DC Insight
The 401(k) Forfeiture Kerfuffle and What it Means for 401(k) Plan Sponsors
photo credit: istock On February 21, 2024, yet another lawsuit was filed against a 401(k) plan sponsor over alleged misuse of forfeited retirement plan savings of terminated participants. This is the seventh lawsuit filed by the Pasadena-based law firm of Hayes Pawlenko LLP in federal district courts throughout California. This latest claim against Tetra Tech…
Read MoreForecasting Equity Returns – What Can I Count On in 2024? Part One: Normalized Distribution – Ring a Bell (Curve)?
Photo credit: Pixabay A three-part conversation with Highland Consulting Associates. In the next several weeks we’ll consider what you can expect from investment returns in 2024—or, rather, whether you can count on 2024 predictions at all. We’ll break this series into three parts to cover the major areas of investment opportunities beginning with historical returns,…
Read MoreAuld Lang Syne: Some Things Remain the Same (including Retirement Plan Committee Best Practices)
photo credit Pixabay As 2023 ends and a new year begins, in Scotland’s highlands and lowlands you’re likely to hear the familiar “Auld Lang Syne,” a Scottish expression meaning “old long since.” It’s a tribute to times past or a longing for old times. If you’re a plan sponsor fatigued by the pace of change,…
Read MoreInevitabilities: Death, Taxes…and Audits?
Benjamin Franklin is often quoted for having said there are two certainties in life: death and taxes. But, as mid and large plan sponsors of defined contribution (DC) plans can attest, their annual benefit plan audit is another certainty. And let’s not overlook the possibility of a regulatory audit. Regarding the latter, there’s been significant…
Read MoreCome Together: Nonprofits Pool Plans
Pooled plans are now for nonprofit organizations. U.S. nonprofits account for 10% of the U.S. workforce, trailing only retail and manufacturing[i]. Not only that, but the sector has grown dramatically over the last 15 years[ii]. For nonprofits wanting to attract and retain employees (most often, employees who share a commitment to the nonprofit’s mission), offering…
Read MoreFiduciary Training: Put Fear to Rest
Fear is a powerful motivating force. Advertisers are keenly aware of this and market products to spur consumers to action. FOMO, “fear of missing out,” is part of our modern-day lexicon. More obscure is liticaphobia, the irrational fear of lawsuits or being sued by someone. This fear is based on an unfounded sense that you…
Read MoreMillennials Investing in a New(er) Millennia
Gone are the days of calling a stockbroker to hear the latest picks to then place a trade with a $50 commission for a mutual fund with a 2% expense ratio. Today, the average American 20-something with a phone and a brokerage account can place a zero-commission trade for any security on an exchange in…
Read MoreReframing Our Perspective
“What I am looking for is a blessing not in disguise.” Jerome K. Jerome In response to aphorisms like “adversity builds character,” and “what doesn’t kill you makes you stronger,” is the honest plea from 19th century humorist Jerome K. Jerome, “What I am looking for is a blessing not in disguise.” While hard to…
Read MoreAgreement at the Eleventh Hour: SECURE Act 2.0 Signed into Law and What it Means for Your Plan
On December 29, 2022, President Biden signed into law the $1.7 trillion omnibus spending bill that included the Setting Every Community Up for Retirement (SECURE) Act 2.0. The act expands on provisions enacted with SECURE Act 1.0 in 2019. Three separate bills, one passed by the U.S. House of Representatives and two approved by the…
Read MoreFlipped Out over Fiduciary Liability Insurance?
In 2020, more than 200 class action lawsuits were filed under the Employee Retirement Income Security Act (ERISA). It was the high water mark for actions targeting the alleged mismanagement of 401(k) and 403(b) defined contribution retirement plans. A total of 125 such actions were filed in 2021, and subject experts expect another 75 to…
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