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Money Manager Compensation

Excerpt: Why is compensation disclosure important? A lot of money is at stake. Managed funds are an integral part of the retirement planning process. According to the Investment Company Institute, retirement assets invested in mutual funds in 2004 approximated $3.07 trillion, with $1.6 trillion finding a home in defined contribution plans.

Money Management During Retirement

"Now that you've retired, your income situation is likely quite different than while you were working. That means your money management techniques may need some adjustments. Here's a few things to keep in mind as you enjoy your retirement years."

Post-Retirement Money Management

Excerpt: 401(k) plan sponsors are going beyond just helping employees save enough for retirement. They're also helping employees who are about to retire figure out how to manage their income when their working days are over.

HSA Limits Rise, But Frustrated Users Leave Money Behind

"When employees use their HSA regularly, they are more likely to contribute funds, which, in turn, increases tax savings for both employee and employer ... Despite that mutual benefit, many employers may not realize that their employees are not only frustrated with the HSA experience, but also leaving money on the table."

SEC Adopts Money Market Fund Reform Rules to Address Run Risks in Money Market Funds

"The new rules require a floating net asset value (NAV) for institutional prime money market funds, which allows the daily share prices of these funds to fluctuate along with changes in the market-based value of fund assets and provide non-government money market fund boards new tools -- liquidity fees and redemption gates -- to address runs.... The final rules provide a two-year transition period to enable both funds and investors time to fully adjust their systems, operations and investing practices."

IRS Compliance Check Addresses Merged Money Purchase and 401(k) Plans

"A compliance check by the IRS Employee Plans Compliance Unit has determined that most money purchase plans with 401(k) features are merged plans and did not incorrectly add a 401(k) feature to an existing money purchase plan. The stated goal of the IRS in undertaking the 401(k) Money Purchase Pension Plan project was to determine whether employers had mistakenly adopted a money purchase plan with a 401(k) feature after ERISA was enacted, and, if so, to ensure the correction of the error."

Oh, Fine! Keep the Money: The New IRS Overpayment Guidance

"The IRS's updated rules for overpayments take a realistic approach at correction in permitting plan administrators to weigh the benefit to the plan and its participants in chasing (often former) employees for what may be miniscule balances.... In all likelihood, massive amounts of overpaid money remain in receiving plans and IRAs due to the inertia of overpaid employees. The simplified options and ability of a plan sponsor to simply let the money go is a welcome improvement."

What Plan Sponsors Need to Know About the New Money Market Fund Rules

"[1] Most [participants] are under the impression that they can't lose any money in your money market fund. In other words, participants tend to believe these funds are like savings accounts. That may no longer be true. [2] Ask your investment advisor to investigate the underlying credit quality of the investments in the money market fund you use. If it is weak, you may wish to consider changing your money market fund.... [3] Plan participants have experienced redemption fees before on other mutual funds. However, these fees have never been applied to money market funds. Since this is another way that participants could experience loss of principal, you will need to communicate that to them."

Text of SEC Proposed Rule on Money Market Fund Reform, Amendments to Form PF

698 pages. "The [SEC] is proposing two alternatives for amending rules that govern money market mutual funds ... The two alternatives are designed to address money market funds' susceptibility to heavy redemptions, improve their ability to manage and mitigate potential contagion from such redemptions, and increase the transparency of their risks, while preserving, as much as possible, the benefits of money market funds.... The SEC also is proposing additional amendments that are designed to make money market funds more resilient by increasing the diversification of their portfolios, enhancing their stress testing, and increasing transparency by requiring money market funds to provide additional information to the SEC and to investors. The proposal also includes amendments requiring investment advisers to certain unregistered liquidity funds, which can resemble money market funds, to provide additional information about those funds to the SEC."

CMS Summary of Group Health Plan Civil Money Penalties

"CMS published regulations regarding Civil Money Penalties (CMPs) in the Federal Register on October 11, 2023.... These regulations are applicable as of October 11, 2024, and will be enforced as of October 11, 2025. While this section discusses compliance and CMPs, RREs are reminded to always refer to the GHP User Guide for information and instructions pertaining to the specifics of mandatory insurer reporting requirements.... [T]he published User Guides take precedence over this information and should be referenced."