PLANADVISER Weekend Newsdash
Week ending September 23rd, 2016
NOTE FROM THE EDITOR
Happy Friday, readers! This week’s mailing takes a close look at some of the most pressing compliance issues from the perspective of DC specialist plan advisers. Trusted ERISA experts outline the new standards for making referrals under the fiduciary rule, discuss opportunities and challenges related to sweep programs, and outline the shifting taxation requirements associated with 457(f) plans. 
Editor's choice
Referrals Under the Final Fiduciary Rule
The rule provides that recommending a fiduciary investment adviser to an IRA owner in exchange for a referral fee, such as a solicitor’s fee, is a fiduciary act. And, under the rule, virtually every adviser will be a fiduciary. Read more >
Don’t Forget About Sweep Programs
A sweep program, fund or similar device is a common means used by retirement plan advisers and their affiliates to hold account assets on a short-term basis pending an investment or other transaction. These programs may give rise to prohibited transaction issues under the Internal Revenue Code or the Employee Retirement Income Security Act.  Read more >
Government Plans Will Receive Face-Lift
Unlike 457(b) plans and tax-qualified plans such as 401(k)s, there is no limit on the amount that may be deferred under a 457(f) plan. However, 457(f) plans suffer an important disadvantage when compared with those other types of plans; specifically, the amounts deferred are taxable to the employee when they become vested, rather than when they are paid to him. Read more >
The 'Threat' of the PPA
Thanks to the Pension Protection Act of 2006, we are able to assume that most plan sponsors can add automated plan features if they are interested, and we often question why a plan wouldn’t be interested in such a design feature. Read more >
Momentum
Besides getting people participating in retirement plans, the PPA also provided employers with a chance to improve employees’ asset allocation. It opened the floodgates for target-date funds and set the stage for a high level of comfort for plan sponsors to use TDFs as the qualified default investment alternative. Read more >
MOST POPULAR STORIES
Education About Tax Treatment and Fees Could Boost 401(k) Participation

Findings from a Capital One survey about why employees do not participate in their employer-sponsored retirement plan offers opportunities for education, according to Stuart Robertson.

IRS to Focus on Retirement Plan Distributions and 403(b) Plan Rules in 2019

A Program Letter lists compliance strategies for the agency for next year.

How Rising Interest Rates Affect Stable Value Funds
While money market funds may look more appealing in the short run, this is not expected to last.
Inertia Remains a Plan Sponsor Problem, Too

The language of “inertia” and “disengagement” are often used to describe the natural state of retirement plan participants, but new research from Wells Fargo suggests plan sponsors are also prone to settling with the status quo.

Kaleida Health Faces 403(b), 401(k) Plan Fee Lawsuit

The complaint specifically calls out the 11 T. Rowe Price target-date funds (TDFs) offered by the plans, saying they are all adviser or retail class funds—as opposed to investor or institutional class funds.

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

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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