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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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DOL Announces Final Rule on State Payroll Deduction IRA Programs

Abstract: The DOL made public a final rule that assists states that create IRA programs for workers who do not have access to workplace savings arrangements. At the same time, in response to public comments, the department is making public a proposed rule that could facilitate a limited number of cities and other local governments doing the same.

Source: Dol.gov, August 2016

Reducing Retirement Savings Leakage

Abstract: A recurring issue with defined contribution savings plans such as the 401k is the risk of "leakage," pre-retirement reductions in plan savings by workers, either through loans, hardship withdrawals, or payouts at job change. This paper summarizes discussion on new ways to reduce retirement plan leakage.

Source: Ssrn.com, August 2016

Approach 401k Eligibility Provisions Strategically

Abstract: Employers who take a strategic approach to defining eligibility provisions in a 401k plan can contain benefit costs, recruit and retain talent, simplify administration, and comply with regulations.

Source: Retirementtownhall.com, August 2016

Third Party Administration Buyer's Guide

Abstract: Some say that third-party administrator (TPA) services can surpass what most recordkeepers offer to aid with plan design and that this is broadening the TPA's use in the retirement industry. Our first annual PLANSPONSOR Third-Party Administrator Survey provides a detailed snapshot of each TPA respondent, revealing, by its numbers, how it compares with peers in the overall market landscape.

Source: Plansponsor.com, August 2016

House Republicans Propose Tax and Retirement Policy Changes

Abstract: A Neuberger Berman analysis shows that House Republicans' tax and retirement policy proposals may suggest a push toward a universal savings account and a consolidation of current tax code retirement savings provisions.

Source: Planadviser.com, August 2016

Checksmart Excessive Fee Suit Requires Closer Look at Fund Performance

Abstract: Retirement plan management can be daunting, particularly given the highly technical nature of plan management AND that the associated tasks of properly evaluating fees typically fall outside of the plan sponsor's primary business. However, there are ways to help avoid lawsuits like the one filed against the Checksmart Plan. Here are just a few of them.

Source: Pension-Consultants.com, August 2016

Fiduciary Rule's Effect on IRA Advice Looms

Abstract: The Department of Labor's fiduciary rule is likely to have many effects, and a heightened risk of litigation against those who provide IRA advice is among them, argues a financial management firm.

Source: Ntsa-net, August 2016

403(b) Compliance Guide

Abstract: The 403(b) market has changed fundamentally over the last decade leaving many plan sponsors confused about their requirements in managing a qualified 403(b) plan, including potential testing obligations which are detailed here.

Source: Multnomahgroup.com, August 2016

How the New DOL Fiduciary Rule Is Disrupting the Advisory Landscape

Abstract: The DOL's new rule is already disrupting the annuity industry as sellers of the insurance product scurry to move to fixed-fee models. After a 10-year surge in assets, sales are projected to decline 30 to 35 percent next year. It may also serve to weed out a few small fish.

Source: Kurtosys.com, August 2016

New Procedure Helps People Making IRA and Retirement Plan Rollovers

Abstract: The Internal Revenue Service has provided a self-certification procedure designed to help recipients of retirement plan distributions who inadvertently miss the 60-day time limit for properly rolling these amounts into another retirement plan or individual retirement arrangement.

Source: Irs.gov, August 2016

This 401k Default Rate May Soon Be the New Standard

Abstract: Recognizing that a 3% default rate for 401k participation just isn't cutting it any longer, a growing number of employers are setting their default rates much higher. In fact, they're doubling that 3% figure.

Source: Hrbenefitsalert.com, August 2016

Small Business 401k Fee Study

Abstract: Since launching its fee comparison service, Employee Fiduciary has accumulated a large database of 401k fees. This article is a summary of the fees they found for 121 401k plans with less than $2MM in assets. 401k fiduciaries can use this study to help evaluate their plan fees for reasonableness.

Source: Employeefiduciary.com, August 2016

A Primer on Plan Fees

Abstract: One of the many duties plan fiduciaries have is to understand the fees and expenses charged to their employer-sponsored defined contribution plan. This is a guide to the different plan fee pricing models and the steps to take to ensure fees are reasonable.

Source: 401khelpcenter.com, August 2016

Advisors on Track to Implement DOL Fiduciary Rule

Abstract: A Nationwide Retirement Institute survey finds the new Department of Labor fiduciary rule has most advisors considering changes to their business model as they wait to learn their firm's new compliance procedures.

Source: 401khelpcenter.com, August 2016

DOL Fiduciary Rule to Drive Institutional Share Class Pricing Demand

Abstract: Strategic Insight announced a new study which reveals that implications stemming from the DOL fiduciary rule will accelerate demand for institutional pricing of mutual funds sold through intermediaries. This has implications for fund manager profitability, shareholder cost, and 12b-1 fees.

Source: 401khelpcenter.com, August 2016

Why You Should Do an IRA Rollover When You Leave Your Job

Abstract: When you leave a company where you have a 401k retirement plan, you have to decide what to do with the money. You generally have four options. For most people, the IRA rollover is the most attractive choice.

Source: Nasdaq.com, August 2016

Why 401ks Are Bad for People Without a College Degree

Abstract: The reduced role of the traditional pension system and the rise of the 401k has posed challenges for many retirement savers, but new research suggests that people without college degrees are the worst off under the changing system and may face growing income inequality in retirement.

Source: Marketwatch.com, August 2016

Millennials May Be Headed Toward Their Own Retirement Crisis

Abstract: We've heard over and over that many boomers will face a retirement crisis (if they haven't already). But if you're a boomer parent, you're probably wondering: Will my kids' generation, the millennials, face one, too?

