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The Importance of Procedures and Controls in Pension Administration (PDF)

The Supreme Court noted the role of the plan sponsor in designing and executing the plan is one of the plan settlor while the role of the plan administrator is to administer the plan according to its terms and distribute the SPD. ERISA clearly defined the roles and the court hadno reason to believe that ERISA intended for the roles to be mixed by giving the plan administrator the authority to write plan terms in the SPD.

Market Volatility: How Concerned Should Retirement Plan Fiduciaries Be? (PDF)

"While a plan sponsor cannot control the external forces that affect financial markets, plan sponsors can mitigate risk for their retirement plans by: [1] Following a documented decision-making process. [2] Identifying the key internal and external players and ensuring that all parties know their responsibilities. [3] Working with investment advisers to develop a defined contribution plan fund line-up that suits the plan's participant demographics. [4] Developing a defined contribution plan investment policy ... [5] Working closely, if a defined benefit plan, with the plan's actuaries and investment advisers, to develop an investment strategy to match plan benefit liabilities with assets.... [6] Monitoring any investment decisions/policies/strategies periodically to ensure that what you expected is happening.... [7] Documenting the process and the decisions."

Plan Sponsors Need to Take Advantage of Regulators' IRA Rollover Scrutiny (PDF)

"While financial institutions will bear the brunt of expanded regulatory scrutiny of IRAs, it is important that employer plan sponsors be aware of financial institution practices regarding these accounts. Having knowledge of current guidance about IRAs also can be of use when highly compensated employees in the plan seek direction from the benefits office on decisions about their outside retirement savings."

DOL Sends Message to Plan Fiduciaries: Know What You Are Paying For (PDF)

"It will be interesting to hear DOL's reaction to the potential costs involved in changing technology requirements to obtain, consolidate and verify this information. It is possible that after a few years, the process will become less intensive. However, establishing the procedures and controls necessary to ensure that correct information is received, consolidated and provided to each plan sponsor based on their plan's investment specifics is no easy task. Developing a simple guide could be a very costly undertaking."

DB Plan Provisions Influence the Way DC Plan Sponsors Think About Retirement Income (PDF)

"Typically, companies that offer only a DC plan focus on getting employees into the 'pipeline' as early as possible for the purpose of accumulating savings for retirement.... DC-only plan sponsors without a lifetime income annuity are discussing the option with their recordkeepers, with 70 percent taking preparatory steps to offer this feature. However, only 44 percent of DC-only organizations stated that retirement income is an important focus, while 98 percent said that retirement savings is an important focus of their plans' overall objectives."

Upgrade Employee Benefit Plan Auditing, Says ERISA Advisory Council (PDF)

The council studied whether the requirements of ERISA Sections 103 and 104 provide the protections to plan participants and beneficiaries asoriginally intended. The council narrowed its focus to three issues: audit and auditor quality, limited-scope audits and Section 403(b) plan audits.

Upgrade Employee Benefit Plan Auditing, Says ERISA Advisory Council (PDF)

The ERISA Advisory Council issued a report on employee benefit auditing and financial reporting models. The primary findings include: some auditors require more training despite available information; limited scope audits may be understood; the DOL should continue educational outreach efforts.

Post-Windsor Adjustments Need Attention to Bring Plans in Line with IRS Guidance (PDF)

"As plan sponsors evaluate their retirement education offerings for participants, or consider whether to contract with their plan administrator to add this service, they should consider a new audience for such advice: same-gender couples ... [A recent survey] showed that this segment of plan participants is likely to grow quickly: Nearly half of unmarried same-gender couples and 60 percent of those currently in civil partnerships are planning to marry. And many surveyed are approaching retirement, with the median age of respondents at 51."

Understanding the Basics About De-Risking Becomes First Step to Decisionmaking (PDF)

"Derisking can involve both plan design and asset strategies. Plan design strategies can include converting a traditional DB plan to a cash balance plan.... Other plan-design changes available include closing the plan to new entrants, freezing the plan; or, ultimately, terminating the plan. Changes made to pension assets strategy generally are thought of as either internal (those in which assets are managed to limit risk but remain within the plan) or external (when assets leave the plan). Each method is complex and requires careful evaluation in light of a plan's particular demographics."

ERISA at 40: Does the Historic Overhaul of Benefits Remain Relevant Today? (PDF)

"ERISA helped the retirement plan industry evolve, but we have experienced great change since its enactment. Our demographics have shifted; our work environment has evolved from manufacturing to service-oriented businesses; our economy has suffered ups and downs; and business has truly gone global.... Did employers shift from traditional DB plans to DC plans because they could, or because they believed the increasingly complex regulatory and economic environment introduced by ERISA made it impossible to sustain the expenses of a pension plan? Did ERISA provisions enable employers to adapt to shifting employee demographics by adopting a 401(k) plan that would be accepted by employees and help stabilize employer costs?"