"Defendants successfully made their case in staving off a decision in a case involving Princeton University’s 403(b) plans, and in so doing placed their bets on the outcome of another case in the 3rd Circuit." Click here to read more.
"Strategic leadership is like a high-performance engine and requires each component to operate at a high level." Read about the seven essential components to effective nonprofit leadership. Click here for the article.
How will the new tax bill affect you? Click here to read about the implications for consumer and business behavior, impact on growth, unemployment, wages, interest rates and earnings.
Source: J.P. Morgan Asset Management
It's time again to make resolutions for the New Year. If you're like me, some of these resolutions you'll keep and some....well, may not be so easy. In my view, simplicity is the key to successful resolution keeping, so I've considered three (yes, only three!) to consider.
Create a Fiduciary File
Make sure you have one - and that it is up to date. This file should contain all plan documents and amendments. Thanks to the world of emails and the Portable Document Format (pdf), records of all plan documents and amendments requires a lot less paper and are much easier to store. Client portals like Innovest's InnoVault, allow plan sponsors to upload documents to a secure server so they are available when needed. A fiduciary file not only maintains copies of plan documents, but it also houses documentation of the decisions made by the board and a written summary of the processes used to reach those decisions. Keeping documents related to all fiduciary decisions, such as hiring service providers, meeting minutes, changing and reviewing investment options, and other decisions, ensures that you're creating a paper trail for future board members and protecting yourself in case of an audit.
Review Plan Expenses
Plan sponsors have a fiduciary responsibility to ensure that the plan's fees and expenses are reasonable. Plan sponsors need to review the expenses charged to their plan and determine whether they are reasonable for the services provided. Plan sponsors should have received fee disclosures from their plan provider. Reviewing the disclosures and benchmarking those fees to those charged in similarly sized plans are the most effective ways to ensure that plan expenses are reasonable. Who knows? This exercise might also provide you the opportunity to renegotiate lower fees, and the savings to the plan could be substantial. That would be a great way to begin 2018!
Review Plan Providers
Plan Sponsors need to resolve to review the work of their providers to make sure they are doing the work promised. Reviewing the services standards, education offerings and other promised services ensures that your plan is receiving the services for which it has paid. Plan sponsors should review their plan providers by either doing the work themselves or by hiring a qualified consultant to evaluate the offerings in comparison to other providers in the marketplace. Vendors frequently introduce new tools and technologies, which provides an opportunity to learn about new tools and services that may add value to your participants.
For the fourth consecutive year, Innovest is sponsoring four students from Arrupe Jesuit High School. Students intern at Innovest through the school’s Corporate Work Study Program. The majority of students participating are from families below the poverty line and will be the first in their families to graduate from high school and hopefully college. Arrupe students attend classes four days per week and intern one day at a company, such as Innovest.
Leslie Astudillo-Rangel – Senior
Leslie is interning for the first time at Innovest. She organizes her schedule to work on homework and scholarships. She would like to attend Loyola University of Chicago. Life in college for Leslie will be busy as she hopes to double major in psychology and sociology, as well as earn a minor in journalism.
Anahi Sanchez – Junior
Anahi returns to Innovest for her third year. She keeps busy with school work and her work at Innovest. Her favorite subject is English. Her goal is to attend the University of Colorado at Boulder. She is still deciding on her course of study, but is interested in the medical field.
Fernando Rodriguez – Sophomore
This is Fernando’s second year at Innovest. He is well-known for his snappy bowties that he wears each week. Fernando has a great attitude and happily takes on any task assigned to him, even the tedious ones. Fernando ultimately wants to attend the University of Colorado at Boulder and become a doctor or a nurse.
Erika Esmeralda Guardado – Freshman
Erika is our new freshman worker. She demonstrates an ability to come out of her comfort zone by standing up for what is right, doing public speaking, and joining sports. Erika plans to attend college in Colorado and has set her eyes on the University of Colorado Boulder, Regis University, or University of Denver.
"RETIRE Act permits retirement plan sponsors to automatically enroll participants in electronic delivery for plan communications, while providing an opt-out option for employees who still prefer to receive paper documents." Click here to learn more.
Source: NAPA Net
Plantiffs in the excessive fee law suit against Delta Air Lines had their suit dismissed. The judge ruled that since the plantiffs were not personally invested in the specific criticized funds and did not actually pay the alleged excessive recordkeeping fees, they could not sue. Click here to read more.
Source: NAPA Net
A scheme to fraudulently transfer funds from plan participant accounts by unauthorized persons has been uncovered by the Denver Division of the FBI. "According to the suit, the FBI’s Denver Division was contacted by in November 2016 by Great-West Financial’s VP of Internal Audit regarding allegations of fraudulent transfers from clients’ 401(k) accounts from JP Morgan. At that time, Great-West Financial had 20 participants affected and a loss of at least $1 million with a potential loss in excess of $2 million, according to the suit." Click here to read more.
Source: ASPPA Net
Another company is being sued for offering an underperforming stock fund in its 401(k). "Several large companies have been sued over the investment strategies of their 401(k) offerings, but this lawsuit is unusual in that it challenges a large-cap domestic stock fund." Click here to more.
Source: Bloomberg BNA
"I believe the risk of nuclear contamination to your portfolio is low. North Korean leader Kim Jong Un is an evil dictator, but he is not suicidal, and understands that launching an attack against the U.S., or one of its allies would result in a swift U.S. military response that would destroy him and his regime." Click here to read more.
Source: Matthews Aisa
Unions! "A new front has opened in the retirement plan litigation battle, this one involving the 27,178-member Supplemental Income 401(k) Plan, a union-sponsored multiemployer plan with almost $1 billion assets." Click here to read more.
Source: The 401 (k) Specialist
"Companies are in expansion mode in the US, according to a quarterly survey of finance executives." The CPA Outlook Index is at 79, which indicates that there will be continued revenue growth in 2018. Click here to read more.
The Federal Employment Guidance Service (FEGS) of New York City was one of the largest non-profits until it collapsed. The organization closed $47 million dollars in debt. Click here to learn what they could have done differently.
Source: NonProfit Management
"In a multi-vendor environment, participants lose all of the economies of scale that come with a consolidated plan-level account." Click here to read more about why having a single provider makes the most sense.
Source: The CPA Journal
"The primary problem is that 403(b) investment costs are extremely high as compared to the 401(k) market, where the plan sponsor typically uses one provider for the plan." Click here to learn more about the best practices for 403(b) Plans.
Source: International Foundation of Employee Benefit Plans
Read how Innovest helped Jefferson County Public Schools reduce the number of vendors in their 403(b) plan, ultimately saving participants thousands of dollars. Click here to read more.
Source: Employee Benefit News