INDUSTRY AND REGULATORY NEWS YOU CAN USE

Read recent articles and other information of interest to employers, plan sponsors, participants and industry professionals. 

20 Oct 2014 17:23:25 Z

Contains results of the 15th Annual Transamerica Retirement Survey survey of U.S. business employers and workers. "95 percent of employers that offer a 401(k) or similar plan agree that their employees are satisfied with the plan ... In stark contrast, only 80 percent of workers who are offered such a plan agree that they are satisfied with their employers' plans ... 74 percent of employers believe their employees prefer not to think about or concern themselves with retirement investing until they get closer to their retirement date; yet only 38 percent of workers feel this way; and, 63 percent of workers would like more education and advice from their employers, yet only 38 percent of employers believe this to be the case. Only 23 percent of employers have surveyed their employees on retirement benefits[.]" (Transamerica Center for Retirement Studies)

20 Oct 2014 17:23:25 Z

"In [Private Letter Ruling 201440027], the IRS has concluded that an employer's proposed payments to a 401(k) plan to replace losses resulting from fraudulent activity will constitute restorative payments, not plan contributions. The proposal followed a DOL investigation that uncovered misappropriation of plan funds and related false statements (in violation of ERISA) over a period of nearly five years by an individual employed by a plan service provider, ultimately leading to criminal charges against the individual." (Thomson Reuters / EBIA)

20 Oct 2014 17:23:25 Z

12 pages. "[T]he best litigation defense is having a documented, conscientious process for evaluating company stock. Process is an important defense for fiduciaries. Documentation should reflect the deliberation and process followed by the fiduciaries in making a decision about company stock.... Unlike other investment options in the plan, company stock has no obvious benchmark. Hiring an independent fiduciary allows a disinterested professional to evaluate the stock, and it eliminates the concern with inside information." (PIMCO)

20 Oct 2014 17:23:25 Z

"The Department is considering a 30 or 45-day window with respect to this required annual disclosure due date. We ask the Department to consider a minimum of 45 days for the Annual Disclosure Window. We believe a window of at least 45 days will provide plan sponsors with maximum flexibility in providing the required notices. In addition, we urge the Department to issue regulations as soon as possible to implement this window." (American Benefits Council and nine other plan and investment groups and associations)

20 Oct 2014 17:23:25 Z

"If you really believe your purpose is to help people achieve a comfortable retirement, then you've got to be able to convince them to act appropriately. Of course, you can't persuade anyone to do anything if they don't trust you.... This presents a particularly perplexing problem for financial service providers to want to successfully motivate 401k investors to do the right thing. Fortunately, there are proven psychological tools available to do precisely that." (Fiduciary News)

20 Oct 2014 17:23:25 Z

"In September, 0.021% of balances transferred, marking the eleventh consecutive month that trading activity was below 0.03%. Total transfer activity was $297 million or 0.18% of total assets, with two days having above normal trading activity. Plan participants favored equity funds over fixed income funds for 55% of the trading days in September." (Aon Hewitt)

20 Oct 2014 17:23:25 Z

"A federal court judge in New York has rejected a Citigroup request for summary dismissal of a class-action lawsuit filed by two participants of a Citigroup 401(k) plan who allege the plan charged excessive fees. The case is now 7 years old. The original complaint made allegations of fiduciary breach relating to the merger in July 2001 of Travelers Group and Citicorp to form Citigroup ... The corporate merger resulted in the merger of respective 401(k) plans into a single Citigroup plan." (Pensions & Investments)

20 Oct 2014 17:23:25 Z

"The guidance in [the] proposed rules ... and accompanying guidance in Notice 2014-54 clarified that plan participants can transfer after-tax savings from their retirement plans to Roth IRAs. The IRS also gave guidance on sending retirement plan distributions to multiple destinations, something that hadn't been clear in the past[.]" (Bloomberg BNA)

