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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, 403b 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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How Not to Hire an ERISA Auditor

Abstract: Selecting an auditor for an ERISA plan is one of those fiduciary responsibilities which has been a continuing concern of the Department of Labor. If you are a plan sponsor with that fiduciary responsibility, here are a few mistakes to avoid in the auditor selection process.

Source: Retirementplanblog.com, July 2019

Breaking Down 3(21) vs. 3(38) Fiduciary

Abstract: The overall duty of a fiduciary is to manage retirement plan investments and administer these investments prudently. This may sound simple, however, there is a lot of responsibility for these decisions, and it can become heavily burdensome. In addition, the main difference between 3(21) versus 3(38) is that a 3(21) fiduciary is an investment adviser for the organization without discretionary authority. A 3(38) fiduciary, however, is an investment manager and will make actual decisions about what to include in the plan menu as well as implementing it.

Source: Planpilot.com, July 2019

Trump Announces Nomination for Secretary of Labor

Abstract: Eugene Scalia, son of late Assistant Supreme Court Justice Antonin Scalia, was part of the team that defended the Chamber of Commerce in its lawsuit against the previous DOL fiduciary rule.

Source: Planadviser.com, July 2019

SunTrust Wins Narrow Summary Judgement in Long-Running ERISA Suit

Abstract: A federal court has rejected the argument that defendants were aware that their predecessor fiduciaries had breached their duties in selecting affiliated funds and thus that they breached their own duties by failing to take adequate steps to remedy the original alleged breaches.

Source: Planadviser.com, July 2019

Goldman Sachs Has What Other 401k Firms Want

Abstract: Goldman Sachs is poised to reap big profits from the 401k market. I'm not talking about its traditional asset management business, however, it's in wealth management that the firm could make its biggest mark.

Source: Investmentnews.com (registration may be required), July 2019

Scalia Announcement Signals No Change in Direction for DOL

Abstract: President Donald Trump's announcement that he plans to nominate Eugene Scalia as secretary of the U.S. Department of Labor is seen as a continuation of the DOL's efforts to roll back Obama-era policies. John Husband, an attorney with Holland & Hart LLP in Denver, Colorado, expects Scalia to continue most of the current DOL policies and the direction the department has taken over the last couple of years.

Source: Blr.com, July 2019

Top 10 IRS Areas of Focus in Retirement Plan Investigations

Abstract: IRS Audits are never pleasant, but to minimize the pain, a plan sponsor may consider a compliance self-review to ensure that the plan is operating correctly, its plan documents comport with plan operation, and plan records are complete and organized before the IRS comes knocking. Here are the top 10 issues of IRS focus in its audit of qualified plans.

Source: 401kspecialistmag.com, July 2019

Limited Expansion of the Determination Letter Program -- Is Your Plan Eligible for Review?

Abstract: On May 1, 2019, the Internal Revenue Service (IRS) issued good news in the form of Revenue Procedure 2019-20, which announced a limited expansion of the determination letter program for individually designed hybrid and merged plans. The IRS will begin accepting determination letter applications for these plans effective September 1, 2019, subject to the conditions described in this article.

Source: Truckerhuss.com, July 2019

PBGC's Missing Participants Program for Defined Contribution Plans

Abstract: Did you know that the Pension Benefit Guaranty Corporation (PBGC) administers a missing participants program for defined contribution plans? We ask because PBGC has indicated, informally, that few defined contribution plans have taken advantage of this program.

Source: Truckerhuss.com, July 2019

A Closer Look at Legislative Proposals Impacting Retirement

Abstract: Although the question of whether a retirement "crisis" exists (and if so, to what extent) is still the subject of considerable debate, several legislative proposals have been recently introduced or reintroduced that could have a significant impact on retirement coverage as well as on the ability of individuals to manage important retirement-related risks. How much might some of the recent legislative proposals for expanding access to employer sponsored retirement plans improve retirement income adequacy for current workers? This paper examines this by simulating the impact of some of the more important aspects of current legislative proposals.

Source: Ssrn.com, July 2019

Is Fiduciary Responsibility Retroactive?

Abstract: A federal judge has weighed in on a question relevant to new plan committee fiduciaries: When and how does their liability for the decisions of previous committee members begin?

