Final 2023 IRS Plan Limits Forecast
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Compliance and Regulatory Final 2023 IRS Plan Limits Forecast This is an update to the Milliman 2023 IRS Limits Forecast using the U.S. Bureau of Labor Statistics report published September 13, 2022. It is their fifth and final edition for the year. Source: Milliman.com IRS Makes Changes to Determination Letter Application Program IRS Revenue Procedure 2022-4 made some notable changes to the determination letter application filing process. This article provides background on changes made under the Revenue Procedure to the determination letter filing process, including utilizing pay.gov, some "nuts and bolts" advice regarding navigating the website, filing an IRS Form 2848 electronically, and related considerations. Source: Groom.com »» Click here for more Compliance and Regulatory Material Fiduciary and Plan Governance Five Critical Components of a Cybersecurity Compliance Review Cybersecurity should be top of mind for retirement plan fiduciaries, not only because the risks of a data breach or fraud are on the rise but also because the DOL has begun auditing retirement plans with a focus on cybersecurity. What's the best way for plan fiduciaries to mitigate risks while also demonstrating compliance with recent DOL guidance? Conduct a cybersecurity compliance review. This article outlines best practices for conducting such a review. Source: Ifebp.org »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Report Features 401k Plan Sponsor and Participant Behavior in First Half 2022 T. Rowe Price has published a report detailing plan sponsors' and participants' reactions to increased inflation and market volatility in the first two quarters of 2022. The report examines retirement behavioral trends and correlations between the challenging economy and job tenure with rates of savings for retirement. Source: Prnewswire.com US Workers Fear Exhausting Savings in Retirement U.S. workers are more afraid of running out of money in retirement and more intimidated by financial matters -- such as long-term financial planning -- than workers in Europe are, yet Americans rate their financial well-being higher than do their counterparts across the pond, according to Alight research. Source: Plansponsor.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Are Your 401k Clients at Risk? Five Client Retention Strategies Nearly 50% of plan sponsors are actively looking for a new advisor. It's been said that it costs seven times more to earn a new client than it does to retain a current one. As you implement your business plan, consider these five client retention strategies. These ideas could have a big impact on how your clients perceive the quality of your service, could increase loyalty, and even produce inbound referrals. Source: 401k-marketing.com What Broker-Dealers Need to Know About Correcting PTE 2020-02 Mistakes The DOL expanded its interpretation of fiduciary advice in the Preamble to PTE 2020-02 and as a result, many more broker-dealers and their registered representatives are fiduciaries for their recommendations to retirement investors, including rollover recommendations. Broker-dealers should implement good processes and documentation to satisfy the PTE conditions and closely supervise their investment professionals to ensure that the processes are followed. Source: Brokerdealerlawblog.com Lassoing Fee Changes: What a TPA Needs to Know About Raising Fees Ted the TPA is watching his costs go up and up with inflation. After examining his financials and thinking it through, he finds he has to put aside his usual optimism and raise his fees. It's the first time he's done this in years, and he is not sure what to do and how it needs to be done. He calls his attorney, Rebecca, who scoffs at him for waiting so long to raise fees. Then, she gets down to business and lets him know what he needs to do. Source: Ferenczylaw.com Court and Legal In ERISA Excessive Fee Cases, the Pendulum May Be Swinging Back in Favor of Plan Sponsors The Oshkosh decision appears to create a favorable precedent for plan sponsors in the 7th Circuit since it narrowly applies the holding in Hughes. From the 6th and 7th Circuit, it appears that allegations have to compare the fees being charged with the quality and/or type of services being provided. Plan sponsors should review their investment lineup, compare investments under this standard, and maintain minutes of the deliberation process. Having a process-driven policy should mitigate fiduciary risk. Plan sponsors should also review their service agreements with their recordkeepers to fully understand how recordkeepers are compensated. Source: Foxrothschild.com How Should Courts Analyze Arbitration Clauses in ERISA Plans? The validity of arbitration clauses should be considered by comparing the legitimate rationales for their inclusion in plans against the harm to the private attorney general model they engender, rather than by simply considering whether such clauses are legal when analyzed under traditional doctrines developed in the private contracting model. Source: Bostonerisalaw.com DOL Recovers $131.8M for Wells Fargo 401k Participants The DOL announced a settlement with Wells Fargo and GreatBanc Trust Company that "recovers more than $131.8 million for the retirement plan's participants after a department investigation." Wells Fargo allegedly used the dividends paid on the preferred shares to defray its obligation to make contributions to the 401k plan. Source: 401kspecialistmag.com Proprietary Funds Draw Another 401k Excessive Fee Suit A new suit claims that the decision to retain proprietary funds in the 401k was "polluted by self-interest," driven by a "blind preference" and that "defendants' favoritism has led to the payment of excessive investment management fees." This time the plaintiff is bringing suit against the fiduciaries (and those that appointed them) of the Janus 401k and Employee Stock Ownership Plan. Source: Napa-net.org Janus Henderson Sued for Allegedly Favoring Its Own Funds in Its Retirement Plan Asset manager Janus Henderson is being sued by one of its retirement plan participants, who alleges that the company breached its fiduciary duty by loading its 401k plan with poorly performing proprietary funds burdened by high fees. Source: Planadviser.com DOL Seeks Dismissal Of Cryptocurrency Guidance Lawsuit A "meritless" lawsuit seeking to vacate the Department of Labor's cryptocurrency guidance for 401k plan fiduciaries should be dismissed, the agency said in a court filing. ForUsAll Inc., a 401k plan administrator that offers cryptocurrency to participants through a self-directed brokerage window, filed a lawsuit in June in U.S. District Court in Washington, alleging that the Labor Department's guidance is "arbitrary and capricious" and violated the Administrative Procedure Act. Source: Pionline.com »» Click here for more Court and Other Legal Issues State-Based Private-Sector Retirement Programs Massachusetts Secure Choice Moves Closer to Implementation Legislation that would create Massachusetts Secure Choice, a state-run retirement program that would provide coverage for private-sector employees whose employers do not offer a retirement plan, is now before the Rules Committees of both chambers of the Bay State's legislature. The legislation was introduced in the state Senate and House of Representatives early in 2021. Source: Ntsa-net.org Maryland's State-Run IRA Is Different Maryland just announced its retirement savings initiative, MarylandSaves. There are a few similarities, but some favorable differences and improvements when compared to predecessors like OregonSaves, CalSavers, and Illinois Secure Choice. Source: 401kspecialistmag.com Marketplace News Franklin Templeton Shifts 403b Business to New Platform EBRI Announces Upcoming Retirement of President and CEO Lori Lucas Sequoia, Origin Partner on Financial Wellness Platform PAi to Offer CoPilot Prime Solo(k) for Small Businesses Vestwell Launches Recordkeeping Product, Portal for 401k TPAs
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