Source: Marketwatch.com, August 2016

What Plan Sponsors Need to Do in Response to 401k MM Fund Rules

Abstract: The new SEC money market fund reform is outlined here. Given the October 14, 2016 implementation date of the new rules, your investment committee should have a safe-haven investment fund strategy in place as soon as possible.

Source: Lawtonrpc.com, August 2016

One-Participant Plan Sponsors - Avoid Orphan Plans

Abstract: Employers that sponsor one-participant plans should take necessary steps to prevent a qualified retirement plan from becoming an orphan plan: a plan that no longer has a plan sponsor.

Source: Irs.gov, August 2016

How the 401k Fiduciary Can Help Retirement Savers Make Better Decisions

Abstract: There are the five basic circumstances researchers have found that influence people want/should decision making behavior. This article reviews these as a basis for a discussion later on what specific actions can be taken to encourage people to make better retirement related decisions.

Source: Fiduciarynews.com, August 2016

Why Small Balance 401k Distributions Are Falling Through the Cracks

Abstract: Oddly, concern over participant cash-outs -- certainly the most destructive behavior that participants can undertake -- doesn't make the list of retirement benefit adequacy and well-being, despite persistent evidence that cash-outs are at epidemic levels, particularly for balances under $5,000.

Source: 401kspecialistmag.com, August 2016

Retirement Insecurity: A Multi-Generational View

Abstract: Today's workers are grappling with retirement security and challenged by the wobbly three-legged stool comprising Social Security, employer-sponsored retirement benefits and personal savings. Transamerica Center for Retirement Studies has released new research evaluating the retirement outlook of American workers by generation.

Source: 401khelpcenter.com, August 2016

17th Annual Transamerica Retirement Survey

Abstract: This survey of 4,161 workers reveals striking similarities across all generations of workers in terms of their insecurities about retirement, as well as key differences in their expectations and preparations.

Source: Transamericacenter.org, August 2016

Seldom-Used Features of 401k Plans

Abstract: Many 401k plan participants utilize the most popular features that these accounts offer, including getting a 401k match and a tax break for the contribution. But there are many other aspects of 401k plans that are lesser known and seldom used. And a few features of 401k plans are best used only in an emergency because they trigger taxes and fees.

Source: Usnews.com, August 2016

The Effects of the Early Retirement Age on Retirement Decisions

Abstract: Paper present quasi-experimental evidence on the effects of increasing the Early Retirement Age (ERA) on older workers' retirement decisions. The analysis is based on social security reforms in Austria in 2000 and 2004, and administrative data allows us to distinguish between pension claims and job exits. Using a Regression Kink Design, researchers estimate that, within a birth cohort, a 1.0 year increase in the ERA leads to a 0.4 year increase in the average job exiting age and a 0.5 year increase in the average pension claiming age. When the ERA increases, many older workers remain in their jobs longer.

Source: Ssrn.com, August 2016

What the 403(b) Excessive Fee Lawsuits Do Not Consider

Abstract: In the past two weeks, eight lawsuits have been filed against large universities concerning excessive investment and recordkeeping fees for their 403(b) plans. Attorneys point out distinctions between 403(b)s and 401ks, and lessons 403(b) plan sponsors can learn from these recent lawsuits.

Source: Plansponsor.com, August 2016

DOL Complaint Alleges Fiduciary Failures by Adviser

Abstract: A complaint filed in a Pennsylvania district court by the DOL's Employee Benefits Security Administration alleges a list of ERISA infractions related to fees, documents, disclosures and processes by a 3(21) fiduciary firm.

Source: Planadviser.com, August 2016

401k Fee Litigation Finds New Targets

Abstract: More and more lawsuits are being filed to challenge plan fees and investments. Plaintiffs are asking the courts to make new law in this area. This article provides a summary of the targets and theories in the new lawsuits.

Source: Benefitnews.com, August 2016

Are 401k 3(38) Services Worth the Price?

Abstract: Designating a 3(38) investment advisor can be a beneficial choice for plan sponsors. But when reviewing this option plan sponsors need to determine if it is in the best interest of the participants to hire this type of advisor. This article outlines some of the advantages and disadvantages that plan sponsors should investigate when considering this option.

Source: 401kspecialistmag.com, August 2016

Fidelity, HP, United Airlines Sued Over 401k Float Practice

Abstract: HP, United Airlines, and Fidelity were hit with an ERISA class action by 401k plan participants challenging Fidelity's practice of allegedly diverting billions of dollars of plan assets for its own benefit.

Source: Bna.com, August 2016

Edward Jones the Latest 401k Litigation Target

Abstract: Another broker/dealer has been accused of larding its 401k plan menu with investment options from mutual fund families that paid hundreds of millions of dollars to the firm, despite what are alleged to be "high fees, poor performance prospects, and availability of better-performing, lower-cost alternatives."

Source: Napa-net.org, August 2016

Might Auto Portability Reduce 401k Leakage?

Abstract: When workers take out take out loans from their retirement plans, make hardship withdrawals or cash out when they change jobs, they create "leaks" that drain away their retirement savings. Experts met recently at a forum in Washington, D.C., to discuss ways to counter this leakage.

Source: Shrm.org, August 2016*

Don't Forget About Sweep Programs

Abstract: A sweep program, fund or similar device is a common means used by retirement plan advisers and their affiliates to hold account assets on a short-term basis pending an investment or other transaction. These programs may give rise to prohibited transaction issues under the IRC or ERISA, particularly when the adviser acts as a fiduciary.

Source: Planadviser.com, August 2016

Lawsuit Accuses Morgan Stanley of Self-Dealing in 401k

Abstract: A participant in Morgan Stanley's 401k plan has filed a lawsuit on behalf of approximately 60,000 current and former plan participants alleging the plan included investment options with excessive fees and used Morgan Stanley proprietary funds rather than other funds that would be better and cheaper for participants.

