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Growing Retirement Savings Gap: Impact of Income and Race on Older Workers
A recent Government Accountability Office (GAO) report examines the disparities between retirement accounts of older workers in low-income and high-income brackets. The findings suggest that federal tax incentives may not benefit the broader demographic as intended. Key Findings: Growing Disparities Over Time: The gap in retirement savings... Read More >>
Will Cuts to SS Change Plan Designs?
This quarter sponsored by: Nuveen, a TIAA company There has been some talk in the media of Social Security benefits being cut in 2033 is the system is not shored up. Reports say the benefits would face a 23 percent reduction in benefits across the board – more than $17,000 for a newly retired couple and $13,000 for a single new retiree annually... Read More >>
Industry Groups ‘Friend’ Fiduciaries in Excessive Fee Suit Fray
Noting that “a decision in this appeal has the potential to significantly affect Amici’s members, which include plan sponsors and fiduciaries…,” a group of industry trade groups has filed in support of fiduciaries and providers in a federal court. More specifically, the ERISA Industry Committee (ERIC), the American Benefits Council, Society of... Read More >>
New Fiduciary Rule Sent to OMB By Department of Labor
The Department of Labor sent a new version of a proposed fiduciary rule to the Office of Management and Budget late Sept. 8 for review. Known officially as “Conflict of Interest in Investment Advice,” it would redefine fiduciary investment advice under the Employee Retirement Income Security Act (ERISA). According to a post on the OMB’s... Read More >>
Plan Professionals Support Greater Diversification and Customization of TD Strategies
Fee pressures continue to be a dominant force in shaping the future of target date (TD) solutions as evidenced by the top two most supported developments identified by T. Rowe Price’s just-released defined contribution consultant research study. When asked to indicate the extent to which they support certain enhancements and modifications related... Read More >>
10 'Top of Mind' Retirement Issues for Plan Sponsors
Little surprise, participant engagement sits atop the list of short-term priorities for plan sponsors. At the same time, high-profile issues like retirement income, discussed ad nauseum among financial professionals, rated lower among those offering work-based plans. More specifically, 27% of plan sponsors listed retirement income as a top... Read More >>
Fidelity: 22% of Plan Sponsors Actively Searching for New Adviser
Fidelity Investments released its 14th Plan Sponsor Attitudes Study, revealing an industry of transition, opportunity, and resilience. 2023 is shaping to be a year of disruption and innovation in the retirement plan sector. Plan Sponsors on the Move A staggering 22% of plan sponsors are actively searching for a new advisor. We're not merely... Read More >>
IRS Confirms Plan Sponsors, Other 8955 Filers Need Not Respond to Erroneous Penalty Notices
The IRS has confirmed that plan sponsors and others that filed Form 8955-SSA on time do not need to respond to penalty notices dated before Sept. 1, 2023. The IRS made the confirmation in the Sept. 1 issue of Employee Plans News. The IRS had contacted the American Retirement Association (ARA) on Aug. 25 to clarify issues regarding erroneous... Read More >>
Pension Risk Transfer and Fiduciary Duty
Pension risk transfers (PRTs) are, at their core, financial transactions. But there are other important factors plan sponsors should keep in mind when contemplating and conducting a PRT—among them, fiduciary responsibility. With PRTs heating up lately, a discussion of how fiduciary duty entails them may be timely. Fiduciary Duty and PRTs So... Read More >>
Form 5500 Deadline Extended by Department of Labor
The Employee Benefits Security Administration (EBSA), a division of the U.S. Department of Labor, has extended the grace period for obtaining new single-sign-on credentials for the EFAST2 Form 5500 filing system through Dec. 31. The move is part of a larger initiative to simplify user access. EBSA began transitioning EFAST2 users to a... Read More >>