MOVEit Cyberattack Ignites Worry About Fiduciary Responsibility
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Fiduciary and Plan Governance MOVEit Cyberattack Ignites Worry About Fiduciary Responsibility If there's one big takeaway for plan sponsors following the massive MOVEit cyberattack that breached the personal data of millions of participants in public pension and private-sector workplace retirement plans, it's this: They may need to rewrite their vendor contracts and redouble their monitoring of service providers. While no sponsors have yet been sued, it's not far-fetched to think that they could be, according to legal experts. Source: Pionline.com Process Prevails in ERISA Excessive Fee Bench Trial Following a three-day bench trial in a class action accusing B.Braun Medical Inc. and its 401k plan committee of imprudently allowing excessive record-keeping fees and high-cost investments, a Pennsylvania district court found that the committee's conduct was objectively prudent in its monitoring and selection of investment funds and record-keeping fees. This bench trial victory for Braun clearly demonstrates that prudent plan governance is the best line of defense when confronted with plaintiff litigation. Source: Cohenbuckmann.com What Does My TPA Do for Me? Top Questions to Ask Your TPA Have you ever wondered what the third-party administrator of your retirement plan does for you? Are you at a loss for a way of figuring out if they're doing a fantastic job? You might ask them how they help you to identify and correct common errors made by businesses throughout the day-to-day administration of the plan. Source: Benefit-Resources.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Survey Finds Longevity Literacy Tied to Regular Retirement Planning, Saving Nearly three-quarters (72 percent) of U.S. employees with strong longevity literacy are saving for retirement regularly, compared to 58 percent with weak longevity literacy, according to a new survey by the Teachers Insurance and Annuity Association of America Institute and the Global Financial Literacy Excellence Center. Source: Benefitscanada.com The Myriad Stories Behind Hispanic Retirement Saving U.S. workers' enthusiasm for saving money for retirement is lukewarm. But that doesn't go very far in explaining why only three out of every 10 Latino workers are participating in an employer retirement plan, typically a 401k. Source: Bc.edu Retirement Savings Patterns Across Multiple Industries While Americans save trillions of dollars a year for retirement, not everyone can retire comfortably, and often because of a lack of access. A Guideline report analyzes numerous industries to see how they differ in retirement planning access and participation. Source: 401kspecialistmag.com With "Rothification" of Retirement Savings, Vanguard Stresses Education The "Rothification" of retirement savings will gain steam in 2024, as the SECURE 2.0 Act of 2022 mandated Roth catch-up contributions is scheduled to go into effect. But implementation, while mandatory, will still need consultation and education for plan sponsors to understand -- and communicate -- the potential benefit of post-tax Roth saving to participants, according to Vanguard. Source: Plansponsor.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Three Questions Plan Advisors Should Ask Plan Sponsors A well-placed question can lead to some wonderful conversation. Part of your job as a plan advisor is to make sure you're asking plan sponsors the right questions. The goal is to get them to think about their plan and their participants so you can work together to create a well-functioning plan that helps participants meet their retirement goals. Here are three of those important questions. Source: Napa-net.org Plan Adviser Industry Needs to Adapt to Get Younger, More Diverse The retirement plan advisement industry needs to modernize its approach to recruiting, communicating, and even its salary structure to cultivate the next generation of advisers. A panel of top advisers discusses how to shake up the typical hiring channels and even how the industry is talked about. Source: Planadviser.com How Advisers Can Help Close Longevity Literacy Gap Simply telling someone the life expectancy at age 60 or 65 or 70 will likely not help them. The statement could even be misinterpreted in a counterproductive way. Additional information on appropriate interpretation and practical implications is needed. Source: Planadviser.com Court and Legal On August 21, 2023, the U.S. District Court for the District of Minnesota largely dismissed -- for a second time -- a putative ERISA class action challenging "excessive" fees and "poor" performance in a 401k plan. The district court determined that, for most of the claims, the plaintiff still had not satisfied the Eighth Circuit's pleading requirements. Source: Dorseyerisa.com ERISA Plan Litigators Use "More Credible" Tactics in First Half of 2023 Mid-year report finds there were fewer cases filed, as plaintiff law firms catch up on those they brought in 2022, but new entrants are using more accurate fee and service benchmarking data, Euclid Fiduciary finds. Source: Plansponsor.com Litigation Landscape: Schlichter, BlackRock and the New "Plausibility Standard" ERISA breach of fiduciary duty litigation in 401k and 403b cases continues to persist, with new litigants rapidly emerging. The "new" standard of plausibility continues to prevail in some federal court districts, dismissing suits before trial, as long as the insurance policies cover those expenses. Here's what you need to know. Source: Napa-net.org »» Click here for more Court and Other Legal Issues Compliance and Regulatory IRS Comes Through With Roth Catch-Up Contribution Deadline Extension "Administrative transition period" announced Friday afternoon extends until 2026 the new requirement that any catch-up contributions made by higher income participants in 401ks must be designated as Roth. Source: 401kspecialistmag.com Forfeitures: Changing the Rules of the Game for Retirement Plans Forfeitures generally arise when a participant terminates employment before fully vesting in the retirement plan. Earlier this year, the Department of the Treasury and the IRS issued proposed regulations on the use of forfeitures by tax-qualified retirement plans. The changes provide clarity in a previously murky area for plan sponsors. Source: Mwe.com $500 Boost Projected for 2024 401k Contribution Limit While it won't be official until sometime in mid-to-late October, it's looking more and more like the 2024 401k contribution limit will receive a $500 boost to $23,000 from the $22,500 limit in 2023, based on recent forecasts from both Mercer and Milliman. Source: 401kspecialistmag.com »» Click here for more Compliance and Regulatory Material Marketplace News After Parent's Goldman Deal, Retirement Firm to Add $5.5B Company PensionPlus Partners With Capital Group, American Funds
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