401k Advisor

Fee Litigation with an Odd “Twist”

Fee Litigation with an Odd “Twist”

The plaintiffs in this case have asserted claims for breach of the fiduciary duties of prudence and failure to monitor fiduciaries. Nothing new so far; however, in addition to naming the typical plan fiduciaries as defendants, the lawsuit also targets members of the board of directors, as well as other officers of the firm who serve on the retirement plan’s fiduciary investment committee.

Why Retirement Plan Sponsors Should Care About Employee Student Loan Debt

Why Retirement Plan Sponsors Should Care About Employee Student Loan Debt

According to the College Board, the cost of a four-year education increased more than 200% (after inflation) from 1988 to 2018. This has placed a tremendous burden on graduates, with national student loan debt now topping a staggering $1.6 trillion.

IRS/DOL Audits Are Increasing Dramatically - Are You Ready?

IRS/DOL Audits Are Increasing Dramatically - Are You Ready?

If your plan has not been recently audited, it is likely only a matter of time before the Internal Revenue Service (IRS) or the Department of Labor (DOL) comes knocking. If/when you are notified of an audit, early preparation can help streamline the process, keep the investigation narrow, and avoid potential financial penalties and interest.

Every Plan Should Have a Committee Charter and Here’s Why

Every Plan Should Have a Committee Charter and Here’s Why

Although not legally required by ERISA, a retirement plan committee charter is a very important document for plan governance which may help fiduciaries avoid potential liabilities. Committee Charters are one effective way to “evidence” intent of prudent plan management. Having a charter is a “best practice” all plan sponsors should seriously consider.

What’s the Magic Number When it Comes to Record Retention?

What’s the Magic Number When it Comes to Record Retention?

You don’t need to be a magician to know what records to keep and for how long. While most providers can supply reports and plan documents, the plan administrator remains ultimately responsible for retaining adequate records that support the plan document reports and filings.

ERISA 3(38) Fiduciary Services

ERISA 3(38) Fiduciary Services

Most organizations’ human resource departments and C-suites are seeking efficiencies and risk mitigation for their entities. For these, and a myriad of other, reasons, plan sponsors are giving 3(38) fiduciary discretionary investment management services a closer look.

When It Comes to Planning for Retirement, Participants Want to Hit the Easy Button

When It Comes to Planning for Retirement, Participants Want to Hit the Easy Button

Nearly three-fourths of participants under 30 think employers should provide access to financial professionals and coaching to help them. Even more telling, 62% wish they could push an “easy button” and completely turn over retirement planning to someone else. This figure is up from 55% in 2016.

Cybersecurity Best Practices for Plan Sponsors

Cybersecurity Best Practices for Plan Sponsors

Participant data and financial accounts comprise some of the most sensitive and potentially vulnerable information under a company’s care. These highly valuable assets can be an attractive target for cybercriminals and therefore present considerable security risk.

QDIA.... Why is it important?

QDIA.... Why is it important?

The qualified default investment alternative (“QDIA”) is arguably the most important investment in a plan’s investment menu. By far the most often selected QDIA investment is a target date fund (“TDF”). TDFs are typically the only investment selection that offers unitized professionally managed portfolios that reflect the participants’ time horizon today and as they go to and through retirement.

Former Employees with Plan Assets are Still Plan Participants

Former Employees with Plan Assets are Still Plan Participants

Plan Sponsors should understand that terminated employees who left their account balance in your plan, are still considered participants under ERISA. As such, they have the same rights as current employees. They cannot contribute to their account under the plan but otherwise they have the same ERISA protected rights as plan participants.