Source: Planadviser.com, August 2016

401k Loans: Myth Busters Edition

Abstract: There's a fair amount of confusion about how 401k loans work: the payback terms, tax issues, and how much (if any) compounding the 401k borrower actually misses out on. Here are some of the most common myths surrounding the loans, as well as the reality about them.

Source: Morningstar.com, August 2016

New DOL Fiduciary Ruling Sparking Unprecedented Levels of Advisor Anxiety

Abstract: While advisors agree with the overall concept and spirit of the DOL's fiduciary ruling, concerns ring aplenty, as the vast majority have yet to be convinced that the new legislation will deliver on its intent. First and foremost, advisors lament that the DOL fiduciary ruling is casting an overall negative industry gloom and is fueling investors' focus on fees.

Source: Marketstrategies.com, August 2016

ICI Recordkeeper Data Show Retirement Plan Participants' Commitment to Saving

Abstract: Americans continued to save for retirement through defined contribution plans early this year, according to ICI's latest study of retirement plan savers' actions.

Source: Ici.org, August 2016

ERISA Advisory Council Highlights Importance of Cybersecurity Oversight

Abstract: The 2016 ERISA Advisory Council is gathering to study ways to encourage benefit plan sponsors and managers to adopt strategies that minimize the exposure of plan participants' data from cyber-attack. This article touches on what the Council is considering

Source: Gtlaw.com, August 2016

Is the DOL Fiduciary Rule the End of Solicitor Arrangements?

Abstract: The new DOL Fiduciary Rule has not prohibited the solicitor structure, but the DOL has made a solicitor a fiduciary under ERISA; and as a fiduciary the solicitor now has more liability and responsibility. What impact this change will have on this popular structure one can only guess.

Source: Fraplantools.com, August 2016

Failure to Obtain Spousal Consent

Abstract: If a Qualified Joint and Sponsor Annuity is required by your Plan, a married participant cannot elect a different form of benefit distribution without the consent of their spouse. A failure to obtain spousal consent is considered operational in nature and can lead to plan disqualification.

Source: Ekonbenefits.com, August 2016

The Roth 401k

Abstract: Employers can offer 401k plan participants the opportunity to make Roth 401k contributions. If you're lucky enough to work for an employer who offers this option, Roth contributions could play an important role in maximizing your retirement income.

Source: Captrustadvisors.com, August 2016

For the First Time, Fiduciary Responsibility Tops Plan Sponsors' Reasons for Hiring Advisors

Abstract: Thirty-eight percent of the plan sponsors surveyed are concerned about their fiduciary duty, a significant increase from 24 percent last year. Sixty-nine percent ranked an advisor's willingness to take on a formal fiduciary role as important. This study surveyed employers who have set up retirement plans that use a wide variety of recordkeepers and range in size from 25 to 10,000 participants.

Source: Businesswire.com, August 2016

SunTrust's 401k Plan Participants Get OK for Class Action

Abstract: Participants in SunTrust Banks Inc.'s 401k plan got the green light from a federal judge in Georgia to proceed as a class with their claims that the bank breached its ERISA fiduciary duties by allowing poorly performing SunTrust stock as an investment option in the plan.

Source: Bna.com, August 2016

The Legal Conflict at the Heart of U.S. Retirement Plans

Abstract: Last week, yet another slew of private retirement plan managers became the target of class-action lawsuits. Author of the opinion piece offers his reasons why these suits are sending shock waves through the world of private retirement plans.

Source: Bloomberg.com, August 2016

Will 401k and 403(b) Litigation Turn Retirement Plans Into Widgets?

Abstract: According to the commentator, "it is time for those across the industry to embrace the fact that there are many ways to approach retirement plans -- from highly automated, technology-driven approaches, to high-touch one-on-one personal approaches, and all versions in the middle -- and accept that competition among ideas is good but preservation of a marketplace of ideas is essential, regardless of your position in the marketplace."

Source: Asppa.org, August 2016

A Few 403(b) Compliance Quirks

Abstract: Some 403(b) plan compliance issues can arise due to idiosyncratic characteristics of 403(b) plans rather than statutory or regulatory requirements different from other defined contribution plans such as 401k plans.

Source: Aon.com, August 2016

More Ivy Leagues Ensnared in Fiduciary Lawsuits

Abstract: Columbia University and Northwestern University are the latest institutions for higher learning to be accused of mismanaging their employees' retirement plans.

Source: 401kspecialistmag.com, August 2016

2016 PSCA Survey Highlights 403(b) Plan Trends

Abstract: The eighth annual benchmarking survey of 403(b) plans shows upward trends in deferral rates, employer matches and adoption of automatic enrollment.

Source: 401khelpcenter.com, August 2016

Generational Expert Talks Impact of Shifting Attitudes on Workplace Benefits

Abstract: Lockton Retirement Consultant Rick Unser spoke with Dr. Joe Coughlin, Founder and Director of MIT's AgeLab, about the dramatic change the generational shifts in workplace attitudes will have on the future of employee benefits.

Source: 401khelpcenter.com, August 2016

Isn't a 403(b) Plan Just Like a 401k Plan?

Abstract: While both are forms of defined contribution plans and have accounts with balances that fluctuate with market changes, a 403(b) and a 401k Plan are different in many ways. This article provides information on the differences.

Source: Sdflaw.com, August 2016

Survey Says: Obstacles to Saving More for Retirement

Abstract: Studies show a number of reasons employees give for not saving, or not saving more, for retirement, things like paying off student loans, paying for children's education expenses, or just not making enough.

Source: Plansponsor.com, August 2016

Participants Would Welcome Automatic Enrollment at 6%

Abstract: DC retirement plan participants strongly value their workplace retirement plan and would like to see their employers do more to help them save because, looking back on their savings history, they regret not doing more to prepare for retirement.

