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August 2018 Digest

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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Trump Is Strengthening Retirement Security for American Workers

Abstract: President Trump has issued an executive order to strengthen retirement security in America. The order benefits small-business employees seeking easier ways to achieve greater retirement savings. This is a statement from the Whitehouse.

Source: Whitehouse.gov, August 2018

Trump Executive Order Aims to Make Retirement Plans Easier for Small Businesses to Offer

Abstract: President Donald Trump signed an executive order Friday to make it easier for small businesses to offer retirement plans that may also let Americans keep more retirement savings sheltered from taxes.

Source: Usatoday.com, August 2018

Late or Missing Deposits

Abstract: Timing is everything. You've no doubt heard this phrase, but it holds especially true when it comes to depositing employee deferrals into your 401k plan. Depositing each employee's salary deferral into their 401k plan account may seem like a small piece of the 401k puzzle, but failing to meet the deadlines for depositing the contributions, or not making the deposit at all, can have long-lasting and costly ramifications.

Source: Tristarpension.com, August 2018

Common Retirement Plan Sponsor Misconceptions

Abstract: Due to the large amount of work in starting and maintaining their retirement plan, sponsors often overlook certain aspects that may expose them to potential liability. Additionally, some plan sponsors are unaware of the ongoing fiduciary duties which can result in misconceptions about the plan and its participants. These misconceptions can be costly, and sponsors may find themselves in trouble with the IRS or the Department of Labor.

Source: Planpilot.com, August 2018

Why Is Recordkeeping Pricing Different for 403bs?

Abstract: The price of recordkeeping services is not uniform; it can vary depending on type of retirement plan. This article discusses why pricing for 403bs is different than that for 401ks including four factors that impact 403b pricing.

Source: Ntsa-net.org, August 2018

Self-Directed Brokerage Windows in 401k Plans: Do Fiduciaries Have to Look Inside?

Abstract: One might think that there is a lower level of liability risk for plan fiduciaries where a brokerage window is available, particularly where the window supplements a menu of selected investment options, because it gives plan participants greater choice without any expectation that the fiduciaries are responsible for each investment available through the window. However, there can still be fiduciary obligations related to offering the brokerage window that, if not met, could trigger liability.

Source: Morganlewis.com, August 2018

Fundamental Unfairness: ERISA Section 404(c) Is Not Working

Abstract: The article's author believes that most plan sponsors fail to comply with section 404(c)'s "sufficient information" and "control" requirements. Plan sponsors must have that information in order to (1) comply with their fiduciary duty to conduct an independent investigation and evaluation of a plan's investment options, and (2) to ensure that the plan options provide plan participant with the opportunity to effectively diversify their retirement account and minimize the risk of large losses.

Source: Iainsight.wordpress.com, August 2018

Employers Could Be Squandering a Huge Recruiting Opportunity With Their 401k Plans

Abstract: Most of the respondents (67%) in a Betterment for Business survey described a good 401k plan as an "important" or "very important" consideration in evaluating a job offer. But despite the plans' favorable standing among job seekers, 30% of respondents said details about their employers' 401ks never surfaced during the job search. Betterment polled 845 employees who work at client employers.

Source: Hrdive.com, August 2018

Student Loan Payments and 401k Benefits

Abstract: The PLR confirmed that some student loan repayment programs linked to 401k employer contributions are acceptable. The approved student loan repayment program allows the employer to make non-elective contributions to an employee's 401k account in lieu of the matching contributions the employer would have otherwise made had the employee contributed the amount of the loan payment to his or her 401k account.

Source: Hansonbridgett.com, August 2018

Frequent 401k Audit Finding - Use of Forfeitures

Abstract: During 401k audits, one of the operational failures often encountered are forfeitures that are not used in accordance with the method selected in the Plan's adoption agreement. These failures can be significant and cause corrective action that spread across many years.

Source: 5500audit.com, August 2018

401k Plans May Soon Experience Higher Fees for Ancillary Services

Abstract: 401k plan fee reductions have been occurring in recent years as retirement plan vendors made a land grab for their share of the DC plan market. To date, those 401k plan fee reductions have applied mostly to costs for core services, such as administration and recordkeeping. If they haven't already, sponsors may soon experience higher 401k and 403b plan fees for "extras" such as plan distributions or loans, that only occasionally impact a portion of participants.

Source: 401ktv.com, August 2018

Understanding and Achieving Participant Financial Wellness

Abstract: This survey of retirement plan participants was conducted to better understand participant financial wellness and factors that contribute to -- or impede -- the ability to become financially well. A total of 12,211 retirement plan participants answered questions about financial wellness, ancillary wellness factors -- such as working with financial professionals -- and education preferences. Report is 12-pages.

Source: Oneamerica.com, August 2018

IRS Private Letter Ruling OKs 401k/Student Loan Repayment Program

Abstract: This article begins with a discussion of the regulatory issue. It then discusses the plan design considered in the PLR and IRS's analysis of it and then concludes with a brief consideration of other issues a sponsor might want to consider with respect to one of these programs.

Source: Octoberthree.com, August 2018

A New Way to Use Your 401k Plan to Attract and Retain Recent Graduates

Abstract: The average student loan debt for a Class of 2016 graduate is $37,172. As recent graduates enter the work force, they often choose not to contribute to their employers' 401k plans because they prefer to focus on paying off their student loans or simply can't afford to pay off loans and put away money for retirement at the same time. What if there was a way to allow those recently graduated employees to continue repaying their loans and still share in company 401k plan contributions?

Source: Laboremploymentperspectives.com, August 2018

Plan Recordkeeper Data Show Ongoing Commitment to Retirement Saving

Abstract: The latest DC recordkeeper data indicate that plan participants remain committed to saving and investing, as nearly all continued contributing to their plans in the first quarter of 2018. Only 1.1 percent of DC plan participants stopped contributing during this period.

Source: Ici.org, August 2018

Is the Small-Business 401k Fools Gold?

Abstract: As compelling as that might seem, it's important to note that setting up a 401k plan is merely a strategy for tax deferral, not tax savings. And the cash outlays made on behalf of employees are of course a permanent expense that owners can never recapture. The net result is that it's often better for business owners to skip the small business retirement plan, opting instead to simply pay their own taxes and save the net proceeds.

Source: Financial-Planning.com, August 2018

DOL Fiduciary Rule Post-Mortem: How Long Will the Taste Linger?

Abstract: The DOL's Fiduciary Rule has been vacated. In its stead we now have the SEC's "Best Interest" proposal. This is the first in a three-part series that will reflect on the past, present, and future of the fiduciary standard.

