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Daily Article Digest - Updated Throughout the Day

This digest contains a wide variety of the freshest source material dealing with current trends, opinion, news, legislative action, investments, marketing, sales, consulting, and legal issues regarding 401k, 403(b) and other retirement plans. Each listing contains a headline (hyperlinked to the source document), description, source of the item, and the month and year posted to this digest.

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Lead Magnets: A Social Selling Tip

Summary: Today's business world -- and particularly selling environment -- no longer takes place in a linear, flat fashion. The game has changed and the business of selling now requires you to work multi-dimensionally and embrace the digital space by implementing social selling. Here is why and how.

Source: 401khelpcenter.com, October 2015

IRS Reminds Plan Sponsors of Plan Restatement Deadline

Summary: The IRS reminds plan sponsors that document providers who sell pre-approved plans update the plan in its entirety once every six years and request a new opinion/advisory letter from the agency. After April 30, 2016, if a plan sponsor hasn't adopted a restated plan, the plan does not comply with the tax laws and may be ineligible for tax benefits.

Source: Plansponsor.com, October 2015

IRS Updates Forms 8950 and 8951 for VCP Submissions

Summary: The IRS has updated Forms 8950 and 8951, and their instructions, for submissions under the Voluntary Correction Program. An IRS webpage announcing the revisions states that the IRS will accept submissions using the prior version of the forms through January 1, 2016 but prefers that plan sponsors use the new forms.

Source: Ebia.com, October 2015

Sponsors Demanding Much More From Plan Advisors

Summary: Fidelity's sixth annual Plan Sponsor Attitudes survey reveals that more sponsors are actively looking to fire incumbent plan advisors than ever before. Why the shift in sponsor thinking? Plan sponsor focus is moving to preparing participants for retirement, from a focus on fees and fiduciary compliance.

Source: Benefitspro.com, October 2015

American Retirement Association Submits Letter on EP Determination Letter Program

Summary: The American Retirement Association submitted a letter in response to IRS Announcement 2015-19 in which the IRS requested comments regarding changes to the Employee Plans Determination Letter Program. ARA has been actively involved with the IRS in discussions to improve both the DL program and the pre-approved plan program.

Source: Asppa.org, October 2015

Are 401k Investment Menus Set Solely for Plan Participants?

Summary: This seven page Center for Retirement Research study found that additions and deletions from the 401k plan investment lineup favor the fund company's own family of funds which adversely affected the retirement income security of participants.

Source: Bc.edu , October 2015

Six Reasons Small Businesses Should Offer a 401k Plan

Summary: Sadly, all too often the reason that smaller companies don't offer a 401k plan are that they can be expensive and there are a vast number of government rules and regulations that must be followed. Small business owners have all that they can handle in running and growing their companies. But, here are six reasons that they should consider offering a 401k plan for their employees.

Source: Thechicagofinancialplanner.com, October 2015

The Care and Feeding of Your Retirement Plan Account

Summary: Your retirement account is vitally important for your future, and you need to do everything you can to make sure it will still be there for you when you need it. Here are three specific areas to focus on when you care for your account -- the three R's of retirement plan maintenance: Review, Rebalance, and Reallocate.

Source: Pension-Consultants.com, October 2015

House Committee Passes Bill That Would Delay Fiduciary Rule

Summary: Even if the bill makes it to the floor of the full House, American Retirement Association Director of Congressional Affairs Andrew Remo does not think much of its prospects, remarking, "President Obama's forceful support of the fiduciary rule in February has muted House Democratic support for the Wagner bill, ensuring its defeat in this Congress."

Source: Ntsa-net.org, October 2015

Employer Liability Relating to Fees in Employer-Sponsored Retirement Plans

Summary: Employers who sponsor retirement and savings plans for their employees should ensure that the fees paid by their employees within the plans are reasonable and adequately disclosed. This article will describe the risks for Canadian employers, and suggest a few simple things that can be done to reduce those risks.

Source: Employmentandlabour.com, October 2015

Robos, DOL, and the Future

Summary: Matthew Wolniewicz, Chief Revenue Officer at fi360, thinks that "in light of the proposed DOL legislation around the fiduciary standard...robos can help overcome the primary objections in some form, such as the burden on broker dealers of the proposed regulation and the inability to serve lower and middle-income investors. Technology is a great "disruptor."

