CFOs Who Partner With an Advisor Achieve Financial Benefits for the Business

Help for 401k Plan Sponsors and Retirement Professionals

Newsletter for June 19, 2017

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In This Issue

General Items

CFOs Who Partner With an Advisor Achieve Financial Benefits for the Business

Abstract: According to this 8-page study commissioned by the Retirement Advisor Council, employers that sponsor retirement savings plans are better able to control future labor costs by partnering with a knowledgeable financial advisor.


Women in Retirement: Are You Part of the 60 Percent?

Abstract: Almost 60 percent of the women surveyed at the 2016 Texas Conference for Women fear they aren't saving enough for retirement! Check out the numbers, common retirement pitfalls, and ways to be proactive and start saving in this article by NFP SVP of Retirement Services Lisa Kottler.


403(b) Plans

Key Questions to Ask to Better Understand Your 403(b)

Abstract: While 403(b)s share some similarities with the 401ks offered to corporate employees, these retirement plans are not identical and they can sometimes be confusingly complex in their fee structures and investment options.


»»  Click here for More 403(b) Material

Fiduciary and Plan Governance Material

Good Bets by 401k Plan Sponsor That Will Limit Their Liability

Abstract: Retirement plan sponsors can make bets that will pay off in limiting liability by making informed, smart decisions that will pay off in the long run. This article is about good decisions that are sure bets that will help a plan sponsor limit their liability.


Alternate Fee Calculation/Allocation Models

Abstract: Calculating recordkeeping fees and charging them to participants is a matter that should be carefully considered by fiduciaries, especially in light of emerging methods in this area. The best model for one plan may not be the best model for another due to demographic plan differences, such as the number of small account balances.


»»  Click here for more Fiduciary and Plan Governance Material

Insight: Studies, Research, and White Papers

Mutual Fund Fees Keep Dipping in 401ks

Abstract: Following a long-running trend, the average fees that 401k participants incurred for investing in equity, hybrid, and bond mutual funds dropped in 2016 for the seventh straight year, according to the latest study by the Investment Company Institute.


»»  Click here for More Studies, Research, and White Papers

Items of Special Interest to Service Providers

Nevada Imposes Statutory Fiduciary Duty on Broker-Dealers

Abstract: A new fiduciary duty will become applicable July 1, 2017, for broker-dealers and investment advisers operating in Nevada, and this fiduciary duty has nothing to do with the Department of Labor.


Fiduciary Reforms Will Impact Expanding HSA Market

Abstract: The DOL fiduciary rule expansion establishes ERISA fair dealing requirements in the sale and service of health savings accounts; employers have a lot of questions about what this means.


With the Tip of a Hat, a Fund Manager Can Be an ERISA Fiduciary

Abstract: Some advisors may now find themselves unexpectedly wearing a "fiduciary hat" with respect to benefit plan clients (including individual retirement accounts). While it is expected that the scope of the final DOL fiduciary rule has limited effect for fund managers, there are certain marketing and promotional activities that could implicate the final regulation.


Court and Other Legal Issues

401k and 403(b) Lawsuit Update: Two Cases Settled and One Filed

Abstract: In what is becoming commonplace in the rash of 401k and 403(b) lawsuits, two cases were settled and one new one filed in the span of just one week. Northrup Grumman plan sponsors settled; a case against the Washington University 403(b) plan was filed; and Merrill Lynch settled claims against it by a plan sponsor.


401k Self-Dealing Suit Filed Against Capital Group

Abstract: The lawsuit claims that when selecting and retaining investment options in the plan, the Capital Group's benefits committee did not act prudently and solely in the interest of plan participants and beneficiaries, but put the interest of Capital Group and its subsidiaries first by selecting, retaining and failing to remove expensive group-affiliated investment options managed by CGTC, CRMC, and/or CII.


»»  Click here for more Court and Other Legal Issues

Cybersecurity Issues

Fiduciary Obligations to Safeguard Plan Participants' Data

Abstract: There have been numerous instances of high-profile cybercrime cases over the past couple of years spurring lively discussions in the ERISA community about the potential threat this type of crime poses to plan assets and personal data of plan participants and beneficiaries.


»»  Click here for more on Cybersecurity Issues

State-Based Retirement Programs

OregonSaves Edging Closer to Being Live

Abstract: OregonSaves, the state-run auto-IRA program for private-sector workers, is not quite launched yet, but the pieces are falling into place. OregonSaves will begin operation in July 2017. The Oregon Retirement Savings Board has provided a report on preliminary work that is being done in preparation for the system.


California to Move Forward With Auto-IRA Despite Loss of ERISA Safe Harbor

Abstract: This article addresses the background on auto-IRAs, the history of the California Secure Choice Retirement Savings Program, the impact of the auto-IRA safe harbor and its reversal, and the effect on California employers.


Compliance and Regulatory

Terminated Participants' 401k Accounts

Abstract: Spring cleaning. Some look forward to it, others dread it. If we're honest, the more thorough we are with our spring cleaning, the better off we are throughout the year. It's time to take a Swiffer to your retirement plan and clean out the remaining balances of terminated participants.


Welcomed IRS Guidance on Use of Forfeitures and Hardship Distributions

Abstract: The IRS recently issued two pieces of long-awaited guidance to facilitate qualified plan operations. The first was the issuance of proposed regulations that would permit forfeitures to be used to fund safe harbor contributions and other corrective contributions. The second was the issuance of new audit procedures regarding the substantiation of hardship distributions, which permits a method of substantiating hardship distributions without having to review and retain the underlying support documentation to show the immediate and heavy financial need for a safe harbor hardship distribution. The new guidance is summarized in this article.


»»  Click here for more Compliance and Regulatory Material

Marketplace News

Cohen & Steers Hires Specialist to Expand DCIO Support

IRI Launched Fiduciary Rule Implementation Resource Website

Fidelity Launches Funds to Simplify RMD Process

Ascensus Announces Acquisition of Kravitz

Fiduciary Benchmarks Launches IRA Rollover Service Addressing Requirements of Fiduciary Rule

»»  Click here for More Marketplace News

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