Source: Napa-net.org, July 2019

Trump Taps Top Lawyer Against DOL Fiduciary Rule to Head the Department

Abstract: President Donald J. Trump intends to put at the head of the Labor Department the man who was instrumental in killing the agency's fiduciary rule for financial advice in retirement accounts. Investor advocates wonder whether Eugene Scalia personally holds positions he advocated in court, while financial industry groups welcome the nomination.

Source: Investmentnews.com (registration may be required), July 2019

Trump to Nominate Eugene Scalia for Labor Secretary

Abstract: President Donald Trump has selected lawyer Eugene Scalia, the son of the late Supreme Court Justice Antonin Scalia, to be his new labor secretary. Trump tweeted news of the planned nomination, less than a week after his previous secretary, Alexander Acosta, resigned amid renewed criticism of his handling of a 2008 secret plea deal with wealthy financier Jeffrey Epstein.

Source: Insurancenewsnet.com, July 2019

Are You Ready? Proposed Regulations Regarding Hardship Distributions

Abstract: For some of the key provisions, the plans must operationally comply with the proposed regulations beginning on January 1, 2020. For any optional provisions implemented in 2019, the affected plans must be amended by December 31, 2019. For the mandatory plan provisions, although they must be implemented by January 1, 2020, the affected plans have until at least the second calendar year that begins after the issuance of the Required Amendments List.

Source: Icemiller.com, July 2019

How America Saves: Small Business Edition

Abstract: Vanguard issued its sixth annual "How America Saves: Small Business Edition," a comprehensive assessment of plan design trends and participant savings behavior in small business 401k plans. The new research finds that small business plan participants are benefiting from enhanced plan design features, including professionally managed allocations, which have led to increased plan participation and optimized portfolio construction. Report is 36-pages.

Source: Vanguard.com, July 2019

Fiduciary Clarity Needed for Successful Open MEP Expansion

Abstract: Should the SECURE Act become law and permit open multiple employer plans to exist without a common nexus, one of the biggest benefits for advisers will be the increased ability to scale their practices. But, open MEPs, as detailed in the SECURE Act, offer a structure for a small plan to get maximum fiduciary support, experts say, but the roles and responsibilities of all the parties involved can be hard to keep straight.

Source: Planadviser.com, July 2019

Three Aspects of Retirement Affected by Divorce

Abstract: In terms of finances, especially in retirement, divorce creates new challenges and planning opportunities. The increase in divorced and single retirees has created a need for advisers to understand different retirement planning strategies.

Source: Investmentnews.com (registration may be required), July 2019

Seminal Fiduciary Breach Case Settles for Eight Figures

Abstract: ERISA fiduciary breach cases regarding plan fees and other fiduciary problems have been in the news lately, especially as cases come up for trial and settle. Benefit plan administrators are watching these cases closely and trying to make proactive changes to the plans they administer to avoid future litigation. Recently, Tussey v. ABB, Inc., a long-standing case that was the first ERISA case to go to trial regarding excessive plan fees, came to an end as the parties agreed on settlement terms.

Source: Hallbenefitslaw.com, July 2019

IRS Determination Letters Are Back in Play for Certain Ongoing Plans

Abstract: In response to periodic requests to expand the determination letter program, the IRS has issued welcome guidance in Rev. Proc. 2019-20.1 The guidance reopens the determination letter program for statutory hybrid plans (e.g., cash balance plans) and merged plans, and provides sanction relief from plan document failures identified and corrected as part of those determination letter applications. The prior program is reviewed and the new Revenue Procedure is summarize in this article.

Source: Groom.com, July 2019

Plan Sponsors: You Should Have a Model QDRO

Abstract: ERISA requires sponsors of qualified retirement plans to maintain written procedures for the administration of qualified domestic relations orders, and the plan administrator has an obligation to ensure that a domestic relations order received by the plan is "qualified" before making the payments or taking other actions contained in the order. While a plan sponsor is not required to maintain a model QDRO for its retirement plans, the development of a model QDRO can make QDRO administration more efficient and produce better results for both the affected participant and the alternate payee.

Source: Employeebenefitsupdate.com, July 2019

IRS Proposes Multiple Employer DC Plan Rules

Abstract: IRS proposed regulations would ease the threat of plan disqualification due to "one bad apple" for multiple employer defined contribution plans that meet documentation, notice and process steps. This supplements proposed guidance from DOL in 2018 and efforts on the Hill to expand access to multiple employer plans.