Source: fi360.com, October 2015

The Top 10 Target-Date Series

Summary: BrightScope announced the Top 10 Target-Date Series, ranked by total 401k assets. Target-date series' are a group of target date funds -- there is an average of 12 funds in each series on this list -- designed to simplify asset management for investors and plan sponsors by automatically shifting allocation to help participants meet retirement goals.

Source: BrightScope , October 2015

B.C. Introduces New Pension Standards

Summary: The British Columbia government is announcing new standards for workplace pension plans, creating options that could be activated even before an employee retires.

Source: Benefitscanada.com, October 2015

Bill Introduced to Bolster Women's Retirement Security

Summary: The legislation is intended to address what some have identified as a gap between the retirement preparedness of women compared to their male counterparts.

Source: Ascensus.com, October 2015

Four Secrets of Successful Plan Advisors

Summary: Fidelity announced the results of its sixth annual Plan Sponsor Attitudes survey, which revealed four secrets of successful plan advisors. These insights are critical given that, of the plan sponsors surveyed, an overwhelming majority (84 percent) use an advisor. Of those who do, 17 percent are actively looking to switch advisors.

Source: 401khelpcenter.com, October 2015

DCIO Firms Are Missing the Mark On Value-Add Programs, Study

Summary: Asset managers' DCIO operations are missing the mark on value-add programs aimed at plan advisors, according to the latest findings of Ignites Retirement Research. DCIO firms should be providing more value-add programs that DC plan advisors can use directly with DC plan sponsors, according to a newly released report, Optimizing DCIO Value-Add Programs.

Source: 401khelpcenter.com, October 2015

Ascensus Sales Highlights New FinTech Investors

Summary: Sometimes lost in the furry of DC recordkeeper consolidation is the fact that private equity is making a big bet on this market highlighted by the recent acquisition of Ascensus by Genstar and Aquiline. And Stone Point has not so quietly been gobbling up recordkeepers.

Source: Linkedin.com, September 2015

Another DC Recordkeeper Bites the Dust

Summary: Though it seemed anticlimactic, the decision by Mercer to sell its DC recordkeeping business to Transamerica is a big deal. The big deal is that Mercer and its former sister company Putnam were once major DC recordkeepers.

Source: Linkedin.com, September 2015

Federal Action Could Help State Efforts to Expand Private Sector Retirement Plan Coverage

Summary: GAO suggests that Congress consider providing states limited flexibility regarding ERISA preemption to expand private sector coverage. Agency actions should also be taken to address uncertainty created by existing regulations. Agencies generally agreed with GAO's recommendation.

Source: Gao.gov, September 2015

Risk of Excessive Fee Litigation Can Be Mitigated

Summary: Excessive fees continue to be a hot topic for retirement plan committees to address. Outside of the committee's documentation, the statute of limitation provides another method built into ERISA that is often forgotten, but which is very effective in mitigating litigation risk for a claim of excessive fees.

Source: Asppa.org , September 2015

Big Changes Ahead for DOL Fiduciary Rule

Summary: The DOL will make changes to a proposal to raise investment advice standards for retirement accounts as soon as it digests thousands of comments letters, the official spearheading the rule said Tuesday. One such change could involve the controversial contract brokers must sign with clients in order to have flexibility in how they charge.

Source: Investmentnews.com (registration may be required), September 2015

Three Workable Ways to Improve the Retirement System

Summary: Alicia Munnell, director of the Center for Retirement Research at Boston College, describes three ways to improve retirement outcomes for Americans: working longer, saving more through changes to Social Security and employer plans, and considering investors' homes as part of their retirement assets.

Source: Thinkadvisor.com, September 2015

Who Pays 401k Fees? Us or Them?

Summary: That's the question employers ask regarding who pays 401k fees. The "us" being the employer, and the "them" being the plan participants. Whether you are an employer whose employees are already paying some or all of the plan costs, or are considering doing so, here are some important considerations to keep in mind.

