Lawsuit Against TIAA Over Managed Account Service Moves Forward

TIAA's request to dismiss an amended lawsuit filed against it regarding a managed account service for participants was denied by a federal district judge in New York, with an order for the firm to provide an answer by June 21. The plaintiffs alleged that TIAA breached its fiduciary duties to participants under ERISA for allegedly cross-selling the firm's adviser-managed account service known as Portfolio Advisor, which comes at a higher cost than remaining in the plan.

Source: Planadviser.com, June 2024

The Rothification of Retirement

This PLANADVISER special coverage series considers the push toward increased Roth use in defined contribution plans and the implications for plan advisers, sponsors, and participants.

Source: Planadviser.com, June 2024

Major Differences Between DOL's Proposed and Final ERISA Investment Advice Regulations

The DOL's final regulations broaden the definition of fiduciary under ERISA to include more investment advisors. However, the eight hundred pages of final regulations, which consist of a final rule and three sets of amendments to ERISA prohibited transaction exemptions, contain crucial differences from the proposed regulations. Therefore, despite the significant expansion contained in the rule, the DOL did retreat from some of its original proposals.

Source: Hallbenefitslaw.com, June 2024

A Pop Culture Guide to the New Final Amendments to the QPAM Exemption

The DOL recently finalized amendments to the QPAM exemption that will considerably alter the exemption's conditions effective as of June 17, 2024. There are several immediate action items for investment managers and ERISA plan fiduciaries under the revised exemption. Here is a "Pop Culture" guide.

Source: Erisapracticecenter.com, June 2024

New Report Analyzing 20 Years of 401k Managed Account Data, Innovation, and Trends

Edelman Financial Engines released a report that features data and insights gained from 20 years of helping employees save for retirement through its managed account program. It finds that managed accounts are helping employees of all ages with optimal benefits and uptake closer to retirement age.

Source: Edelmanfinancialengines.com, June 2024

The Missing Link: Adding Emergency Savings Solutions to Retirement Plans

The passage of SECURE 2.0 brought new in-plan emergency savings solutions. What have the past five years of research taught us about the connection between short-term and long-term financial security? And how can 401k plans benefit from lessons learned?

Source: Blackrock.com, June 2024

What Can Canadian DC Plans Learn From U.S. Pension Legislation?

Features such as automatic enrolment in 401k savings plans are helping U.S. employees become retirement-ready, said Mark Iwry, a non-resident senior fellow at the Brookings Institution. As a result of auto-enrolment legislation, millions of workers who wouldn't be saving for retirement are now participating in a workplace retirement plan, he said. Adding the expansion of auto features in the Canadian retirement landscape would likely have a similar impact.

Source: Benefitscanada.com, June 2024

Disclaimer of Opinion Removal Analysis

Fifteen years have passed since 403b plans became subject to the same financial reporting and disclosure requirements as 401k audits. Auditors have been disclaiming their audit opinion on account of the financial statements potentially missing permissibly excluded contracts. Is it time to consider whether there is a continuing risk that the financial statements are potentially missing assets?

Source: Belfint.com, June 2024

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