Source: Buck.com, July 2019

IRS Issues Guidance to Plan Document Providers, TPAs, and Plan Sponsors

Abstract: Over recent weeks, the IRS has issued several items of guidance that are important to plan document providers, TPAs, plan sponsors, and others involved with qualified retirement plans. The guidance includes the 2019 Operational Compliance List, revisions to the plan correction (EPCRS) procedures, and a limited expansion of the determination letter program for individually designed plans. The guidance is reviewed here.

Source: Asc-net.com, July 2019

2019 Survey Reveals Most Popular Employee Benefits

Abstract: Employers continue to place a lot of value in the employee benefits they offer their workforce, according the SHRM 2019 Employee Benefits Survey. SHRM conducts the survey annually to gather information on the types of benefits employers are offering their employees and to report on trends.

Source: Xperthr.com, July 2019

IRS Proposes Rule to Ease Liability Under 401k Multiple Employer Plans

Abstract: The IRS has proposed a rule that would make 401k multiple employer plans (MEPs) more attractive, especially for small employers, by addressing the risk posed to a MEP by one member's bad actions.

Source: Shrm.org, July 2019

Women in Two-Income Households and Retirement Risk

Abstract: Married women in two-income households -- more so than single women or married women in one-income households -- are at the greatest risk of not being able to maintain their standard of living in retirement, according to the latest research from the Center for Retirement Research at Boston College.

Source: Prudential.com, July 2019

Adidas Sued Over Excessive Fees for 401k Participants

Abstract: Participants in the Adidas Group 401k Savings and Retirement Plan have filed a proposed class action lawsuit against Adidas America over the plan's administrative and investment fees. According to the complaint, for every year between 2013 and 2017, the administrative fees charged to plan participants were greater than a minimum of approximately 75% of its comparator fees when fees are calculated as cost per participant. And for every year between 2013 and 2017 but two, the administrative fees charged to plan participants were greater than 80% of its comparator fees when fees are calculated as a percent of total assets.

Source: Planadviser.com, July 2019

Sponsors Less Optimistic than Advisers About Participants' Retirement Readiness

Abstract: Sponsors are far less sanguine than advisers about participants' retirement readiness, according to a new survey by Voya Investment Management. The survey also found that sponsors do not always recognize the services that advisers provide, potentially leading to confusion about what benefits they receive from the fees they pay, Voya says. This means that advisers need to do a better job of communicating their value proposition, the firm says.

Source: Planadviser.com, July 2019

Top 10 Areas of Focus in IRS Investigations of Retirement Plans

Abstract: At any point an IRS agent may contact a plan sponsor that its plan has been selected for audit. Audits are never pleasant, but to minimize the pain, a plan sponsor may consider a compliance self-review to ensure that the plan is operating correctly, its plan documents comport with plan operation, and plan records are complete and organized before the IRS comes knocking. Here are the top 10 issues of IRS focus in its audit of qualified plans.

Source: Jdsupra.com, July 2019

America's Retirement Crisis by the Numbers

Abstract: These days, overwhelming student loan debt and the uncertain future of Social Security's solvency garner most of the attention, but there's another equally severe financial crisis looming on the horizon for millions of Americans. Thousands of people retire every day, and many don't have the savings they need to last the rest of their lives. It's a fate thousands of Americans are already experiencing, and based on data from the latest Northwestern Mutual Planning & Progress survey, tens of thousands more are set to join them in the coming decades.

Source: Fool.com, July 2019

Eight Tips for Your 401k When Changing Jobs

Abstract: If you're changing jobs or have been laid off, chances are that your 401k account is the last thing on your mind. But it pays to include that money in your moving plans, even if you don't deal with it right away. If you're leaving an employer, here are eight things you need to know about moving your 401k.

Source: Cpapracticeadvisor.com, July 2019

Proposed Treasury Regulations on MEPs a Good Start

Abstract: The new rules would provide relief for defined contribution MEPs that include a participating employer that jeopardizes the plan through failure to comply with certain qualified plan rules. Under the existing rules, one noncompliant employer within a MEP can disqualify the entire plan, creating significant problems for the other participating employers. If these proposed regulations become final, they will remove an important compliance hurdle for employers considering -- or already in -- a MEP.

