ASPPA

Plan Administrator
BlueStar Retirement Services, Inc.
in FL

Assistant to Pension Plan Administrator
Yang's Pension Consulting
in CA

Executive Director
City of Pontiac General Employees' Retirement System
in MI

Lead Manager, Retirement Plan Service (RPS) Institutional Marketing
T. Rowe Price
in CO, MD

Manager, Ascensus Consulting
Ascensus
in IN

Associate Vice President & Regional Sales Consultant
United Retirement Plan Consultants
in CA

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Correcting Retirement Plan Mistakes Using IRS Correction Programs
September 4, 2014 WEBCAST
(IRS [Internal Revenue Service])

2014 Webinar: Conducting Your Own Compliance Audit
September 9, 2014 WEBCAST
(Ascensus)

2014 Webinar: Rollovers Between Retirement Plans and IRAs
September 11, 2014 WEBCAST
(Ascensus)

Conducting and Updating HIPAA Risk Assessments: Essential Steps for Employer Plans and Business Associates
September 18, 2014 WEBCAST
(Thomson Reuters / EBIA)

Inside the Beltway Series
September 18, 2014 WEBCAST
(Drinker Biddle & Reath LLP)

View All Webcasts and Conferences

NIPA [National Institute of Pension Administrators]

[Official Guidance]

Text of DOL Request for Information Regarding Standards for Brokerage Windows in Participant-Directed Individual Account Plans
"[T]he RFI will focus on why, under what circumstances, and how often these brokerage windows are offered and used in ERISA plans, and the legal and policy issues that relate to such usage. The Department wants to make sure that participants are not exposed to undue risks from brokerage windows and that plan fiduciaries properly understand the scope of their ongoing responsibilities with respect to brokerage windows. The information received in response to this RFI will assist the Department in determining whether, and to what extent, regulatory standards or safeguards, or other guidance, are necessary to protect participants' retirement savings.... Interested persons also are encouraged to address any other matters they believe to be germane to the general topic of this RFI." (Employee Benefits Security Administration [EBSA], U.S. Department of Labor)  

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[Guidance Overview]

DOL Guidance Provides Help for Finding Your Plan's Missing Participants
"The decision to set up an interest-bearing account or transfer the funds to the state should be an absolute last resort because these two options have potential adverse tax consequences to the participant. In fact, according to the DOL, 'a fiduciary would violate ERISA section 404(a)'s obligations of prudence and loyalty by causing such negative consequences rather than making an individual retirement plan rollover distribution.'" (Littler)  

[Guidance Overview]

IRS Guidance on Application of the Windsor Decision to Retirement Plans (PDF)
5 pages. "[S]ome plans had extended spousal rights and benefits to same-sex spouses prior to the Windsor decision under special provisions that may have also covered domestic partners and civil union partners. Sponsors of these plans need to carefully review all such provisions and make appropriate amendments, keeping in mind that domestic partners and civil union partners are not considered to be spouses under any IRS guidance issued so far." (Prudential)  

Embracing the Trend: Has Your 401(k) Plan Considered Relaxing Eligibility Requirements?
"If the plan's goal is to help participants become ready for retirement, then relaxing the eligibility requirements could help them save sooner and longer. If your plan hasn't embraced the trend of loosening participant eligibility, then ask yourself some simple questions: What is the primary purpose of having the current eligibility period? Is the eligibility period satisfying its purpose? Does the current eligibility period drive positive participant behavior results?" (Pension Consultants Inc.)  

Inside the Structure of Defined Contribution/401(k) Plan Fees, 2013: A Study Assessing the Mechanics of the 'All-In' Fee (PDF)
36 pages. "Many fee structures and arrangements exist in the defined contribution marketplace. Plan size (in terms of number of participants) was found to be a significant driver of a plan's 'all-in' fee. Larger plans tend to have lower 'all-in' fees as a percentage of plan assets. A correlation also exists between the 'all-in' fee and the average participant account size in the defined contribution plan. Plans with larger average participant account balances tend to have lower 'all-in' fees as a percentage of plan assets. Plans with a higher percentage of plan assets invested in diversified equity holdings tend to have higher 'all-in' fees" (Investment Company Institute [ICI])  

[Advert.]

Register for P&I's West Coast Defined Contribution Conference

Learn how to provide an adequate retirement income for your participants at our annual DC West conference, where you will meet and hear from experts on the most pressing investment, legislative, plan design and education and communication issues.

