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January 23rd, 2018

5 Actions to Elevate Your Defined Contribution Plan in 2018

Toni Brown, senior vice president, Retirement Strategy, Capital Group, says a plan sponsor with a clearly defined objective for its defined contribution (DC) plan will be better positioned to make all subsequent decisions. Capital Group’s retirement strategy team, identified five actions plan sponsors can take in 2018 to truly elevate their DC plans. Read more >

Third Complaint Against NYU 403(b) Plan Adds Adviser as Defendant

Participants in New York University’s (NYU) retirement plans have filed a Third Amended Complaint, for the first time naming Cammack LaRhette Advisors as a defendant in the lawsuit. The new complaint says Cammack LaRhette Advisors—now known as Cammack Retirement Group—has served as investment adviser to the plans since 2009. The plaintiffs contend Cammack is a fiduciary to the plan because it rendered investment advice for a fee. Allegations against Cammack contend it gave “flawed advice” to plan fiduciaries regarding investments, which Cammack denies. Read more >
ASK THE EXPERTS
410(b) Coverage Testing for Firms With Both 401(k) and 403(b)
“A hospital sponsors a 403(b) plan for the vast majority of its employees, but also sponsors a 401(k) for a small wholly-owned for-profit physicians’ practice. The plan sponsor had been testing the 401(k) plan separately for 410(b) coverage testing, and had been passing each year. I believe that is not correct, and that the 403(b) plan employees should have been included as eligible employees in the 401(k) and 401(m) coverage tests, but not benefitting, which in this case would have resulted in coverage test failures.” Read more >

Many DC Plan Sponsors Reduced Fees in 2017

Following their most recent fee review about four in ten defined contribution plan sponsors (40.5%) reduced fees, according to the 2018 Callan Defined Contribution Trends Survey. Callan says this is a notable increase from prior years (31.6% did so in the prior year’s survey). The survey also finds a drop in revenue sharing used to pay plan fees, and that half of DC plan sponsors plan to renegotiate fees with providers in 2018. Read more >

TDFs Have Improved Participant Diversification

About one-third of participants across Millennials, Generation X, and Baby Boomers who self-manage the investment of their plan accounts are more conservative than a typical target-date fund appropriate to their age, according to a Wells Fargo analysis. Read more >

Wolters Kluwer Releases Guide About Tax Reform Effects

A white paper unpacks aspects of the new law that will affect a wide range of retirement, benefits and payroll professionals. Read more >

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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