Checklist of Potential Defined Contribution IPS Considerations
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Fiduciary and Plan Governance Checklist of Potential Defined Contribution IPS Considerations The DC investment policy statement is not a static document. Changes in the macroeconomic, inflationary, and regulatory environments call for an ongoing reevaluation of the IPS. Therefore, DC fiduciaries are taking a fresh look at their overall IPS approach. Here is a checklist. Source: Dciia.org »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers 401k a "Must-Have" Benefit for Job Seekers: Schwab Study Employers not offering a 401k plan is a deal-breaker for prospective employees, according to a comprehensive new study focused on defined contribution retirement plans. 3 in 4 would refuse a new job if it doesn't come with a defined contribution retirement plan, a wide-ranging Charles Schwab survey finds. Source: 401kspecialistmag.com Schwab's 2023 401k Participant Survey Inflation and market volatility are impacting workers' ability to save for retirement to a greater extent than last year, according to a new survey from Charles Schwab. The annual nationwide survey of 401k plan participants finds that 62% of workers see inflation as an obstacle to saving for a comfortable retirement, up from 45% last year, and 42% say stock market volatility is an obstacle, up from 33% last year. Despite these challenges, workers are maintaining their 401k savings rates, but they feel less confident about reaching their goals. Source: Schwab.com Experts Forecast More Retirement Plan Options for Gig Workers A panel of employment industry executives and researchers see at least some potential for gig workers to be offered workplace retirement plans, according to polling released Wednesday by TransAmerica Corp. The majority of a Transamerica-sponsored panel sees better retirement plan offers and even matching for gig workers by 2026. Source: Planadviser.com Why the Biggest Target-Date Funds Have Underperformed Morningstar tracks 53 target-date fund series, run by 29 companies. Among that group, the two largest families dominate, as Vanguard and Fidelity manage more than half the industry's target-date fund assets. Unfortunately, the returns of both families' target-date funds have trailed those of their balanced funds. Had target-date funds never been invented, and Vanguard and Fidelity had instead placed their 401k shareholders into their existing balanced funds, those investors would be significantly wealthier today. Source: Morningstar.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Keep it Simple: Innovations in Small Plan Advisement, Management Advisers and small plan 401k providers explain how the industry has evolved to do more -- but make it feel like less -- for smaller businesses. Source: Planadviser.com Why Wealth Managers Are Engaging Small Retirement Plan Startups The connection is strengthening between wealth managers and small workplace retirement plan providers to meet the needs of small business owners. Source: Planadviser.com 403b Plans SECURE 2.0 Act: Provisions Related Specifically to 403b Plans This article focuses on the three specific changes for 403b tax-sheltered annuity plans that did not affect 401k plans. Plan amendments made according to SECURE 2.0 are to be made by the end of 2025 (2027 in the case of governmental plans) as long as the plan operates under such amendments as of the effective date of a bill requirement or amendment. Source: Consultrms.com »» Click here for More 403b Material Court and Legal Ameritas 401k Faces ERISA Suit Former employees of Ameritas Holding Co. filed a proposed class action suit on July 28, alleging the company had mismanaged the $779 million 401k plan. Three former employees allege Ameritas failed to review the plan's investment portfolio to ensure proper performance and cost. Source: 401kspecialistmag.com 7th Circuit Shift Resuscitates Excessive Fee Suit A shift in precedent has lowered the bar to establish a plausible argument sufficient to overcome a motion to dismiss and plaintiffs in yet another case are getting another shot at proceeding to trial. Source: Napa-net.org Plaintiffs Plausible Points Fall Short in 401k Excessive Fee Suit Another federal court has found that plaintiffs failed to allege "sufficient facts from which the Court could plausibly infer" that recordkeeping fees were excessive relative to the services provided, or made imprudent investment decisions. Source: Napa-net.org Wake Forest Medical Center Settles ERISA Class Action Suit Wake Forest University Baptist Medical Center has agreed to settle a proposed ERISA class action lawsuit pending in a North Carolina federal district court. In Garnick et al. v. Wake Forest University Baptist Medical Center et al., former employees claimed that plan administrators had violated their fiduciary duties under ERISA in administering the $2 billion retirement plan covering about 30,000 participants. Source: Hallbenefitslaw.com Former HR Head Sues Investment Manager Alleging Retirement Plan Breaches Hedge fund manager GWA, LLC and George A. Weiss, founder, and CEO of the company's investment adviser subsidiary Weiss Multi-Strategy Advisers LLC, are facing a class action complaint filed on July 24 alleging violations of fiduciary duty and prohibited transactions provisions of the Employee Retirement Income Security Act by fiduciaries for the GWA, LLC 401k profit sharing plan. Source: Plansponsor.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC 401k Spousal Consent Bills Quietly Reintroduced in House and Senate House and Senate Democrats quietly reintroduced bills on Thursday to require spousal consent for 401k distributions. H.R.5060 and S.2627 would "amend the Employee Retirement Income Security Act of 1974 to provide for greater spousal protection under defined contribution plans, and for other purposes," according to the bill's long title. Source: Napa-net.org »» Click here for more on Legislative and Washington Actions Compliance and Regulatory Do Catch-up Contributions Need to Be Roth Now? In case there's any confusion about how Federal and State governments think retirement plans can be improved in future years, it's two things: More auto-enrollment and more Roth contributions. This article focuses on one expansion of the increased appetite for Roth contributions, the new requirement for "Catch-up" contributions from some employees to only be allowable on a Roth basis. Source: Benefit-Resources.com IRS Issues Transitional Guidance for Required Minimum Distributions In response to changes made by the SECURE 2.0 Act to the required minimum distribution rules of the Internal Revenue Code, the Internal Revenue Service recently issued Notice 2023-54, which provides two forms of transitional relief for 2023 RMDs. Source: Wagnerlawgroup.com »» Click here for more Compliance and Regulatory Material Marketplace News Retirement Consulting Firm Freedom Fiduciaries Launches PEP
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