20 Oct 2014 17:23:25 Z

"Recent IRS pronouncements have cleared the path for tax-free Roth conversions of after-tax money in retirement plans for some individuals. To be among the lucky people who can do this, you must meet two requirements: First, you must participate in a qualified retirement plan (such as a 401(k) plan). Second, you must have after-tax money either in that plan or in a traditional IRA. If you have both those characteristics, you can convert the after-tax money to a Roth IRA tax-free with the blessing of the IRS." (Natalie Choate, for Morningstar Advisor)

20 Oct 2014 17:23:25 Z

"In changes that have raised the potential investment risks in many 401(k) retirement accounts, several major fund companies are increasing the stock allocation of their target date funds, which are used by many of those with such plans.... In some cases employees who are in their 40s now find themselves in funds that are 94 percent allocated into stocks, up more than 10 percentage points. The changes have prompted concerns from consultants and analysts who worry that the fund managers are raising the risks too high for 401(k) investors as they seek higher returns, perhaps as a way to boost their own profiles against rivals." (Reuters)

20 Oct 2014 17:23:25 Z

"Every year it's important that you review the requirements for operating your 401(k) retirement plan. Use this checklist to help you keep your plan in compliance with many of the important rules." (Internal Revenue Service [IRS])

20 Oct 2014 17:23:25 Z

"With an increase in the number of retirement plans that offer Roth after-tax contributions, more participants may be retiring with pretax and after-tax amounts in their plan accounts.... The new rules assign the pretax amount to the direct rollover portion first. This allows participants to directly roll over the pretax portions. Any excess pretax amount is next assigned to any indirect rollover and remaining pretax amounts are taxable." (Milliman Retirement Town Hall)

20 Oct 2014 17:23:25 Z

"Even if you've socked plenty of money away in your 401(k) plan and invested it carefully, some of your toughest decisions lie ahead. And don't expect much help or clarity from the government or your employer.... For retirees, choices about how to spend a life's worth of savings are fraught with tricky calculations about financial risk, taxes and death." (Bloomberg)

20 Oct 2014 17:23:25 Z

"[E]mployers need to clearly communicate the true 'cost' of participation. Employees need to see their out-of-pocket costs expressed as dollar amounts, not just concepts.... Next, employers need to lay out the benefits of participation over time. The objective here is to try to expand the employee's concept of long term planning and tangibly demonstrate the accumulation of wealth over time." (Employee Fiduciary)

20 Oct 2014 17:23:25 Z

"Require 'auto' features.... Require re-enrollment.... Eliminate participant loans.... Allow unlimited Roth 401(k) contributions.... Require a QDIA in every plan.... Require electronic notice distribution.... Every party with a signed contract is a fiduciary.... Get all company stock out of 401(k) plans." (Lawton Retirement Plan Consultants)

20 Oct 2014 17:23:25 Z

"Although the participant now has flexibility to determine the amounts to be rolled over and the destinations, the requirement that the first dollars rolled must be pretax is unchanged. A participant can effectively roll all the non-Roth, non-taxable money to a Roth IRA, but only if all pretax dollars are rolled over to an eligible retirement plan; it is not possible to roll over only the non-taxable money and take the taxable amount as a distribution." (Buck Consultants at Xerox)

20 Oct 2014 17:23:25 Z

"A major benefit of the new rules will be the ability to choose one rollover target for pre-tax money and a different rollover target for Roth money. For example, an employee changing jobs could send the pre-tax money to the new employer's plan and set up a new Roth IRA for the Roth money. Plan administrators will need to be aware of these rules for purposes of reporting on Form 1099-R distributions of pre-tax and after-tax amounts that will be separately rolled over." (McGuireWoods LLP)

20 Oct 2014 17:23:25 Z

"The new guidance applies only to eligible rollover distributions and does not change the requirement for allocation of the investment in the contract between a lump sum and an annuity when a participant is receiving both.... While the new rules provide that multiple disbursements to different destinations are treated as a single distribution, each disbursement may still be required to be reported on a separate Form 1099-R.... Plan sponsors should consider reviewing and updating their 402(f) safe harbor notices[.]" (Ice Miller LLP)