Source: Ascensus.com, July 2019

Vendor Process Reviews Are Crucial to Retirement Plan Cybersecurity

Abstract: Many retirement plan fiduciaries do a lackluster job monitoring the cybersecurity performance of the vendors they work with on a daily basis. A digital security expert says, "the behavioral and human element of data protection is always the most challenging part."

Source: Plansponsor.com, July 2019*

New SEC Guidance Has Limited Impact on Retirement Plans

Abstract: A comprehensive package of rules and interpretations adopted June 5 by the SEC imposes enhanced standards on broker-dealers and clarifies the duties for registered investment advisers. The package targets the retail investor space, which includes individual retirement accounts, health savings accounts, and most retirement plan rollover advice. The new guidance will have little direct impact on benefit plan sponsors but could affect how plan participants receive advice on their plan funds.

Source: Mercer.com, July 2019

Six Ways You're Unknowingly Sabotaging Your Retirement

Abstract: Here are six ways you may be sabotaging your own retirement savings efforts without even knowing it, and steps you can take now to close the gaps for a more secure financial future.

Source: Forbes.com, July 2019

Improve Your Company 401k With Behavioral Finance

Abstract: If the goal of a 401k Plan is to prepare employees for a secure and prosperous retirement, then too many plans fall short. But some simple changes in plan design will dramatically improve the odds that your employees will have a good outcome. The best news is that they don't cost the employer anything.

Source: Forbes.com, July 2019

23% of Americans Never Plan to Retire

Abstract: Many workers look forward to retirement and the chance to enjoy their days rather than be forced to report to an office. But 23% of working adults say they don't ever plan to experience that milestone. Rather, they expect to keep working indefinitely, according to a new poll from The Associated Press-NORC Center for Public Affairs Research. And that's both a good thing and a bad thing.

Source: Fool.com, July 2019

Developing a Comprehensive National Retirement Policy

Abstract: Although Americans often have disparate opinions on many issues, one issue that does enjoy widespread support is the importance of experiencing a dignified and financially secure retirement. Unfortunately, the debate on retirement security has not received the attention many think it deserves. Thus, despite some concern over a looming retirement crisis, significant thought has not been put into developing a comprehensive national retirement policy. This 16-page issue brief explores the concept of a national retirement policy, including the potential benefits of such a policy and the various topics that it might address.

Source: Actuary.org, July 2019

Building an Ideal Investment Fund Lineup

Abstract: Plan sponsors know that offering a retirement plan is important not only to attract and retain loyal employees, but to ensure they are retirement ready. There are many moving parts to the retirement plan, including enrollment, plan education efforts, building the investment fund lineup, staying compliant with the DOL and ERISA, and making distributions. Particularly, building an ideal investment fund lineup is a multi-stage process, and for many sponsors, the prospect of selecting the investments to be offered in a plan can seem overwhelming.

Source: Planpilot.com, July 2019

Labor Secretary Acosta Resigns Amid Controversy

Abstract: Labor Secretary Alexander Acosta is resigning from the Department of Labor following controversy over his role in financier Jeffrey Epstein's plea deal for crimes committed when Acosta was a U.S. attorney in Florida. President Donald Trump announced Deputy Labor Secretary Patrick Pizzella will replace Acosta's role in an acting capacity.

Source: Planadviser.com, July 2019

EBRI Projects Effect of Retirement Proposals on Retirement Income Adequacy

Abstract: Introducing auto portability and allowing open multiple employer plans (MEPs) were simulated to have the biggest impact on decreasing the retirement income deficit.

Source: Planadviser.com, July 2019

Acosta Stepping Down as Secretary of Labor

Abstract: Secretary of Labor Alex Acosta has resigned in the wake of controversy regarding a plea deal he negotiated more than a decade ago with wealthy financier Jeffrey Epstein. Acosta made the announcement to reporters while standing next to President Donald Trump outside the White House. Trump said that the Labor Secretary had called him Friday morning, and that it was Acosta's decision.

Source: Napa-net.org, July 2019

How to Maximize Roth Savings Through a Solo 401k

Abstract: There are two kinds of contributions a person can now make to a Solo 401k plan, one as "employer" and one as "employee." Since they are self-employed, they are the contributor either way, but different limits and rules apply to the two types of contributions.

