Why More Advisers Are Assuming 3(38) Role, Responsibility
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Fiduciary and Plan Governance Why More Advisers Are Assuming 3(38) Role, Responsibility ERISA Section 3(38) fiduciary designation can often mean more work for an adviser since it assigns decision-making responsibility. It also means a conversation with a plan sponsor that likely leads to a higher fee. Even so, the industry is trending toward more advisers seeking, and taking on, the role of the 3(38) to manage what are increasingly complex, and important, investment strategies. Source: Planadviser.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers DC Plan Sponsors Should Pay Attention to Increased Litigation, Low Retirement Confidence Increased litigation, regulatory and legislative changes, and a lack of retirement confidence among participants were common themes observed by defined contribution plan sponsor panelists on a recent Mercer webinar reflecting on key trends in the first quarter of 2023. Source: Plansponsor.com Stepping Into the Future: Employers, Workers, and the Multigenerational Workforce Employers feel responsible for helping their employees with professional development, work-life balance, mental health, long-term health and well-being, and retirement security. However, few employers are reflecting this sense of responsibility in actual benefit offerings and business practices. This research report examines employers' benefit offerings, identifies employees' unmet needs, and outlines recommendations for employers to stand out in the evolving employment landscape such as best practices for the multigenerational workforce and changes to retirement savings plans from the SECURE 2.0 Act of 2022. Source: Transamericacenter.org Many Plan Sponsors Hesitant to Offer Retirement Income, Study Shows Despite workers' increasing requests for personalized retirement income solutions, a significant number of plan sponsors are either in the preliminary stages of learning about the various options or do not even consider it a topic of interest or need, new data from PGIM shows. Source: Plansponsor.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Federal Court Partially Invalidates DOL's ERISA Guidance In her ruling, the judge found that FAQ 7 of the April 2021 guidance, issued by the DOL's Employee Benefits Security Administration, conflicted with federal benefits and administrative procedures laws. The DOL guidance concerns when retirement plan rollover recommendations constitute invest. advice. The judge further found that the policy was an arbitrary and capricious interpretation of current law. As a result, the judge vacated and remanded that portion of the guidance to EBSA for further proceedings. Source: Hallbenefitslaw.com Mistakes to Avoid With Your New 401k Product or Service There have been some really bad ideas in the retirement business that have had greater success than some good ideas. This article is all about what to avoid when you develop a great idea that could help you with your business. Source: Jdsupra.com Tax Credits for Starting Up Small Employer Plans Starting with tax years beginning after December 31, 2022, a small employer can take advantage of significant tax credits under SECURE Act 2.0 for establishing a new retirement plan. Broker-dealers and registered representatives will want to know about these credits to educate small businesses and assist them in establishing plans to take advantage of the credits. Source: Brokerdealerlawblog.com 403b Plans Coming Soon: Determination Letter Program for Individually Designed 403b Plans Starting in June 2023, the IRS will start accepting determination letter applications for individually designed 403b plans. As announced in Revenue Procedure 2022-40, plan sponsors of such plans will have the limited opportunity to receive favorable determination letters from the IRS in the case of an initial plan determination, upon plan termination, and in certain other circumstances identified by the IRS in published guidance. Source: Truckerhuss.com Important Alert for 401k and 403b Plans That Do Not Allow Participants to Make Roth Contributions SECURE 2.0 made an important change to the rules regarding catch-up contributions. Under the new rules, catch-up contributions must be made as after-tax Roth contributions if the participant contributing earned more than $145,000 in FICA wages from the employer sponsoring the plan in the prior calendar year. Moreover, if the Roth requirement applies to any participant, participants making under $145,000 must be permitted to make catch-up contributions as Roth contributions as well. Source: Frostbrowntodd.com »» Click here for More 403b Material Court and Legal Dismissal Streak Continues in BlackRock Target-Date Fund Litigation A third district court has dismissed with prejudice a complaint alleging that defendants breached their fiduciary duties under ERISA by offering 401k plan participants the option to invest in BlackRock LifePath Index Target-Date Funds. Although the outcome of the court's ruling here is consistent with earlier decisions, the rationale underlying the Beldock decision arguably goes further than in prior rulings, thus providing additional food for thought. Source: Erisapracticecenter.com Judge Dismisses Excessive Fee Complaint Against HR Firm TriNet A federal judge in Florida dismissed the 2020 class action lawsuit, Huang v. TriNet HR III Inc. et al., on April 26 by approving TriNet's motion for summary judgment, according to the court order. The 2020 retirement lawsuit alleged that the plan committee did not properly monitor recordkeeper and investing fees. Source: Planadviser.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC House Officially Introduces Bill to Allow 403bs to Invest in CITs The bill, titled "The Retirement Fairness for Charities and Educational Institutions Act of 2023" and backed by House Financial Services Committee Member Rep. Frank D. Lucas would amend federal securities laws to enhance 403b annuity plans in part by adding a CIT option. Source: Napa-net.org »» Click here for more on Legislative and Washington Actions Compliance and Regulatory This article explains the latest so-called easy solution, the Solo(k) plan. However, it also reminds plan administrators that things can change, and a Solo(k) may cease to be the easy solution it is thought to be. Source: Ferenczylaw.com Long Term Part-Time Employee Eligibility: Are You Ready? SECURE 2.0 seems to be the primary focus of everyone in the retirement plan industry these days. However, it is important to remember that some aspects of the "original" SECURE Act are extremely impactful and have not yet become effective. This article is focused on one such issue that will dramatically alter eligibility for 401k plans. Source: Legacyrsllc.com Secure 2.0: So, About That Employer Roth Contribution One of the provisions in SECURE 2.0 is Section 604, a fundraiser provision that allows plan participants to elect to have any fully vested employer contributions funded to a defined contribution plan made as Roth for tax purposes. But several hurdles need to be overcome before Roth employer contributions can be practically, and effectively, implemented. Source: Ferenczylaw.com 401k Matching for Student Loan Payments Finally Arrives In this economic environment, employers are doing almost anything to attract and retain a quality workforce. Improving the suite of employee benefit offerings, sometimes without incurring major new expenditures, is top of mind for many. Enter SECURE 2.0, which includes a long-awaited 401k feature that has sparked employer interest for years. The new legislation lets employers treat an employee's payments toward student loan debt as if they were 401k contributions. Source: Hrdailyadvisor.blr.com »» Click here for more Compliance and Regulatory Material Marketplace News Sheri Fitts Launches Personal Branding and Thought Leadership Conference Cohen & Buckmann Expands; Adds Mamorsky and Moore to ERISA Team USI Consulting Group Buys Hooker & Holcombe
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