20 Oct 2014 17:23:25 Z

"The halls of many a 401k general education session contain the ineffective carcasses of hundreds of 'sure-fire' presentation templates, even when given by acknowledged industry experts.... One may explain in exquisite detail the proper actions for retirement investors to take. Those same investors may actually nod in apparent understanding. But, when the rubber meets the road, their gas tank is empty. The plan sponsor has been kind enough to provide a professional to them for assistance, yet they clam up. Why?" (Fiduciary News)

20 Oct 2014 17:23:25 Z

"Aside from the statute-of-limitations issue, the retirement industry will likely be shaken to its core given the fact that the highest court in the land is going to address the issue of excessive fees in 401(k)s. Greater attention to fees by the powers that be could tip the scales even more in favor of cheaper retirement plan offerings." (InvestmentNews)

20 Oct 2014 17:23:25 Z

"A positive aspect of this decision is that it is important that there be bright lines to warn those who deal with employee benefit plans in advance of their assumption of fiduciary responsibilities under ERISA. If we accept that plan fiduciaries have the negotiating leverage described in the Santomenno opinion, this may well be a correct interpretation of ERISA.... However, this decision also does little to help fiduciaries of smaller plans who do not -- in the 'real world' -- have much leverage to negotiate lower fees or different service terms." [Santomenno v. John Hancock Life Ins. Co., No. 13-3467 (3d Cir. Sept. 26, 2014)] (Osler, Hoskin & Harcourt LLP)

20 Oct 2014 17:23:25 Z

71 pages; dated September 2014. "The total number of pension plans decreased in 2012 to approximately 677,000 plans, a 1.0 percent decrease over 2011. The number of DC plans declined by 0.8 percent, while the number of DB plans decreased by 3.4 percent.... The total amount of assets held by pension plans increased 10.0 percent to $6.98 trillion in 2012.... In 2012, the total active participant count increased from 90.2 million to 91.3 million. The number of active participants in DB plans decreased for the thirteenth straight year, by 4.2 percent in 2012. The number of active participants in DC plans increased to 75.5 million in 2012, up 2.5 percent from 73.7 million in 2011." (Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL])

20 Oct 2014 17:23:25 Z

"Gone are the days when it was considered taboo, or even unusual, to consider touching one's 401(k) before retirement.... Here are five questions to ask yourself before deciding whether -- or how -- to start raiding your 401(k). [1] What's the tax hit on a 401(k) loan compared with a withdrawal? ... [2] If I choose a withdrawal, can I avoid some of the tax penalties? ... [3] Am I feeling solid in my job? ... [4] Will I mind my account in a slow lane for six months or more? ... [5] Do I have an IRA alternative?" (The Wall Street Journal; subscription may be required)

20 Oct 2014 17:23:25 Z

"Survey findings reveal that a more sophisticated approach to DC plan investment structures is necessary. Plan sponsors see value in custom target-date funds (TDFs), and TDF selection is driven by investment metrics over outcomes. DC plans require more attention, and delegated investment options are of more interest." (Towers Watson)

20 Oct 2014 17:23:25 Z

"Kristen Zarenko, Senior Law Specialist of EBSA's Office of Regulations and Interpretations ... noted that EBSA enforcement actions will continue to require plan sponsors to provide copies of annual fee disclosures from covered service providers. Zarenko also observed that a surprisingly large number of plan sponsors have not been able produce the required documents during the first two years of enforcement." (ThinkHR)

20 Oct 2014 17:23:25 Z

"The employer-provided retirement system has been overwhelmingly successful in providing retirement income. In 2011, private-sector employers contributed over $255 billion into their retirement plans and paid out over $470 billion in retirement benefits. [The authors] support the current system and encourage Congress to maintain the flexibility that allows employers to provide benefits tailored to their workforce." (American Benefits Council and 22 other Employer and Professional Organizations)

20 Oct 2014 17:23:25 Z

"The Supreme Court's decision in this case will be important because it will necessarily address the nature of a separate duty to reconsider past decisions and decide whether a theory of 'continuing violation' can be used to evade ERISA's limitations period. The Court's decision may therefore alter the nature of fiduciary duty and expose ERISA fiduciaries to increased risk for past actions." [Tibble v. Edison International, No. 13-550 (9th Cir. Aug. 1, 2013; cert. pet. granted Oct. 2, 2013)] (Mayer Brown)