Source: Planadviser.com, August 2016

Research Offers Framework for Retirement Income Solutions in DC Plans

Abstract: Researchers suggests several strategies for helping DC plan participants generate retirement income and discuss what plan advisers and sponsors should consider to select the right one.

Source: Planadviser.com, August 2016

DC 401k Heaven and Hell for Broker Dealers

Abstract: The implementation of the DOL conflict of interest rule will be a defining moment for broker-dealers, and the effects will determine which ones will surge ahead or even survive in the DC market. What are the implications for advisors interested in growing their DC practice?

Source: Napa-net.org, August 2016

Advisors Looking at Business Changes Ahead of Fiduciary Regulation

Abstract: A new survey finds that 87% of advisors are considering changes to how they do business ahead of the implementation of the Labor Department's fiduciary regulation.

Source: Napa-net.org, August 2016

Emory Added to List of Colleges Sued Over Retirement Plan Fees

Abstract: Emory University is the latest university to be sued over alleged fiduciary breaches in the management of its DC plans. The lawsuit alleges a breach of fiduciary duties by causing participants in their 403(b) plans to pay excessive recordkeeping, administrative and investment management fees, and by retaining high-cost and poor-performing investment options.

Source: Myajc.com, August 2016

DOL's Fiduciary Rule Poses New Litigation Threat to IRA Advice

Abstract: Financial advisors working with individual investors need to take note since the Fiduciary Rule holds financial planners providing investors with IRA advice to an ERISA-like standard of care. In addition to holding planners providing IRA advice to the highest standard under law, the Fiduciary Rule also opens the door to unhappy clients filing class action lawsuits.

Source: Manning-Napier.com, August 2016

LIMRA Surveys Retirement Saving in the Workplace

Abstract: LIMRA Secure Retirement Institute recently surveyed employees in both the for-profit and not-for-profit sectors on workplace retirement savings. Combined with other research efforts by the Institute, these surveys provide an increased understanding of the activities, situations, expectations and inclinations of retirement savers.

Source: Limra.com, August 2016

Millennials Are Freaking Over Retirement and Not Doing Much About It

Abstract: When millennials are asked, they say retirement is a top priority. In a recent survey, retirement was by far the first concern of all age groups. Millennials even put saving for retirement well ahead of student loans, credit card debt, and job security. But if young workers are this worried about retirement, why aren't they doing something about it?

Source: Bloomberg.com, August 2016

IRS Finalizes Limited Determination Letter Program

Abstract: Plan sponsors relied on the Determination Letter program as the primary safeguard for their and their employees' tax benefits, and as an essential fiduciary governance tool. Despite retirement industry attempts to prevent the plan from moving forward, the IRS has issued final guidance that may have put the final nail in the program's coffin.

Source: Amazonaws.com, August 2016

Annual Benchmarking Report Released

Abstract: T. Rowe Price Retirement Plan Services, Inc. has released the latest version of Reference, an annual benchmarking report based on T. Rowe Price's full service recordkeeping client data. This report provides plan sponsors the ability to review retirement plan trends and plan participant behavior patterns to help them make more informed plan decisions.

Source: 401khelpcenter.com, August 2016

"Tipping Off" Potential ERISA Fiduciary Violations

Abstract: The recent actions filed by Jerome Schlichter against seven private colleges and universities raised a number of new issues. Writer believes that the plans actually tipped-off their violations as a result of certain decisions and/or policies they adopted. Also suggests that many plans will continue to tip-off plaintiffs' attorneys and regulators by engaging in the same sort of practices that Mr. Schlichter's actions have cited.

Source: Iainsight.wordpress.com, August 2016

An Analysis of DC Plan Retirement Income Generating Strategies

Abstract: The research report helps plan sponsors, advisers, and retirees achieve this goal by demonstrating an analytical framework and criteria for helping them evaluate and compare a variety of possible retirement income solutions. The goal is to further understanding about how to use various retirement income generators to meet specific retirement planning goals.

Source: Plansponsor.com, August 2016

Twelve No-Tax and Low-Tax Retirement Plan Distributions

Abstract: Any retirement plan distribution, whether it's a lump-sum distribution of the entire account or a partial distribution, is taxable. That is to say, it is fully includable as ordinary income in the gross income of the participant or beneficiary who received it, unless one of the 12 exceptions outlined in this piece applies.

Source: Morningstar.com, August 2016

Canadian Employer Liability Relating to Fees in Employer-Sponsored Retirement and Savings Plans

Abstract: 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. Lawsuits in the U.S., and a recent regulatory undercover investigation in Canada, serve as a reminder of the risk of employer liability regarding fees. This article describes the risks for Canadian employers and suggest a few simple things that can be done to reduce those risks.

Source: Employmentandlabour.com, August 2016

U.S. Employers Targeted by Lawsuits Claiming Excessive Fees in Retirement Plans: Could It Happen in Canada?

Abstract: Legal risks have been emphasized by several lawsuits filed against U.S. employers in the last few months. This article provides a brief update on litigation activity in the U.S. which should give pause to Canadian employers who sponsor capital accumulation plans for their employees.

Source: Employmentandlabour.com, August 2016

Franklin Templeton 401k Participants File Suit for Alleged Breach of Fiduciary Duties

Abstract: A lawsuit was filed against Franklin Resources, Inc. in the U.S. District Court for the Northern District of California. The complaint is brought on behalf of the Franklin Templeton 401k Plan for alleged breach of fiduciary duties by Franklin Resources and Franklin Templeton 401k Retirement Plan Investment Committee.

Source: Businesswire.com, August 2016

Update on the Apparent Demise of the Determination Letter Program

Abstract: The IRS said last year that determination letter program for retirement plans would largely be going away. Rev. Proc. 2016-37 includes information with respect to the future of the determination letter program. As highlighted in a recent IRS Webcast, a noteworthy development is that "subject to IRS resources" that post-initial determination letters may be available after 2017 in specified circumstances.

