2021 Best Practices Conference: Benchmarking Investments and Fees
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Newsletter Sponsor Benchmark Your 401k Plans Before Year-End The 21st Edition of the 401k Averages Book is a great resource for fee benchmarking data. Use the 401k Averages Book to better understand investment, recordkeeping and revenue sharing expenses for 401k plans. Still the most recognized resource book for comparative, non-biased 401k average cost information. Click here to order your copy. In This Issue
Fiduciary and Plan Governance 2021 Best Practices Conference: Benchmarking Investments and Fees During the final session of PLANSPONSOR's virtual 2021 Best Practices Conference, experts talked about the mechanics of benchmarking plan investments and fees, what to look for when benchmarking, and where to get help. Plan sponsors should consider two necessary elements when benchmarking investments. Meanwhile, whether fees need to be benchmarked depends on how they are paid. Source: Plansponsor.com 2021 Best Practices Conference: Outsourcing and What to Expect From Providers A panel discussion at the virtual 2021 PLANSPONSOR Best Practices Conference focused on the critical topic of fiduciary outsourcing and what plan sponsors can expect from service providers. Experts discussed the types of outsourcing available to plan sponsors, from basic 3(16) administration services to full discretionary 3(38) investment management. Source: Plansponsor.com 2021 Best Practices Conference: Understanding ERISA and Fiduciary Fundamentals During the first session of the virtual 2021 PLANSPONSOR Best Practices Conference, experts discussed the requirements for maintaining retirement plan documents and operating a plan according to ERISA. They also discussed what should be reported to participants and regulators, and how sponsors can adhere to fiduciary duties. Source: Plansponsor.com DOL Sets New Tone on ESG Investing and Proxy Voting With Recently Proposed Rule On October 13, 2021, the DOL proposed amendments to its investment duties regulation under ERISA, to clarify that prudent ERISA fiduciaries may consider (and may often be required to consider) climate change and other environmental, social, or governance factors when assessing investment risks and returns. This is a detailed review. Source: Klgates.com Bundled or Unbundled 401k Provider: How to Choose 401k providers can deliver either "bundled" or "unbundled" plan administration services. A bundled provider delivers all three of the major plan administration services -- asset custody, participant recordkeeping, and Third-Party Administration -- while an unbundled provider ally with at least one other company to deliver all three services. If you're a business owner, understanding the differences between the two service models can help you choose the best 401k provider for you and your employees. Source: Employeefiduciary.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Survey Finds Nearly 50% of Respondents Incorporate ESG, Highest Level Ever Callan's annual survey on environmental, social, and governance principles is designed to better understand the views of institutional investors and the trends driving ESG adoption. In our recently published 2021 ESG Survey, we found that 49% of respondents incorporated ESG into their investment decision-making process, up 7 percentage points from the previous year's level and more than double the share in 2013. Source: Callan.com Pandemic Weakens Women's Retirement Security Women have taken a disproportionate hit on retirement savings and financial well-being, says Transamerica report, which could have lingering repercussions. Source: 401kspecialistmag.com »» Click here for More Studies, Research, and White Papers Court and Legal Kroger Faces ERISA Recordkeeping Fee Lawsuit Plaintiffs have filed an ERISA complaint in a division of the U.S. District Court for the Southern District of Ohio, naming as defendants The Kroger Co. and its board of directors. Fiduciaries of the grocery chain's 401k plan are accused of allowing unreasonably high fees for recordkeeping services and failing to disclose to plan participants fees associated with the plan. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC RISE Act OKed by House Panel, Will Be Merged With SECURE 2.0 Bipartisan retirement security legislation that shares some overlap with the SECURE Act 2.0 has been approved by a key House committee. The House Education and Labor Committee on Nov. 10 approved the Retirement Improvement and Savings Enhancement (RISE) Act of 2021 (H.R. 5891) by a unanimous voice vote. Source: Asppa.org »» Click here for more on Legislative and Washington Actions Cyber and Plan Security Provider Reviews, Contracts Emphasized in DOL Cybersecurity Guidance Retirement plan fiduciaries often rely on their service providers to create the electronic systems used to maintain participant data and conduct electronic transactions involving plan assets, so the Department of Labor is paying special attention to these relationships. Source: Planadviser.com »» Click here for more on Cybersecurity Issues State-Based Private-Sector Retirement Programs Colorado, New Mexico Partner on State IRA Programs Colorado and neighboring New Mexico plan to form a partnership regarding the state-run retirement saving programs each operates. The Colorado Department of the Treasury announced on Nov. 9 that the Colorado Secure Savings Program and the New Mexico Work and Save programs signed a Memorandum of Cooperation to pursue a formalized partnership agreement for their auto-enroll IRA programs. Source: Ntsa-net.org New York Expands Secure Choice Savings Program This law amends the general business law to make enrollment into the New York State Secure Choice Savings Program automatic for employees at covered employers. However, employees can opt-out of the program. Employees will also be provided with informational materials that include an explanation of how employees can opt-out of the program after being enrolled as well as a form for an employee to note his or her decision to opt-out of program participation and to allow new employees to opt-out of the program. Employers are not liable for an employee's decision to opt-out of the program. Source: Goldbergsegalla.com Compliance and Regulatory 2021 Retirement Plan Year-End Amendments and Operational Compliance As we approach the end of 2021, it's again time for sponsors of 401(a) and 403b plans to review their plan documents and plan operations to ensure compliance with increasingly complex qualification requirements. While there is no one-size-fits-all checklist, the following provides an overview of these requirements to help plan sponsors (1) determine the need to adopt plan amendments before year-end, (2) ensure operational compliance with changes in law, (3) evaluate the implications of potential plan changes, and (4) take appropriate action/next steps. Source: Groom.com Year-End Deadlines and Considerations for Employee Retirement, Health and Welfare Plans With the end of the year fast approaching, employers should be aware of several important deadlines and considerations related to retirement and health and welfare plans. With the onslaught of recent COVID-19-related legislation, 2021's year-end employee benefit plan checklist is more complicated than usual. This checklist will assist employers with specific year-end requirements and remind employers of important items on the horizon. Source: Huschblackwell.com Participation of Long-Term, Part-Time Employees in 401k Plans One of the goals of the SECURE Act was to increase participation in 401k plans. In this regard, Section 112 of the SECURE Act requires certain long-term, part-time employees to be allowed to make salary deferrals to a 401k plan. The clock started on January 1, 2021, for tracking hours to determine eligibility under a 401k plan as a long-term, part-time employee. As we are nearing the close of the first 12-month period since the effective date, employers that exclude part-time employees from 401k plan participation should ensure that they are on track for compliance with the new rules. Source: Kilpatricktownsend.com What Should We Do When Our 401k Plan Must Make a Distribution to Someone We Cannot Locate? Each year, when our 401k plan makes required minimum distributions, we discover that the addresses on file for some distributees are no longer valid. We sometimes have similar problems locating beneficiaries when a participant dies. What procedures should we follow when our plan must make distributions to individuals we cannot locate? And what can we do to minimize this problem? Source: Thomsonreuters.com »» Click here for more Compliance and Regulatory Material Marketplace News John Hancock Retirement Introduces Signature Fiduciary Connect Lockton, Creative Planning Join Forces KPMG Swaps 401k Match for Automatic, Firm-Funded Contributions Voya Expands Suite of Target-Date Solutions for Retirement Plan Participants In Case You Missed It: 2022 401k and Retirement Plan Limits Announced
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