Source: Retirementplanblog.com, September 2015

Retirement Plan Investors Abandoning Asset-Class Preference

Summary: This paper highlights investment trends over the most recent two-year period. The analysis focuses on the underlying trends asset allocation that have evolved during the first half of 2013 through the first half of 2015. Paper reveals that there are common threads across all investor groups. The analysis examines four investor groups: DB plans, DC plans, retail investors, and HNW investors.

Source: Principalglobal.com , September 2015

Recordkeeper Partners Critical to Success

Summary: Two senior retirement industry executives -- one from an advisory firm and one from a recordkeeper -- discuss how the two types of service providers can work together for better plan sponsor outcomes.

Source: Planadviser.com, September 2015

Asset Managers Continuing to Expand and Evolve Their Salesforces

Summary: According to a Kasina study, the average asset management company's salesforce expanded by 8% from 2014. On average, firms added nine new salespeople to their teams, with hires primarily in internal and hybrid wholesaling and externals focused on the DCIO and RIA segments.

Source: Groom.com, September 2015

Department of Labor's Proposal to Define "Investment Advice"

Summary: The DOL intends to use the proposed definition of "investment advice," addition of a "best interest contract" exemption, and changes to current exemptions to more substantially extend its authority over IRAs. As a result, virtually all sales and marketing activities in connection with IRAs will be "investment advice" and subject to the prohibited transaction provisions. The purpose of this article is to explain how the DOL proposes to accomplish this.

Source: Groom.com, September 2015

Are Plain-Vanilla 401k Investment Options a Fiduciary Imperative?

Summary: Investment fads come and go, but they tend to stay on the 401k menu of investment options. Whose responsibility is it to recognize when investment fads expire? It may be reasonable to place that responsibility on the fiduciary duty of the plan sponsor who then can offer employees with the proper menu of the core building blocks.

Source: Fiduciarynews.com, September 2015

The Silver Bullet That Boosts 401k Savings By a Factor of Four

Summary: When it comes to retirement investing, the simplest strategies can be the most effective. But there is a single bullet that works for 401ks that can boost your balance by a factor of four. It doesn't involve market timing and it certainly doesn't involve fancy alternative investments.

Source: Forbes.com, September 2015

Final Fiduciary Rule Rests in DOL's Hands

Summary: The Department of Labor's final rule regarding who is a fiduciary moved one step closer to implementation last week, with the final comment period closing on Sept. 24. Industry experts expect the final regulation will publish in the spring so that it will go into effect before President Barack Obama leaves office in January 2017.

Source: Benefitnews.com, September 2015

Want an Awesome Retirement? Save Now

Summary: If you are a millennial and you feel like you are a long way from retirement and can't afford to worry about it, this article provides some not-too-painful ideas for kick-starting your planning.

Source: Bankrate.com, September 2015

More Dems Object to Fiduciary Rule, DOL Begins to Care

Summary: The Obama Administration continues to get pushback from its own party over the potential impact the proposed fiduciary rule might have on low income savers. The members of Congress argue that the proposed rule's "Best Interest Contract Exemption" would create "practical problems for providers to implement the exemption as proposed."

Source: 401kspecialistmag.com, September 2015

Money Market Fund Rule Amendments

Summary: In response to credit rating agencies' influence on the credit crisis, Section 939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires each federal agency to review its rules and replace provisions that require reliance on credit ratings as an assessment of creditworthiness. To meet this requirement, on September 16, 2015, the SEC adopted amendments to remove references to credit ratings from Rule 2a-7 under the '40 Act.

Source: Thompsonhine.com, September 2015

Automatic Savings Increase Tool Enhances 401k Plan

Summary: This article discusses how one organization's 401k plan achieved higher employee participation as well as greater savings rates two years after adding automatic contribution increases.

Source: Retirementtownhall.com, September 2015

Many Would Put Off Retirements to Help Pay for Kids College

Summary: Nearly one-third of Americans would be willing to defer their retirements to help their children or grandchildren pay for college educations, according to new LIMRA Secure Retirement Institute research.

Source: Limra.com, September 2015

What Plan Sponsors Don't Know, May Hurt Them

Summary: This article is about the dangers of retirement plans, that plan sponsors who have no experience in the retirement plan world, don't understand.

