stuff that they completely lose touch with the magic and beauty of life." That is a quote by Dr. Richard Carlson, the author of "Don't Sweat the Small Stuff…and it’s all Small Stuff." Dr. Carlson probably was never a 401k plan sponsor because plan sponsors have to sweat the small stuff. This article is all about identifying the small stuff that plan sponsors like you need to identify and be concerned about. Source: Jdsupra.com Fiduciary and Plan Governance Service Provider Fee Disclosures: Understanding the Process The DOL regulations regarding service provider fee disclosures clarify that plan fiduciaries are responsible for assessing the reasonableness of fees charged to plans in relation to services performed. Before a plan fiduciary is able to assess the reasonableness of plan fees, the fiduciary has to receive required fee disclosures from their covered service provider. A covered service provider is considered a party that enters into an agreement with a retirement plan to provide certain services. Source: Berrydunn.com Climate Change Defines the Fiduciary It is now time for fiduciaries to begin or continue a process to identify and manage both the investment risks and opportunities arising from climate change per their fiduciary obligations under ERISA, especially Department of Labor Interpretive Bulletin 2015-01. This article discusses the unique nature of climate change risk to investments: namely, that it is likely to affect all asset classes and sectors, creating both risk and opportunities for fiduciaries. Source: Fiduciarygovernanceblog.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Average 401k Is 24% Bigger Than a Year Ago: Fidelity Higher contribution rates and market returns pushed up retirement savings considerably, a report from Fidelity found. Source: Investmentnews.com (registration may be required) »» Click here for More Studies, Research, and White Papers Court and Legal Euclid's new whitepaper analyzes how the Supreme Court should review the Hughes v. Northwestern excessive fee lawsuit in the upcoming Fall term, by establishing a more consistent and rigorous standard to weed out speculative and unsubstantiated claims that the retirement fees for many of America's largest defined contribution plans are too high. Source: Euclidspecialty.com Supreme Court to Weigh in on Retirement Plan Fiduciary Duty to Manage Plan Fees This paper provides background on ERISA's requirements for retirement plans and plan fiduciaries, discusses the issues before the Supreme Court in Hughes v. Northwestern University, and concludes with select legal considerations for Congress. Source: Congress.gov United States District Court Dismisses 401k Plan Recordkeeper Fee Complaint Recently, the United States District Court for the Western District of Pennsylvania granted a Motion to Dismiss, dismissing ERISA breach of fiduciary duty claims based on excessive recordkeeping fee allegations. The district court addressed the level of detail plaintiffs must provide to move an ERISA breach of fiduciary duty recordkeeping fee allegation from possible to plausible under Federal Rule of Civil Procedure 12(b)(6). Source: Erisalitigationadvisor.com Managed Accounts the Focus of 401k Excessive Fee Suit The fiduciaries of another billion-dollar 401k plan have found themselves in the cross-hairs of an excessive fee suit and the fees for the managed accounts have been called out for special scrutiny. Source: Napa-net.org Complex Ruling Issued in Valeant Pharma-Linked ERISA Suit The U.S. District Court for the Southern District of New York has filed a ruling in a complex ERISA fiduciary breach lawsuit. The plaintiffs are employees and retirement plan participants at DST Systems who argue the defendants pursued "an exceptionally imprudent investment strategy" concerning a significant portion of their retirement assets. Source: Planadviser.com Baptist Health South Florida Faces ERISA Excessive Fee Suit The claims are typical of excessive fee suits, but the plaintiffs also cite language from the 403b plan's investment policy statement and say plan fiduciaries didn't follow it. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Suite of Bipartisan Retirement Savings Bills Reintroduced Sens. Todd Young and Cory Booker have reintroduced several bills to help boost retirement security for individuals and families. Citing data by the DOL showing that more than 40 million people do not have access to any workplace retirement plan, the pair introduced four bills Aug. 4 that, among other things, would expand automatic enrollment in retirement plans, as well as make it easier for individuals to build emergency savings. Source: Asppa.org »» Click here for more on Legislative and Washington Actions Cyber and Plan Security How DOL's Cybersecurity Guidance Impacts Retirement and Health/Welfare Plans The DOL issued cybersecurity guidance to plan fiduciaries and participants in the form of three separate documents. The first two documents included what amounted to checklists of provisions that plan sponsors should look for in their contracts with service providers such as third-party administrators, trustees, custodians, investment managers, and the like. The third document was directed more toward individuals. This article reviews steps a prudent fiduciary should consider. Source: Quarles.com Cyber Insurance for 401ks Rises in Cost, Demand Coverage is now harder to get, and it costs more, largely due to the higher volume of attacks that resulted in higher loss ratios for insurers. Source: Investmentnews.com (registration may be required) DOL Initiates Cybersecurity Retirement Plan Audit Initiatives The DOL recently released its first-ever guidance on cybersecurity for retirement plans. Just a few months after issuing this guidance, reports are coming in that the DOL has issued information and document requests to plan sponsors that are "probing and indicate serious inquiry by the DOL." These requests are asking for all cybersecurity and information security program policies, procedures, and guidelines that relate to retirement plans, whether applied by the plan sponsor or by a provider, as well as detailed documentation of specific actions taken by the plan's fiduciaries and providers, including many that the DOL addressed in its guidance. Source: Hallbenefitslaw.com »» Click here for more on Cybersecurity Issues Marketplace News Antitrust Issues Scuttled Aon-WTW Combo Schwab Retirement Plan Services Launches My Financial Guide
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