Source: Fiduciarynews.com, August 2018

Understanding and Achieving Participant Financial Wellness

Abstract: Preparing for the future while being tethered to debt is an increasingly common dilemma for retirement plan participants, especially for those who are paying on student loans, according to a new OneAmerica survey.

Source: 401khelpcenter.com, August 2018

401k Plan Sponsors Worried About the Number of Participant Loans

Abstract: Twenty-five percent of 401k participants have an outstanding loan against their account, according to Alight Solutions. This is undoubtedly why 75% of employers are worried about the level of participant loans in their 401k plan. When offered two loans, 14.4% take advantage of that. When offered three loans, 11.9% do the same.

Source: Planadviser.com, August 2018

New Survey Shows 401k Participants Would Like More Guidance

Abstract: New research from Schwab Retirement Plan Services, Inc. reveals that, despite having a positive outlook for retirement, American workers regret past spending and are concerned about being able to ultimately save enough for their golden years. The nationwide survey of 1,000 401k plan participants finds that while 70 percent believe their quality of life in retirement will be better than that of both their parents and their children, saving for retirement is still their number one source of financial stress (40%).

Source: Schwab.com, August 2018

2018 401k Participant Survey

Abstract: This online survey of 1,000 401k participants was conducted by Logica Research for Schwab Retirement Plan Services. Survey finds that while American workers are proactive about reaching retirement goals, they could benefit from professional financial help.

Source: Schwab.com, August 2018

Ten 401k Plan Stats Advisers Need to Know

Abstract: Here are useful statistics on 401k plans, ranging from investment advice to plan participation, investment allocations and fee structures.

Source: Investmentnews.com (registration may be required), August 2018

401k Advisers See Student Loan Benefits As Next 'Evolution'

Abstract: Increasing student loan debt has drawn the attention of retirement plan advisers interested in finding ways to couple 401k plans and student loan repayment programs. In a private letter ruling, the IRS affirmed one employer's approach: Allow employees to choose whether they'd prefer a 5% contribution from the employer to be in the form of a 401k match or a student loan repayment.

Source: Investmentnews.com (registration may be required), August 2018

DC Plan Participants' Activities, First Quarter 2018

Abstract: Survey finds that DC plan withdrawal activity in the first quarter of 2018 remained low and was like the first quarter in the prior year. Most DC plan participants also stayed the course with their asset allocations as stock values edged down during the first three months of the year.

Source: Ici.org, August 2018

IRS Eases Restriction on Student Loan Repayment in 401k Plans

Abstract: The IRS released a private letter ruling outlining how employers can provide a student loan repayment benefit as part of their 401k plan. This is a welcome development, as what is known as the contingent benefit rule has caused some confusion as to whether a student loan repayment program could be linked to a 401k plan.

Source: Callan.com, August 2018

401ks Still Matter to Employees

Abstract: Results of a 2018 Customer Survey indicate that, although employers are diversifying the funds they spend on employee benefit packages as they seek to lure younger workers with much-needed skills, the 401k is holding its own against such newer offering as unlimited paid time off, tuition reimbursement and professional development opportunities.

Source: Benefitspro.com, August 2018

Communication About 401k Plans Fails on Participant Intent

Abstract: Participant communication programs do take a lot of data into account when attempting to meet the needs of multiple audiences within the employee population. But what they fail to take into account, according to a Cogent Report, is intent, i.e., whether the participant him- or herself actually intends to make a change to a retirement plan account.

Source: Benefitspro.com, August 2018

Automatic Transmission: Does Auto-Enrollment Create Leakage?

Abstract: Most people view automatic enrollment in a 401k as a good thing, but apparently it has a heretofore unappreciated "dark side." At least that was the focus of a headline in a recent Wall Street Journal article that asked (and answered) the provocative question: "401k or ATM? Automated Retirement Savings Prove Easy to Pluck Prematurely."

Source: Asppa-net.org, August 2018

Court Finds All Claims Plausible in T. Rowe Price Self-Dealing Suit

Abstract: The original complaint accuses T. Rowe Price 401k plan trustees of breaching their fiduciary duties under ERISA by either failing to remedy their predecessors' breaches, or, in a few cases of offering expensive retail class versions of proprietary mutual funds, waiting too long to act to shift into lower cost versions of the funds.

Source: Plansponsor.com, August 2018

DOL's Ongoing Project Looks Into Retirement Plan Investments and Fees

Abstract: The DOL's Employee Benefit Security Administration's Plan Investment Conflicts (PIC) project investigates issues related to fiduciary service provider compensation and conflicts of interest in relation to plan asset vehicles.

Source: Planadviser.com, August 2018

Second Lawsuit Over Duke University 403b Plan Filed

Abstract: The new lawsuit alleges the university engaged in prohibited transactions when it used revenue sharing from plan investments to pay for HR staff salaries and fringe benefits.

Source: Planadviser.com, August 2018

Easing the Retirement Crisis

Abstract: Many Americans face a scary prospect: surviving on much less money during retirement than they're used to living on or not being able to afford a retirement at all. Every year, there are new reports about how many Americans are unprepared for retirement. Two studies cast more doubt, highlighting need for industry to lead the way.

Source: Morningstar.com, August 2018

Safe Harbor 401k Plans: Everything You Need to Know

Abstract: A safe harbor 401k plan is a type of tax-deductible 401k plan that ensures all employees at a company have some set of minimum contributions made to their individual 401k plans, regardless of their title, compensation, or length of service. A major perk of this plan is that it also helps companies pass IRS non-discrimination testing.

Source: Humaninterest.com, August 2018

Make Sure You Take Sufficient Steps to Find Missing Participants

Abstract: Written requests have been submitted to the DOL asking for additional clarification that spells out when a plan administrator has satisfied its fiduciary duty as it relates to finding missing participants. The agency is silent so far. While the retirement plan community awaits requested guidance on missing-participant searches, this column offers a few best-practice tips.

Source: Blr.com, August 2018

More Americans Ramping up Retirement Savings, but There's a Huge Red Flag

Abstract: Save more and live simply. It's a lesson, especially millennials, are heeding as more Americans say they're saving more retirement in 2018 than last year, according to a new Bankrate survey.

Source: Bankrate.com, August 2018

Staying Power Among the Automatically Enrolled, Research Says

Abstract: Automatic enrollment has long been touted as an effective means to increase participation in retirement plans; a recent study has found strong retention among employees added to plan rolls automatically.

Source: Asppa.org, August 2018

How to Avoid Retirement Plan Tax Pain

Abstract: Despite Trump's high-profile tax win, the total impact of taxes on a retiree can be absolutely devastating, according to new research published in the Journal of Financial Planning. It shows that up to 20 million American retirees will be in marginal tax rates as high as 40.7 percent.

