The Retirement Times

Since 2016, more than 20 lawsuits have been filed against fiduciaries of university retirement plans. The defendants are among the largest and most prestigious schools in the country, as they present very visible targets. Many of these suits were filed by the same law firm, Schlichter, Bogard & Denton of St. Louis, one of the … More Ongoing Litigation Against Colleges and Universities – Duke Settles But It’s Hardly a Windfall for Participants

The Pension Benefit Guaranty Corporation (the PBGC) is a government insurance program that guarantees all private defined benefit pensions. There is no comparable insurance for defined contribution plans. The PBGC pays benefits to almost a million participants covered by 4,800 failed pension plans and is responsible for future payments to another half a million individuals. … More The PBGC Assumes Responsibility for Sears Pension Plans

Municipal bond holders may not appreciate the risks they are undertaking. Municipal bonds have always been viewed as an ultra-safe investment. However, in recent years a number of pundits have predicted widespread defaults on these bonds precipitated by growing unfunded state and local pension liabilities. With some exceptions (Detroit, Puerto Rice and Stockton, CA), these … More As They Always Say, Things Never Matter Until They Matter

This past November, the IRS issued proposed regulations to effectuate changes made for hardship withdrawals in the Bipartisan Budget Act of 2018. Comments were due by Jan. 14, 2019. Although the statutory changes are effective beginning in 2019, the proposed regulations do not require any changes in how hardships are administered until 2020. Plan documents … More Hardship Withdrawals – The Internal Revenue Service Issues Proposed Regulation Reflecting Statutory Changes

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, What are the risks for late 5500 filings? ~ Tardy in Tallahassee Dear Tardy, The main risk is the daily penalties that accrue from the IRS and DOL for each day … More Hey Joel! – What are the risks for late 5500 filings?

Fiduciary duty requires you to provide your employees and participants with educational opportunities so they can make informed investment decisions.  It’s not always easy to know what your participants need, want or will take advantage of.  Using a simple framework for your educational program may increase the effectiveness of your program. 1.    Provide a consistent, … More Effective Employee Education

Many employees feel squeezed to both pay off their debt and save for their future. A recent Private Letter Ruling (PLR) opens the door for employers to help them. The average student graduating in 2016 has $37,172 in student loan debt.¹ According to the New York Federal Reserve, more than two million student loan borrowers … More Repay Student Loans or Save in a Retirement Plan? Why Not Both?

With an average of only 43 percent participation in governmental defined contribution plans, people living longer and saving less, and retirement benefits being reduced by their employers, the importance of saving couldn’t be greater. But – how to enroll those that aren’t in the plan? This NAGDCA session discussed some innovative strategies that had significant … More Winning Enrollment Techniques and Challenges

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, Will hardship suspensions go away in January 2019? If someone takes a hardship today, do we stop the suspension on Jan. 1, 2019? ~ Anxious in Alabama Dear Anxious, First, understand … More Hey Joel – Will Hardship Suspensions Go Away in January 2019?

“What records should I keep? How long should I keep them? How should I organize my files?” Advisors have been asked these questions time and time again by plan sponsors looking for a general guideline for record expiration dates. Record retention doesn’t need to be a mystery, and the filing system doesn’t need to become … More Records and Their Expiration Dates