ASPPA

Retirement Services Program Director
Nationwide
in CA, OR, WA

Director of Plan Administration
Employee Fiduciary, LLC
in AL, FL

Pension Administrator
Karel-Gordon & Associates
in IL

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[Guidance Overview]

IRS Releases 2015 Form 5498 With Little Change
"The IRS has released the 2015 Form 5498, IRA Contribution Information. This form is used to report IRA contributions, rollovers, conversions, recharacterizations, fair market value, and certain other information. The only changes from the 2014 version of Form 5498 are year and deadline changes; no box or information changes appear in the updated form." (Ascensus)  

[Advert.]

Investments Institute -- March 9-11, 2015

Attend the Investments Institute in Rancho Mirage, CA. Learn vital information needed to make decisions for the employee benefit funds you represent, discuss economic/legislative updates and terminology from today's headlines. Register Today!

New Year's Resolution #1 for Fiduciaries: 'I Will Evaluate My 401(k) Plan Fees'
"Here are three simple steps that will help you evaluate 401k fees in 2015: [1] Confirm the receipt of a 408(b)(2) disclosure for each 'covered' service provider; [2] Examine each 408(b)(2) disclosure for adequacy; [3] Prove fees for plan services are reasonable." (Employee Fiduciary)  

The Conduct Code for Retirement Plan Sponsors (PDF)
"[1] Never forget, it's an employee benefit.... [2] If something goes wrong, it's your fault.... [3] Look for the best providers.... [4] Focus more on competence, less on cost for plan providers.... [5] Your plan needs to be constantly reviewed.... [6] Your plan is for the exclusive benefit of your employees, it's not a patronage mill.... [7] The plan's financial advisor does more than just pick investment options.... [8] It's the little things that cause the greatest headaches and potential liability.... [9] Good practices will minimize liability, so will enough insurance.... [10] Fee disclosures aren't fish wrapping, they need to be reviewed." (The Rosenbaum Law Firm P.C.)  

Second Circuit: Class-Wide Reformation Is Appropriate Equitable Relief
"[T]he Court rejected CIGNA's contention that class-wide reformation was inappropriate because the challenged communications were made by the plan administrator, rather than the plan sponsor.... The Court held that on the basis of generalized evidence, including the company-wide communications of an 'equal value' benefit and the evidence indicating that the vast majority of plan participants read and relied on these communications, the Court could infer that the entire class of participants had been misled by CIGNA and thus misunderstood the plan terms and their effect." [Amara v. CIGNA, Nos. 13-447-cv and 13-526 (2d Cir. Dec. 23, 2014)] (Proskauer's ERISA Practice Center)  

The Day the ERISA Presumption of Prudence Died
"[T]he public information defenses suggested by the Supreme Court have a limited range -- they only apply to [plans] holding the stock of publicly traded companies. For the thousands of ESOPs funded by stock of companies that are not publicly traded, those fiduciaries must continue to attend to the particulars of their own procedural prudence so as to avoid being the subject of future judicial guidance." (Baker & McKenzie via Lexology)  

What the Best 401(k)s Have in Common
"[1] Index Funds ... account for 35 percent of assets, a 2 percent increase from the Top 30 List of 2013. [2] Participation rates climb to almost 97 percent, up nearly 1 percent since last year's Top 30 List. [3] Salary deferrals per participant average over $13,600, growing from just over $12,500 since last year's Top 30 List.... [4] Employers on this year's list are easing the total plan cost burden, with the average dropping by 0.02% to 0.26 percent since last year's Top 30 List." (Forbes)  

Think Your Taxes Will Be Lower in Retirement?
"Since everyone would like to pay less income tax in retirement, the tax-free withdrawals from Roth IRAs are very attractive.... Certain tax years can prove optimal for a Roth conversion ... If you have both kinds of IRAs, you have the option to vary the amount and source of your IRA distributions in light of whether income tax rates have increased or decreased." (North Bay Business Journal)  

Chicago Pension Reform Litigation Extends to Another Fund
"Litigation seeking to derail changes to Chicago public worker pensions on constitutional grounds ensnared a second city retirement system ... [with] a lawsuit [filed] in Cook County Circuit Court on behalf of members of the city's pension fund for laborers. That lawsuit followed one filed Dec. 16 by a coalition of labor unions against Chicago's municipal pension fund." (Reuters)  

[Opinion]

Phil Chiricotti Hangs Up His Spurs, Puts CFDD Out to Pasture
[Chiricotti said,] "Going forward, I think you will see more geographically dispersed events over one-day periods. That would require even more work and less margins for conference hosts. New maturing industry trends, including government intrusion, more litigation and increased competition, will also burden the retirement plans advisory industry. Meeting the needs of an aging America are where the real opportunities are now. In addition to the steep learning curve, meeting those needs on an efficient, scalable and profitable basis will not be easy." (RIABiz)  

Ninth Circuit Softens Its Position on Surcharge, But Defers Its Scope for Another Day
"In its recently issued amended ruling, the Ninth Circuit explained that because the district court concluded the plaintiff wasn't entitled to monetary relief, it didn't consider whether plaintiff was entitled to surcharge. The court noted that under Amara, the proper approach is to vacate the judgment and remand to the district court. 'Consistent with' sister circuits, the court did just that." [Gabriel v. Alaska Electrical Pension Fund, No. 12-35458 (9th Cir. Dec. 16, 2014)] (Seyfarth Shaw LLP)