DOL to Hold Fiduciary Responsibilities Webcast Series
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 In This Issue
Fiduciary and Plan Governance DOL to Hold Fiduciary Responsibilities Webcast Series in March To help increase awareness and understanding about basic fiduciary responsibilities when operating a retirement or health benefit plan, the Department of Labor is presenting the "Getting It Right – Know Your Fiduciary Responsibilities" webcast series. The three-part series will help employers and service providers understand how the fiduciary responsibility provisions of ERISA apply to employer-sponsored retirement and health plans and provide information about how to avoid common problems in managing a plan. Source: Planadviser.com On the Hunt for Good Fiduciary Processes? What to do After the Supreme Court Decision in Hughes The Supreme Court recently handed down its eagerly-awaited decision in Hughes v. Northwestern University. Plan sponsors and 401k and 403b plan administrators had hoped the decision would create clearer pleading standards to free them from the endless line of ERISA class actions alleging fiduciary malfeasance when selecting investment menus and plan service providers. It didn't and now those fiduciaries have some more thinking to do. Source: Cohenbuckmann.com Are DOL ESG Tactics Backfiring With the 401k Fiduciary? What the DOL's new ESG rule doesn't do is solve the real problem with ESG, namely that there's no consensus on what it means. This can have ramifications for plan sponsors and all 401k fiduciaries. Because of this, many are asking, will fiduciary liability increase? Source: Fiduciarynews.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Schwab Report: Self-Directed 401k Balances Higher According to Charles Schwab's latest SDBA Indicators Report, the average account balance across all participant accounts finished Q4 2021 at $352,764, a 6.4% increase year-over-year and a 3.4% increase from Q3 2021. Source: Businesswire.com DC Plans Continue Laser-Focus on Fees, Exclusive Callan Survey Finds Defined contribution plan sponsors will continue their sharp focus on fees, according to Callan's 2022 Defined Contribution Trends Survey, but they also will be taking a close look at their investment policy statements and conducting formal fiduciary training in the coming year. Source: Callan.com ERISA Advisory Council Pulls Back the Curtain on Brokerage Windows The ERISA Advisory Council released a detailed report on its recent examination of brokerage windows in DC plans, previously an area of controversy due to shifting guidance from the DOL. Though the council considered several topics, its sole recommendation is for DOL to conduct additional fact-finding on "brokerage window only" plans. The DOL-appointed council can't issue guidance, but these findings may help alleviate concerns for plan fiduciaries currently offering -- or looking to offer -- a brokerage window by making the case for DOL to preserve the status quo. Source: Mercer.com The System Still Fails Small 401k Plans Anybody who has investigated the 401k system realizes that big organizations have the clout to demand and receive discounts from 401k providers, while smaller firms usually take what they are given. However, figures recently gathered through an exhaustive study of Form 5500 filings are striking. Source: Morningstar.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Help Your Clients Put a Plug on Retirement Plan Leakage If the plan metrics reveal that plan leakage is higher than the plan sponsor wants for their employees, they may want to assess whether allowing employees to access their retirement savings while employed is still aligned with their plan objectives. There are several strategies financial advisors can help plan sponsors explore to reduce leakage from their plan. Source: Newportgroup.com 401k Nondiscrimination Testing: Balancing a Top-Heavy Determination A top-heavy determination can cast a bigger shadow than it should for those who may not be aware of the rules surrounding this nondiscrimination test for qualified retirement plans. As a financial advisor, you can help business owners understand that the risk of being top-heavy doesn't have to be a barrier to sponsoring a retirement plan. Source: Newportgroup.com Court and Legal Unanimous Supreme Court Provides Victory to Plaintiffs in ERISA Fee Litigation The U.S. Supreme Court recently issued a unanimous decision in Hughes v. Northwestern University, reversing and remanding a lower court ruling that had dismissed the case against a retirement plan sponsor. This decision reaffirms that ERISA fiduciary duty of prudence requires continuous monitoring of all investment options under a plan, especially when lower-cost share classes are available for funds. Source: Employeebenefitslawreport.com Upcoming ERISA Cases for Benefits Attorneys to Monitor Various ERISA cases are pending at the U.S. Supreme Court and lower federal courts that could significantly affect ERISA law. Here is an overview of the cases you may wish to monitor in the upcoming months. Source: Hallbenefitslaw.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Further Retirement Policy Reforms Possible in 2022 As the director of policy at Principal Financial Group, Lance Schoening has spent a substantial portion of his professional life in Washington, D.C. During a recent interview with PLANSPONSOR, Schoening pointed to multiple pieces of legislation already on the table and suggested more proposals could come ahead of the midterm elections, all in time for passage during the lame-duck session at the end of the year. Source: Plansponsor.com Retirement Savings Legislation Continues to Percolate on Capitol Hill Among the provisions of a draft bill is one that would improve fee disclosures in defined contribution plans and another that would allow annuities as qualified investment default alternatives in plans. Source: Investmentnews.com (registration may be required) »» Click here for more on Legislative and Washington Actions Compliance and Regulatory Voluntary Fiduciary Correction Program Checklist This checklist provides step-by-step guidance for private employers on the use of the DOL's Voluntary Fiduciary Correction Program to correct and self-report fiduciary violations or prohibited transactions under ERISA. The VFCP also provides limited Internal Revenue Code excise tax relief for certain prohibited transactions that can be corrected under the VFCP. Source: Foxrothschild.com An Employer's Guide to Annual Retirement Plan Compliance Requirements Do you have a retirement plan compliance checklist? If you think your organization doesn't need one this year, think again. Legislative and regulatory changes, as well as organizational changes, can affect your plan. To guide you in conducting a thorough review of your plan over the next few months, here is some help in creating a retirement plan compliance checklist. Source: Usicg.com IRS Provides Guidance on RMDs After SECURE Last week the IRS issued proposed regulations for RMDs incorporating the changes made by the SECURE Act in an attempt to resolve many of those issues. Although these proposed regulations do not have the force and effect of law until finalized, the IRS has announced that complying with the proposed regulations will be a reasonable, good-faith interpretation of the SECURE Act provisions and the current regulations for RMDs made in the 2021 calendar year. Source: Graydon.law »» Click here for more Compliance and Regulatory Material Marketplace News The Cerrado Group Celebrates Its One Year Anniversary Transamerica Bolsters Pooled Retirement Plan Offerings With Acquisition of TAG Resources
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