Source: Benefitsbryancave.com, August 2016

ERISA Class Actions Filed Against Higher Education Institutions

Abstract: Several ERISA breach of fiduciary duty class actions involving allegedly excessive retirement plan fees were filed this week against higher education institutions including colleges, universities, and medical schools. The plaintiffs in these cases primarily are current and former participants in section 403(b) retirement plans. These cases allege that plan fiduciaries made unreasonable and imprudent decisions that negatively affect the value of the plaintiff's retirement accounts.

Source: Ballardspahr.com, August 2016

DOL ERISA Fiduciary Advisor Informational Tool

Abstract: The DOL has announced the availability of an interactive web-based tool with intended to increase awareness and understanding about basic fiduciary responsibilities when operating a retirement plan. The tool helps visitors identify whether they are plan fiduciaries and provides them with information about fiduciary functions associated with retirement plans.

Source: Ascensus.com, August 2016

Correcting Missed Deferral Opportunities

Abstract: As more plans adopt automatic enrollment, automatic escalation, or simply streamline the process for making a deferral election, it is common that mistakes are made, resulting in the missed opportunity for an employee to defer income into the plan. In Revenue Procedure 2015-28, the IRS amended the process by which a plan may correct such failures.

Source: Amazonaws.com, August 2016

Beware the 403(b) Fee Monster

Abstract: Investment fees matter. A lot. Sometimes numbers alone don't convey how damaging high fees are to savings. Meet the Fee Monster.

Source: 403bwise.com, August 2016

A New Set of 401k Best Practices for IRA Rollovers

Abstract: Depending on the outcome of pending legal challenges, the DOL's fiduciary rule has the potential to significantly affect the ways in which firms and advisors conduct business in the IRA and qualified retirement plans arenas. This article suggests several "best practices" for 401k to IRA rollovers.

Source: 401kspecialistmag.com, August 2016

Target-Date Funds and Managed Accounts: A Powerful Combination

Abstract: The combination of target-date funds and managed accounts may be the right recipe for your investment menu. The use of professionally managed allocations like TDFs and managed accounts is transforming participant portfolios. Both options provide significant benefits and should be offered as complementary strategies to address the diverse needs of evolving participant populations.

Source: Vanguard.com, August 2016

Helping Plan Sponsors Understand Their Fiduciary Duties

Abstract: Fiduciary duties and responsibilities are a growing responsibility for workplace retirement plan sponsors. This 60-page guide is an introductory fiduciary resource for defined contribution retirement plan sponsors and their employees working with the plan. It streamlines complex fiduciary topics into an easy-to-understand format.

Source: Troweprice.com, August 2016

Infographic: The Pension Protection Act, 10 Years In

Abstract: Enacted in 2006, the Pension Protection Act (PPA) is one of the most significant legislative developments in the modern age of retirement policy. The PPA has dramatically increased plan participation rates and put millions of American workers on a path to better retirement outcomes.

Source: Troweprice.com, August 2016

Advisers Can't Overlook the Prudent Investor Rule

Abstract: This article calls attention to the Department of Labor's imposition of the "prudent investor rule" on financial advisers to retirement savers. This article also canvasses the customary role of an investment policy statement in promoting compliance with the prudent investor rule by professional fiduciaries.

Source: Ssrn.com, August 2016

Fiduciary Checklist for Target-Date Fund Decisions

Abstract: Fiduciaries should be able to answer the following questions to feel confident they are following the Department of Labor's 2013 Tips for ERISA Plan Fiduciaries on target-date funds.

Source: Strategicbenefitservices.com, August 2016

Using Target Date Funds as a QDIA

Abstract: The Pension Protection Act of 2006 encouraged employers to adopt automatic enrollment features for their participant-directed plans by providing a new type of fiduciary liability relief for "default investments," or Qualified Default Investment Alternatives (QDIAs). Quick overview here.

Source: Strategicbenefitservices.com, August 2016

Many DC Plan Sponsors Must Annually "Notice" Their Participants

Abstract: Sponsors of defined contribution plans with certain features are required to provide annual notices to participants. This publication provides a summary of the annual notice requirements for those notices, including timing, recipients, contents, and method of delivery.

Source: Prudential.com, August 2016

Defined Contribution Plan Participants' Activities, First Quarter 2016

Abstract: This 12-page report updates results from ICI's survey of a cross section of recordkeeping firms representing a broad range of DC plans and covering more than 27 million employer-based DC retirement plan participant accounts as of March 2016. The broad scope of the recordkeeper survey provides valuable insights about recent withdrawal, contribution, asset allocation, and loan decisions of participants in these plans.

Source: Ici.org, August 2016

Borrowing or Withdrawing Money From Your 401k Plan

Abstract: If you have a 401k plan at work and need some cash, you might be tempted to borrow or withdraw money from it. But keep in mind that the purpose of a 401k is to save for retirement. Take money out of it now, and you'll risk running out of money during retirement. You may also face stiff tax consequences and penalties for withdrawing money before age 59½. Still, if you're facing a financial emergency, borrowing or withdrawing money from your 401k may be your only option. Here's what you need to know.

Source: Captrustadvisors.com, August 2016

Choosing a Beneficiary for Your IRA or 401k

Abstract: With retirement benefits, you need to know the impact of income tax and estate tax laws in order to select the right beneficiaries. Although taxes shouldn't be the sole determining factor in naming your beneficiaries, ignoring the impact of taxes could lead you to make an incorrect choice.

Source: Captrustadvisors.com, August 2016

Why is K-12 403(b) Plan Design Stuck in the 90's?

Abstract: The answer can be found by taking a closer look at the K-12 market. There are several factors that are not conducive to change in K-12, which is why 403(b) plans have largely stayed the same as they were 25 years ago.