Source: Morningstar.com, July 2019

Departure of Alexander Acosta Could Slow DOL Effort to Revise Fiduciary Rule

Abstract: The December timeline may be in jeopardy now that Mr. Acosta is stepping down in the wake of renewed scrutiny of a lenient plea deal he cut with alleged sexual offender Jeffrey Epstein when Mr. Acosta was a U.S. attorney in Florida.

Source: Investmentnews.com (registration may be required), July 2019

The Economics of Providing 401k Plans: Services, Fees, and Expenses, 2018

Abstract: 401k plan participants investing in mutual funds tend to hold lower-cost funds. At year-end 2018, 401k plan assets totaled $5.2 trillion, with 37 percent invested in equity mutual funds. In 2018, the average expense ratio for equity mutual funds offered in the United States was 1.26 percent. 401k plan participants who invested in equity mutual funds, however, paid about one-third of that amount -- 0.41 percent -- on average. The expense ratios that 401k plan participants incur for investing in mutual funds have declined substantially since 2000. This is a 34-page report.

Source: Ici.org, July 2019

Mutual Fund Expense Ratios in 401k Plans Have Trended Downward Since 2000

Abstract: The cost of investing in equity and hybrid mutual funds through 401k plans fell again in 2018, while the average expense ratio of bond mutual funds remained stable, according to "The Economics of Providing 401k Plans: Services, Fees, and Expenses, 2018," a research report released by the Investment Company Institute. The report also shows that participants who invest in mutual funds in their 401k plans tend to hold lower-cost funds.

Source: Ici.org, July 2019

Long-Awaited Proposed IRS Rules Would Alleviate "One-Bad-Apple" Rule for Multiple Employer DC Plans

Abstract: The proposed regulations provide a detailed road map for a defined contribution MEP to avoid disqualification in the event of a participating employer's qualification failure. As a threshold matter, the plan administrator must have established practices and procedures (formal or informal) that are reasonably designed to promote and facilitate overall compliance with applicable Code requirements, including procedures for obtaining information from participating employers to identify and correct errors (e.g., nondiscrimination testing, top-heavy contributions).

Source: Groom.com, July 2019

It Could Happen to You: Tips for Acing a Benefit Plan Audit

Abstract: Over the past several years, the IRS and DOL have significantly increased the number of benefit plans audits conducted each year. As a result, it is important for plan sponsors to understand the types of issues that often arise in connection with such audits. At the recent PSCA 2019 National Conference, Brian Tiemann explained what plan sponsors should expect if their benefit plan is selected for audited. This is his presentation.

Source: Employeebenefitsblog.com, July 2019

Employee Benefit Plan Review: The "New 401k"

Abstract: The Department of Labor issued proposed regulations on October 22, 2018 that represent the first major step in changing its restrictions on multiple employer plans. However, this is just the first step, and does not change the landscape for Open MEPs.

Source: Cowdenassociates.com, July 2019

The Illusory Benefit of the IRS's Proposed Correction to the MEP "One Bad Apple" Rule

Abstract: While some recordkeepers and other services providers are beginning to understand that fun = engagement, others clearly have some progress to make. The primary reason that people don't save for retirement is affordability. As we enter an era of addressing this through financial wellness and financial independence initiatives, communication that actually engages participants and changes behavior is becoming more critical than ever.

Source: Cammackretirement.com, July 2019

The Illusory Benefit of the IRS's Proposed Correction to the MEP "One Bad Apple" Rule

Abstract: The proposed reg is welcome as a purely technical and structural matter. But the relief may be mostly illusory. The "bad apple" problem has always sounded worse than it is and may have been able to be fixed by a simple adjustment to the Maximum penalty Amount rules under EPCRS, and to the rules as to who should be responsible for that penalty.

Source: Businessofbenefits.com, July 2019

Mutual Fund Expense Ratios Fall Again

Abstract: The cost of investing in equity mutual funds through 401k plans fell again in 2018, while the average expense ratio of bond mutual funds remained stable. The findings from the Investment Company Institute also shows that participants who invest in mutual funds in their 401k plans tend to hold lower-cost funds.

Source: 401kspecialistmag.com, July 2019

Five Things of Which Plan Fiduciaries Need to Be Aware

Abstract: Whoever said ignorance was bliss surely wasn't talking about fiduciary litigation. The job of a plan fiduciary isn't all about fees, of course, though it's certainly been a focus of these excessive fee lawsuits. Still, it seems to me that there are some things that plan fiduciaries of any plan size should be aware, and of which responsible plan fiduciaries should have a working knowledge.