Source: 401kspecialistmag.com, August 2018

Advisors Face $100 Million Retirement Scheme Suit

Abstract: A group of insurance agents, brokers, financial planners and investment advisory firms spanning the country were working together to allegedly scam thousands of investors out of retirement funds totaling $100 million.

Source: 401kspecialistmag.com, August 2018

IRS Private Ruling on Student Loan Benefit Under 401k Plan Likely to Fuel Interest

Abstract: Many employers have been looking for ways to help their employees cope with their student loan debt. Companies have chosen to provide aid by making tax-deferred contributions to their 401k or other DC plans for affected participants. Interest in this approach increased greatly after June 26 when Abbott Labs announced its "Freedom 2 Save" program on which it had received an IRS private letter ruling.

Source: Groom.com, August 2018

Striking Similarities and Disconcerting Disconnects: Employers, Workers and Retirement Security

Abstract: A new study from nonprofit Transamerica Center for Retirement Studies revealed only 16 percent of employers are "very confident" that their employees will be able to achieve a financially secure retirement. The study also illustrates ways that employers are out of sync with workers regarding perceptions and business practices related to older workers and it examines the current state of 401ks and other benefit offerings by company size.

Source: Transamericacenter.org, August 2018

IRS Private Ruling on Student Loan Benefit Under 401k Plan Likely to Fuel Interest

Abstract: Many employers have been looking for ways to help their employees cope with their student loan debt. Companies have chosen to provide aid by making tax-deferred contributions to their 401k or other DC plans for affected participants. Interest in this approach increased greatly after June 26 when Abbott Labs announced its "Freedom 2 Save" program on which it had received an IRS private letter ruling.

Source: Groom.com, August 2018

401k Nondiscrimination Testing: A Simple Guide for Improving Your Results

Abstract: Whether you're new to 401k administration, starting a new 401k for your business, or trying to fix failed testing for your existing 401k, understanding and dealing with nondiscrimination testing can be a major hassle. This guide to be an end-to-end resource on the topic.

Source: Forusall.com, August 2018

Groundbreaking IRS Ruling Helps Clear the Way for New 401k Plan Student Loan Benefits

Abstract: The IRS gave its blessing to an employer-provided student loan repayment benefit offered through an employer's 401k plan. Historically, many plan sponsors had questioned whether such an approach would be permissible under IRS rules. As a result, the PLR provides welcome confirmation that such an arrangement is permissible under certain circumstances.

Source: Employeebenefitsblog.com, August 2018

Can Arbitration Shield You From 401k Class Actions?

Abstract: The Ninth Circuit Court of Appeals in a case involving the University of Southern California has ruled that class action waivers do not apply to fiduciary breach claims under Section 409 of ERISA. Plan sponsors cannot count on courts automatically upholding employment agreements imposing mandatory arbitration of ERISA claims. What else can plan sponsors do?

Source: Cohenbuckmann.com, August 2018

Collective Investment Trusts: An Investment Perspective

Abstract: Collective Investment Trusts offer some potential benefits to retirement plan participants over traditional mutual funds. On the surface, mutual funds and CITs appear to be very similar in that they are both pooled buckets of investments. However, CITs can provide some cost and operational efficiencies not found in mutual funds.

Source: Cammackretirement.com, August 2018

IRS Approves the Use of a 401k Plan to Help Tackle Student Loan Debt

Abstract: The IRS has issued a private letter ruling approving of an employer's program to provide employees a retirement plan contribution conditioned on student loan repayments. Specifically, the IRS found that such contributions will not violate the "contingent benefit" prohibition.

Source: Bradley.com, August 2018

Five Ways You're Saving for Retirement Wrong

Abstract: How can you stay ahead of the retirement savings curve and support yourself after you've stopped working? First, make sure you're not making any of these retirement savings mistakes.

Source: Bankrate.com, August 2018

Analysis of Settlement Terms in Deutsche Bank ERISA Litigation

Abstract: The underlying allegations were that Deutsche Bank and other defendants violated their fiduciary duties by offering in the company's own 401k plan proprietary, high-cost investments that profited the bank. The case history of the litigation offers a prime example of the incredible complexity of ERISA challenges.

Source: Plansponsor.com, August 2018

IRS Approves a Plan's Design for Student Loan Repayment Benefits

Abstract: IRS Private Letter Rulings are directed only to the taxpayer requesting it; however, they can give retirement plan practitioners an idea of what the IRS thinks about plan sponsor decisions or programs.

Source: Planadviser.com, August 2018

DC Plan Executives Get Serious About Playing Games

Abstract: Defined contribution plan executives, providers, tech firms, and academics are all giving "gamification" techniques a closer look in hopes of driving participant engagement, financial literacy, and finding ways to get more employees thinking about and preparing for their financial future.

Source: Pionline.com, August 2018

Federal Judge Sends Scottrade Case Back

Abstract: Scottrade's attempt to make a federal case of an administrative proceeding filed by Massachusetts alleging violations of internal policies adopted in anticipation of the Labor Department's fiduciary rule has been rebuffed by a federal judge.

Source: Napa-net.org, August 2018

IRS Private Letter Ruling Will Help Clear the Way for 401k Plan Student Loan Benefits

Abstract: The IRS released a private letter ruling which will help clear the way for employers to provide a new type of student loan repayment benefit as part of their 401k plans. This ruling is important because many employers have been looking for ways to help their employees manage student loan repayment obligations, but to date the options available for doing so have been rather limited.

Source: Mwe.com, August 2018

Using Annuities in 401ks: The Debate Continues

Abstract: Some advocates for annuities contend that they have a solution. Annuities, they point out, are the only savings vehicle that carry a guaranteed, contracted, lifetime income stream, outside of Social Security and pension benefits. So why not use them in 401k plans?

Source: Fa-mag.com, August 2018

IRS Weighs in on 401k Match to Student Loan Repayments

Abstract: The IRS has approved an arrangement under which an employer "matches" employee student loan repayments by making non-elective contributions to its 401k plan on behalf of the employees paying the loans. The guidance is in the form of a Private Letter Ruling that is only citable authority for the taxpayer who requested the ruling, but it is a promising development on the retirement plan front.

Source: Eforerisa.wordpress.com, August 2018

Retirement Education Preferences, Survey

Abstract: The 2018 survey was designed to give insight into what retirement topics plan participants are interested in, what educational resources they want to help guide them to financial security in their retirement years, and how well they understand their retirement plans. The survey delves into demographic trends to offer further insight into how age and gender differences may impact retirement education preferences.

Source: Widencdn.net, August 2018

Participants Report Diverse Communication Preferences

Abstract: Results of a participant survey conducted by CUNA Mutual show a close tie between in-person training, short topical online videos, and self-guided learning modules as the preferred way to receive education about retirement plans.

