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Defined Contribution Plans
A recent paper was titled “COVID 19 Is Not a Retirement Story.” A week later, an article on Forbes.com said: “COVID-19 Is Most Certainly a Retirement Story.” So, which is it?
As it turns out, the former was authored by the folks at the Center for Retirement Research (CRR) at Boston College—who...
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The new edition of the 401k Averages Book reveals that 401(k) total plan costs declined for both small and large retirement plans, with investment fees leading the decline, though smaller plans are still paying slightly more in fees.
According to the 21st edition of the book, the average total...
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One of the largest 401(k) excessive fee suit settlements—$39.8 million—has been approved.
The settlement arose in a case involving Reliance Trust and its role regarding the Insperity 401(k) Plan, in which the plaintiffs—represented by the law firm of Schlichter Bogard & Denton—were enrolled....
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A federal appellate court has ruled that Fidelity’s FundsNetwork supermarket is… a supermarket, and again rejected claims that Fidelity’s relationship with those fund companies made it a fiduciary.
The Gist
Ultimately, while the appellate court acknowledged that Fidelity does have some fiduciary...
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New survey results show that a strong majority of Americans have a favorable impression of defined contribution plans and disagree with potential changes affecting current tax features.
According to the Investment Company Institute’s updated study, “American Views on Defined Contribution Plan...
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Despite economic uncertainty, ongoing individual contributions remained strong, helping to boost average retirement account balances to record levels during the fourth quarter of 2020.
According to Fidelity Investments’ quarterly analysis of retirement savings trends, the average 401(k) balance...
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Concern about retirement and paying for it cuts across sharp societal divisions and has been heightened by the pandemic; nonetheless, confidence regarding some saving vehicles persists, says a recent report.
In the National Institute on Retirement Security (NIRS) study “Retirement Insecurity 2021...
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Could contributions to Health Savings Accounts (HSAs) actually “crowd out” contributions to 401(k)s?
A chart book just published by the Employee Benefit Research Institute (EBRI) suggest that the answer is—yes. It’s a conclusion—or at least a provocative question—that runs counter to the...
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Once again, plaintiffs find the “more harm than good” bar too high to clear in employer stock litigation.
This time the plaintiff is one Adele Varga, and she is appealing the March 5, 2020 judgment of the U.S. District Court for the Northern District of New York that dismissed her class action...
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COVID-19, along with the measures adopted to address the pandemic’s effects and the actions taken under those measures, have had unexpected effects—including an impact on plan audits.
The changes that have taken place, as well as the pandemic itself, have affected both plan sponsors and...
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At the time of its passage, many in the retirement industry were concerned that the CARES Act would “open the floodgates” to a large percentage of workers cashing out years of retirement savings.
Fortunately, that did not happen, according to an analysis by Vanguard of its DC recordkeeping data...
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Framed as a tax on Wall Street, a new study contends that a financial transaction tax in reality would threaten the retirement savings of millions of Americans.
Legislation has been introduced at the federal and state level, including a new bill to implement an FTT in response to the market frenzy...
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Based on conversations with thousands of employers, surveys and internal data, Fidelity has shared what it views as some of the top employee benefit trends for 2021.
Fidelity found that employers are increasingly viewing benefits in terms of diversity and inclusion and how benefits will serve all...
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It was an up-and-down year for the markets, rewarding those who stood pat, but it appears that some 401(k) plan participants broke the cardinal rule about selling low and buying high.
According to the Alight Solutions 401(k) Index: Full Year 2020 Observations, 401(k) investors in 2020 were busy...
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The digital version of the latest issue of Plan Consultant is now available online.
The cover story is a recap of the 2020 ASPPA All Access virtual conference, delivered online over the course of three weeks in October and November.
The event captured the tenor of our time, presenting...
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A new case of 401(k) theft has led to a lawsuit by the participant—and the plan—against a provider.
The suit—filed by Raymond J. Mandli and Mandli Communications, Inc.—alleges that on Feb. 14, 2020, “American Trust made an unauthorized distribution in the total amount of $124,105 from Mr. Mandli’s...
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A lawsuit filed against a (relatively) small plan has been dismissed—essentially for failing to state sufficient specific allegations to warrant going to trial.
This suit, filed in February, targeted the 401(k) plan of Vail Resorts, which as of 12/31/18 had 8,276 participants with account balances...
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While 2020 proved to be a volatile one for U.S. stock markets, it also proved to be record-breaking—and that bodes well for the average 401(k) balance.
That’s right—after plunging into a bear market earlier in the year by the end of 2020, the S&P 500 climbed 16.3% to end the year at a record,...
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The Department of Labor (DOL) has indicated, at least in one case, that it will allow defined contribution plans to offer indirect investment in private equities. A recent blog entry offers food for thought regarding private equity and considerations concerning such investments.
In “Understanding...
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At the end of every year, and as we approach a new one, it’s natural to look back at experiences and lessons learned—and to ponder ways to apply them productively going forward. Here’s some thoughts from 2020 that I hope will help you do just that.
3 Things That (Seem to) Scare Plan Sponsors...
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