Source: Napa-net.org, July 2019

SCOTUS Ruling Has Fiduciary Rule Implications

Abstract: A recent decision by the nation's highest court could have implications for the Labor Department's fiduciary rule. Simply stated, under the Auer standard, courts deferred to an agency's reasonable reading of its own genuinely ambiguous regulations. In the Kisor case, the Court of Appeals concluded that the VA regulation at issue was ambiguous, and it therefore deferred to the Board's interpretation of the rule. Kisor wanted the Supreme Court to overrule Auer. A mixed Supreme Court declined to overrule those prior decisions but did craft a new standard "guidance" on when to apply Auer's deference, with Justice Elena Kagan's majority opinion laying out five separate criteria for when deference is warranted.

Source: Napa-net.org, July 2019

How Much Would Auto Portability Help Retirement Reform Proposals to Reduce Retirement Deficits?

Abstract: EBRI Research Director Jack VanDerhei analyzes the impact of adding auto portability to the Automatic Retirement Plan Act of 2017. With auto portability, a participant's account from a former employer's retirement plan would be automatically combined with their active account in a new employer's plan. The objective of this program is to help keep the DC assets in the retirement system and reduce leakage from cash outs upon employment termination.

Source: Ebri.org, July 2019

How Successful Plan Sponsors Address Fiduciary Oversight

Abstract: ERISA has a clear set of responsibilities and duties for those individuals and entities who act as plan fiduciaries. It is important that plan sponsors and fiduciaries take these requirements seriously and understand their own responsibilities as well as those of the other plan fiduciaries. Fiduciaries should also maintain an awareness of limits and gaps in their knowledge, and, when lacking the proper expertise, engage someone who can ensure their responsibilities are properly met.

Source: Conradsiegel.com, July 2019

Retirement Plan Technology Boosts Plan Effectiveness

Abstract: Retirement plan technology is on the verge of making retirement plans more effective. Traditional 403b and 401k plans have helped millions of workers to save for their own future. Now, employers now have an opportunity to help take the workforce savings accounts to the next level by providing plan participants with access to more retirement plan technology and tools. New retirement plan technology includes advice and managed account services.

Source: 401ktv.com, July 2019

Five Key Behavioral Insights Into 401k Plan Sponsors

Abstract: Plan sponsors certainly understand the importance of setting and achieving retirement plan goals, how effective they are in achieving them, however, continues to be a concern. New research from J.P. Morgan Asset Management finds that DC plan sponsors continue to feel a growing sense of responsibility for participants' financial wellness, yet "many continue to take a hands-off approach to plan design and are falling short in achieving their goals."

Source: 401kspecialistmag.com, July 2019

Retirement Dilemma Continues to Vex Employers and Their Workers

Abstract: When employees expect to retire versus when employers expect workers to retire can be two very different plans that often translate into a reality neither party imagined. Solutions remain elusive as experts say that delaying retirement is no sure-fire cure for either side. But there are ways employers can help employees get closer to meeting their expectations while holding company costs down.

Source: Workforce.com, July 2019

Dangers That a 401k Provider Needs to Avoid

Abstract: It can take almost a lifetime to build a sterling reputation in the retirement plan industry as a plan provider and it can be destroyed in an instant. The retirement plan business is very competitive, and you can't afford any problems that can negatively impact your business. There are dangers every day in the retirement plan business and you owe it to yourself and your employees in avoiding dangers that could lead you to exit the retirement plan business.

Source: Jdsupra.com, July 2019

ERISA Litigation's Next Big Thing

Abstract: While there are many prudence and cost-efficiency related issues relating to variable annuities overall, an emerging issue involves the plan sponsor’s ability to carry out its fiduciary duties under ERISA. Variable annuities usually include numerous sub-accounts as investment options. This increases the odds of finding sub-accounts that are not prudent and need to be removed.

