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Defined Contribution Spotlight

Important information and links to provide connections, clarity and understanding about current defined contribution retirement plan regulation, legislation and litigation activity.

August 30, 2017

DOL (Officially) Proposes (Another) Delay in Fiduciary Regulation 

The Labor Department has made its proposed delay in the full application of the Best Interest Contract Exemption until July 1, 2019 official.

Source: NAPA-net

August 2017

DOL Posts New Set of FAQs Related to Disclosure Requirements Under Fiduciary Rule 

In a new set of frequently asked questions posted to its website, the department said retirement plan providers recognized as fiduciaries under the new rule would not need to start describing themselves in their 408b-2 client disclosures specifically as fiduciaries for now, so long as those disclosures accurately describe their services.

Source: Department of Labor

July 28, 2017

Treasury Ends Obama-Era Retirement Savings Plan 

An Obama-era program that created savings accounts to help more people put away money for retirement is being shut down by the Treasury Department, which deemed the program too expensive.

Source: The New York Times

ERISA Safe Harbor for Government-Run Plans Officially Eliminated 

In a new final rule, Definition of Employee Pension Benefit Plan Under ERISA, the Department of Labor’s Employee Benefit Security Administration removed its final rules regarding the Employee Retirement Income Security Act safe harbor of government-run plans for private-sector workers from the Code of Federal Regulations.

Source: planadviser

October 27, 2016

IRS Announces 2017 Pension Plan Limitations; 401(k) Contribution Limit Remains Unchanged at $18,000 for 2017  

The Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2017.

Source: Internal Revenue Service

August 29, 2017
Rothification Residual Remains in Tax Reform Talks 

Published reports say that President Trump’s top aides and congressional leaders have made “significant strides” in shaping a tax overhaul – and yes, Rothification remains on the table.

Source: NAPA-net

June 29, 2017
Tax Reform Could Change the Way You Save for Retirement 

The fight over tax reform is starting to get personal. So far, much of the debate in Washington has centered on overhauling the corporate tax code. But a new coalition of consumer and industry groups is spotlighting the potential for major changes to the individual side — particularly the way that Americans save for retirement.
Source: CNBC

June 27, 2017
State-Based Retirement Plans for the Private Sector  

This article provides a brief summary of each state-sponsored auto-IRA plan that has either passed or is being considered. [Editor's note: The summaries are updated as circumstances change].

Source: Pension Rights Center

October 3, 2016

Senate Finance Committee Approves Bipartisan Pension Bills  

The Finance Committee took the opportunity (after approving the Miners Protection Act of 2016) to also consider and unanimously approve a package of other retirement reforms — compiled into a single bill called the Retirement Enhancement and Savings Act of 2016 (RESA) — to improve the retirement system generally. 

Source: Groom Law Group

August 30, 2017

Tibble v. Edison 401(k) Fee-Case Decision Offers Three Lessons  

The recent ruling makes important points regarding share-class selection, the timing of fund changes and comparisons to the S&P 500 Index.

Source: InvestmentNews

July 24, 2017

Class-Action Lawsuits Face Tougher Road After Court Ruling, Federal Positions  

Class-action lawsuits, an important tool for public pension funds and other investors to address perceived wrongs, could become less viable options following a Supreme Court ruling and new positions from the departments of Labor and Justice.

Source: Pensions & Investments

May 30, 2017

Wells Fargo, in "Atypical" Outcome, Wins 401(k) Lawsuit  

The win could provide fodder in other legal defenses, and supports the contention that comparing fund costs to Vanguard doesn't always provide an accurate barometer.

Source: InvestmentNews

April 6, 2017

Judge in Putnam 401(k) Suit Deals Potential Setback to Plaintiffs Using Vanguard as Fee Benchmarks 

A federal judge has seemingly dealt a blow to plaintiffs bringing claims against financial services companies for excessive retirement plan fees, following a recent ruling in a self-dealing lawsuit involving Putnam Investments' 401(k) plan.

Source: InvestmentNews

September 29, 2016

Second Circuit Affirms Fiduciary Liability for Poor Diversification  

A concise example of summary judgement published by the 2nd U.S. Circuit Court underscores retirement plan fiduciaries’ absolute duty to diversify and carefully administer participant assets.

Source: planadviser


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

This material is intended for use by financial professionals or in conjunction with the advice of a financial professional.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.