Source: Jdsupra.com, September 2015

Website Privacy Policies and the FTC's Authority Over Retirement Plans

Summary: Remembering that ERISA does not preempt the application of other federal law, which we continue to learn to integrate into our practices, we now may find ourselves needing to deal with the Federal Trade Commissions standards as well.

Source: Businessofbenefits.com, September 2015

Many 401k Participants Shouldn't Be Contributing

Summary: Conventional wisdom has long held that if a company offers a retirement plan, employees should contribute all they can to the plan from day one. This guidance was very sound advice, but the author suggests that in today's tax code environment, the same advice delivered with the best of intentions can be misleading.

Source: Brightscope.com, September 2015

IRS Updates Instructions for Form 8950

Summary: The IRS on September 23rd released an updated set of instructions for Form 8950, Application for Voluntary Correction Program (VCP) Under the Employee Plans Compliance Resolution System (EPRCS).

Source: Asppa.org, September 2015

The SEC's Cybersecurity Enforcement Action and Risk Alert

Summary: The SEC had a busy week regarding investment adviser and broker-dealer cybersecurity. Its new Risk Alert highlights some areas investment advisers and broker-dealers can focus on to stay in compliance with securities regulators and to keep clients' personally identifiable information.

Source: Ria-Compliance-Consultants.com, September 2015*

Thirty Million Recently Tapped Retirement Savings for Emergency

Summary: Thirty million Americans used money from their retirement savings to account for an emergency in the past year, according to Bankrate.com. In addition, 21 million Americans aren't saving for retirement at all.

Source: Planadviser.com, September 2015

Shedding Some Light on CITs

Summary: Collective Investment Trusts were not as widely accepted in DC plans due to operational constraints and a lack of information available to plan participants. But today there is growing interest in them. This article takes a look at some of the myths these investment products still carry and shed some light on their benefits and how they should be used.

Source: Manning-Napier.com, September 2015

Five Steps Plan Sponsors Can Take to Help Improve Plan Outcomes

Summary: Plan sponsors can put these five steps in place to help participants successfully navigate the path to retirement security.

Source: Jpmorganfunds.com , September 2015

Retirement Assets Total $24.8 Trillion

Summary: Total U.S. retirement assets were $24.8 trillion as of June 30, 2015, about unchanged from the end of March. Retirement assets accounted for 36 percent of all household financial assets in the United States at the end of the second quarter of 2015.

Source: Ici.org, September 2015

ERIC Supports Limiting Definitions Under Fiduciary Regulations

Summary: ERIC suggests changes to ensure the new definition of fiduciary standards would not increase regulatory burdens or costs, creating uncertainty among plan sponsors, participants, and service providers.

Source: Eric.org, September 2015

Target-Date Funds Might Be Off the Mark for Many 401k Plans

Summary: If you're enrolled in a 401k plan and put your contributions in a target-date fund, you might be wondering if it's the best option. Some financial advisors are on the fence.

Source: Cnbc.com, September 2015

2015 Defined Contribution Trends

Summary: Fifty-four page survey highlights plan sponsors key themes and expectations for 2015. Results incorporate responses from 144 plan sponsors, primarily large and mega 401k plans.

Source: Callan.com , September 2015

401ks May Be Equal, But Not Better

Summary: Researchers find that workers are saving about the same amount in their 401k plans as they might have acquired from an old-fashioned pension, but there are drawbacks.

Source: Bankrate.com, September 2015

Projected 2016 401k Plan Contribution Limits

Summary: The tax law places limits on the dollar amount of contributions to retirement plans and IRAs. IRC Section 415 requires these limits to be adjusted annually for cost-of-living increases. The IRS generally announces any CPI increase around the third week of October. Based on current CPI information, we do not expect any increase in the 2016 contributions limits.

Source: 401khelpcenter.com, September 2015

Evaluating Target-Date Funds -- A Fiduciary's Guide

Summary: This guide is focused on the practical steps to take during the evaluation process -- which may include comparison and selection of TDFs, understanding their underlying investments, reviewing fees, developing communications, and documenting the process. It provides a checklist for periodic reviews, key questions to ask when following the DOL guidelines, and items to consider.

