PLANSPONSOR Weekend Newsdash
Week ending August 3rd, 2018

For retirement plan sponsors wanting knowledge and tips about the design and administration of their plans, court opinions often offer details. For those fearing participant lawsuits when contemplating a plan design change, it is helpful to know what constitutes a settlor decision versus what constitutes a fiduciary decision. Plan sponsors often do what they think is right even with a lack of regulator guidance or lack of engagement from participants. Most are doing the best they can to provide a plan design that is most helpful to participants and to stay in compliance with rules, laws and regulations when administering their plans. This edition of PLANSPONSOR Weekend focuses on plan design and administration.

Editor's choice
NYU Claims Victory in 403(b) Plans Lawsuit
In the first university 403(b) plans case to go to trial, a federal judge includes in her opinion all prudent processes the plan sponsor engaged in when considering providers, fees and investments. Read more >
Independent Contractors’ ERISA Lawsuit Fails to State Actionable Claim
The dispositive question is not whether the claimants were employees but whether, considering them as employees, they were eligible to participate in an ERISA plan according to the specific terms of the plan under consideration. Read more >
Plan Sponsors Shouldn’t Fear Making Settlor Decisions
Retirement plan sponsors often fear participant backlash when making decisions that could actually help improve participant outcomes, but the law is on their side, as plan amendments are considered settlor functions. Read more >
Missing Inaction
What are the rules for locating missing retirement plan participants and what should plan sponsors do when they’re found? Read more >
Data and Research
Simpler Retirement Plan Communications Make No Difference in Employee Decisions
In conclusion, an IZA Institute of Labor Economics study found, “the data do not support the idea that presenting optional 401(k) plan information in a simpler, more compact way will improve employees’ retirement planning choices. However, we did find that financial literacy was positively associated with better choices.” Read more >
Hardship Withdrawal Safe Harbor Covers Tuition, But Not Loan Repayments
Plans which permit non-safe harbor hardship distributions could theoretically approve a participant’s hardship distribution request for the repayment of student loans, but those relying on the safe harbor cannot. Read more >
J.P. Morgan Agrees to Settle Stable Value Funds Suit

The firm has agreed to pay $75 million to settle litigation brought by multiple retirement plan participants alleging J.P. Morgan invested its stable value funds in risky assets.

Individuals, Employers and Government All Play a Part in Retirement Readiness

A new research report and Catherine Collinson, with Transamerica Center for Retirement Studies, lay out steps all three can take to improve retirement confidence and readiness in America.

Participant Loans: A Fiduciary Storm Brewing?
Bruce Ashton, with Drinker Biddle & Reath, discusses the fiduciary risk defined contribution (DC) plan sponsors could face when participants default on plan loans.
What to Know About Financial Audits Filed with Form 5500s
Plan sponsors required to file a financial audit along with their Form 5500 should know how regulators use the information and how to pick the best auditor.
2019 PLANSPONSOR National Conference

Editorial: Alison Cooke Mintzer

Advertising: Paul Zampitella

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