Source: Plansponsor.com, August 2018

Borrowing Early From a 401k: Pros and Cons

Abstract: Employers are not their employees' financial advisors. Nonetheless, if you offer a 401k plan at your business, consider the following information that may help you and your employees better understand the rules and regulations around borrowing early from a retirement plan.

Source: Paychex.com, August 2018

Puerto Rico Treasury Department Extends Period to Make Hurricane-Related Retirement Plan Distributions

Abstract: On July 31, 2018, the PR Treasury issued Administrative Determination Number 18-13 extending the eligible period until November 30, 2018 to make eligible distributions pursuant to AD 17-29 and 18-02. All other provisions under AD 17-29 and AD 18-02 remain in effect.

Source: Littler.com, August 2018

401k Summary Plan Description: Basics, Requirements, and Compliance

Abstract: The Summary Plan Description is one of the important 401k plan documents that provides plan participants with the most important details of their benefit plan, like eligibility requirements or participation dates, benefit calculations, plan management instructions, and general member responsibilities. That's the basic definition, but there's a lot more that you need to know about the SPD for successful benefits administration.

Source: Forusall.com, August 2018

Best Practices for 403b Plan Fiduciaries

Abstract: Plan fiduciaries of 403b plans face some unique challenges and making mistakes can expose these fiduciaries to liability. Following 403b fiduciary best practices can help reduce the risk of lawsuits and avoid ERISA compliance violations.

Source: Bsllp.com, August 2018

Retirement Is Out, Unretirement Is In

Abstract: The retirement landscape is changing. Workers who plan to retire in the next five years don't anticipate getting much "R and R" before they're back to the grind. In a survey of employees approaching retirement age, over half (53 percent) think it's likely they'll return to work at some point.

Source: 401kspecialistmag.com, August 2018

Middle Class Workers May Struggle to Stay Afloat in Retirement

Abstract: The Schwartz Center for Economic Policy Analysis estimates that roughly 40 percent of Americans, or two out of every five who are currently considered middle-class based on their income, will fall into poverty or near poverty by the time they reach 65.

Source: 401kspecialistmag.com, August 2018

Number of Fidelity 401k Millionaires Hits Record High

Abstract: At the end of the second quarter, 168,000 people with 401ks managed by Fidelity Investments had at least $1 million in their accounts, a rise of 50,000 people from a year earlier when there were 118,000. While gaining, that exclusive group of savers is still just a fraction of the 16.1 million people who have a 401k account managed by the fund company.

Source: Usatoday.com, August 2018

Illinois Governor Proposes Making Secure Choice Retirement Program Optional for Employers

Abstract: Illinois Gov. Bruce Rauner issued an amendatory veto making it optional for employers to participate in the state's Secure Choice program. There now are three possible actions. Legislators could: approve the change; let die the technical changes bill to which Mr. Rauner's action applies; or override the amendatory veto.

Source: Pionline.com, August 2018

Automatic Enrollment Can Boost Retirement Plan Participation

Abstract: Enrolling new employees automatically increases plan participation dramatically by eliminating the need for action by the worker. A new survey analysis demonstrates that employers and policymakers can encourage workers to save by using automatic enrollment. Survey respondents repeatedly indicated that regardless of whether they have access to an employer-sponsored plan, their perceived motivators and barriers, or the plan sponsor, they would remain in a retirement plan or program and begin saving for their future if automatically enrolled.

Source: Pewtrusts.org, August 2018

Duty of Loyalty in Stock Drop Cases

Abstract: The United States District Court for the District of Minnesota has, for a second time, dismissed claims by participants in the Wells Fargo 401k plan. This second decision focused on the issue of the fiduciary duty of loyalty, the court's discussion of which is thorough and interesting both in its specific application to stock drop cases and to fiduciary litigation more generally. This article discusses the court's opinion in detail.

Source: Octoberthree.com, August 2018

Account Balances Rebound, While Auto Enrollment Continues to Drive Positive Savings Behavior

Abstract: Fidelity released its quarterly analysis of retirement savings trends, including account balances, contributions, savings behavior and details on workplace savings plan design. Highlights from the analysis, which is based on more than 30 million retirement accounts, are covered here.

Source: Fidelity.com, August 2018

The DOL's Plan Investment Conflicts Project Is Showing up in Its Plan Audits

Abstract: One of the key EBSA National Enforcement Projects is the "Plan Investment Conflicts Project." You'll hear DOL staff refer to it as the PIC project, and many of you have already run into it, maybe even without knowing it. It is the “next generation” of fiduciary compliance programs that the DOL has developed over the years, with this one building on those past programs which had looked at compensation conflicts, 408(b)(2) compliance and 404(a)-5 disclosures.

Source: Businessofbenefits.com, August 2018

IRS Announces Cycle 3 Pre-Approved DC Plan Submission Extension

Abstract: IRS Revenue Procedure 2018-42 extends the deadline for submitting on-cycle applications for opinion letters for pre-approved defined contribution plans for the third six-year remedial amendment cycle to December 31, 2018.

Source: Asc-net.com, August 2018

The Right Way to Manage Taxed Uncashed Retirement Checks

Abstract: If you think uncashed pension checks are a hassle to manage, it gets more difficult if the taxes have been taken out at distribution. There is a practical solution discussed in this article authored by PenChecks Trust President and CEO Peter Preovolos.

Source: Penchecks.com, August 2018

Why You Should Still Take the Fiduciary High Ground on 401k Rollovers

Abstract: The Fifth Circuit Court of Appeals issued its mandate to vacate the Department of Labor fiduciary rule in June, but guidance issued by the DOL the month prior allows at least part of the rule to continue to apply. This anomaly has some profound ramifications for retirement advisers dispensing rollover advice.

Source: Investmentnews.com (registration may be required), August 2018

The ERISA Industry Committee Files Lawsuit Against City of Seattle

Abstract: The ERISA Industry Committee filed a complaint in the U.S. District Court for the Western District of Washington against the City of Seattle for obstructing the federal law that enables large employers to administer health and retirement benefits uniformly across the country.

Source: Eric.org, August 2018

SPD vs. Plan Document? Plan Wins, Unless...

Abstract: It is not uncommon for conflicts to exist between the provisions of a plan document and the plan's summary plan description. In a recent case, the provisions of a conflicting SPD may prevail. The case was sent back to the lower court because the error in the SPD was so significant that it could be found to be constructive fraud.

