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Retirement Industry Acronyms and Abbreviations

Excerpt: Like many industries, the retirement profession is acronym and abbreviation crazy. [401khelpcenter.com] compiled this list of the more common acronyms and abbreviations to help those who are not familiar with their meaning.

401(k) Plan Fee Lawsuit Details Becoming Available

"401khelpcenter.com has obtain[ed] a copy of the 45 page complaint filed against Northrop Grumman Corporation, The Northrop Grumman Corporation Savings Plan Administrative Committee and Investment Committee, numerous corporate offers and their Board of Directors."

401(k), Profit Sharing, and IRA Retirement Plan Comparison Chart Updated (PDF)

5 pages. Excerpt: 401khelpcenter.com has updated its popular retirement plan aid that contrasts and compares the features of the following define contribution plans: 401k, Solo 401k, Safe Harbor 401k, SIMPLE 401k, Profit Sharing, SEP IRA, and SIMPLE IRA.

Pension Sponsorship and Participation: Summary of Recent Trends Report Is Updated

Excerpt: The Congressional Research Service (CRS) has updated its report titled 'Pension Sponsorship and Participation: Summary of Recent Trends.' In a summary of the report the CRS noted that the number of workers in the private sector whose employer sponsored a retirement plan was essentially unchanged from 2002 to 2003. You may download the compete report at this url: www.401khelpcenter.com/pdf/RL30122_Oct_04.pdf.

How Freelancers in America Are Keeping Up With Their Retirement Preparation

"Around 38% of the respondents do not save for retirement because of their inability to generate enough income.... As many as 12% freelancers said that retirement plans are too expensive ... [F]reelancers are in favor of a portable retirement plan, which allows them to make contributions even when working with different employers. Further, they require a plan that supports intermittent contributions."

Reasons to Consider Unbundled Providers for Small 401(k) Plans

"[1] Data reliability.... [2] Costs may not be that much higher.... [3] Unbundled providers ... usually offer higher quality services in their area of expertise.... [4] Partnering with a best-in-class investment advisor who has good working relationships with recordkeepers and TPAs can allow you to find other providers who work well together on your behalf.... [5] An unbundled provider has a lot more flexibility with plan design and consulting to allow you to customize to your needs."

United Airlines and the Fiduciary Paradox: Providing a Margin of Excellence

"When regulators become heavy-handed with complex or numerous rules, the result is a desensitization of our Moral Aspiration. More rules actually diminish our desire to want to act in the best interests of others, and often the result is mediocrity, or worse, as in the case of United Airlines.... If our objective is to provide those we serve a margin of excellence, we need to convince regulators that more rules will not translate into better outcomes. In turn, we need to accept responsibility to educate and inform fiduciaries of the leadership and stewardship behaviors that will amplify and improve their governance procedures."

TPA Alpha: A New Approach to Evaluating TPAs

"Much like investment managers, there are TPAs that underperform the market and deliver negative Alpha; some that are level with the market and deliver no Alpha; and other quality TPA firms that outperform the market with regard to services and capabilities that can deliver positive Alpha. If a similar premise was utilized in selecting TPAs, then the firm that has the highest probability of delivering positive Alpha would be the most obvious and prudent choice. How can this evaluation be conducted?"

Projected 2016 Retirement Plan Contribution Limits

"The IRS generally announces any CPI increase around the third week of October. Based on current CPI information, we do not expect any increase in the 2016 contributions limits."

A First Look at the DOL's Revised Fiduciary Rule

"The proposed rule creates a new PTE, the 'best interest contract exemption.' This new PTE will allow firms to continue to set their own compensation practices so long as they, among other things, commit to putting their client's best interest first and disclose any conflicts that may prevent them from doing so. Common forms of compensation in use today, such as commissions and revenue sharing, will be permitted under this exemption, whether paid by the client or a third party such as a mutual fund."