20 Oct 2014 17:23:25 Z

"The various 'autos' -- auto-enrollment, auto-escalation, and auto-asset allocation -- appear to have encouraged increased savings by 401k plan participants.... The industry has certainly seen less talk about evaluating investment performance and more talk about assessing retirement readiness.... While professionals see the need for a more goal-oriented focus, many wonder if plan sponsors see it too.... Will the popularity of automated features lull plan sponsors into complacency? And, if that happens, then what?" (Fiduciary News)

20 Oct 2014 17:23:25 Z

"Of those most likely to desire to save for retirement in the current year, three-quarters had access to a pension plan through their own employer or their spouse's employer, and 93 percent of those with access participated.... [E]mployees who work for firms that sponsor plans are more likely to be older, have higher earnings, and work full-time for a full year.... Although only 17 percent of workers at firms with fewer than 10 employees have an employer that sponsors a plan -- compared with 71 percent of workers at firms with 1,000 employees or more -- if a firm sponsors a plan, approximately eight in 10 employees participate, regardless of firm size." (Investment Company Institute [ICI])

20 Oct 2014 17:23:25 Z

"The financial services industry is dominated by large corporations that get paid asset-based fees. The more assets they gather, the more they revenue they generate. These firms in turn dominate the financial media. They churn out studies and cost comparisons that invariably reduce cost benchmarking to a percentage of plan assets. And they lump all small business 401k plans together regardless of the nature of the business." (Employee Fiduciary)

20 Oct 2014 17:23:25 Z

This report shows change in average account balances grouped by age and tenure, from January 1, 2013 through October 1, 2014, for 'consistent' participants (those who had an account balance as of December 31, 2012). (Employee Benefit Research Institute [EBRI])

20 Oct 2014 17:23:25 Z

"Automatic enrollment takes advantage of the 'no action' inertia common among employees. By requiring savers to actively 'opt out' of contributing to the plan, we've seen participation rates nearing 100%.... Sponsors can design plans with a wide assortment of automated alternatives beyond enrollment ... one of the most 'popular' features in the early years of the 401k era -- that of picking from an almost unlimited bounty of mutual fund investment options -- produced the biggest obstacle towards retirement savings." (Fiduciary News)

20 Oct 2014 17:23:25 Z

"Over the past year alone, more than 27,000 investors took loans specifically for the purchase of a home. While it's a small percentage of Fidelity's overall 401(k) loan-taking population, it is a trend the company has seen increasing over the past five years. Today's average home loan is $23,500, far higher than the average general loan value of $9,100. It represents 25 percent of an average borrower's 401(k) pre-loan balance, versus 17 percent for a general loan." (Fidelity)

20 Oct 2014 17:23:25 Z

"[T]here remain many specific circumstances, especially when the corporate sponsor cannot afford to hire employees committed exclusively to running the plan, where plan design requires the service provider to take the lead.... The need for expert guidance is most acute among smaller employers.... Still, there is one factor that might overcome the lack of expertise in these companies, and that is the personal objectives of the owners." (Fiduciary News)

20 Oct 2014 17:23:25 Z

"Many plans with auto-enrollment have a 90 percent or greater participation rate, but it appears many employers have yet to embrace this approach.... Target date funds appear to be a popular option among employers. In our 2013 survey only 29 percent said they didn't offer them. ... If your plan doesn't currently offer a match, consider adding this feature." (Moss Adams LLP)

20 Oct 2014 17:23:25 Z

"The Millennial generation has gotten a bad rap concerning their retirement planning habits -- or lack thereof.... [This infographic] features 12 tips Millennials should consider when developing their retirement strategy." (Milliman Retirement Town Hall)