Source: Captrustadvisors.com, August 2018

Assessing the Choices for the "Distribution Phase" of DC Plans

Abstract: The retirement industry has focused on improving the "accumulation phase" of DC plans. But as DC plans enter middle age, the retirement industry should start thinking more about the "distribution phase," when participants are drawing down the assets they have accumulated over their working lives. This article sets out some of the options plan sponsors can offer participants for the distribution phase.

Source: Callan.com, August 2018

Target-Date Outcomes Improve With Introduction of Alternative Investments

Abstract: As more plans adopt qualified default investment alternatives for their set-it-and-forget-it participants, target-date funds have grown to nearly $2 trillion in assets. Now that the problem of getting people enrolled in a retirement plan has been addressed, it is time to tackle how investments in these plans are chosen to make sure there is a focus on long-term outcomes and performance.

Source: Benefitnews.com, August 2018

Many DC Plan Sponsors Must Annually "Notice" Their Participants

Abstract: Sponsors of DC plans with certain features are required to provide annual notices to participants. This chart summarizes the annual notice requirements for each of these notices, including timing, recipients, contents, and methods of delivery. Some plan designs may require multiple notices and some of the notices may be combined or packaged together in one mailing.

Source: Prudential.com, August 2018

403b Loose Ends for 2019 Hardships

Abstract: While the Bipartisan Budget Act of 2018 modified the safe harbor rules for hardship withdrawals starting in the 2019 plan year, the extent to which these modifications will impact 403b plans is still subject to open to interpretation.

Source: Ntsa-net.org, August 2018

8th Circuit Sets High Bar for Labeling Retirement Plan Investments "Imprudent"

Abstract: In Meiners v. Wells Fargo & Company, the U.S. Court of Appeals for the Eighth Circuit clarified the burden plaintiffs must meet to state a claim for breach of fiduciary duty under ERISA based on the inclusion of allegedly underperforming and expensive investment funds. Because plaintiffs often lack detailed information about the process plan fiduciaries followed to make investment choices, pleading a plausible claim that those fiduciaries have acted imprudently can pose a significant challenge.

Source: Kslaw.com, August 2018

The Problem With Consolidation in the TPA Business

Abstract: While consolidation may allow these large TPAs get savings when dealing with other providers and becoming more efficient, it does have costs within the industry. Consolidation also decreases choices and less competition could lead to increased pricing even if fees have been going down for years.

Source: Jdsupra.com, August 2018

What Employers Need to Know About the Illinois Secure Choice Mandatory Retirement Savings Program

Abstract: Employers in Illinois with at least 25 employees must comply with the Illinois Secure Choice Savings Program Act or offer employees an employer-sponsored retirement plan. Secure Choice is set to roll out in November 2018.

Source: Jacksonlewis.com, August 2018

Principal Transactions: Advisers Are Still Fiduciaries Under the 5-Part Test

Abstract: One of the trickiest areas of compliance for advisers and their supervising firms is related to principal transactions. David Kaleda, a principal in the Groom's Fiduciary & Plan Governance practice, provides an overview of compliance obligations for advisers in connection with principal transactions.

Source: Groom.com, August 2018

The Recent NYU ERISA Decision and Best Practices for ERISA Fiduciaries

Abstract: The decision in favor of NYU, and the recent dismissal of two other similar lawsuits against Northwestern University and the University of Pennsylvania, should give some comfort to fiduciaries of ERISA retirement plans, especially those sponsored by higher education institutions. The NYU decision suggests that 403b plans do not necessarily violate ERISA simply because they have a very large number of investment funds, including actively managed funds, or because they do not promptly remove underperforming funds from the plan.

Source: Bsk.com, August 2018

A Perfect Opportunity to Push the 401k

Abstract: A booming economy and low unemployment mean "slightly larger pay raises" for employees in the coming year, offering a number of opportunities while wallets are fat for advisors to illustrate the importance of 401ks.

Source: 401kspecialistmag.com, August 2018

Ten Best and Worst Places for 401k Participants to Retire

Abstract: Retire in place or head for the shore? Mountain living or more city life? Where should 401k participants consider moving when they're ready to take the plunge? Personal-finance website WalletHub released its report on 2018's Best & Worst Places to Retire.

Source: 401kspecialistmag.com, August 2018

Automatic Features in Retirement Plans Boost Retirement Confidence

Abstract: Although 25% of sponsors are not using automatic enrollment due to their fear of participant pushback, 82% of participants are either in favor of or neutral towards automatic enrollment. Among the participants who have been automatically enrolled, 95% are satisfied. Only 1% opted out, and 33% said that if they had not been automatically enrolled, they probably would not have enrolled in the plan. Among those who have been automatically escalated, 97% are satisfied.

Source: Plansponsor.com, August 2018

Participants in Abandoned Plan Get Help From DOL

Abstract: The DOL has entered into an agreement with the fiduciaries of the Sacred Heart Hospital Profit-Sharing 401k Plan to appoint an independent fiduciary to manage and distribute assets of the Chicago-based retirement plan to its nine participants.

Source: Planadviser.com, August 2018

Survey: Plan Sponsor Attitudes

Abstract: This plan sponsor attitudes study reveals that the top concern of plan sponsors is whether the plan is effectively preparing employees for retirement financially (33 percent), whereas in 2017 the focus was on reducing business costs related to the plan (32 percent). To help employees achieve their savings goals, many sponsors are making changes to plan design (82 percent) and investment menus (83 percent).

Source: Fidelity.com, August 2018

Make Sure 401k M&A Is Done Right

Abstract: Analysis of qualified retirement plans should be an important part of M&A due diligence, and it's not something to leave until the deal is almost done. It's critical for executives at acquiring companies to thoroughly understand the legal and practical issues under ERISA and the Internal Revenue code.

Source: 401kspecialistmag.com, August 2018

Top Plan Sponsor Concern Are Shifting

Abstract: Employers are more worried about whether their retirement plan is effectively preparing employees for retirement. It's a distinct change from 2017, when the focus was on reducing business costs related to the plan, according to Fidelity Investments' annual plan sponsor attitudes study.

Source: 401kspecialistmag.com, August 2018

IRS Issues 2018 Version of Form 1099-R for Retirement Plan Distributions

Abstract: Retirement plan administrators (including administrators of 401k plans) are required to report plan distributions on Form 1099-R, which they file with the IRS and deliver to the plan participant or beneficiary. While the 2018 form and instructions largely mirror the 2017 version, there are a few changes.

Source: Thomsonreuters.com, August 2018

SEC Best Interest Proposals: What They Mean for Investment Advisors

Abstract: This 16-page paper focuses on the RIA Interpretation and its impact on investment advisors. In addition, it briefly discusses the proposed Form CRS relationship summaries and highlights some of the provisions that impact RIAs.