Source: Iainsight.wordpress.com, July 2019

Study Finds That Determination of Fiduciary Breach Often Hinges on Whether Fiduciary Followed a Prudent Process

Abstract: The Center for Retirement Research at Boston College recently released a study outlining the major causes of 401k lawsuits. In particular, the study focuses on the fact that these types of lawsuits often hinge on whether the plan fiduciary was following a "prudent" process and how one would define a process as prudent. With most companies now offering 401k plans as their primary retirement offering, it's wise to pay attention to the major findings and engage ERISA counsel to guide implementation of a fiduciary legal compliance paradigm to mitigate exposure to these costly lawsuits.

Source: Hallbenefitslaw.com, July 2019

Seizing Opportunity With an Annual Plan Review

Abstract: Today's 401k plans offer employers a world of options. A mid-year plan review positions sponsors to identify areas where improvements are possible. Adopting new plan design features can significantly improve a 401k plan to meet organization needs and help employees build toward a secure financial future. Since many plan design changes require notice to participants 30 days before the beginning of a new plan year, now is a good time to schedule a review of plans with a December 31 year-end date.

Source: Alliant401k.com, July 2019

Ten Tips for Better Retirement Savings Behavior

Abstract: Here are 10 tips based on the principles of behavioral finance for helping workers achieve a secure retirement, according to The International Foundation of Employee Benefit Plans.

Source: Tra401k.com, July 2019

What Is a Solo 401k and How Much Can You Contribute?

Abstract: A solo 401k plan can be an excellent retirement plan option for those who are self-employed. They are easy to open and fund, and the contribution limits are high. Here are some details about these plans.

Source: Thestreet.com, July 2019

Without Infrastructure Fees, Recordkeepers Would Go Out of Business

Abstract: This was one of Fidelity's arguments in a memorandum to support its motion to dismiss a consolidated lawsuit alleging it is receiving "secret" or "kickback" payments from providers on its FundsNetwork platform. Several lawsuits filed against the firm claim the payments were presented as infrastructure payments, or so-called relationship-level fees, in violation of the prohibited transaction rules of ERISA, as well as the statute's fiduciary rules.

Source: Planadviser.com, July 2019

Newly Allowed 401ks Will Need Advisers

Abstract: Advisers may shy away from helping hemp and CBD companies with their 401ks because they may find themselves crossing into advising for a cannabis company as well, but there are protections and money to be made.

Source: Planadviser.com, July 2019

Oregon Retirement Savings Board Can Partner With Other States

Abstract: The Oregon Retirement Savings Board (ORSB) now may partner with other states in providing services similar to those offered by OregonSaves, the Beaver State's the state-run auto-IRA program for private-sector employees whose employers do not offer a retirement plan. On June 27, Gov. Kate Brown signed into law a measure authorizing the ORSB to do so; it took effect immediately.

Source: Ntsa-net.org, July 2019

IRS Proposes Curtailing 'One Bad Apple' Rule for MEPs

Abstract: The IRS issued a proposed regulation to water down the "one bad apple" rule that critics claim has prevented broader uptake of certain retirement plans by employers. Under current rules, if one of the employers in a MEP makes a mistake the entire plan is disqualified. The IRS's proposal would "significantly curtail" this rule.

Source: Investmentnews.com (registration may be required), July 2019

The Secure Act May Flood Your 401k With Annuities. Here's What You Should Know

Abstract: If retirement legislation currently under consideration in Congress ends up becoming law, new options for your nest egg may show up in your 401k plan. The Secure Act, which passed the House in May and awaits Senate action, includes a provision that would make it easier for companies to include annuities in their retirement plans. And while people may be drawn to these guaranteed-income options, it's important to grasp both the pros and cons before putting any money into one.

Source: Cnbc.com, July 2019

California Is the Latest State to Help Workers Join Retirement Savings Plans

Abstract: The the Golden State's automatic individual retirement account enrollment plan officially begins on July 1st. The program was established after the state required employers with five or more employees to either join CalSavers or begin offering a private plan. Over the next several years, employers will face rolling deadlines to register with CalSavers in order to comply.

Source: Cnbc.com, July 2019

The New CalSavers Law Takes Effect on July 1, 2019: What Employers Need to Do Now

Abstract: The California Secure Choice Retirement Savings Trust Act takes effect on July 1, 2019. Large employers that have at least one eligible California based employee and who do not offer their own employer sponsored retirement plan must register with the CalSavers program and begin auto-enrolling employees in the CalSavers plan no later than June 30, 2020.

Source: Boutwellfay.com, July 2019


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