(b)Lines Information and Insights for the 403(b) community / brought to you by PLANSPONSOR.
November 21st, 2017

NYU Participants File Second Excessive Fee Complaint

Participants in the New York University and related plans are making a second attempt to sue fiduciaries for excessive fees. After a federal district court judge found most claims in an earlier complaint were not plausibly alleged by the plaintiffs, they filed a second complaint in the U.S. District Court for the Southern District of New York. This case was filed against NYU Langone Hospitals, NYU Langone Health Systems, the retirement plan committee, and several named defendants. In the new complaint, the plaintiffs attempted to offer more evidence that their claims were plausible.Read more >

Two-Thirds of Millennials Are Saving for Retirement

In a new report, “Breaking the Millennial Myth,” Natixis Global Asset Management examines the financial goals of Millennials, those born between 1980 and 2000. Natixis says that Millennials “are risk-conscious and have retirement in their sights, and when it comes to their finances, they are very much goals-focused.”Read more >
Change in Rules for Contract Exchanges
“I work for a denominational church plan sponsor. Our plan permits contract exchanges (we have some inactive vendors in the plan to which we permit transfers to the active vendor), but not plan-to-plan transfers. An active participant wishes to transfer his account balance out of our plan to another 403(b) contract that does not appear to be connected to any 403(b) plan of another plan sponsor, and he says he was permitted to complete such a transfer a number of years ago. How can I explain to him why he was able to complete such a transfer back then, but cannot do so now?”Read more >

AB Outlines Six Ways to Improve DC Plans Markedly

While some plan sponsors may be waiting for Washington to settle on new tax regulations for defined contribution (DC) plans, there are steps that they can be taking to improve their plans now, AB says in a new blog, “Six Steps to Take DC Plans to the Next Level.”Read more >

Twenty-One Percent of Investment Managers Plan to Lower Fees

Twenty-one percent of investment managers plan to lower their fees in 2017, the Callan Institute found in its 2017 Investment Management Fee Survey. Today, only 69% of assets in retirement plans are in actively managed funds, down significantly from 84% in 1996. The most common objection active investment managers hear from sponsors is whether they are providing the value-added services to justify their fees, cited by 49% of these investment managers. The median fee that retirement plans pay for investments is 38 basis points (bps).Read more >

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

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