Why a Roth Conversion May Be a Bad Idea Even If Taxes Are Higher in the Future
"[T]he simple reality is that there are many paths to higher tax burdens in the future that don't necessarily involve higher marginal tax rates on IRA withdrawals. Which means ultimately, advisors should be very cautious about doing Roth conversions -- especially conversions at rates that are 33% or higher -- and the best possible thing to do with a pre-tax IRA may simply be to continue to hold it, and wait for tax burdens to increase... because when paired with a compression of tax brackets that leads to lower marginal tax rates, not converting to a Roth could actually be one of the best long-run tax savings strategies around!" (Michael Kitces in Nerd's Eye View)  

ERISA Accounts and Fiduciary Duties (PDF)
"By recapturing fees, ERISA accounts help solve the issue that arises when a recordkeeper receives revenue sharing that exceeds the fee stated in its contract with the plan.... Very large plans may be less interested in establishing ERISA accounts, because they tend to have less revenue sharing, given the availability of alternative investments, such as separate accounts and collective trusts. However, due to the unpredictability of revenue sharing payments from year to year, best practice suggests that most plan sponsors consider the use of some kind of fee recapture account." (The Wagner Law Group)  

Ensuring Participant 401(k) Contributions and Loan Repayments Meet DOL Regs
"The most effective way to ensure that standards are met is to implement internal controls with set procedures.... Frequent payroll reconciliations -- once a month (or every pay period)... Deposit with each payroll ... Review and sign off on manual input ... Reconcile totals with each pay period ... Annually, review total deferrals per the W-3 to a list of payroll periods with the pay date and related deferral amounts ... Cross-train employees on payroll deposit procedures." (Retirement Management Services)  

Variable Annuities Rise on Regulators' Radar
"One particularly troublesome area involves advisers persuading clients to liquidate one variable annuity to buy another, say regulators in Illinois, Florida and Massachusetts. Investors may think they are getting a better product with better terms, but they can be hit with large surrender fees and tax bills." (The Wall Street Journal; subscription may be required)  

2014 Retirement Confidence Survey of the State and Local Government Workforce
"One-third of public sector employees have been with their current employer for less than 10 years and one-third for 20 years or longer. When considering the future, two-thirds do not expect to leave their current employer anytime soon. Respondents ranked job security, health insurance, retirement benefits, and salary as the most important job elements they would consider in deciding whether to switch employers. The vast majority of state and local employees are covered by a primary defined benefit pension plan and expect to receive retiree health care benefits; one-quarter of these workers reported changes to these benefits over the past two years and one-quarter expect (more) changes in the next two years." (Center for State and Local Government Excellence, and TIAA-CREF Institute)  

Proposal Would Extend the Federal Thrift Savings Plan to 78 Million Americans
"Recently, members of Congress reintroduced the idea of opening the government-employees-only Thrift Savings Plan (TSP) to all Americans not currently covered by an employer-sponsored plan.... With [Thrift Savings Plan (TSP)] membership this massive, government agencies would have a greatly increased, more powerful role in the retirement savings industry, and selection of investment fund options might take on a political element (at least the perception of such).... Potential compliance issues would be introduced as the TSP is exempt from ERISA and [IRS] regulations that govern the private sector." (Milliman Retirement Town Hall)  

The Art and Science of Stable Value Investment Guidelines: Optimizing the Balance Between Risk and Return (PDF)
7 pages. "This [article] focuses on the role that investment guidelines play in enabling stable value to appropriately balance market opportunities with effective risk management in all types of market conditions. It suggests that stable value has reached an inflection point at which stable value wrap providers, asset managers and the plan sponsor community they serve should consider taking a fresh look at stable value investment strategies and guidelines to ensure that they appropriately balance the opportunities of the current market environment with return expectations and liability risks." (MetLife)  

Pushed to Make Own Choices, Investors Turn to Advisors for Help with Retirement Planning (PDF)
14 pages. "Nearly three in four (72%) investors have saved at least $250,000 for retirement. Despite significant savings, investors lack deep knowledge regarding financial products. 62% of investors save through a broker or financial planner. Investors rely more on the recommendation of their advisors to select investments than any other factor. Nearly four in 10 investors own annuities." (Insured Retirement Institute [IRI])  

Providing Compliant Services for Participant Rollovers: The Duties of Broker-Dealers and RIAs
"[T]he compliance procedures and 'scripts' for participants with small account balances are often more difficult to develop than for the individualized treatment that can be financially justified for wealthier participants. Nonetheless, the regulators -- FINRA, the SEC and the DOL -- now expect broker-dealers and RIAs to have compliant procedures for 'capturing' IRA rollovers.... [T]his is not an easy job." (FredReish.com)  

DC Benchmarking Survey, 2013-2014 Edition: Stronger Economy Provides Building Blocks for Positive Trends in DC Plans (PDF)
85 pages. "[T]he survey revealed that the number one reason for lack of employee participation in a DC plan is no longer 'uncertain economy/job market' (14% in 2013 compared to 24% in 2012), shifting to 'lack of awareness or understanding' (30% in 2013 compared to 21% in 2012) ... [T]he survey showed the average employee participation rate climbing to 77% in 2013 from 71% in 2012, and the average account balance rising to more than $95,000 in 2013 from $85,600 in 2012. This is welcome news for 51% of plan sponsors that ranked 'high level of participation' as the top indicator of plan effectiveness." (Deloitte)  

U.K. Retirement Savings and Income Market Could See Wave of New Products
"[T]he main focus will be on income drawdown followed by products with capital and income guarantees, then U or J shaped annuities where income can go up as well as down to match retirement income needs, and investment structures concentrating on residential properties." (State Street Corporation)  

[Opinion]

