The Dominant Players in 401k Land

Help for 401k Plan Sponsors and Retirement Professionals

Newsletter for July 2, 2018

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In This Issue

General Items

The Dominant Players in 401k Land

Abstract: Firms with serious scale -- not boutique specialists -- are leading the defined contribution market, according to Institutional Investor's survey of nearly 500 plan advisers. The second annual DC Industry Leaders study identified the industry's top recordkeepers, DCIO firms, and broker-dealers based on ratings from plan advisers overseeing at least $100 million across multiple plans.


Optimizing Your Retirement Plan

Abstract: What constitutes an optimized defined contribution plan will vary by employer and will often be based on employee demographics and needs. To make the most of their defined contribution plans, plan sponsors should focus on four key elements.


The Next Bear Market Will Spark a Retirement Crisis

Abstract: A retirement crisis is highly likely if the stock market experiences a downturn, writes an expert on MarketWatch. That's because a bear market and recession could reduce portfolios earmarked for retirement, "not to mention financially dicey state and local pension plans and the federal government itself," writes the expert.


A Retirement Perk for Deeply in Debt Millennials

Abstract: A new benefit program at Abbott Laboratories means their employees won't have to choose between paying down student debt and saving for the future. For any U.S.-based employee who puts at least two percent of their salary toward student loan payments, the health care company will contribute the equivalent of five percent of their salary into their 401k plan.


Insight: Studies, Research, and White Papers

Research Finds Low Prevalence of Retirement Wealth Among Ontarians

Abstract: Some 61 per cent of Ontarians said they have or anticipate having low liquid retirement assets, according to new research by the Canadian Institute of Actuaries. One in 10 respondents said they have or expect to have less than $25,000 in liquid retirement assets and don't own property. Another 40 per cent of survey participants said they have or expect to have liquid retirement assets under $100,000.


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

Items of Special Interest to Service Providers

401k Advisers Should Heed the Legal Aspects of Outsourcing

Abstract: The outsourcing of retirement plan functions -- administrative, investment and others -- is a practice that predates ERISA. But its prevalence has increased in recent years because of increased concerns about potential fiduciary liability, caused in part by some very large lawsuit settlements.

Source: (registration may be required)

State Enforcement Remains Risk in Wake of DOL Fiduciary Rule Sunset

Abstract: Massachusetts Securities Regulator Galvin wants the SEC "to re-draft its Regulation Best Interest for brokers and mandate a true fiduciary standard that investors deserve."


403b Plans

The Differences Between 403b and 401k Pricing

Abstract: 403b plans are fundamentally different than 401k plans. Many of these differences result in a greater amount of work required to administer 403b plans and more work equals more money. This article looks at a few of the major 403b plan price drivers that do not exist in 401k plans.


»»  Click here for More 403b Material

Legislative and Washington DC

Push to Require Roth 401k Savings Over Traditional Plans May Re-Emerge

Abstract: Retirement plan advisers who thought Washington had ditched the idea of requiring Roth 401k savings instead of traditional 401ks should think again. Those who closely follow retirement policy say senior legislators on Capitol Hill are again whispering about so-called Rothification. The idea could re-emerge, perhaps to make up for tax-revenue shortfalls related to other retirement legislation being floated, observers said.

Source: (registration may be required)

»»  Click here for more on Legislative Actions


Cyber Liability Insurance for Employee Benefit Plans: Hackers, Malware, and Phishing

Abstract: Employee benefit plans rely on a variety of service providers to administer benefits. Those providers maintain a plethora of participant data and protect plan assets for the benefit of participants. When a plan is attacked, the fallout can be overwhelmingly expensive and burdensome to correct. Many plan sponsors are purchasing cyber liability insurance coverage to supplement their data security measures. Understanding those policies -- and their exclusions -- is important for sponsors who are exploring such coverage.


»»  Click here for more on Cybersecurity Issues

Compliance and Regulatory

PSCA Makes Recommendations for Missing Participant Guidance

Abstract: PSCA provided this guidance in response to recent Department of Labor enforcement activity as well as a Government Accountability Office request. Additionally, PSCA has signed on to a letter to the DOL regarding this issue sent by a group of concerned trade organizations.


Joint Association Letter Regarding Missing and Unresponsive Participants

Abstract: Joint comment letter regarding the issue of missing and unresponsive participants and beneficiaries. Includes the following observations: It is critical that regulators coordinate on guidance, the proper steps that should be taken to deal with missing and unresponsive participants are context dependent, and ERISA requires prudence in plan administration.


Beware of These Common ERISA Compliance Errors

Abstract: ERISA is a complex and continually changing federal law that applies to most private sector employee benefit plans. When companies unintentionally run afoul of ERISA regulations it can expose them to fines, penalties, and costly litigation. Understanding these ERISA problem areas can help you avoid making these common compliance mistakes.


Avoid Audit Flags: How to Lower Your Plan's Audit Risk

Abstract: Are only the largest plans audited? The truth is that plans of any size can be audited by the IRS and the DOL. Your plan could be selected for a random audit, or as a result of IRS datasets that target certain types of plans. However, lots of audits are triggered by specific events. Learning to avoid the red flags can help reduce your risk and increase the odds that you will survive any audit for which you are selected without major problems.


Historic Interest for Qualified Plans: Self-Correction and E-Delivery

Abstract: Over the years, the plan sponsors and recordkeepers have wanted the IRS to expand the availability of self-correction of plan errors and expand the rules and availability of electronic delivery and electronic signatures. This article reviews the current IRS rules in these areas, which can be expanded to facilitate additional plan compliance.


»»  Click here for more Compliance and Regulatory Material

Marketplace News

Blue Prairie Group Announces Opening of Twin Cities Office

Ascensus to Acquire QBI, LLC

»»  Click here for More Marketplace News

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This eNewsletter is a digest of information published by a variety of web-based sources on 401k and related issues and is published as a service to our users., LLC is not the author of the material unless specifically noted.

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