Source: Cammackretirement.com, August 2016

Duke Latest School Snared by Coordinated ERISA Lawsuits

Abstract: Schlichter Bogard & Denton's coordinated attack on the retirement plans of prominent universities hit another school when the firm filed an ERISA class action against Duke University.

Source: Bna.com, August 2016

Tech Solutions the Key to TPAs' Future

Abstract: Historically, recordkeepers, not TPAs, have held a leadership position in technology deliverables that are provided to plan sponsors, participants, and advisors. Today, however, there is a growing reliance on TPAs to deliver more technology-driven solutions that enhance an advisor's ability to win new clients and keep existing ones.

Source: Asppa-net.org, August 2016

Plan Loans -- Whose Money Is It Anyway, and Why Should You Care?

Abstract: Plan loans are popular with both employers and employees, but loans bring with them a number of additional administrative and legal requirements for which the plan sponsor is generally responsible. Improper plan loans are among the most common defined contribution plan compliance errors. This 20-page paper from the Journal of Pension Planning & Compliance the complexity of properly administering plan loans.

Source: Aon.com, August 2016

Survey Focuses on Employee Retirement Savings Regrets, Employers Hold Keys

Abstract: Plan participants said that, without a doubt, they would be in much worse shape without access to an employer-sponsored plan. Nearly all express regrets about their personal savings habits, which says that employers have the opportunity to structure plans that can help drive more effective retirement preparations for their employees. In essence, employers have the keys to the kingdom.

Source: 401khelpcenter.com, August 2016

Saving Enough for Retirement Is Top Financial Stress Source, Even for Millennials

Abstract: A new survey from Schwab Retirement Plan Services, Inc. finds that saving enough money for a comfortable retirement is the most common financial stress inducer for people of all ages. The survey also reveals that most people view the 401k as a "must-have" workplace benefit.

Source: 401khelpcenter.com, August 2016

Three Prominent Universities Sued Over 403(b) Plan Fees

Abstract: Three prominent universities were sued on Tuesday, accused of allowing their employees to be charged excessive fees on their retirement savings. The universities -- the Massachusetts Institute of Technology, New York University, and Yale -- each have retirement plans holding more than $3 billion in assets and are being individually sued by a number of their employees in cases seeking class-action status.

Source: Nytimes.com, August 2016

Excessive Fee Litigation Hits Education Sector

Abstract: The law firm of Schlichter, Bogard & Denton has now turned its attention to the education sector, filing separate class action lawsuits against three universities on behalf of over 60,000 employees in their defined contribution retirement plans, both 401k and 403(b).

Source: Ntsa-net.org, August 2016

Making Participants Out of Employees Via Eligibility

Abstract: Plan eligibility provisions within 401k plans can have a significant impact on plan sponsors and their employees. Injecting strategy into this area can help employers contain benefit costs, recruit and retain talent, simplify administration, and stay in compliance with the law.

Source: Milliman.com, August 2016

Reducing Retirement Savings Leakage

Abstract: This 4-page article summarizes discussion on new ways to reduce retirement plan "leakage," presented at the Employee Benefit Research Institute's 78th policy forum in Washington, DC, on May 12, 2016.

Source: Ebri.org, August 2016

Allianz Can't Duck ERISA Challenge to Mutual Fund Fees

Abstract: Allianz Asset Management of America couldn't convince a federal judge to dismiss class action claims challenging the allegedly high-fee, in-house mutual funds in its 401k plan.

Source: Bna.com, August 2016

DOL Offers $100,000 Grant to Spur Retirement Plan Ideas

Abstract: The Department of Labor has announced a grant program intended to increase retirement security for low-wage workers, many of whom have never had access to retirement benefits through an employer.

Source: Asppa.org, August 2016

Pretax Solo 401k Contributions vs. Roth Solo 401k

Abstract: When it comes to retirement savings, in addition to the time of investment period, the type of retirement contributions you make has a huge impact over your retirement fund. Sensing a growing interest in pretax vs. Roth contributions, this article provides a comparative analysis.

Source: 401khelpcenter.com, August 2016

Employees May Profit From Less Choice in 401k Plans

Abstract: Are your employees not getting the returns they want from their selections of investments in their retirement plans? Consider handing the decision-making responsibilities over to a registered investment advisor, some experts suggest.

Source: Shrm.org, August 2016

Novant 401k Settlement Expected to Top $100 Million

Abstract: Current and former Novant Health employees will benefit from three times the original financial settlement value from a class-action lawsuit targeting the system's defined compensation retirement plan.

Source: Journalnow.com, August 2016

How Far-Reaching is the DOL Fiduciary Rule?

Abstract: While the rules apply "only" to retirement plans, this includes individual retirement accounts and can also reach into unanticipated areas not obvious at first glance.

Source: Investmentnews.com (registration may be required), August 2016

Custodians Help Advisers Navigate DOL Fiduciary Rule

Abstract: Custodians have morphed into consultants for registered investment advisory firms, navigating them through an increasingly complex regulatory landscape.

Source: Investmentnews.com (registration may be required), August 2016

A Blueprint to Encourage More 401k Savings

Abstract: We need to recognize that retirement shortfalls are partly the result of a fundamental disconnect. There are several steps advisers, working in partnership with retirement plan sponsors, can take to address this disconnect to enhance plan offerings, increase savings and promote greater participation.

Source: Investmentnews.com (registration may be required), August 2016

Vanished Into Thin Air? Lost Participants Create Plan Audit Risk

Abstract: Is your plan keeping track of vested former participants who are owed money? The DOL is looking at this matter because the failure to keep track of participants raises broader fiduciary responsibility issues.

