[Guidance Overview]

Best Interest Standard of Care for Advisors, Part 68: Factors to Evaluate for a Rollover Recommendation

"When most people think of the plan data that a fiduciary needs to recommend a rollover, their thoughts automatically go to the 404a-5 disclosure form. However, ... the DOL explains that the required plan information is: the fees and expenses associated with both the plan, whether the employer pays for some or all of the plan's administrative expenses, the different levels of services and investments available under the plan."  MORE >>

FredReish.com

[Sponsor]

Plan Sponsor Cybersecurity Webinar - October 12

Hear from a Dept of Homeland Security CISA liaison and other top cyber experts. Educate retirement plan sponsors on how to better secure plans and employees from attacks, evaluate vendors administering employee benefits and much more. Free to attend.

Federal District Court Tosses Fiduciary Breach Lawsuit Against Prudential

"The lawsuit, originally filed in November 2019, alleged that Prudential breached its fiduciary duties under ERISA by overpopulating the plan with proprietary mutual funds, failing to monitor the performance of those funds, and neglecting to adequately disclose the amount of record-keeping fees received by Prudential ... The plaintiff also accused Prudential of engaging in prohibited transactions[.]" [Cho v. The Prudential Ins. Co. of America, No. 19-19886 (D.N.J. Sep. 27, 2021)]  MORE >>

Pensions & Investments

Seventh Circuit Rejects Plan's Attempt to Compel Individual Arbitration of Participant's Fiduciary Breach Claims

"Recognizing that the Plan contained an unambiguous arbitration provision, and that 'ERISA claims are generally arbitrable,' the Seventh Circuit Court of Appeals nonetheless found that arbitration could not be compelled where the provision prospectively barred the plaintiff from pursuing certain statutory remedies." [Smith v. Bd. of Directors of Triad Mfg., Inc., No. 20-2708 (7th Cir. Sept. 10, 2021)]  MORE >>

Seyfarth

Fee Disclosures for 401(k)s Aren't Working; Here's How to Fix Them

"Without waiting for the DOL to act, plan fiduciaries can implement the GAO recommendations and insist that their participants get disclosures that clearly provide the essential information they need to make investment decisions. Plans can include their own language to customize their disclosures."  MORE >>

Carol Buckmann, via RPA Convergence

Retirement Assets Total $37.2 Trillion in Second Quarter 2021

"Defined contribution plan assets were $10.4 trillion at the end of the second quarter, up 5.3 percent from March 31, 2021. Government defined benefit (DB) plans ... held $7.5 trillion in assets as of the end of June 2021, a 4.0 percent increase from the end of March 2021. Private-sector DB plans held $3.5 trillion in assets at the end of the second quarter of 2021, and annuity reserves outside of retirement accounts accounted for another $2.5 trillion."  MORE >>

Investment Company Institute [ICI]

Retirement Planning for Single Seniors

"[W]ithout a spouse to share their living expenses or act as a caregiver should the need arise, ... those entering retirement without a partner also face potentially greater financial risks.... Planning for higher housing costs ... Saving for health care costs ... Protecting against risk with insurance coverage ... Creating an estate plan ... Addressing any previous marital status."  MORE >>

MassMutual

Understanding the Difference Between Contributions and Allocations in Public Agency Plans

"[An] agency may be committed to contributing 25% of each participant's base pay into its plan. That contribution commitment does not mean that each and every participant will receive a share/allocation of that contribution."  MORE >>

Best Best & Krieger LLP

Top Retirement Savers Sock Away More During Pandemic

"Among the top retirement 'super savers' with Principal® from generations X, Y, and Z, over half (54%) said they saved more than usual over the past 18 months, while 43% saved the same, and only 3% saved less. Through strategies such as reducing or eliminating long-term payments on homes and cars, this group reports little debt, 91% have an emergency fund, and more are seeking to attain financial independence earlier in life (10% more than in 2020)."  MORE >>

Principal Financial Group

Employee Benefits in the Supreme Court: October 2021 Update

37 pages. "[In] the Court's last 46 terms ... the Court has issued merits opinions in: 130 argued cases and two unargued cases directly involving employee benefit arrangements including IRAs, and three additional argued cases substantially implicating these arrangements ... for an astonishing total of 135 decisions. As of this writing, the Court has one employee benefit case scheduled for argument during its October 2021 term, although other interesting petitions for certiorari are pending."  MORE >>

Eversheds Sutherland

Predicting the Future Course of Employee Benefits Litigation

"This article aims to survey the employee benefits litigation scene to highlight the critical legal issues making their way through the courts today (without making any comment on the future of [DOL] investigations and lawsuits). There is still a lot to be seen."  MORE >>

DeBofsky Sherman Casciari Reynolds P.C.

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Purchase of First Fidelity Bond for a New Plan; When to Report?

"I'm curious when most new (small) plans tend to acquire their first fidelity bond and how that affects reporting on Form 5500-SF. New plan didn't manage to purchase their bond during first year plan in effect (2020), and only purchased upon review in early 2021."

BenefitsLink Message Boards

Deceased Participant Under Terminated Plan -- No Designated Beneficiary, No Estate Opened

"What does a plan do with the benefit of a deceased former participant when there is no beneficiary, no estate, and the plan is terminating? It appears there was no estate established and employer cannot find any heirs. The plan will soon be terminating due to a merger."

BenefitsLink Message Boards

Definition of Compensation -- Nonstatutory Stock Options as a 'Fringe Benefit'

"A volume submitter document defines compensation as W-2 wages. The only exclusion listed is for 'fringe benefits.' The document does not elaborate or provide any additional details of what a fringe benefit is. IRS Publication 15-B mentions stock options as a fringe benefit. Can we rely on the 15-B to define non-statutory stock as excluded pay as a fringe benefit?"

BenefitsLink Message Boards

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ERISA Law Firm Gold Medal Awarded to the Wagner Law Group by Financial Advisor I!

Wagner Law Group P.C.

OneDigital Acquires Praxis Consulting Inc.

OneDigital

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What You Should Know About: SEP IRA Plans

RECORDED

IRS [Internal Revenue Service]

Cybersecurity Under ERISA: What’s Next for Plan Sponsors and Fiduciaries?

October 20, 2021 WEBCAST

Faegre Drinker

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IRS Issue Snapshot: Deemed Distributions -- Participant Loans

Internal Revenue Service [IRS]

Potential Plan Disqualification from an Unintended Affiliated Service Group -- No Pill's Gonna Cure Your Ill

Ferenczy Benefits Law Center

How to Turn Retirement Savings Into Retirement Income

Medical Economics