Source: Tdainstitutional.com, August 2018

Four Ways to Supercharge Your Retirement Savings

Abstract: When it comes to saving for retirement, maxing out your 401k and/or Individual Retirement Account is just the beginning. Here are four scenarios in which you may be able to give your savings an extra boost.

Source: Schwab.com, August 2018

Groups Say SEC's Best Interest Proposal Fails to Provide Uniform Fiduciary Standard

Abstract: Comments on the SEC's proposed best interest standards express concern that the standards fail to impose a uniform fiduciary standard or define key terms, most notably, what is a "best interest" standard.

Source: Planadviser.com, August 2018

Three Costly Pitfalls That Could Derail Your 401k Earnings

Abstract: When it comes to retirement savings, the 401k is the primary source of future income for many people. With so much on the line, there's little room for error. It goes without saying that you should save all you can and be sure to take full advantage of any match your employer offers. But also avoid costly pitfalls.

Source: Newsday.com, August 2018

The Reason Many DC Participant Communication Programs Fail

Abstract: One facet many participant communication professionals don't consider is intent, whether the individual participant is planning to make a change to his or her retirement plan account. Depending on their level of intent, participants will either require more specific information to inform their upcoming decision, or content that validates their current retirement saving strategies or motivates necessary changes.

Source: Marketstrategies.com, August 2018

What Makes a 401k Plan Sponsor a "Mark" for Litigation

Abstract: Certain 401k plan sponsors can be targets for litigation because they're showing something glaring that shows that they are not exercising their fiduciary duty in a prudent manner. To avoid being a "mark" for 401k litigation, the plan sponsor should avoid the items noted in this article.

Source: Jdsupra.com, August 2018

IRS and Use of Forfeitures to Fund Safe Harbor Contributions, QNECs and QMACs

Abstract: The IRS recently released final regulations confirming that employers can use plan forfeitures to fund qualified non-elective contributions (QNECs), qualified matching contributions (QMACs) and safe harbor contributions.

Source: Employeebenefitsblog.com, August 2018

Fiduciary Litigation: Best Practices for DC Plan Fiduciaries

Abstract: When employees allege the employer or plan sponsor has not acted in the sole interest of the participants or followed the plan requirements, the plan sponsor may be liable for losses and damages which result. However, by following the best practices for defined contribution plan fiduciaries, plan sponsors can avoid litigation and limit potential losses.

Source: Bsllp.com, August 2018

Did the TCJA Make Participant Loans From a Retirement Plan a Better Idea?

Abstract: How participant loan payback options to retirement plans have changed for the better. The TCJA helps employers get to keep their helpful plan loan provision and former participants don't have to worry about having no other option but to either take out a higher interest loan from a bank to cover their balance or take the tax and penalty hit.

Source: Benefit-Resources.com, August 2018

Four Valid Reasons for Borrowing From a 401k

Abstract: Your 401k is a nest egg, growing tax-free, that you build up over your working life to provide you with money after retirement. When it comes to financial decisions, a loan from a 401k usually qualifies as a last resort. Despite the drawbacks, there are a few legitimate reasons to borrow from your 401k.

Source: Bankrate.com, August 2018

Financial Wellness Programs Are Improving Retirement Plan Outcomes

Abstract: Employees are seeking their employers' help in the interest of saving more for their retirement future and are tapping into financial wellness programs with success. Employers are educating workers early and often. Plan sponsors are assisting plan participants and improving retirement readiness.

Source: 401ktv.com, August 2018

Citigroup, 401k Participants Agree to Settle ERISA Lawsuit

Abstract: The lawsuit alleged that Citigroup violated its fiduciary duties under the Employee Retirement Income Security Act by offering and keeping affiliated funds in its 401k plans when better-performing, lower-cost funds were available.

Source: Planadviser.com, August 2018

Are Annuities Coming to Your 401k?

Abstract: One of the most significant changes being considered, at least according to a Wall Street Journal article, would make it easier for 401k participants to invest in annuities. Annuities suffer from a terrible reputation, of course, owing to years to being oversold, often charging exorbitant fees, and being so complex that they're hard to analyze or compare. One consequence is that annuities do not play nearly as widespread a role in this country's retirement savings as most academic experts recommend.

Source: Marketwatch.com, August 2018

2018 Defined Contribution Plan Participant Survey Findings

Abstract: This survey reveals that, although participants are making progress and gaining confidence overall, more work is needed. In a series of three articles, J.P. Morgan discusses their findings and the steps plan sponsors can take to further strengthen their plans.

Source: Jpmorgan.com, August 2018

Seven Rules Every Professional Fiduciary Must Follow

Abstract: There are legal rules, then there are common sense rules. This article is about the common sense rules. Common sense refers to those standards and practices that helps one excel in the front lines of the real world. Here are seven very practical rules every professional fiduciary must follow.

Source: Fiduciarynews.com, August 2018

401k Chances for Pre-Election Tax Reform Looking Dimmer

Abstract: There is a great deal of uncertainty as to what, if anything, might make it into law between now and the midterms. At this point it would be a surprised if anything were to happen on the 401k front yet this term.

Source: Compliancedashboard.net, August 2018

Retirement: Everything You Need to Know About Collective Investment Trusts

Abstract: If you're saving for retirement, it's quite possible you're using not ETFs nor mutual funds but something a collective investment trust or CIT. What are CITs?

Source: Thestreet.com, August 2018

Less Is More: 401k/403b Account Consolidation

Abstract: The presence of inactive, small-balance accounts within the plan can be costly for participants and sponsors alike. The best option available for staving off the headaches associated with large numbers of these accounts is consolidation. A quick look at the causes and costs of this trend can help highlight the need for an effective plan for implementing account rollovers.

Source: Planpilot.com, August 2018

Court Orders Business Owner to Prison for Embezzling 401k Funds

Abstract: The court-ordered restitution includes $69,000 in employee and matching employer contributions, as well as lost earnings due to the 401k plan, and approximately $4.3 million for fraudulent loans and identity theft.

Source: Planadviser.com, August 2018

ARA Asks DOL for Clarity on Rollover Recommendations

Abstract: By clarifying the FAB's applicability to an adviser who is a fiduciary to the plan from which the rollover comes, the Department can ensure that participants are able to receive fiduciary advice from trusted advisers. Absent this clarification, we are concerned that legal risk and uncertainty may cause many fiduciary advisers and their financial institutions to avoid such rollover recommendations.

Source: Ntsa-net.org, August 2018

Almost Three Quarters of DC Advisors Offer Financial Wellness

Abstract: According to LIMRA Secure Retirement Institute, 73 percent of advisors report that they specifically offer financial wellness support in their defined contribution plans. Financial wellness programs offer the advisor an opportunity to use creative ways to provide value-added services and programs to their plan sponsor clients.

