A Changing Recordkeeper Checklist
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In This Issue
Fiduciary and Plan Governance A Changing Recordkeeper Checklist Whether for good or ill, a change in recordkeepers is one of those "choices" that plan fiduciaries are expected under ERISA to evaluate as a prudent expert. In this podcast, Nevin Adams and Fred Reish cover some key factors. Source: Napa-net.org More Legal Counsel Crashing Retirement Plan Meetings, Callan Survey Shows According to an annual survey by defined-contribution plan consulting firm Callan, there has been a sharp rise in the presence of legal counsel at DC committee meetings, with internal lawyers attending meetings at 49% of the companies in 2022, up from 11% in 2017, and external counsel attending meetings at 36% in 2022, up from 21% in 2017. Source: Investmentnews.com »» Click here for more Fiduciary and Plan Governance Material General Items How Employers Can Leverage Retirement Law Changes This article provides an overview of the salient features, as well as plan sponsor considerations, concerning impactful areas of change under the SECURE 2.0 Act, including allowing employers who sponsor a 401k plan, 403b plan, or SIMPLE IRA to make contributions that match an employee's student loan payments; and facilitating new distribution planning options. Source: Hallbenefitslaw.com Insight: Studies, Research, and White Papers Callan Survey: Legislation, Regulation, and Litigation Driving Change in DC Plans Callan's DC Survey provides a benchmark for sponsors to evaluate their plans compared to peers, and to offer actionable information to help them improve their plans and the outcomes for their participants. In this year's survey, which was conducted in late 2022, respondents spanned a range of industries; the top were technology, government, and financial services. Of the 99 respondents to this year's survey, 81% offered a 401k plan, 27% a 457 plan, 16% a 401(a) plan, and 9% a 403b plan. Nearly three-quarters of respondents had more than $1 billion in plan assets. Source: Callan.com Latino-Owned Businesses May Be Poised for 401k Plan Growth As state mandates for small businesses take hold, industry players see an opportunity in reaching the underserved Latino population. Source: Planadviser.com 2022 Was Rough Year for Near-retirees in Target-Date Funds Last year was a difficult one for mutual funds and ETFs generally, but a category of all-in-one products that serve as the backbone of 401ks -- target-date funds -- offered almost no shelter for people on the cusp of retirement. While stock and bond allocations hurt the performance of TDFs last year, fees declined and assets flowed to collective investment trusts, Morningstar found. Source: Investmentnews.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Retirement Advisers See Increased Scrutiny on Fees, Services Retirement plan advisers may be seeing an increase in request-for-proposal evaluations, presenting both an opportunity and a risk for their businesses, according to industry participants. One key driver for plan sponsors in re-considering their adviser team is the wave of consolidation by aggregators, according to industry participants. Source: Planadviser.com DOL Pushes Back on Motion to Halt ESG Reg Claiming that the suit by 25 state attorneys general "rests on a false premise," the DOL is pushing back on a motion to forestall implementation of the so-called ESG regulation. Source: Napa-net.org Court and Legal Litigation Trends Remain Steady: Considerations to Help Plan Sponsors Stay Vigilant The idea of litigation is a daunting one. While there is simply no way to insulate your plan from litigation, there are steps plan sponsors can take to mitigate circumstances. Overarchingly, plan sponsors must be vigilant in their plan oversight. But what does that mean? Here is a list of specific action items to help the plan sponsor community be in good stead should litigation arrive at their doorstep. Source: Planpilot.com Coca-Cola Bottlers' Association Reaches Deal to Settle 401k Lawsuit The Coca-Cola Bottlers' Association settled a class action lawsuit for $3.3 million over claims that its 401k plan breached ERISA laws by charging extreme recordkeeping fees and promoting overpriced investment offerings. The preliminary deal was announced on March 23 in a document filed by the plaintiffs' lawyers in a U.S. District Court in Kansas City, Kansas. Once approved by the court, it is expected to benefit more than 64,000 people covered by the Coca-Cola retirement plan since February 2015, excluding certain defendants. Source: Investmentnews.com Court Finds Named Plaintiffs Inadequate to Represent Proposed Class on ERISA Excessive Fee Claims A recent decision from the Eastern District of Michigan serves as a reminder that, while courts are often quick to certify classes in ERISA cases, plaintiffs must satisfy the requirements of Rule 23 and that courts can (and do) refuse class certification where those requirements are not met. Source: Beneficiallyyours.com DISH Beats Back Excessive 401k Fee Suit Another excessive fee suit with participant plaintiffs represented by two active ERISA litigants has been dismissed on several grounds. The defendants in this case -- DISH Network Corporation, the board of directors of that firm, and the retirement plan fiduciaries of the $841 million DISH Networks 401k -- were charged in a suit brought by four former participants. Source: Napa-net.org »» Click here for more Court and Other Legal Issues Compliance and Regulatory Proposed Forfeiture Regulations Provide Clarity and Serve as a Helpful Reminder to Plan Sponsors The IRS has proposed regulations to clarify the permissible uses of plan forfeitures in qualified retirement plans. This article provides insight into the types of benefit forfeitures permitted in qualified retirement plans, uses of those forfeitures under current law, the IRS's proposed regulations regarding the use of plan forfeitures, and the implications of the proposed regulations on qualified retirement plan sponsors and administrators. Source: Bsk.com Auditing Small Employer Retirement Plans New rules change the method of counting participants for Form 5500 purposes, possibly both eliminating audits and allowing the use of the abbreviated Form 5500-SF. Source: Beneficiallyyours.com Missed the 401k Restatement Deadline? Here's Your Plan B for Compliance The deadline for restating a 401k, profit sharing, or money purchase pension plan has come and gone. So, what can an employer do? It was, after all, the employer's responsibility to ensure that the plan was updated and signed by July 31, 2022. But if an employer did miss that deadline, there is a Plan B. Source: Retirementplanblog.com Suggested 402(f) Notice Changes Related to the SECURE 2.0 Act This document contains suggested edits to the explanation required by Internal Revenue Code section 402(f), to reflect changes made to the Code by The SECURE 2.0 Act of 2022. This document was developed by the SPARK Institute's Government Relations Committee, in collaboration with the Committee of Annuity Insurers. The document uses the most recent safe harbor explanation contained in IRS Notice 2022-62 as a base. Source: Sparkinstitute.org »» Click here for more Compliance and Regulatory Material Marketplace News T. Rowe Price Buys Retiree, Inc. to Bolster Retirement Income Capabilities FuturePlan Expands Retirement Plan Options With New Employer Aggregated Plan 'MPI Stylus Web' Debuts as 401k Analytics, Reporting Tool for Advisors Pontera Brings 401k Management Support to Lion Street
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