What This Year's RFPs Will Look Like
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In This Issue
Fiduciary and Plan Governance What This Year's RFPs Will Look Like Between a wave of industry consolidation and some plan sponsors returning just this year to COVID-delayed tasks, industry experts say they are seeing an uptick in requests for proposals this year. New technology, new priorities, and traditional cultural connections should all be in focus as plan sponsors manage request for proposals processes. Source: Plansponsor.com Well, You're Stuck With That Plan Now One aspect of a stock acquisition transition that is vital to resolve before the closing is what to do with the seller's retirement plan. If that plan is not terminated before the closing, then the buyer is stuck with the plan after the closing. Being stuck with the seller's plan means taking on the problems in that plan, as well as possibly having to make changes to the buyer's plan to accommodate differences in the seller's plan. Source: Klblawgroup.com How to Improve DC Plans With DEI For many defined contribution plan sponsors, understanding the diversity within the employee population supports inclusiveness and equality in access and opportunities, through financial literacy, plan design provisions, and ease of use. Source: Callan.com What to Consider When Offering a Self-Directed 401k When it comes to small business retirement savings, a 401k plan is one of the most popular options for employers to offer their employees. You may prefer a small business 401k over an IRA because the savings opportunities are so much better. But have you ever thought about offering a self-directed 401k? Before you sign any contracts, be sure you consider these pros and cons. Source: Myubiquity.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Auto-Escalation Not Likely to Reduce Participation While there's much debate over the pros and cons of auto-features and whether participants need a nudge, the results of a new study suggest that plan sponsors can boost "default escalators" in 401k plans without decreasing participation. The results are based on a new field study conducted through the Voya Behavioral Finance Institute for Innovation. Source: Napa-net.org »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers DOL Abandons Appeal in Florida 401k Rollover Ruling Looks like the Department of Labor is changing tactics when it comes to 401k rollover recommendation rules. It was revealed Monday that the DOL has decided not to pursue an appeal of the recent ruling in a Florida district court that undermined some of its FAQs on the Prohibited Transaction Exemption related to 401k rollovers released back in April 2021. Source: 401kspecialistmag.com The DOL Accepts a FAQ-Out and Rolls Over...for Now -- Appeal of ASA v. DOL Is Abandoned It was reported on May 15, 2023, that the U.S. Department of Labor has abandoned its appeal in American Securities Association v. U.S. Department of Labor. ASA rejected a key DOL interpretation of its own fiduciary rules under ERISA. Source: Wagnerlawgroup.com Advisers Managing Heightened Retirement Plan Committee Turnover Retirement and investment committees are crucial for advisers in moving ahead with plan approvals, investment menu changes, or new participant offerings. Even so, advisers are sometimes the last to know when a committee member moves on. With job turnover rates remaining high, advisers discuss how to manage retirement plan committee churn. Source: Planadviser.com State-Based Private-Sector Retirement Programs Why State-Based IRAs Are a Perfect Private/Public Partnership The passage and adoption of state-facilitated retirement savings programs continue, with the latest, Minnesota, happening in mid-May. It's something that the Center for Retirement Initiatives was designed specifically to help advocate for, according to Angela M. Antonelli, its executive director. Few are more informed, or involved, with the issue of state-based plans, and she joins American Retirement Association CEO Brian Graff on the latest episode of DC Pension Geeks. Source: Asppa.org Two More States Create Retirement Savings Plans for Private Sector Workers Legislators in Missouri and Minnesota passed bills to expand access to retirement savings for private sector employees, and Vermont legislators voted to change its approach. Source: Plansponsor.com CalSavers: Growth in Assets Outstrips New Registrations CalSavers, the state-run retirement plan that covers private-sector employees whose employers don't offer a plan, is growing, but so far this year, the expansion in assets is outstripping that of registrations. Source: Napa-net.org Compliance and Regulatory Proposed Regulations on Allocation of Forfeitures The IRS issued proposed regulations to address the proper timing and use of allocation of forfeitures. The proposed regulations are effective with the 2024 plan year and provide invaluable transition relief for unallocated forfeitures. Here, Groom's Elizabeth Dold and David Levine, review the existing forfeiture rules and the new proposed rules for defined benefit and defined contribution plans. Source: Groom.com Safe Harbor 401k: 2023 Guide for Employers This article covers the highlights of a white paper, 2023 Definitive Guide to Safe Harbor 401k Plans, which covers everything you need to know about Safe Harbor 401k plans, including how tax credits can cover employer costs and a discussion of employer contributions for the first few years. Source: Forusall.com Required Annual DC Plan Tests - 2023 Sometimes not all of the various tests and limitations applicable to these plans have been checked in prior years. This article summarizes eight tests that are required annually. It's not uncommon for a plan to be subject to a half dozen or more of these tests. Source: Consultrms.com Communicating SECURE Act 2.0 Retirement Changes to Your Workforce A quick SECURE Act 2.0 summary is nearly impossible to give. While the original SECURE Act brought forth new changes, SECURE Act 2.0 far exceeds the original legislation, at least as it relates to corporate retirement plans. The SECURE Act 2.0 bill is long -- around 350 pages -- and its impact is enormous. Here are a few key items that employers should know about as a result of SECURE Act 2.0. Source: Hrdailyadvisor.blr.com SECURE 2.0: New and Potentially Easier Ways to Make Withdrawals from 401k Plans This article discusses new and potentially easier ways to make withdrawals from retirement plans, with a focus on how they relate to 401k and other defined contribution plans. Source: Foley.com »» Click here for more Compliance and Regulatory Material Marketplace News 2023's Plan Adviser of the Year Award Winners Announced JULY Picks up HTLF's Recordkeeping and Administration Business
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