20 Oct 2014 17:23:25 Z

"The focus of the lawsuits against the plan sponsors evolved over time to include broader challenges to, among other things, the selection of actively managed mutual funds as plan investment options, the use of retail share classes, the investment and transaction drag associated with unitized stock funds, the use of a bundled service provider and the fiduciaries' purported failure to capture additional revenue streams for the benefit of the plan.... [L]awsuits ... against 401(k) plan service providers ... typically are based on allegations that the service providers are 'functional fiduciaries' under ERISA. The plaintiffs claim that, in negotiating for and receiving revenue sharing, the service providers breached fiduciary duties and engaged in 'prohibited transactions' under ERISA." (Groom Law Group)

20 Oct 2014 17:23:25 Z

"[W]omen demonstrate an inclination toward savings -- they are 10% more likely to enroll in their workplace saving plans than men. And once enrolled, women across all income levels save at rates anywhere from 6% to 12% higher than those of their male counterparts." (Vanguard)

20 Oct 2014 17:23:25 Z

"[L]earning about and using their employer's retirement program is just plain boring or worse yet, scary, to Millennials. So how can plan sponsors support and engage this fast-growing critical group of employees? Harness their inertia.... Reestablish the link between having money and spending money.... Provide directions at their level.... Educate them about investing in the stock market." (Francis Investment Counsel LLC)

20 Oct 2014 17:23:25 Z

"In 2007, the [IRS] initiated the Learn, Educate, Self-Correct and Enforce (LESE) program. LESE projects involve the focused examination by the IRS of a random selection of approximately 50 Form 5500 returns with similar characteristics. The IRS reviews the plans in the random sample for compliance issues and releases the results and findings ... To date, 17 projects have been completed and information on the findings is available on the web. The findings from the LESE examinations are expected to improve the ability of the IRS to identify plans likely to be noncompliant so they can focus their audit activity on those plans." (Retirement Management Services)

20 Oct 2014 17:23:25 Z

"40% of the 457 U.S. employers surveyed recognize that using a multi-manager, white-label investment strategy is a more efficient approach to active management than single, stand-alone active options. Additionally, about half of the respondents see the value of custom TDFs." (Towers Watson)

20 Oct 2014 17:23:25 Z

"[H]igh fees were not the worst culprit when it comes to siphoning value out of retirement accounts. In fact, of the four identified sources of the $273,000 loss, fees contributed the least.... [A recent analysis by Alicia Munnell, director of the Center for Retirement Research at Boston College,] estimated the toll from fees was only $59,000. Leakages ate up $78,000 while poor savings habits resulted in losses of $136,000 ($71,000 from 'Intermittent Contributions' and $65,000 from 'Immature System,' i.e., the failure to save early)." (Fiduciary News)

20 Oct 2014 17:23:25 Z

"Roughly 9,000 taxpayers have IRAs with balances that top $5 million, a [GAO] study found. Despite contribution limits to tax-advantaged retirement accounts, such balances are possible because some executives buy shares of stock for their IRAs at extremely low valuations -- sometimes less than a penny each. Those balances then swell when the stocks are valued at market price -- and the gain is tax-free." (Center on Budget and Policy Priorities)

20 Oct 2014 17:23:25 Z

"The guidance issued in Notice 2014-54 becomes effective on January 1, 2015. For periods before January 1, 2015, the Notice permits a reasonable interpretation of the statutory rollover rules, which would include allowing pre-tax and after-tax amounts to be directed to separate destinations. Plan administrators using the IRS model rollover notice or a notice with similar language may consider revising their rollover notices to reflect the new guidance." (Sutherland Asbill & Brennan LLP)

20 Oct 2014 17:23:25 Z

"In its background discussions, the IRS indicates that ... comments ... following the release of the 2009 rollover notice ... pointed out that participants could achieve their allocation goals by taking their distributions in several steps, but only if they had sufficient other funds to replace the portion of the distribution withheld to pay income tax withholding.... [Notice 2014-54] clarifies and simplifies the process for multiple destination distributions. It also indicates that the IRS will revise the 2009 rollover notice to reflect this change." (Thomson Reuters / EBIA)

