Even among 403(b) plans not governed by ERISA, PLANSPONSOR DC Survey results show that in 2016, 54.3% of plan sponsors reported they have an investment committee for their plans; this jumped to 67.3% in 2017 and 67% in 2018.
The 2018 PLANSPONSOR Defined Contribution Survey finds that 403(b) plan sponsors offer more formal financial education/guidance on a variety of topics than the overall 4,000 defined contribution (DC) plan sponsors surveyed.
The university has pared down to 11 investment options in its 403(b) plan.
Educators who work with a financial professional exhibit more effective financial behaviors over time, have higher mean annual contributions, increase their contributions more frequently, and are more likely to monitor their account performance than those who do not, a survey finds.
Under the once-in-always-in exclusion condition, for a 403(b) plan that excludes part-time employees from making elective deferrals, once an employee is eligible to make elective deferrals, the employee may not be excluded from making elective deferrals in any later exclusion year on the basis that the employee is a part-time employee.
One case focused on excessive fees for recordkeeping, administrative, and investment services, and the other focused on revenue sharing.
The expanded distribution of the program seeks to take advantage of the Department of Labor’s recent focus on expanding MEP coverage, the firm says.
The research found 25% greater participation in plans with 15 or more investment providers compared to plans with only one provider, and account balances are, on average, 73% higher among plans with 15 or more providers compared to single provider arrangements.
Under the proposed regulations, 401(k) plan sponsors could choose to make additional accounts available for hardship withdrawals.
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.
Their use of an adviser acting as a plan fiduciary has increased by 40% in the past four years, according to the Plan Sponsor Council of America.
The changes streamline the investment, administrative, operational and communication processes for 403(b) participants, plan sponsors and advisers, says IPX.
The new lawsuit alleges the university engaged in prohibited transactions when it used revenue sharing from plan investments to pay for HR staff salaries and fringe benefits.
While not disagreeing with a federal court judge's decision, the plaintiff says the judge's findings about certain plan committee members warrants her ordering them to be removed.
A charter school in New Orleans has been told it has violated federal law and its obligations regarding financial management as identified in the charter operating agreement.
A federal district court judge found that “while there were deficiencies in the Committee’s processes—including that several members displayed a concerning lack of knowledge relevant to the Committee’s mandate—plaintiffs have not proven that the Committee acted imprudently or that the Plans suffered losses as a result.”
However, a federal district judge found enough plausible evidence to move some duty of prudence claims forward.
In a series of private letter rulings, the IRS has determined that plans in question, including a 403(b) plan, are church plans under the definition clarified in a Supreme Court decision.