Source: Limra.com, August 2018

Appeals Court Upholds Dismissal of Wells Fargo 401k Lawsuit

Abstract: A federal appeals court in St. Louis upheld a U.S. District Court judge's dismissal of an ERISA breach claim against Wells Fargo & Co. by a participant in the company's 401k plan, who alleged fiduciaries could have offered a better-performing nonproprietary investment choice.

Source: Investmentnews.com (registration may be required), August 2018

Citigroup Reaches $6.9 Million Settlement in 401k Lawsuit

Abstract: Citigroup has reached a $6.9 million settlement with plaintiffs in a more than decade old lawsuit alleging the financial services firm stuffed its retirement plan with expensive in-house investments, thereby enriching the company at the expense of its employees.

Source: Investmentnews.com (registration may be required), August 2018

401k Robo Guideline Tries to Woo Advisers With New Service

Abstract: Guideline, one of several upstart companies trying to woo small 401k plans by pitching their relatively low costs and technology, has launched a product that targets retirement plan advisers.

Source: Investmentnews.com (registration may be required), August 2018

SEC Proposed "Modernization" of Fund Report Delivery Rules Impacts Both 403b and 401a Plans

Abstract: As a reminder that retirement plans do not exist in an ERISA "bubble," the SEC proposed Rule 30e-3 3 this past June which will fundamentally rework the manner in which mutual fund prospectuses, proxy material and other fund reports are delivered to shareholders. Why should this matter to retirement plans?

Source: Businessofbenefits.com, August 2018

"Multiple" Choices: All MEPs Not Created Equal

Abstract: If passed, under the Small Business Employees Retirement Enhancement Act, employers that have 100 or fewer employees who earned at least $5,000 during the preceding year and that participate in a pooled employer plan registered with the Labor Department would not be considered a fiduciary to that plan, including with respect to the selection and monitoring of any plan service provider or any investment under the plan. For the first time since the passage of ERISA in 1974, the employer would basically have no fiduciary role.

Source: Asppa.org, August 2018

Will Congress Enact Retirement Legislation This Year?

Abstract: Conventional wisdom suggests that chances are slim that retirement policy legislation will be enacted in the remaining days of the legislative calendar going into the mid-term elections, but this year might be different.

Source: Asppa.org, August 2018

Evaluating Retirement Income Solutions

Abstract: Long-term financial security is an ultimate goal of any retirement plan and account. And as average lifespans grow, the term "long-term" takes on heightened importance. Thus the rise of retirement income solutions that seek to help provide financial resources for a lifetime. But a retirement plan professional needs to be able to evaluate the effectiveness and worth of those solutions. A recent paper offers suggestions on doing just that.

Source: Asppa.org, August 2018

401k Changes in 2019: What to Know About Recent Tax Reform, Plan Design, and Financial Wellness

Abstract: This podcast tackles some thoughts for employers as they plan for 2019. Recent tax reform brought about a few changes to 401k plans that everyone should be aware of. It also looks at a few plan design options to think about as you consider changes to your plan for next year. And, since wellness is such a popular topic, it touches on a few ideas on financial wellness with simple enhancements to your retirement plan.

Source: 401kfridays.com, August 2018

Living on Easy Street in Retirement? Study Reveals Shaky Sense of Confidence

Abstract: About 64 percent of workers today say they think they will be able to retire comfortably, but when asked specific questions about being able to pay for health care and other long-term security issues, it's hard to understand where the confidence comes from. According to the 'Retirement Confidence' survey, only 1 in 5 workers and 4 in 10 retirees have actually done the math.

Source: Workforce.com, August 2018

What Every Advisor and Plan Sponsor Should Consider When It Comes to 404(c) Compliance

Abstract: One of the keys to good fiduciary practices is understanding that nothing can ever be put on autopilot. In order to receive the benefits of ERISA Section 404(c), plan fiduciaries must comply with certain requirements. This article's recommendations will help advisors and plan sponsors evaluate their efforts.

Source: Vestwell.com, August 2018

Bill to Create Auto-IRA Savings Program Before NJ Legislature

Abstract: The New Jersey Secure Choice Savings Program Act, a measure that would create an automatic enrollment payroll deduction IRA in the Garden State, is before the state Assembly and the state Senate. It is intended to promote "greater retirement savings for private sector employees in a convenient, low-cost, and portable manner."

Source: Ntsa-net.org, August 2018

OregonSaves Options May Expand

Abstract: OregonSaves, the state-sponsored auto-IRA program for private-sector workers in the Beaver State, may expand the savings options available to those workers. A report issued Aug. 1 by the office of Oregon State Treasurer Tobias Read indicates that on July 18 the state Treasury began a new round of rulemaking for the program and formed a rulemaking advisory committee of subject matter experts and stakeholders.

Source: Ntsa-net.org, August 2018

Fidelity's Zero-Cost Funds Raise Issues for 401k Advisers

Abstract: Fidelity Investments is making 401k advisers' lives a little more complicated. The zero-cost funds won't be offered to participants in defined-contribution plans, at least initially. But it's only a matter of time before Fidelity or another index-fund giant brings a no-cost fund to 401k investors.

Source: Investmentnews.com (registration may be required), August 2018

How Small Business Owners Overvalue 401k Plan Tax Deferral

Abstract: The allure of starting a small business employer retirement plan is easy to understand. As compelling as that might seem however, the caveat is that the upfront tax savings of making 401k salary deferral and profit-sharing contributions for owners isn't a tax savings for them. Instead, it's merely tax deferral, as those pre-tax contributions will eventually be taxable when distributed. Which is important, because the cash outlays made on behalf of the employees are a permanent expense that the owners will never be able to recapture.

Source: Kitces.com, August 2018

The Dangers of Putting Your 401k on Autopilot

Abstract: Among the biggest DC trends is the use of target-date funds to grow retirement wealth. According to a recent Vanguard report, nine in 10 defined contribution plan sponsors offered target-date funds as an investment option at the end of 2017. If your retirement plan currently includes target-date funds or you're considering them, it's important to balance their pros and cons.

Source: Investopedia.com, August 2018

ERISA Fiduciaries Can Learn Lessons From NYU's Victory in 403b Fees Case

Abstract: The NYU's victory was the first to come after a trial, and the court's finding of facts and conclusions of law provide lessons for ERISA fiduciaries and not just those embroiled in their own fee cases.

Source: Greensfelder.com, August 2018

QDROs in 10 Easy Steps

Abstract: This podcast discusses ten basic steps for how to manage qualified domestic relations orders (QDROs). A QDRO is a judgment, decree, or order for a retirement plan to pay child support, alimony or marital property rights to a spouse, former spouse, child or other dependent of a participant.

