Financial security is something that every American strives for. Experts believe that the foundations of financial security are built off of three equally important pillars: a retirement plan, health insurance, and permanent life insurance. These three instruments complement one another and work together to create holistic security for individuals and their families. As an employer, … More Group Whole Life Insurance: The Third Pillar
The Internal Revenue Service’s (IRS’s) Employee Benefit Audit Program is used to audit and enforce. The IRS’s emphasis, with respect to defined contribution plans is on compliance with the requirements of the Internal Revenue Code (the Code), the plan’s tax qualification and administration of all plan documents. In the event of noncompliance with regulations, the … More Are You Prepared for an IRS Audit?
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