Source: Vanguard.com , September 2015

Beefing Up Advice Options for Workplace Retirement Plans

Summary: Two of the leading companies in online investment advice launched initiatives this month aimed at getting more personalized financial advice to workplace retirement savers.

Source: Thefiscaltimes.com, September 2015

The Millennial Journey From Saving to Retirement

Summary: This year, millennials will overtake the baby boomers as the largest living generation in the United States, so there are plenty of reasons to study them. How will millennials manage their finances and maintain financial independence throughout their working years and through retirement?

Source: Jpmorgan.com , September 2015

Overview of ERISA Issues Related to "In-House" Plan Use of Proprietary Products and Services

Summary: Provides an overview of the principal ERISA issues that arise in connection with the use of proprietary products and services, and highlight the prohibited transaction exemptions that may be utilized to avoid violations of ERISA's prohibited transaction rules. Then address the major themes in the litigation related to proprietary products and services. Finally, describes strategies and approaches for complying with ERISA and mitigating litigation risk when using proprietary products and services.

Source: Groom.com, September 2015

Market Volatility: How Concerned Should Retirement Plan Fiduciaries Be?

Summary: Regardless of how many times we live through it, market volatility can be unsettling. Its impact is felt by both defined benefit and defined contribution plans. It raises questions and concerns for both plan participants and fiduciaries. However, the presence of market volatility provides an opportunity to revisit existing investment policy statements and risk management strategies.

Source: Erisadiagnostics.com , September 2015

IRS and DOL Announce Joint Delinquent Form 5500 Program

Summary: The agencies will be reviewing payroll and plan data to identify sponsors who failed to file the Form timely. The goal, according to the IRS, is to ensure compliance with annual Form 5500 filing requirements, identify the reasons for non-compliance, and make recommendations to facilitate compliance for plan sponsors going forward.

Source: Benefitslawinsider.com, September 2015

Survey on Participants Views About Responsible Investing

Summary: Calvert Investments released the results of a comprehensive study of employer-sponsored defined contribution plan participants (and eligible non-participants) on the subject of responsible investing. The survey explored participants' familiarity with responsible investing and receptivity to the concept.

Source: Calvert.com , September 2015

Study Says 401k Advisors Need to Rethink Active Management

Summary: A new study from American Funds suggests retirement investors can vastly extend the life of their savings with actively managed funds, so long as the right funds are chosen. The study cites what it calls three critical factors in assessing the value proposition of actively managed funds.

Source: Benefitspro.com, September 2015

Must a Frozen 401(a) Plan Be Terminated?

Summary: Deals with the question, "We have a frozen ERISA 401(a) defined contribution plan. The plan has remained frozen since the initial amendment to freeze. Can the plan remain frozen indefinitely, or must we terminate the plan at some point?"

Source: Plansponsor.com, September 2015

The RFP Process...Checks and Balances

Summary: The focus of this paper is to provide an outline of best practices a Plan Sponsor can utilize to undertake a Request for Proposal (RFP) process for 457(b), 401(a), 403(b), grandfathered 401k. The information outlined in this document will apply to Plan Sponsors of all sizes.

Source: Nagdca.org , September 2015

Looking Beyond the 401k for Advisors

Summary: 401k plans are great plans if done correctly, but there is no reason that a plan sponsor should stop there if their pocketbooks can afford more.

Source: Jdsupra.com, September 2015

Employee Asset Protection and State Auto-IRA Programs

Summary: State based auto-IRA programs continue to pick up steam and may soon become prominent features of the retirement security landscape. One of the real challenges of these IRA programs will be the protection of employees' payroll based deposits in getting to the IRA. Any payroll based deposit program is subject to the vagaries of an employer's cash flow, and this will be a particularly acute problem in the small employer marketplace.

Source: Businessofbenefits.com, September 2015

How Has Shift to Defined Contribution Plans Affected Saving?

Summary: Many believe that people are saving less for retirement due to the shift from DB to DC plans. Study results show that the percentage of total salaries going to retirement saving has declined slightly during this period, but if returns on asset accumulations are included, the annual change in pension wealth is relatively steady, so the shift to DC plans has not led to less total saving.