20 Oct 2014 17:23:25 Z

"Section 16(a) of the Securities Exchange Act of 1934 requires that 'insiders' must electronically file a Form 4 Statement of Changes of Beneficial Ownership of Securities with the SEC on or before the 2nd business day after nearly any transaction involving company stock. Examples of transactions that an insider must report include: [1] Grants of stock options; [2] Cashless exercise of stock options (and any sale of shares); ... [3] Open market purchases or sales of company stock; ... [and] [4] 'Discretionary Transactions' under a 401(k) plan, ESOP, Non-qualified excess benefit plan, or stock purchase plan (ESPP)." (Winston & Strawn LLP)

20 Oct 2014 17:23:25 Z

"Retirement plan advisers have said after-tax savings programs aren't a common feature at the employers they're working with. In fact, some companies have actively backed away from those programs.... For plan sponsors, the issue goes back to whether they're able to keep the contributions in the 401(k) separate from the earnings, as the earnings on that after-tax money can't be pulled into the Roth -- only the after-tax money ... Though larger employers are likely to already have their custodians account for contributions separately from the earnings, this isn't necessarily the case for smaller firms." (InvestmentNews)

20 Oct 2014 17:23:25 Z

"Aren't after-tax contributions the same as Roth contributions? ... Do all plans allow for after-tax contributions? ... Do the same contribution limits that apply to pre-tax and Roth salary deferrals also apply to after-tax contributions? ... Do the same distribution rules that apply to pre-tax and Roth salary deferrals apply to after-tax contributions? ... If I have after-tax funds in my employer plan, how does IRS Notice 2014-54 impact me?" (Slott Report)

20 Oct 2014 17:23:25 Z

"Previously, the IRS stated in Notice 2009-68 that the splitting of pretax and after-tax amounts in participant accounts could not be done by direct rollover, but could be done if a plan participant received a direct distribution and then indirectly rolled over ('60-day rollover') a pretax amount to an IRA or retirement plan.... Notice 2014-54 makes possible the splitting of pretax and after-tax amounts by direct rollover." (Ascensus)

20 Oct 2014 17:23:25 Z

16 pages. "This paper is intended to discuss how plan demographics and sponsor goals may influence the QDIA selection process, and covers the following points: [1] Selecting an appropriate type of QDIA (i.e., single balanced fund or suite of TDFs) in light of plan demographics and sponsor goals; [2] If the fiduciary decides to use TDFs, selecting specific target date fund investment strategies that best fit plan demographics and sponsor goals; and [3] Given the DOL' s guidance for plan sponsors to consider custom glide path alternatives, the demographics that may suggest a need for customization." (Jeffrey S. Coons, of Manning & Napier; in collaboration with Fred Reish & Bruce Ashton, of Drinker Biddle & Reath LLP)

20 Oct 2014 17:23:25 Z

"This notice provides rules for allocating pretax and after-tax amounts among disbursements that are made to multiple destinations from a qualified plan described in Section 401(a) of the Internal Revenue Code. These rules also apply to disbursements from a Section 403(b) plan or a Section 457(b) plan maintained by a governmental employer described in Section 457(e)(1)(A). Section VI of this notice provides transition rules." (Internal Revenue Service [IRS])

20 Oct 2014 17:23:25 Z

"A good starting place for a compliance tune up is to see if you can answer some basic questions about your plan ... After you get past these, some basic questions about plan administration come into play:... Think of your 401(k) plan as a well maintained car. It needs a check up on a regular basis to keep running smoothly." (Fox Rothschild LLP)

20 Oct 2014 17:23:25 Z

"The U.S. retirement plan landscape has moved from defined benefit to defined contribution, and now to an undefined contribution system, one Treasury official contends.... Mark Iwry, senior advisor to the Secretary of the Treasury, and deputy assistant secretary of Retirement and Health Policy at the U.S. Treasury, explained that, in the age of 401(k)s and 403(b)s, rather than straight profit-sharing plans, the contribution is unknown.... 'We need to restructure the retirement system so that retirement income can be defined,' he said. 'There are things that can be done without the government passing more regulations.' " (PLANSPONSOR)

