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Fear of running out of money during retirement is common, but it’s mitigated by interest in saving — the importance of which is not lost on younger employees, according to a new BoA Merrill Lynch report. The Spring 2014 Merrill Edge Report is based on a semi-annual study that looks at the concerns...
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The political dynamic at play between the House of Representatives and the Senate regarding the annual federal spending bills also applies to taxes, as Congress considers tax legislation that includes provisions impacting IRAs and multi-employer pension plans. As with federal spending bills, the U....
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The ASPPA Annual Conference — an ideal opportunity to share quality time with representatives from every aspect of the retirement plan industry — will be held Oct. 26-29. Registration for the 2014 conference is now open.With the dynamics of the workforce changing and many converging disruptors to...
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More often than not, employees who obtain investment advice do not follow it. And that’s among those who bother to seek it in the first place. The Employee Benefit Research Institute’s 2014 Retirement Confidence Survey suggests that advisors have some work to do in boosting plan participants’...
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Relying on the Ninth U.S. Circuit Court of Appeal’s decision in Owens v. Auto Machinists Pension Trust, the Alaska Supreme Court ruled in Boulds v. Nielsen that the benefits payable from an ERISA-covered defined benefit plan can be divided between domestic partners as “marital property” pursuant to...
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The so-called DoL “conflict of interest rule for investment advice” — formerly known as the fiduciary redefinition rule — has been delayed until January 2015. The delay was revealed in a posting of the Office of Management and Budget’s Office of Information and Regulatory Affairs, which notes that...
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This white paper by Lowell M. Smith of Inspira looks at the problems posed by uncashed pension checks, which include handling interest on the funds awaiting transfer, notification requirements and how appropriate corrective actions are, not to mention the added complication of there being no clear...
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More than 90 percent of the plan sponsors that filed their final Form 5500 filings the IRS Employee Plans Compliance Unit (EPCU) examined in its “Final Return With Assets Project” had at least one error, the IRS reports. Final Forms 5500 are required even if a plan has been exempt from filing a...
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The ASPPA Board of Directors has decided that the best way to serve the society’s traditional members going forward is to create a new sister organization focused solely on their unique needs and concerns. The Board has recommended keeping the ASPPA name for the new sister, given its almost 50-year...
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A May 21 Senate Finance subcommittee hearing that purported to be about strengthening Social Security morphed into a critical discussion of the merits of the defined contribution system and industry. Testifying at the hearing held by the committee’s Subcommittee on Social Security, Pensions, and...
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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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