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Automatic 401(k)s Finding Favor - Lockheed, Nationwide Financial Report Higher Participation

Excerpt: So-called automatic 401(k)s, permitted under the Pension Protection Act passed by Congress two years ago, are already having a dramatic effect, Nationwide's Chief Administrative Officer Terri Hill said at a conference in Washington last week. About 96 percent of employees are saving for their retirement, up from 74 percent two years ago, she said.

Court Dismisses Nationwide Countersuit

Excerpt: In a Nationwide case, a judge rules that fiduciaries can bring contribution and indemnification claims against co-fiduciaries under ERISA. A federal judge in Connecticut ruled that while Nationwide Financial Services can legally countersue trustees of five 401(k) plans in a revenue sharing dispute, such counterclaims would be unsuccessful in this case.

Cyberattack on Change Healthcare Brings Turmoil to Healthcare Operations Nationwide

"On its incident page, Optum listed more than 100 Change Healthcare services that were affected. Among various other core functions being impacted are benefits verification, claims submission and status updates, remittance information transmittal and prior authorization. As of Feb. 25, Optum had not offered new information about the attack nor a timeline for when Change Healthcare's systems will be up and running."

How a Union's Plan Could Foreshadow Changes in Maternity Care Nationwide

"An SEIU health fund is expected to request that area hospital systems provide information on rates of maternal harm and apply to a newly created program promising higher-quality, higher-value care ...  More employers could be expected to implement both episodic payment models for pregnancy and non-payment for elective, pre-term C-sections. This change will shift services from higher-reimbursing C-sections to lower-paying normal deliveries."

Financial Advisors Implementing New DOL Rules

"87 percent of advisors are considering changes to how they do business.... 43 percent may plan to expand services offered to more holistic planning and 26 percent may plan to focus on non-qualified accounts.... Just 42 percent of advisors say they are aware of their firm's timeline for implementation or what training or support the firm will provide, while only a third (33 percent) are aware of their firm's new compliance procedures.... Only 23 percent of advisors are aware of their firms' plans with respect to adoption of the BICE to sell variable compensation products. At the same time, 78 percent identified the BICE as one of the greatest areas of impact to their business."

Financial Professionals Are Key to Positive Annuity Purchase Experience

"According to the survey of 300 annuity owners, 82% said the opinion of their financial professional made them feel more positive about their decision to buy an annuity, followed by the performance of the annuity itself (76%), market performance (70%) and interest rate changes (67%).... 67% of investors said their top motivation for purchasing their annuity was funding their retirement, and 41% said they did so to generate a 'personal pension' that could provide a reliable income stream, in many cases, for life."

Online Tools for Retirement Preparation is Newest Trend in Insurance Company Websites

FAQs About RIFs and Possible FICA Refunds (PDF)

2 pages. "The following Q&As demonstrate that seeking [a refund for FOCA taxes paid in connection with involuntary terminations of employment] is easy. [1] What are the key facts that could open the door for a FICA refund?... [2] What was the 6th Circuit's rationale?... [3] Will the 6th Circuit's decision come to apply nationwide?... [4] What are the steps to pursue a FICA refund?"

Most Retirees Fear Rising Health Care Costs But Don't Talk to Advisors About It

"[N]early three in four say health care costs going out of control is among their top retirement fears. However, according to [a recent] survey ... of 1,250 Americans with at least $250,000 in household assets -- including 625 who plan to retire by 2020 -- 38 percent of those nearing retirement say they have not discussed their retirement at all with a financial advisor. Of those who have, only one in five discussed health care costs in retirement not covered by Medicare."

American Benefits Council Comment Letter to CFTC/SEC on Study of Stable Value Contracts under Dodd-Frank (PDF)

6 pages. "[The Council writes] to reemphasize the continued importance stable value contracts have with respect to our country's retirement security and reiterate that these contracts are not swaps.... [T]his is the best approach because the use of exemptive authority to relieve stable value contracts of the burdens of swap regulation, while a reasonable second-best solution, could have unintended consequences.... The Commissions' final regulations defining swaps reiterate Congress' intent to exclude insurance products from the definition of swap.... The same analysis is applicable to all stable value contracts."