20 Oct 2014 17:23:25 Z

"The dramatic growth of [target date funds] is evidence that safe harbors provided by Congress and the [DOL] can help plan sponsors do what they believe is right for those participants who cannot or will not engage in decision making. But how about helping the plan sponsors? While most business owners or managers want to provide employees (and themselves) with good investments and successful outcomes, few have the background, knowledge, and, perhaps most of all, the time to properly engage in that responsibility. What can be done to make it easier for these plan sponsors who are, by necessity if not also by aptitude, disengaged?" (CAPTRUST Financial Advisors)

20 Oct 2014 17:23:25 Z

"According to a 2013 survey, 84 percent of households said that the tax-deferred treatment of contributions was 'a big incentive to contribute.' More than half (51 percent) said they probably would not have saved for retirement without the plan.... It is often noted that retirement savings provisions are among the largest items in the ranking of federal tax expenditures.... [It] is important to recognize that taxes will be paid on the contributions and investment returns when funds are withdrawn by retirees." (American Council of Life Insurers [ACLI])

20 Oct 2014 17:23:25 Z

"With a continuing focus on deficit reduction and tax reform, Congress is always looking for revenue raisers. And, over the last several years, Congress has set a clear pattern of using the retirement system to help finance unrelated legislation. What do these ongoing fiscal battles mean for the retirement system?" (Association for Financial Professionals [AFP])

20 Oct 2014 17:23:25 Z

"The current employer-based retirement system benefits workers by providing workers with protections, while facilitating retirement savings. The voluntary employer-based retirement plan system allows companies to attract and retain quality workers, while giving companies the flexibility they need. Congress should protect the tax incentives that help workers to save for retirement." (The ERISA Industry Committee [ERIC])

20 Oct 2014 17:23:25 Z

"Congress should consider greater tax incentives for employers to offer a match to employees.... Congress also should address incenting workers to save at a higher rate.... Congress should consider making withdrawals from retirement plans more difficult.... Congress should consider legislation directing the DOL to establish index investment standards related to underlying index, acceptable tracking error and transparent pricing.... And we need target date fund standards." (Employee Fiduciary)

20 Oct 2014 17:23:25 Z

"The suggestions include [1] permitting changes that do not affect safe harbor features or any information contained in the notice, [2] allowing certain corrective and other amendments designed to maintain plan qualification, and [3] allowing certain amendments but only in connection with mergers and acquisition." (American Benefits Council)

20 Oct 2014 17:23:25 Z

"IRA funds dwarf the amount of retirement assets held in employer sponsored retirement plans. Those IRAs will offer tempting targets to creditors when they pass on death to beneficiaries other than a surviving spouse. Consider leaving retirement assets in your employer sponsored plans, where protection from creditors is assured, as long as possible. Alternatively, for assets currently held in an IRA, consider retaining the spouse as the primary beneficiary (that appears to be safe for now) and naming only a spendthrift trust as the alternative beneficiary[.]" (The Retirement Plan Blog)

Verisight: truthful insight.
"Veri" stems from veritas, Latin for truth.
"Sight" derived from "insight", the ability to perceive clearly and deeply.


WHAT'S NEW?

October 15, 2014
The Newport Group, Inc. and Verisight, Inc. today announced they will be joining forces to increase the size, scale and reach of their respective businesses. Under the terms of the agreement, the holding company of Verisight. Read the full release.

March 18, 2014
Verisight Expands Institutional Sales Team
Verisight, Inc., a privately-held, national corporation that offers comprehensive retirement plan services and consulting solutions announced the hire of Ross Brown as Senior Vice President of Institutional Sales. Read the press release.

January 28, 2014
Adviser Relationships Key in Acquisition. Last week, Verisight, Inc. announced it is acquiring retirement and benefit plan service provider DailyAccess Corporation and its subsidiaries. Read the full article.

January 23, 2014
Verisight, Inc. (Verisight), a recognized leader in comprehensive retirement plan services and consulting solutions, today announced the acquisition of DailyAccess Corporation (DailyAccess). DailyAccess, along with its subsidiaries, InterServ, LLC and DailyAccess Health and Welfare, LLC, provides retirement and benefit plan services for advisors, employers, and employees. Read the Full Release.