Source: Cohenbuckmann.com, August 2016

Closing a Retirement Income Gap

Abstract: When you determine how much income you'll need in retirement, you may base your projection on the type of lifestyle you plan to have and when you want to retire. However, as you grow closer to retirement, you may discover that your income won't be enough to meet your needs. If you find yourself in this situation, you'll need to adopt a plan to bridge this projected income gap.

Source: Captrustadvisors.com, August 2016

Time Can Be a Strong Ally in Saving for Retirement

Abstract: Father Time doesn't always have a good reputation, particularly when it comes to birthdays. But when it comes to saving for retirement, time might be one of your strongest allies. Why? When time teams up with the growth potential of compounding, the results can be powerful.

Source: Captrustadvisors.com, August 2016

Edison 401k Case Will Be Reheard by Ninth Circuit

Abstract: The nine-year legal battle over fees and investments in Edison International Inc.'s 401k plan is headed for review by a full panel of appellate court judges.

Source: Bna.com, August 2016

FAQ for Financial Advisors on the DOL Fiduciary Rule

Abstract: This compilation of frequently asked questions was developed by the Insured Retirement Institute to provide general information for financial advisors about the Department of Labor's recently adopted fiduciary rule (sometimes referred to as the "conflicts of interest" rule).

Source: Myirionline.org, August 2016

Worry Over 401k Fees Rises as Lawsuits Increase

Abstract: Retirement plan advisors find themselves in a litigious environment as the number of lawsuits filed and settlements made regarding 401k plans increases.

Source: Thinkadvisor.com (registration may be required), August 2016

How Retirement Plan Sponsors Can Address Cognitive Decline

Abstract: SSGA contends there are things retirement plan sponsors can do to help participants prepare for retirement before their mental capacity begins to wear away.

Source: Planadviser.com, August 2016

Why Employees Ask for a 401k Plan

Abstract: Having an employee-sponsored retirement plan is one tool to help workers enjoy a financially secure retirement, and it is one of several reasons why employees are asking their employers for a 401k plan.

Source: Paychex.com, August 2016

Safe Harbor 401k Establishment Deadlines

Abstract: Although the greatest burden imposed on a plan sponsor who elects a safe harbor 401k plan design feature is usually perceived to be the funding of the safe harbor contribution, there are many other administrative requirements that must be satisfied in order to qualify for the ADP / ACP exemption. One such requirement relates to the plan year of a safe harbor 401k plan.

Source: Legacyrsllc.com, August 2016

The Business of Being in the 401k Business

Abstract: As we sit here just past the midpoint of 2016, the 401k industry continues to get a lot of attention in the media, with regulators and certainly from employers and their employees. However, what is not talked about very much is how the business of being a recordkeeper works and what employers should understand about the business models of their service providers. Podcast helps shed some light on the topic.

Source: 401kfridays.com, August 2016

Retirement Savings: Making Up for Lost Time

Abstract: To retire at any age, you have to save, save, and save some more. Starting from scratch at 42, you should ideally save 20-25 percent of your yearly salary. Chances are you can't sock this much away immediately, so you need to break things down into a workable strategy. Here are some ideas.

Source: Schwab.com, August 2016

The Secret to Prudent Retirement Investing

Abstract: Everyone likes to see their portfolios garner high returns. Few are aware, however, that it's actually far more important to avoid large losses than achieve high returns when building wealth over time. The author suggests that one give up on chasing and predicting returns, and instead manage risks and costs.

Source: Morningstar.com, August 2016

Why Reverse Churning Is About to Become a Big Advisor Problem

Abstract: This piece looks at the concept of "reverse churning," where an advisor charges an ongoing investment management fee, and how it is likely to be a growing regulatory concern in the coming years, as the DOL fiduciary rule spurs a massive shift towards various forms of fee-based brokerage and advisory accounts.

Source: Kitces.com, August 2016

Neuberger Berman Sued for Excessive 401k Fees

Abstract: Neuberger Berman, an investment manager with $246 billion in assets under management, has been sued by a participant in the company's 401k plan for alleged self-dealing, whereby the firm offered a high-fee, poorly performing proprietary fund in the plan for its own profit.

Source: Investmentnews.com (registration may be required), August 2016

Record Retention -- What You Should Keep and for How Long

Abstract: As a plan sponsor, have you ever wondered how long you should hold onto certain plan records? Unfortunately, there is no universal answer, and as with many questions related to employee benefit plans, the response is likely "it depends."

Source: Fidelity.com, August 2016

Fiduciary Update for August

Abstract: Captrust's August Fiduciary Update covers a number of topics including, DOL Fiduciary Rule -- Developments and Practical Steps for Plan Sponsors and Fiduciaries, and Fee Litigation Continues -- A Settlement and New Claims.

Source: Captrustadvisors.com, August 2016

The DB to DC Shift: Mitigating the Costs to Veteran Employees

Abstract: An employer and plan administrator will have to contend with regulatory details in making the shift from defined benefit to defined contribution plans, but they're not the only parties for which that transition can be costly. A recent study argues that long-serving employees may pay a price if their employer opts to move from a DB plan to a DC plan.

Source: Asppa.org, August 2016

How to Curb 401k Cash-Out "Leakage"

Abstract: Cash-out leakage from 401ks is a persistent problem in the retirement industry, and growing more pervasive as employee mobility increases. The Retirement Clearinghouse 2015 Mobile Workforce Survey illustrated the difficulty participants have moving accounts from the previous employer plan to the new plan.

Source: 401kspecialistmag.com, August 2016

Study: Portability and the Mobile Workforce

Abstract: Study finds that retirement plan participants are overwhelmingly receptive to using their 401k plans as their primary retirement accounts during their working years -- particularly Millennials and Generation-Xers -- but they find the roll-in process confusing, difficult to decipher and time-consuming. The survey further presents specific recommendations for plan design, including a multi-pronged approach to dampen cash outs and to dramatically improve plan portability.

