The Technologically Savvy 401k Plan in Your Future

Help for 401k Plan Sponsors and Retirement Professionals

Newsletter for March 25, 2019

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In This Issue

General Items

The Technologically Savvy 401k Plan in Your Future

Abstract: 401k participants are increasingly using mobile technology and social media. That is particularly true for Millennials, and we expect, future generations. If so, those are your 401k participants of the future. You may want to consider getting out in front of the "technological" parade.


Five Ways to Effectively Promote Employee Financial Wellness

Abstract: Without education on how to avoid debt, select investments, or prioritize saving for retirement, employees may feel ill-suited to make their own investment decisions, even when it comes to taking advantage of the employer match. As a result, employers who promote employee financial wellness on a holistic basis are far more likely to see increased participation in workplace benefit programs.


Fiduciary and Plan Governance

A Cascading Behavioral Roadmap for Fulfilling Fiduciary Duties

Abstract: Fulfilling fiduciary duties is an outcome of successfully integrating processes and methodologies that require different skillsets. All major decisions should be made with only the economic interests of the plan participants in mind. Failure to do so increases the likelihood of a breach of fiduciary duty. Here is a Plan's Sponsor's road-map to successfully fulfill fiduciary duties.


Avoiding Fiduciary Liability in 2019: Steps 401k Fiduciaries Should Take Now

Abstract: Plan fiduciaries, regardless of their title, are expected to perform their duties solely in the best interests of plan participants and their beneficiaries. In addition, plan fiduciaries are expected to act prudently. Failing to do so, and failing to comply with Department of Labor fiduciary responsibilities, can lead to a fiduciary liability lawsuit. This article provides actionable suggestions on avoiding fiduciary liability in 2019.


»»  Click here for more Fiduciary and Plan Governance Material

Insight: Studies, Research, and White Papers

Four Distinct Benefits of a Retirement Managed Account

Abstract: Research suggests that the potential long-term benefits of more personalized strategies such as retirement managed accounts may outweigh the advantages of target-date funds in some situations. This 12-page paper presents new insights showing that the personalized portfolio approach of RMAs adds value to retirement accounts, and that the key is to look beyond performance.


What DC Plan Sponsors Prefer Retiring Participants Do and Why It Matters

Abstract: According to T. Rowe Price research, only 17.8% of DC plan sponsors prefer participants to leave their plans at retirement. This raises the question: Should we consider the implications of longer-term involvement with participants after they retire? There is strong agreement among plan sponsors on the benefits of taking a longer-term view, including periods up to and through retirement.


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

Items of Special Interest to Service Providers

401k Fiduciary Advisers Should Heed Results of Putnam Case

Abstract: An interview with Roger Levy, LLM, AIFA(R), CEO of Cambridge Fiduciary Services, on why he feels plan sponsors are less aware of their fiduciary liability than they should be, what he sees as the greatest threat to 401k fiduciaries, and other topics.


Advisers Can Help Start-Up Retirement Plans Evolve

Abstract: PLANSPONSOR's 2018 Defined Contribution Survey found many start-up plans have not yet adopted plan design best practices and many are unsure about fees, but fortunately, nearly two-thirds employ the services of a retirement plan adviser or institutional investment consultant.


403b Plans

Understanding the Importance of Recent 403b Erisa Settlements

Abstract: If the 403b excessive fee litigation continues along a trajectory similar to its 401k predecessors, then we can expect the recent 403b settlements to usher in a new volley of suits brought against institutions overseeing slightly smaller retirement plans than the billion-dollar-plus plans at issue in the first wave of 403b cases.


»»  Click here for More 403b Material

Target-Date Funds

Custom Target-Date Fund Survey

Abstract: This 9-page summary report highlights some of the key findings from DCIIA's custom TDF research initiative, the retirement industry's first asset allocation analysis of custom target-date strategies. The report is primarily intended to aid plan sponsors and asset allocators during custom glide path discussions.


Trends in Target-Date Fund Investing

Abstract: Historically, investment managers offered TDFs with traditional investment styles that were invested in their own underlying investment funds. Recordkeeper's proprietary target-date funds were also heavily utilized. As the adoption and popularity of target-date funds continues to expand, so have the diversity of TDF offerings. Today, plan sponsors can select from a universe of options to best fit their participant population. This new world of target-date funds has resulted in the emergence of new trends.


»»  Click here for more on Target-Date Funds

Cyber and Plan Security

Changing Cybersecurity Baselines?

Abstract: A recent FTC Cybersecurity proposal is significant to the retirement plan community for several reasons. First, the Proposal, if finalized, could raise the baseline for plan fiduciaries when developing prudent cybersecurity programs. Second, the Proposal builds on the increased interest in cybersecurity by regulators, Congress, and the states. Expect that other GLBA regulators, such as the banking regulators or the SEC may consider incorporating elements of the Proposal into their own regulations or guidelines.


»»  Click here for more on Cybersecurity Issues

Compliance and Regulatory

VCP Submissions Must Be Electronic Starting April 1

Abstract: If you send the IRS a Voluntary Compliance Program submission on paper on April 1, it will be returned to you. Beginning April 1, 2019, the IRS will only accept VCP submissions that are made electronically through It will return VCP submissions made on paper that have a postmark after March 31, 2019.


404(a)(5) Participant Fee Disclosures: Rules & Requirements

Abstract: What the heck is a 404(a)(5) participant fee disclosure? And what are the requirements around sending them? This article demystifies this important document, breaking down what it is, why it's important, and everything else you need to know about sending it.


IRS Correction Program, Now More Efficient

Abstract: The IRS introduced the most recent EPCRS transformation in September 2018, through Revenue Procedure 2018-52, which becomes effective next month, on April 1, 2019. The biggest change is to the VCP submission procedures. The IRS will no longer accept VCP submissions through the mail in hard-copy form; instead, Plan Sponsors must use the website for VCP submissions. While the contents of a VCP submission have not changed, the submission follows a new process.


Does My Safe Harbor Plan "Require" Testing?

Abstract: There is a common misconception that safe harbor plans are exempt from testing requirements. This overly general and inaccurate statement calls for a proper explanation. A safe harbor plan requires tests other than non-discrimination, entails proper administration to satisfy the plan design and can benefit from testing for plan optimization.


»»  Click here for more Compliance and Regulatory Material

Marketplace News

Empower Launches Custom Managed Account Service

Principal Financial Close to Wells Fargo Retirement Unit Acquisition

»»  Click here for More Marketplace News

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