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Defined Contribution Plans
The Department of Labor (DOL) could do a better job of encouraging lifetime income options, the Government Accountability Office (GAO) says in a new report. The report, issued Sept. 8, is aimed at plan sponsors, but service providers may find it instructive since it makes recommendations on how the...
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The IRS on Aug. 30 announced a significant relaxation in the restrictions that normally apply to plan loans and hardship distributions to Louisiana flood victims and members of their families.In Announcement 2016-30, the IRS says that the following individuals may be eligible to take advantage of...
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The IRS recently issued its 2016-17 Priority Guidance Plan, and it contains an array of goals for projects relevant to retirement plans. The plan outlines objectives the IRS intends to pursue during the period July 1, 2016-June 30, 2017.The IRS’ plans include the following projects relevant to...
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A plan trustee and recordkeeper — and a couple of large employers — have been sued for allegedly misusing the float income generated by their plans.The suit, filed in the U.S. District Court for the Northern District of California, challenges the plan fiduciaries of the Hewlett-Packard Company 401(...
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Each year the good folks at Beloit College produce a “Mindset List” providing a look at the cultural touchstones that shape the lives of students about to enter college. So, in what ways will their retirement plans differ from those of their parents?In the most recent list (they’ve been doing it...
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There’s good news in a recent report on retirement saving and consumer attitudes toward it. But at the same time, it also provides fresh proof of changes in the retirement sphere as well as challenges to be faced.Two reports by LIMRA, “For-Profit Sector Employees: 2016 Consumer Survey Update” and “...
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One could hardly read the headlines this past week without experiencing a certain sense of déjà vu. After all, it’s been not quite 10 years since the then relatively obscure St. Louis-based law firm of Schlichter, Bogard & Denton launched about a dozen of what have come to be referred to as “...
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Earlier this year I wrote a post about ERISA litigation going “off the rails.” Alas, it feels like we've gone from bad to worse since then.In the past week, a whole new round of lawsuits involving academic institution 403(b) plans has hit the news. Despite the “newness” of the targets (large...
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Plan sponsors are often reluctant to take big steps in making plan changes — but a new participant survey finds that workers would welcome more aggressive defaults.According to a national survey conducted by American Century Investments: Eight out of 10 employees want at least a “slight nudge” from...
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A new report finds that two factors appear to influence defined contribution plan participants’ loan activity.That report by the Investment Company Institute (ICI), “Defined Contribution Plan Participants’ Activities, First Quarter 2016,” notes that those two factors are a reaction to financial...
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The market may be up right now, but it’s no secret that it can be a rollercoaster, with peaks and valleys that can be quite dramatic and jarring. Those undulations affect many people — and those saving for retirement are among them. In a recent article in FiduciaryNews, Christopher Carosa offers...
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Much has been said about the shift from defined benefit to defined contribution plans. It’s really conventional wisdom. To be sure, an employer and plan administrator will have to contend with regulatory details in making such a change — but they’re not the only parties for which that transition...
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There is qualified good news for retirement plans based on results concerning second quarter and July performance, according to two recent analyses.Average 401(k) and IRA balances grew from the first to the second quarter of 2016, reports Fidelity Investments. Average 401(k) balances grew by almost...
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Defined contribution plans have grown and proliferated, while the converse has been true for the defined benefit universe. That’s not secret. But what may be more unusual is the argument BNY Mellon makes in a recent paper that applying the principles of DB plan administration can benefit DC plans....
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It’s hard to believe, but the Pension Protection Act of 2006 will be a decade old next month. And it’s probably done more good for the nation’s retirement security than most realize.The PPA drew its name from the portions targeted at shoring up defined benefit plans (and PBGC funding, I suppose),...
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The expense ratios that 401(k) plan participants incur for investing in mutual funds have declined substantially since 2000, according to a report from the Investment Company Institute (ICI).In 2000, 401(k) plan participants incurred an average expense ratio of 0.77% for investing in equity funds....
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Yet another financial services provider finds itself accused of financial self-dealing in the operation of its 401(k) plan.The most recent suit, brought in the United States District Court for the Western District of Missouri Western Division by a current and former participant of the American...
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We’ve just posted the latest issue of Plan Consultant magazine on ASPPA Net. The Summer issue features a cover story on the rise of robo record keeping and addresses whether today’s tech-based start-ups constitute an opportunity or a threat to traditional players.In addition, an excerpt from...
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Employer-provided retirement benefits in general are holding steady, according to the Society of Human Resource Management (SHRM). In “2016 Employee Benefits: Looking Back at 20 Years of Employee Benefits Offerings in the U.S.,” SHRM reports that some aspects of employer-provided retirement...
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This year, there were three named tropical systems in the Atlantic Ocean by June 5 — the first time ever that there were three named storms by such an early date. And two of them made landfall in the United States. With the official Atlantic hurricane season just begun (the National Oceanic and...
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