PLANSPONSOR 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
Tax Bill Passed By Senate Backs Off 457(b), 403(b) Plan Changes

It appears some last-minute amendments have largely removed controversial provisions from the Senate’s version of tax reform legislation that would have had a big impact on governmental 457 and nonprofit 403(b) plan sponsors.

Pass-Through Tax Reform Impact on Small Businesses May Be Mitigated via Roth

The American Retirement Association says that tax reform could be a disincentive for small businesses to offer retirement plans; however, as one reader shares, there are counter considerations having to do with Roth 401(k) options that could mitigate some of the concern.

Settlement Ends Fujitsu Lawsuit Filed Over Plan Fees, Custom TDFs

In their lawsuit, the plaintiffs called the Fujitsu plan one of the most expensive in the country and specifically called out the design and implementation of the plan’s custom target-date funds.

Lawsuit Filed in Colorado District Court Shows Great-West Targeted by Fraud

The richly detailed text of the complaint shows multiple individuals are accused of defrauding Great-West and depositing ill-gotten assets in a variety of U.S. banks, resulting in fraud and money laundering charges. 

Congressional Democrats Continue Push on Butch Lewis Act

The legislation would take steps to provide additional anti-cutback protections for Teamsters, miners, and other unionized American workers who have paid significant sums into multiemployer pension funds.

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

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

Subscribe to NewsDash, click here.
To unsubscribe, click here.
BrightScope / CIO / FWW / Global Custodian / Investor Economics / LiquidMetrix / Market Metrics / Matrix Solutions / PLANADVISER / Plan For Life / PLANSPONSOR / Simfund / The Trade