Source: Erisapracticecenter.com, August 2018

Tax Reform May Have Had Unintended Effect on Hardship Withdrawals Under 401k Plans

Abstract: The Tax Cuts and Jobs Act of 2017 may have had an unintended adverse effect on hardship withdrawals under 401k retirement plans, asserts the American Institute of CPAs. As a result, the professional accountant's advocacy group has formally requested the IRS to issue immediate guidance to clarify the intent of the new law as applied to 401k plan hardship withdrawals.

Source: Compliancedashboard.net, August 2018

Get Smart . . . To Achieve Retire-Ability

Abstract: Perhaps the easiest step an employer can take toward retire-ability is to embrace smart plan design in the company 401k plan. Two "smart" design features are automatic enrollment and automatic escalation. Their goal: to start employees saving for retirement and then help them reach the level of savings they need to achieve financial security once they leave the workplace.

Source: Alliant401k.com, August 2018

Two Strategies to Stay Top of Mind With Plan Sponsors

Abstract: With today's constant stream of information, doesn't it feel more challenging than ever to gain shelf space within the minds of 401k prospects? This article shares ideas on how you can create awareness that evolves into inbound leads. You'll learn to leverage two of the most time-efficient and affordable ways to deliver your message to plan sponsors and retirement plan decision makers.

Source: 401k-marketing.com, August 2018

Understanding and Solving the Problem of Women's 401k Cashout Leakage

Abstract: The data indicates that women with small 401k balances cash out much more frequently than their male counterparts. However, as women';s 401k balances grow, they become more likely than men to preserve their retirement savings. These behaviors suggest that a program of retirement savings portability could incubate women's small 401k balances, allowing them to more effectively grow their savings to higher balance levels.

Source: Wiserwomen.org, August 2018

Statute of Limitations Bars Claim That High Fees Made Plan's Investments Imprudent

Abstract: This case highlights the importance of "actual knowledge" under ERISA's statute of limitations for fiduciary violations. Not only does actual knowledge shorten the limitation period from six to three years, but it may also effectively prevent the use of a continuing violation theory of liability.

Source: Thomsonreuters.com, August 2018

Protecting Employee Benefit Plans With Cyber Insurance

Abstract: This article outlines reasons employers should consider obtaining cyber insurance, protections that a plan should include, possible drawbacks, and best practices for finding the plan with the appropriate coverage.

Source: Spencerfane.com, August 2018

An Annual 401k Audit is Not an IRS/DOL Plan Audit

Abstract: With the reporting deadline for employee benefit plans rapidly approaching, it is important to be familiar with the 401k audit compliance rules and to know the difference between an annual 401k audit performed by a CPA firm and an IRS or DOL 401k plan audit.

Source: Rpgconsultants.com, August 2018

Court Finds in Favor of NYU in 403b Plans Lawsuit

Abstract: A federal district court judge found that "while there were deficiencies in the Committee's processes -- including that several members displayed a concerning lack of knowledge relevant to the Committee's mandate -- ;plaintiffs have not proven that the Committee acted imprudently or that the Plans suffered losses as a result."

Source: Planadviser.com, August 2018

Retirement Plan Leakage Thwarts Automatic Enrollment

Abstract: With benefits from kick starting retirement savings to fostering participant engagement, automatic enrollment has proven itself to be an important plan feature. Yet, this does not acquit it from including its own set of drawbacks. A TIAA study finds the feature's benefit are continuously offset by pre-retirement withdrawals and plan loans.

Source: Planadviser.com, August 2018

Half of Retirement Savers Are "Chasers"

Abstract: Although 90% of active retirement savers agree that accumulating enough savings is important for their future, a significant subset is worried they are too far behind to reach this goal, a survey by Allianz Life found. Among Americans between the ages of 45 and 65 who are saving for retirement, Allianz Life found that 49% are "chasers" who think they need to catch up on their retirement savings.

Source: Planadviser.com, August 2018

Canada's Pensions in Great Shape?

Abstract: In a post-financial crisis world, many US public pension plans are finally beginning to see a light at the end of the tunnel, but others are still at their wit's end on how to crawl out of their obligatory holes. Canada, on the other hand, is doing just fine with most of its pension plans at either fully funded status or close to it.

Source: Pensionpulse.blogspot.com, August 2018

Demographic Differences in the Language and Imagery of Retirement

Abstract: This empirical study was conducted to understand people's perspectives toward retirement and to describe how views differ between people of various characteristics. Using the results of this analysis, financial planners can better address clients' emotional needs, rather than solely focusing on rational financial planning.

Source: Onefpa.org, August 2018

Funds from Proposed Savings Plan Could Be Rolled into 403bs

Abstract: New legislation would give any worker not currently covered by an employer-sponsored retirement plan access to a new type of retirement savings account, and would allow funds from them to be rolled into 403bs.

Source: Ntsa-net.org, August 2018

Why Your Retirement Plan Doesn't Work

Abstract: This webinar explores the reasons participant-directed defined contribution retirement plans fail and how to fix them. It covers behavioral finance biases that impact contribution levels, investment returns, utilization of lifetime income, and when participants retire. In addition, it reviews common sense fixes to behavioral finance problems.

Source: Multnomahgroup.com, August 2018

Funding 401k Corrective Contributions With Forfeitures

Abstract: The IRS has issued final regulations allowing forfeitures under a 401k plan to be used to fund corrective contributions. IRS rules require forfeitures under a plan to be used as soon as possible to pay administrative expenses, to reduce the employer's contributions or otherwise to be allocated among participants.

Source: Ktserisacorner.com, August 2018

Making Sense of Auto-Enrollment Rules

Abstract: While the IRS means well, when reviewing some of the regulations, one cannot help but wonder if someone was thinking, "How can I make this as difficult to understand as possible?" Such is the case with automatic enrollment.

Source: Cammackretirement.comg, August 2018

Partial Termination of Your Qualified Retirement Plan: Don't Let It Sneak Up on You

Abstract: What some plan sponsors may not be aware of is that it is possible for a plan to experience a "partial termination" even if the plan sponsor did not intentionally initiate a termination. Because this can occur over time, partial terminations frequently sneak up on plan sponsors. The fact that a partial termination may be discovered long after it occurs can complicate taking necessary measures and require correction to maintain the plan's tax qualified status.

Source: Boutwellfay.com, August 2018

New Policies Needed to Empower Plan Sponsors to Think Outside the Box

Abstract: Plan sponsors and American employees are locked into an antiquated retirement system that has not kept pace with changing demographics, and according to industry experts, US lawmakers and new strategies can help.

Source: Benefitnews.com (registration may be required), August 2018

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