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Technical Resources
While assets in IRAs are larger than those in DC plans, the vast majority of their growth comes from rollovers, according to research from EBRI. The EBRI database covers $2.09 trillion of the ICI-estimated $5.6 trillion in IRAs as of the end of 2012 and includes 25.3 million accounts for 19.9...
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The Joint Economic Committee, a bicameral congressional committee charged with studying matters relating to the United States economy, held a hearing May 21 that examined the unique issues that women face in retirement. Sen. Amy Klobuchar (D-Minn.), vice-chair of the committee, convened the hearing...
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Exercising the fiduciary duties of prudence and disclosure regarding target date funds (TDFs) can be challenging, and a white paper by Richard Glass of Investment Horizons, Inc. discusses the issues 401(k) fiduciaries face and provides suggestions for addressing them. In “Does Your Approach to...
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A recent study by Financial Engines and Aon Hewitt says that if a plan participant invests all or nearly all of their retirement assets in in target date funds (TDFs), it can affect returns. Barrons also weighs in on the issue, quoting Bloomberg’s Ben Steverman. Steverman cites “Help in Defined...
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With the growth of auto-plan features, plan sponsors are subject to many misconceptions and fears that prevent them from doing the right thing for their employees. Missouri-based Pension Consultants Inc. identifies the seven biggest misconceptions about auto features, and provides solid answers...
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The PBGC wasted no time in responding to a study critical of proposed increases in PBGC premiums. It issued its response on May 14, the same day the Pension Coalition released “Increasing Pension Premiums: The Impact on Jobs and Economic Growth,” reports BenefitsPro. The PBGC agreed that premiums...
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Auto enrollment and escalation can be very useful in boosting plan participation and setting in motion all the good effects that result from that. But like medicines, they should be used properly — and if they’re not, they can cause harm. So argues a new white paper from Milliman, “Auto enrollment...
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Some states and cities have found that cutting cost-of-living adjustments (COLAs) to the pensions they provide their employees is a way to loosen the financial vise of pension liabilities and a shaky economy. The Center for Retirement Research of Boston College in its recent study, “COLA Cuts in...
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On May 15, the IRS issued Notice 2014-37 containing additional post-Windsor guidance for 401(k) or (m) safe harbor plans in response to an informal request by the ASPPA Government Affairs Committee. The guidance confirms that a mid-year amendment to a safe harbor plan will not affect the plan’s...
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Lauding the federal Thrift Savings Plan as “one of the most efficient savings plans in America,” Sen. Marco Rubio (R-Fla.) urged that the DC plan for federal employees be made available to private workers nationwide. Rubio, a potential 2016 presidential candidate, floated the idea in a May 13...
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Some 30 percent percent of small businesses say it is at least somewhat likely they will eliminate their existing retirement plans if the DOL adopts its proposed, expanded definition of a fiduciary, according to a study by Greenwald & Associates released May 14. In addition, almost half the...
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ASPPA and other groups that represent thousands of employers urged the U.S. Senate and the House of Representatives in separate letters to oppose any efforts to further increase premiums paid to the Pension Benefit Guaranty Corporation by sponsors of single-employer DB plans. “We urge you to...
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The IRS will soon launch a new pilot program that will give relief to certain plan sponsors and administrators from penalties for filing the Form 5500 or Form 5500-EZ late. Only those who are not entitled to automatic relief under Title I of ERISA will be eligible under the pilot program. The IRS...
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Concerns about the impact and usefulness of the 408(b)(2) summary guide rule the DOL proposed in March are building and coalescing. Groups representing large plan sponsors and advisors have expressed concern about the proposal. And earlier this year, a coalition of industry groups that includes...
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Maryland Gov. Martin O’Malley (D) has created a task force to explore how his state can improve retirement security for private sector employees, with an eye toward recommending further action.According to a press release, the task force will meet this year “to conduct a comprehensive examination...
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Speaking at a Washington legislative update meeting on May 5, Assistant Labor Secretary for the Employee Benefits Security Administration Phyllis Borzi said that while there is no set date for issuing the rule that will redefine fiduciary, she will not wait forever. Most insiders predict that the...
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Workers are more concerned about — and more interested in doing something about — their retirement income than they are about financing their health care, a new Towers Watson study reveals. In fact, not only are they more concerned about setting something aside for their retirement, a majority said...
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The Connecticut legislature passed legislation May 8 that would establish a board to study, and then implement, a public retirement plan for private sector employers. The measure awaits the signature of Gov. Dannel Malloy (D); ASPPA sent the governor a letter supporting the bill and urging him to...
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Much has been made about providing fee disclosure statements to plan sponsors and participants. But a paper by Mercer and the Stanford Center on Longevity, “Retirement Income Statements May Help Avert a Looming Crisis,” suggests that participants would be at least as interested — if not moreso — in...
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The Office of Management and Budget has approved revisions to the Pension Benefit Guaranty Corporation’s standard termination, distress termination and missing participants forms and instructions. The new forms and instructions can be found on the Plan Terminations page of PBGC’s website. These new...
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