Source: Bc.edu , September 2015

Lesser Known Differences between 403(b) and 401k Plans

Summary: The rules for 403(b) and 401k plans have become more similar, but a number of important differences remain. This article describes some of the less well known differences.

Source: Aon.com , September 2015

Top 100 Online Influencers -- Advisors

Summary: BrightScope released its updated list of the Top 100 Most Social Financial Advisors in the United States. Introduced in 2014 to recognize the top advisors with significant online influence. Investors are increasingly using search engines and ratings services to inform key life decisions like selecting financial advisors, so advisors with the highest visibility online stand to win an increasing share of new business.

Source: 401khelpcenter.com, September 2015

Cerulli: DCIO Firms Must Identify, Engage, Nurture Emerging Retirement Specialist Advisors

Summary: Cerulli Associates recommends that defined contribution investment-only (DCIO) firms and recordkeepers build a strategy to identify, engage, and nurture the "emerging" or next generation of retirement specialist advisors.

Source: 401khelpcenter.com, September 2015

The Robo-Advisor: A Doomed Business Model?

Summary: According to the latest Cerulli Edge report, robo-advisors are operating in a business threatened with commoditization, which will depress fees that are already under pressure from the entrée of Schwab and Vanguard. But, there may be a way out.

Source: Thinkadvisor.com, September 2015

Fiduciary Financial Advisers and the Incoherence of a 'High-Quality Low-Fee' Safe Harbor

Summary: Americans now hold trillions of dollars in individual retirement savings accounts. Concerned about conflicts of interest among financial advisers who provide advice to retirement savers, the DOL has proposed imposing fiduciary status and a "best interest" standard on such advisers. But authors state, "This policy incoherence is worrisome because of the potential for the safe harbor to swallow the best interest standard."

Source: Ssrn.com, September 2015

Changes in the Money Market Fund Rules: The Fiduciary Response

Summary: The SEC's modifications to the money market fund rules won't become effective for approximately a year, but plan fiduciaries should already be considering what to do about them. Plan sponsors should be talking to their service providers about how to deal with the changes. In the context of investments, though, the question is, what changes? This topic is discussed in this article authored by Bruce L. Ashton of Drinker Biddle & Reath.

Source: Reliance-Trust.com , September 2015

Board Member Liability Under ERISA for Retirement Plans

Summary: Because board members will be deemed to be fiduciaries of the 401k plan and other company retirement plans under ERISA's definition of a fiduciary, board members should have a thorough understanding of the role of a fiduciary and how to implement procedures to limit fiduciary liability.

Source: Privatecompanydirector.com, September 2015

Proposed DOL Fiduciary Regulation May Lead to Unintended Roadblocks for 403(b)s

Summary: The DOL has traditionally been very supportive of 403(b) modernization. In fact, they've encouraged it. Author writes, "That's why it is particularly curious that the DOL's proposed fiduciary regulation seem to introduce prohibitions that will likely prevent future modernization."

Source: Principal.com, September 2015

Student Loans Hindering Millennials' Retirement Savings

Summary: Student loan debt is putting Millennials in a bind when it comes to retirement savings. One-third of Millennials say student loan debt has either delayed them from saving or kept them from saving as much as they would like.

Source: Planadviser.com, September 2015

Automatic Plan Features: Responses to Selected Webcast Q&A

Summary: DCIIA's Retirement Research Board conducted a Webcast to share the results of a research study on plan sponsor attitudes and behaviors regarding automatic plan features. As a supplement to the presentation material used for the discussion, the speakers have answered select questions submitted by the conference call attendees.

Source: Dciia.org , September 2015

IRS Takes First Steps Towards Revamping Qualified Plan Determination Letters

Summary: The IRS has taken the first steps towards what is likely to be the end of the determination letter program for individually designed qualified plans. The determination letter has been the cornerstone of compliance for more than 30 years. The end of the program will have a significant effect on how employers keep plans qualified and represent that they are qualified to third parties.

Source: Blankrome.com, September 2015

Is Becoming a 3(16) Plan Administrator Worth It?

Summary: Some TPAs are looking at 3(16) plan administrator services as a means to increase fees. Others see them as a way to create a compelling point of differentiation for their businesses. A small handful has even begun offering these services in a modified format to help ensure the plan's overall compliance and success. But, what are the drawbacks?