Source: Rch1.com, August 2016

SEC Continues to Focus on Cybersecurity for Investment Advisers

Abstract: As in 2015, the Securities and Exchange Commission Examination Priorities for 2016 identify cybersecurity as an area of "potentially heightened [market-wide] risk."

Source: Ria-compliance-consultants.com, August 2016

Fidelity Finds Millennial 401k Account Balances at Record Levels

Abstract: Fidelity's latest retirement analysis reveals its customers have increased their 401k balances on average and its Millennial account holders are making record savings.

Source: Plansponsor.com, August 2016

Employer Involvement Is Key to Impacting Retirement Saving

Abstract: Beyond merely offering retirement benefits to their employees, employers should actively promote the advantages of signing up -- a task that becomes progressively more difficult as their workforce ages, according to a survey conducted by OneAmerica. Employer promotion of the retirement plan is most effective at spurring those younger than 35 (40 percent), followed by 35- to 49-year-olds (32 percent) and lastly those aged 50 and older (32 percent).

Source: Oneamerica.com, August 2016

The Cost of Complying With the DOL's Fiduciary Regulation

Abstract: A couple of large advisory firms have put a public price tag on the costs of their compliance with the Department of Labor's fiduciary regulation.

Source: Napa-net.org, August 2016

A Blueprint for Maintaining a Plan after the IRS's Determination Letter Program Cutback

Abstract: The IRS will continue to conduct random audits to assess plan compliance with plan document operational requirements. Beginning in 2017, the IRS expects plan sponsors to amend written plan documents in accordance with Revenue Procedure 2016-37 and without reliance on a determination letter. Sponsors of individually designed plans must develop new means for assuring they comply with the qualification requirements in the wake of Revenue Procedure 2016-37.

Source: Mwe.com, August 2016

Why 401k Plan Providers Should Push Automatic Enrollment

Abstract: The fact is that while 401k plans are an effective savings vehicle for retirement, they're only effective when employees actively participate by deferring their income. Automatic enrollment is an effective tool to get employees to save as well as improving the compliance aspects of a 401k plan. As a plan provider, you need to take advantage of opportunities and advocate for automatic enrollment.

Source: Jdsupra.com, August 2016

Franklin Templeton Sued by Employees for Self-Dealing in 401k plan

Abstract: Franklin Resources has been sued for self-dealing in its own 401k, joining a growing list of similarly situated companies targeted by their employees for excessive retirement plan fees.

Source: Investmentnews.com (registration may be required), August 2016

The Three Biggest Mistakes Retirement Savers Make During Down Markets

Abstract: The key to not only surviving, but thriving, in the ups and downs of the market is summarized in one word: Discipline. Discipline is what makes you lean face first into the wind and hold your ground. Not everyone can do it, but many can learn how. The author describes how participants can avoid the three biggest mistakes they make during down markets.

Source: Fiduciarynews.com, August 2016

IRS Provides Note on Correcting Required Minimum Distribution Failures

Abstract: In a note provided by the IRS, the IRS provides guidance on correcting required minimum distribution failures. This article reviews what the IRS said.

Source: Erisalawyerblog.com, August 2016

Majority of Millennials Say They Won't Ever Accumulate $1 Million

Abstract: Nearly two-thirds (64%) of working millennials say they will never accumulate $1 million in savings over their lifetime, according to the Wells Fargo Millennial Study. Six in ten millennials (59%) have started saving for retirement, whereas 41% have not. Of the millennials who are not saving for retirement, 64% say they are "not making enough money to save for retirement."

Source: Businesswire.com, August 2016

Retirement Plan Can Mandate Arbitration, Cost-Sharing

Abstract: A federal judge upheld a provision in ETS's retirement plan requiring that claims over plan benefits be submitted to a binding arbitration process in which the claimant and the plan "equally share" in the arbitration costs.

Source: Bna.com, August 2016

"Co-Fiduciary" Could Make DC Plan Sponsors "Co-Defendants"

Abstract: The new Fiduciary Rule from the US Department of Labor primarily affects financial advisors. But DC plan sponsors also face added responsibilities: some plan provider services may unexpectedly create a co-fiduciary status for plan sponsors that they didn't have before.

Source: Abglobal.com, August 2016

Helping Employees in Their Retirement: 401k Decisions, Decisions, Decisions!

Abstract: This article examines plan design features and educational efforts as key components in helping employees make the right choices for their specific situations.

Source: Milliman.com, August 2016

DOL Makes Some BIC Fixes

Abstract: The Department of Labor has made some "technical corrections" to the Best Interest Contract Exemption of the fiduciary regulation.

Source: Ntsa-net.org, August 2016

District Court Finds Forum Selection Clause Unenforceable in ERISA Action

Abstract: A federal district court in Illinois ruled that a plan's forum selection was unenforceable because it conflicts with ERISA's public policy of providing plaintiffs "ready access to the Federal courts."

Source: Erisapracticecenter.com, August 2016

New Canadian Court Decisions Reinforce Need for Benefit Communications Policy

Abstract: Two recent cases dealing with employee benefits and pensions demonstrate how a benefit communications policy can make a difference to employers.

Source: Employmentandlabour.com, August 2016

How Will the DOL Fiduciary Rule Affect Call Centers?

Abstract: A strong majority -- to the tune of 75% -- of retirement plan providers told the LIMRA Secure Retirement Institute that they plan to change how their call centers function because of the rule.

Source: Asppa.org, August 2016

IRS Clarifies 5500 Instructions Regarding Unpaid RMDs

Abstract: The IRS has clarified the instructions for two schedules to Form 5500 and to a line of Form 5500-SF. The instructions did not include examples of what constituted a reportable failure to provide any benefit when due under the plan.

Source: Asppa.org, August 2016


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