Insurance Agents Busted for 403b Fraud
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 In This Issue
403b Plans Insurance Agents Busted for 403b Fraud Non-ERISA 403b plans are still one of the stains of the retirement plan business because, without ERISA protection, they put participants at risk for high fees and fraud. In such a case, insurance agents Robert Andrew Lotter and Charles Albert Major were charged with securities fraud violations after allegedly defrauding California school system employees with high-risk investments. Source: Jdsupra.com IRS Expects 403b Plan Sponsors to Collect Information About Employees' Outside Employment In a recent "Issue Snapshot" about how the annual limit on retirement plan contributions under Section 415(c) of the Internal Revenue Code applies to 403b plans, the IRS revealed that it expects 403b plan sponsors to maintain procedures to inform employees about Section 415(c)'s special aggregation rule for 403b plans and to collect information from employees about outside employment and retirement plan contributions. Source: Verrill-law.com IRS Revamps 403b Preapproved Program Rev. Proc. 2021-37 overhauls the IRS opinion letter program for preapproved Internal Revenue Code Section 403b retirement plans, simplifying the program's structure and aligning it with the program for Section 401(a) qualified plans. Source: Mercer.com »» Click here for More 403b Material Insight: Studies, Research, and White Papers TCRS Study Suggests Substantial Retirement Risks Remain While most U.S. workers say they are saving for retirement through employer-sponsored plans or other means, a much smaller percentage say they are "very confident" they will be able to retire fully and comfortably. According to findings on the retirement outlook of U.S. Workers from the Transamerica Center for Retirement Studies, more than four out of five workers (82%) say they are saving for retirement through their current employer's 401k or similar plan and/or outside of work. Source: Napa-net.org CITs, Retirement Income Products and ESG Investing Poised for Growth As registered investment adviser aggregator firms continue to acquire smaller players in the defined contribution space, investment managers are starting to take notice of their growing influence in deciding DC plan investments, a recent study suggests. There has been a shift in distribution dynamics as many RIA firms look to centralize their investment analysis and research. Source: Plansponsor.com A Compendium of Findings About the Retirement Outlook of U.S. Workers Since 1998, Transamerica Center for Retirement Studies has conducted this national survey of U.S. business employers and workers regarding their attitudes toward retirement. The overall goals for the study are to illuminate emerging trends, promote awareness, and help educate the public. It has grown to be one of the longest-running and largest national surveys of its kind. This document is 320-pages. Source: Transamericainstitute.org »» Click here for More Studies, Research, and White Papers Court and Legal Adidas Kicks Excessive Fee Suit A federal judge has dismissed an excessive fee suit that "contains no factual allegations surrounding defendant's process for selecting and monitoring investments." More precisely, Judge Karin J. Immergut of the U.S. District Court for the District of Oregon granted the Adidas fiduciary defendants' motion to dismiss the case. Source: Napa-net.org ERISA Suit Dismissal Shows How Claims Can Fall Short The district court accepted a magistrate judge's recommendation and dismissed the case based on the plaintiffs' failure to state an actionable claim regarding the retirement plan fees they pay. In recommending the complaint's dismissal, the presiding magistrate judge notes that the lead plaintiffs have invested in just two out of roughly 25 plan offerings in dispute. Despite this, the judge notes, the plaintiffs seek relief for "all losses resulting from Adidas's breaches of fiduciary duty," including losses for plans they did not personally invest in. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC House-Passed Build Back Better Act's Retirement Provisions The BBBA (H.R. 5376) passed the House on November 19, 2021. The bill has several revenue raisers that would have an impact on high-income individuals' DC and IRA accounts as well as all taxpayers' ability to make Roth conversions of after-tax contributions. This article discusses the ones that are most significant to the BBBA's retirement provisions. Source: Segalco.com The 2022 Retirement Legislation Landscape Takes Shape For much of 2021, the relative flurry of retirement plan-related legislative activity had experts feeling hopeful that much-needed progress was right around the corner. More recently, however, industry advocates' hopes for such retirement reforms being passed as part of the ongoing federal budget negotiations have mostly been dashed. Retirement reforms may have to wait for 2022. Source: Planadviser.com Nominee to Lead EBSA Advances in Senate The nominee to lead the Employee Benefits Security Administration has moved one step closer to being confirmed. Lisa Gomez, who was nominated in July to serve as Assistant Secretary for EBSA at the Department of Labor, was approved Dec. 2 by the Senate Health, Education, Labor, and Pensions Committee on a near party-line vote of 12-10. Source: Ntsa-net.org »» Click here for more on Legislative and Washington Actions Cyber and Plan Security DOL Seeks Information From Alight Solutions About Cybersecurity Incidents Alight has been sued by retirement plan participants whose accounts were hacked, and the Department of Labor is investigating the provider's practices. Source: Planadviser.com DOL Guidance on Cybersecurity: A Cautionary Note for Plan Sponsors The DOL's cybersecurity best practices for plans covered by ERISA makes it clear that plan sponsors, service providers, and participants share responsibility for protecting plan accounts. The adoption and implementation of ERISA cybersecurity policies and procedures will be your best defense against fiduciary litigation and DOL investigations, which are certain to arise in the wake of the DOL's guidance. Here are some tips. Source: Troutman.com »» Click here for more on Cybersecurity Issues Compliance and Regulatory DOL Continues Emphasis on Enforcement in 2021 The DOL's Employee Benefits Security Administration issued its enforcement fact sheet showing that it recovered $1.9 billion from its investigations during the fiscal year ended September 30th, 2021, underscoring that enforcement remains an important priority for the agency. This is the third consecutive year that EBSA's recoveries from investigations totaled almost $2 billion and that total recoveries totaled almost $2.5 billion. Source: Groom.com IRS Issues Required Amendments List for Individually Designed Plans On November 30, 2021, the IRS released Notice 2021-64 containing the 2021 required amendments list. This annually issued list describes changes in retirement plan qualification requirements and amendment deadlines for individually designed qualified and individually designed 403b plans. Some items require plans to be amended, while others do not. This article lists the changes to qualification requirements. Source: Ascensus.com Hardship Distribution Amendment Deadline Is Fast Approaching Over the past few years, several laws and regulations were passed to loosen rules on hardship distributions for 401k and 403b retirement plans. While there was an extension to give plan sponsors more time to revise plans to reflect the changes, the final day to amend pre-approved qualified retirement plans that adopted hardship distribution regulations is Dec. 31, 2021. Source: Bdo.com »» Click here for more Compliance and Regulatory Material Marketplace News Qualified Plan Advisors Launches Pooled Employer Plan (PEP) Industry Insiders Pete Swisher and Jason Roberts Team Up to Create Group Plan Systems
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