Source: Asppa.org, September 2015

Authority Marketing: The Ultimate 401k Client Acquisition Advantage

Summary: The majority of advisors fail to acquire and master one critical client acquisition tool: authority marketing. If you want the ultimate unfair advantage to attract and acquire new business, become an author. Here's why.

Source: 401kspecialistmag.com, September 2015

Ten Terrifying Advisor Questions for 401k Plan Sponsors

Summary: Your plan sponsor clients might be acting as fiduciaries; then again they might not. How do you know? How do you ensure they (and you) don't get sued? By asking them these 10 questions.

Source: 401kspecialistmag.com, September 2015

Global Retirement Survey 2015

Summary: The 2015 global retirement survey shows that savers are feeling better about the future, but many still lack adequate savings. There's still important work to be done. In the United States, retirement confidence has more than doubled since 2013. In part, the increase in retirement confidence may be a natural corollary to a general increase in overall consumer confidence.

Source: Ssga.com , September 2015

Leading the Horses to Water: 401k Plan Re-enrollment and "Backsweeps"

Summary: While perfect solutions to these problems have yet to be developed, one approach on the savings and investment front that has gained traction in the last ten years is the "lead the horses to water" approach. That is, automatically enrolling employees in a defined contribution plan and then defaulting those who do not otherwise make an affirmative investment election into an appropriate investment fund, subject to opt-out.

Source: Morganlewis.com, September 2015

IRS and Treasury Officials Provide Informal Views on 401k Issues

Summary: The answers in this report do not necessarily represent IRS policy, but they provide helpful insight regarding many issues, including plan loan leave-of-absence rules, Form 1099-R reporting for plan loan deemed distributions, and after-tax contribution rollovers.

Source: Ebia.com, September 2015

Roth 401k -- Underrated Beauty?

Summary: Roth has been around for almost a decade, and yet it continues to go unnoticed by plan sponsors and participants alike. Author suggests that the Roth 401k has yet to reveal itself as the stunner it is.

Source: Tristarpension.com, September 2015

Six Ways to Deal With Market Losses in Retirement

Summary: With the wild ride the market has been on the last few weeks, many retirees are wondering if it's time to get off the roller coaster. So how do you decide whether or not to make a change, what changes to make, and when to make them? Article looks at six important principles.

Source: Pension-Consultants.com, September 2015

Start the Roll-In Revolution

Summary: To help your participants navigate the murky waters of consolidating old 401k accounts, consider conducting a roll-in campaign. Orchestrating such a campaign doesn't have to be an elaborate task. All you need is a good rollover form and a captive audience.

Source: Ssga.com , September 2015

The New Landscape for Company Stock in DC Plans

Summary: Company stock has a long tradition in retirement plans, but sponsors should consider taking a more proactive approach to managing and monitoring company stock as an investment option for their participants. Article provides steps to ensure your company stock policies helps protect you and your participants.

Source: Ssga.com , September 2015

How to Boost Retirement Confidence

Summary: Why contribution rates may matter even more than investment choices - and other insights from our latest global survey.

Source: Ssga.com , September 2015

Hardship & Loan Documentation Requirements

Summary: The IRS has reminded plan sponsors that permit hardship distributions or participant loans that they should review their current practices to ensure they are operating in compliance with IRS requirements. This is an overview of the requirements.

Source: Mhco.com, September 2015

Judicial Dos and Don'ts of ERISA Benefit Claim

Summary: This article analyzes court cases that discuss how plan administrators should properly decide and administer ERISA benefit claims and what liability should attach to poor claims administration. Based on this case review, article then suggests best practices to avoid mishandling the ERISA claims review process.

Source: Employeebenefitsblog.com , September 2015

Illiquid Assets in Default DC Portfolio Designs

Summary: After examining the pros and cons of using illiquid assets in a defined contribution framework, the Defined Contribution Institutional Investment Association (DCIIA) finds that a strong case can be made for including such assets in DC plans. Sixty-four page report "Capturing the Benefits of Illiquidity."

Source: Dciia.org , September 2015

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