Former DOL Deputy Director Declares Scandal in IRA Rollovers
"The current standards allow brokers to present sales pitches that appear to be similar to investment advice. Retail investors have a difficult (impossible?) time distinguishing between a sales pitch and unbiased advice. The result is that many investors are lured away from appropriate and low-cost investments into higher-priced investment vehicles sold by someone who puts his or her own fees ahead of the best interests of the investor. Allowing these practices just adds to the many challenges people face in saving for retirement. Financial advisors should be in the business of helping people succeed at investing. Period." (Employee Fiduciary)  

[Opinion]

America Has a Retirement Spending Problem
"The ongoing debate about Americans' saving behavior during their working years ... misses the equally important question of whether retirees will spend their nest egg in the right way. For millions of older Americans, securing a sound retirement means both accumulating wealth while working and, importantly, transforming that wealth into lifetime security through vehicles such as annuities, long-term care insurance, and even reverse mortgages.... The problem for many retirees is that they simply don't have access to or knowledge of insurance products that can help to provide security." (The Brookings Institution)  

[Opinion]

Text of Letter from ASPPA and ACOPA to IRS Requesting HTFA Funding Guidance (PDF)
6 pages. "ASPPA and ACOPA recommend that the IRS issue guidance that minimizes the additional time and expense required to comply with the [Highway Transportation Funding Act of 2014 (HTFA)] .... If the schedule SB for a plan year beginning in 2013 has already been filed, no supplemental or amended filing should be required... Rules similar to those in Notice 2012-61 should apply for plans that apply the extended 10% corridor to the 2013 plan year for purposes of Section 430 or Sections 430 and 436 and to all plans for 2014 plan years ... An election to elect out of HTFA segment rates for 2013 must not be considered an election to opt out of using the modified funding target determination period provided in section 2003(d) of HTFA." (American Society of Pension Actuaries [ASPPA] and ASPPA College of Pension Actuaries [ACOPA])  

[Opinion]

Lobbying to Replace the 401(k) Model Is Lunacy
"401k plans are the most successful savings vehicle in history... [C]ritics often paint 401k plan liquidity features as a negative, but these features are a huge advantage and one of the primary reasons low income workers participate. Another major positive is the fact that 401k plans do not require annuitized payouts. The states are positioning to reassert their rights and while some of the proposals may provide an income stream that can't be outlived, many of the payouts will be next to nothing. This is also the worst possible time in history to annuitize an income stream, something the media, policymakers, and academics conveniently ignore." (Phil Chiricotti, via Fiduciary News)  

ISS Announces Equity Plan Data Verification Portal for Issuer Review (PDF)
"On August 14th, Institutional Shareholder Services (ISS) announced the release of a new portal for companies to review and verify the accuracy of data used by ISS in its evaluation of equity compensation plan proposals submitted to shareholders after September 8, 2014.... [The portal] offers U.S. companies the opportunity to ensure ISS has accurately captured key aspects of its new or amended equity plan prior to the release of ISS' s vote recommendation. Equity plan data verification items cover equity plan provisions, outstanding stock and convertibles, equity grant activity, and shares reserved and outstanding under the equity compensation program." (Frederic W. Cook & Co., Inc.)  

ERISA at 40: The Evolution of Employee Benefits
"This article explores ERISA's history, focusing on the major developments that have emerged over the years. It also includes thoughts from leading practitioners on the future of employee benefits law and practice." [Contributors include: Alvin H. Brown, Alan D. Lebowitz, Andrew L. Oringer, Prof. Kathryn J. Kennedy, and David N. Levine.] (Practical Law Company)  

Multiemployer Trustee Selection and Orientation: 2014 Survey Results (PDF)
27 pages. "The vast majority of fund representatives believe it is more challenging to be a trustee today compared to the past.... Concern about keeping up with constantly changing regulations is the most common challenge for current trustees.... Respondents regarded employee benefits, business, and accounting/finance as the top three educational backgrounds for good trustees... The majority of representatives believe it takes between three and five years to develop a competent trustee." (International Foundation of Employee Benefit Plans [IFEBP])  

Compensation of Top 200 Directors Increased by 2.7% in 2013
"Median total remuneration paid to non-employee directors was $268,333 in 2013, an increase of +2.7% over 2012 levels.... Pay mix for non-employee directors has remained relatively unchanged since 2008. Directors continue to receive just over half of their total compensation in the form of equity (55% in 2013), in accordance with governance best practices. Annual cash board retainer increased $5,000 in 2013 to a median of $90,000 and the median annual equity board retainer remained constant at $140,000. Equity compensation is delivered predominantly in full value shares." (Steven Hall & Partners)  

PBGC Pays Homage to Former Executive Director and Retirement Security Advocate, Robert E. Nagle
PBGC [Pension Benefit Guaranty Corporation]

Mutual of Omaha Launches Group Accident Insurance
Mutual of Omaha

NFP Advisor Services Continues to Add Leading Retirement Plan Advisors
National Financial Partners Corp. [NFP]

HighTower Recruits 401k Practice to Its Network
HighTower

WEB Network Announces New National Board
Worldwide Employee Benefits Network [WEB]

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