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March 3rd, 2015

Researchers Find Little Cost Difference from Auto-Enrollment

A report suggests employers that use automatic enrollment in their defined contribution retirement plans may be using deferral and match rates that offset the costs of higher participation.Read more >

Paper Highlights Benefits of Financial Education

Financial wellness programs can cut stress and increase productivity in the work force, new research suggests, especially when employees receive more holistic financial education.Read more >

Advisers Gain Allies in Fiduciary Definition Debate

A number of elected officials have emerged on the side of financial advisers in opposing the Department of Labor’s fiduciary redefinition effort—introducing ambitious legislation to block changes to the fiduciary standard.Read more >

Reminder of 457(b) Plan Voluntary Correction Issues

The IRS has updated its website about 457(b) plan submissions to its voluntary compliance program.Read more >

Guide Compares Plans for Tax-Exempt and Governmental Entities

The IRS has released a publication to help tax-exempt and governmental entities choose a retirement plan.Read more >

Ask the Experts – ACP Testing After a Spin-Off

“I read your recent Q&A regarding post-merger ACP testing with great interest, as our hospital has an ACP testing issue as well. However, it is the opposite of the issue you discussed in the previous article. Up until 2015, we were part of a two-hospital system, but effective 1/1/2015, the partnership was ended and we were spun off into a separate entity that is no longer part of the controlled group of the prior entity . Previously, we participated in a 403(b) matching plan with the other hospital; now, we have our own 403(b) matching plan that was established 1/1/2015. The plan covers the same employees of our hospital that it did previously, only under a new plan. My question is related to the prior year average contribution percentage (ACP) for non-highly compensated employees (NHCEs) that we would use for 2015 testing, as our new plan uses the prior year testing method. I read somewhere that you can use an assumed ACP of 3% in the first year of a new plan. If this is true, this would be helpful since the ACP of the NHCEs in the prior plan for 2014 is only 2%. Or would we need to use the ACP of only the NHCEs of our hospital from the prior plan results? Any guidance you can provide would be greatly appreciated!”Read more >
Groom Law Group and Cammack Retirement Group will field your questions concerning 403(b) plans and regulations. Email rebecca.moore@strategic-i.com with Subject Ask the Experts

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

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