OUR NEWS PAGE keeps you informed
Welcome to Fiduciary Insights, our news page that keeps you in touch with issues, trends, events and insights of significance to individuals connected with the retirement plan industry. We have carefully selected these articles from a variety of high-quality sources.
-
On April 25, 2024, the DOL published the Retirement Security Rule: Definition of an Investment Advice Fiduciary. The 2024 Fiduciary Rule defines when a person is considered a fiduciary under Title I and Title II of ERISA in connection with providing investment advice or making an investment recommendation to a retirement investor. In addition to the 2024 Fiduciary Rule, the DOL also finalized amendments to certain Prohibited Transaction Exemptions to reflect the DOL's updated definition of an investment advice fiduciary. Review the key provisions and aspects of the rule.
-
A New Fiduciary Standard?
Resistance to retirement plan innovations (like automatic enrollment) has long been excused as being too paternalistic, but there might be a better standard -- a maternal standard of care.
DC Plan Sponsors Should Pay Attention to Increased Litigation, Low Retirement Confidence
Increased litigation, regulatory and legislative changes, and a lack of retirement confidence among participants were common themes observed by defined contribution plan sponsor panelists on a recent Mercer webinar reflecting on key trends in the first quarter of 2023.
Tax Credits for Starting Up Small Employer Plans
Starting with tax years beginning after December 31, 2022, a small employer can take advantage of significant tax credits under SECURE Act 2.0 for establishing a new retirement plan. Broker-dealers and registered representatives will want to know about these credits to educate small businesses and assist them in establishing plans to take advantage of the credits.
DCIIA Publishes Guide to Fiduciary Models
The Defined Contribution Institutional Investment Association published this month a governance model guide for plan sponsors, "Defined Contribution Plan Governance Models: A Guide for Plan Sponsors." The guide outlines governance and fiduciary structures that plan sponsors can elect to fit their plan's needs.
-
Inflation, Depleted Savings Dent Workers’ Confidence as Financial Literacy Remains Low
Many American workers lack an understanding of their retirement plan investing options and do not use plan providers as an information resource, new data from EBRI and TIAA show.
401k Costs Coming Down, But Small Plans Still Twice as Expensive
Despite 401k plan investors paying less to invest than they ever have, even compared to just a year ago, the basis points saved are not shared equally by all DC plan participants. And while this isn't a new concept, the cost participants pay to invest in their DC plans continues to depend significantly on the size of their employer, according to Morningstar's 2023 Retirement Plan Landscape Report, which examines major trends in the U.S. defined contribution system.
2023 Retirement Plan Landscape Report
Millions of Americans rely on the retirement system to save and invest for their futures. Expanding access to employer-sponsored retirement plans is essential to ensuring Americans are saving enough for the future, but it's also necessary for the current system to address its weaknesses. In the second iteration of Morningstar's annual report, they take a comprehensive look at the overall health of the U.S. retirement system, cast a light on its weaknesses, and outline implications for the industry and policymakers alike.
Many Plan Sponsors Hesitant to Offer Retirement Income, Study Shows
Despite workers' increasing requests for personalized retirement income solutions, a significant number of plan sponsors are either in the preliminary stages of learning about the various options or do not even consider it a topic of interest or need, new data from PGIM shows.
-
DOL's Apparent U-turn in Court Hints at New Fiduciary Rule in Works
The American Securities Association says the Labor Department voluntarily dropped its appeal of a Florida court's decision striking down DOL guidance making rollover advice fiduciary. In this surprising reversal, the DOL has backed off from defending its guidance around a Trump-era fiduciary rule in court, indicating that it could soon embark on a new rulemaking course for retirement account financial advice.
SECURE 2.0 Encourages Employers to Expand Employee Benefits
401k plans are moving away from serving as voluntary retirement savings vehicles and towards a future where plans are mandatory and serve as a financial backstop to more than just retirement. The changes enacted by SECURE 2.0 show that this transition is picking up speed. It is going to be important for HR professionals to be ready for these changes, as retirement plans are increasingly no longer voluntary and no longer just for retirement.
Minnesota Secure Choice Passes, Heads to Governor's Desk
The Land of 10,000 Lakes is poised to become the next to adopt a measure creating a state-run retirement program that provides coverage for private-sector employees whose employers do not. The state Senate approved the bill that would do so on May 11, and the House had done so 10 days earlier.
Plan Sponsors Should 'Definitely' Have Cyber Liability Insurance: Lisa Gomez
At PSCA National just last week, ARA CEO Brian Graff and EBSA Assistant Secretary Lisa M. Gomez discussed a wide range of topics, including the many misunderstandings about cyber liability insurance (which could be a huge fiduciary failure) and the ESG rule.
Please consult a financial, tax or legal professional for further information related to any of these articles.