Welcome to Hey Joel! This forum answers plan sponsor questions from all over the country by our in-house former practicing ERISA attorney. Hey Joel, Should I distribute the Fiduciary Investment Review to plan participants? – Generous in Georgia Dear Generous, I appreciate your desire to provide detailed information to your plan participants, but hold your … More Hey Joel! – Answers from a recovering former practicing ERISA attorney
Should you reduce your plan’s fees to better serve participants? Many vocal experts speaking on behalf of investors and participants say “yes” – unequivocally. But what about the investors and participants themselves? What do they say? Invesco Consulting teamed up with language experts Maslansky + partners to get the answer. The nine-month study included in-depth … More Evaluating Your Plan and Fees? Think More, Not Less.
Fees in defined contribution (DC) plans can be complicated. Historically, fees have not been fully and simply disclosed, but the industry is changing towards greater and more understandable disclosure. Simply put, there are two basic types of fees: administrative and investment-related. The investment-related fees are deducted from earnings on participant accounts and will vary from … More Have You Conducted a Fee Equalization/Levelization?
After an abnormally serene market environment in 2017, volatility returned in the first quarter of 2018. Markets experienced a 10 percent equity correction off the late January highs, yet finished the quarter down a modest 0.6 percent (Russell 3000). Volatility was sparked by fears of increased inflation and potential trade wars. International equities declined slightly … More Q1 2018 Market Review
What documentation is required for retirement plan governance? BOARD RESOLUTIONS The vast majority of retirement plan documents provide rules regarding who is empowered to take action for a plan. The plan document names a plan administrator, a named fiduciary, and usually contains a section that explicitly describes responsibilities for each, when and how to delegate … More Retirement Plan Governance Summary
Target date funds (TDFs) are an integral part of many deferred compensation programs around the country. They offer many advantages, particularly for participants who are not inclined to actively engage in an investment strategy. One of the greatest advantages is that TDFs are designed to automatically rebalance as the participant gets closer to retirement. Many … More Target Date Funds
In the past year, class action lawsuits have been ﬁled against the ﬁduciaries of the 403(b) plans of a number of major universities. One such action was ﬁled against NYU. The plaintiﬀs in this case recently amended their complaint to add Cammack LeRhette Advisors as a named defendant. Cammack has served as the advisor to … More An Advisor is Named as a Defendant in NYU Lawsuit
After many delays, some parts of the Department of Labor’s new Fiduciary Rule are once again on hold. This time for 18 months until the middle of 2019. The essence of the Fiduciary Rule is that any person making investment recommendations to plans, their participants or IRA holders, is acting as a ﬁduciary and may … More The Ongoing Saga of DOL’s Fiduciary Rule / Changes in the Offing
President Trump signed the tax bill into law on December 22nd of last year, just under the wire of his self-imposed deadline of Christmas. The bill was originally known simply as the “Tax Cuts and Jobs Act,” but under an arcane Senate rule, this name was too short so it is formally titled “To Provide … More Tax Reform – Retirement Plans Left Largely Unscathed
You may be eligible for a valuable incentive, which could reduce your federal income tax liability, for contributing to your company’s 401(k) or 403(b) plan. If you qualify, you may receive a Tax Saver’s Credit of up to $1,000 ($2,000 for married couples filing jointly) if you made eligible contributions to an employer sponsored retirement … More Tax Savers Credit Reminder