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Technical Resources
If the Senate Committee on Homeland Security and Government Affairs has its way, the Department of Labor has some ’splaining to do on its fiduciary regulation reproposal.In a Feb. 5 letter from Committee Chairman Ron Johnson (R-Wisc.) to Secretary of Labor Thomas Perez, the committee requests that...
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The world’s pension assets grew 6% last year, and now amount to around 84% of global Gross Domestic Product (GDP), substantially higher than the 54% recorded in 2008.That growth means that global institutional pension fund assets in the 16 major markets have now reached a new high of $36 trillion,...
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The Department of Labor’s Employee Benefits Security Administration (EBSA) on Feb. 4 updated five frequently asked questions concerning electronically filing the Form 5500 via the EFAST2 system.Following are the changes EBSA made: FAQ 4. This FAQ concerns how to submit a delinquent or...
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The IRS cautions that entering incorrect information — or in some cases, leaving a field blank — on the Form 5500 increases the likelihood of being targeted for a compliance check.The IRS cites the following examples of these types of errors: Sponsors incorrectly entered 0 participants or left...
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A new survey finds that more than three-quarters (76%) of Baby Boomers who retired within the past five years felt “in control” of their decision to retire.But while very few new retirees who felt in control leading up to their retirement day have second-guessed themselves (98% say they are...
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The Department of Labor (DOL) has placed 150 multi-employer pension funds in critical status, and another 85 on the list of plans it calls endangered.According to the DOL: to be in critical condition, a plan has to have so few assets that it cannot meet 65% of its future obligations; and to be...
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In addition to proposals for a retirement savings cap, double-taxing contributions of those above the 28% tax bracket, and encouraging automatic enrollment, President Obama’s budget blueprint for fiscal year 2016 contains proposals that would change the tax treatment of IRAs and qualified...
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President Obama’s 2016 budget has been issued, and while parts could expand retirement plan coverage, others are likely to undermine those good intentions. No surprise, but the $3 million cap on the value of retirement benefits and the double tax on contributions for those above the 28% tax bracket...
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One of my favorite movies — and perhaps my favorite “holiday” movie — is Groundhog Day, the 1993 film starring Bill Murray as an arrogant weatherman who finds himself stuck in Punxsutawney, Penn. by a blizzard, who then discovers that he is also “stuck” reliving Feb. 2 — over and over and over. A...
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Deferral and savings rates in 401(k) plans improved at a stronger rate than expected in 2014, recent studies reveal.According to Cogent Reports found that almost one-third of participants increased their contributions in 2014. That’s almost 12 percentage points higher than the number who in 2013...
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The Pension Benefit Guaranty Corporation (PBGC) on Jan. 29 announced that the Office of Management and Budget has approved revisions it made to the forms and instructions for standard and distress terminations and missing participants.Under the revisions, a plan administrator of a plan terminating...
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The White House memo on the DOL’s proposal to redefine what constitutes a fiduciary continues to engender negative reaction. Tim Pawlenty, CEO of the Financial Services Roundtable, weighed in on Jan. 28, according to ThinkAdvisor, calling the memo “overly broad” in its condemnation of the financial...
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The 114th Congress has gotten off to a quick start with retirement legislation.During the week of Jan. 25, Collins-Nelson Retirement Security Act of 2015 (S. 266) was introduced in the Senate, while a companion bill, the Retirement Security Act of 2015 (H.R. 557) was introduced in the House. The...
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Your clients offer 401(k) plans, and all have 401(k) plan committees. Those committees have fiduciary responsibility, and it’s in your clients’ interest to make sure they are fulfilling their duties. They can do that through meetings of those committees and quarterly reviews, our friends at the...
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The ERISA Advisory Council has thrown its support behind the notion of multiple employer plans as a means of encouraging plan formation.The recommendation came as part of a series of suggestions regarding outsourcing employee benefit plan services following hearings held by the ERISA Advisory...
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The Pension Benefit Guaranty Corporation (PBGC) was not arbitrary and capricious when it concluded that Kentucky Bancshares was obliged to comply with the Section 1107 of the Pension Protection Act (PPA) as well as ERISA’s standard termination requirements when it terminated its retirement plan and...
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A year ago, President Obama touted the voluntary MyRA in his State of the Union Address — but the White House has a lot more to say about retirement this year — and it’s a lot less voluntary.According to a White House fact sheet, the administration is touting a series of retirement tax reform...
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Reports of hacks, identity theft and more highlight the importance of making sure information about plan participants and beneficiaries is secure. In fact, it’s more than a good idea — it’s part of a fiduciary’s duty.The 401(k) HelpCenter suggests questions to ask to make sure participants’ and...
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Funding levels of pension plans sponsored by the S&P 1500 fell by 9 percentage points in 2014, from 88% to 79%. According to Mercer, the plans’ collective deficits more than doubled last year, reaching $504 billion at year-end.The plans had been doing well in 2014, Mercer said, having benefited...
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The 7th U.S. Circuit Court of Appeals has outlined the conditions for determining the existence of a partial plan termination, ruling on the fifth appeal of what it called a “seemingly interminable class action suit.”The ruling came in a case filed just two months short of 19 years ago, in which...
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