Multiple Employer DC Plans: Safety in Numbers?

Smaller US defined contribution (DC) plans face a host of fee difficulties simply because of the size of their plans. This has led to a growing interest in multiple employer plans as a potential cost-effective solution.

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Rethinking Revenue Sharing

While revenue sharing may be a legitimate way to pay for the costs of operating a plan, both US courts and the Department of Labor (DOL) have made it clear that plan sponsors have a significant responsibility as fiduciaries to fully understand, evaluate and monitor their revenue-sharing arrangements and determine whether they are reasonable. Therefore, [...]

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Coming to Grips with Excess Revenue Sharing

US defined contribution (DC) plan fees have been hit with heavy scrutiny recently—from Department of Labor (DOL) disclosure regulations to a rash of lawsuits that have cost several large plan sponsors millions of dollars in settlements and judgments. But perhaps one of the most interesting fee issues today focuses on revenue sharing.

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Taming the New Medicare Surtax

The wealthy will likely see higher 2013 income taxes. One of the newest additions to the tax bill is the 3.8% Medicare surtax. By planning ahead, you may be able to reduce the tax bite—or possibly avoid being bitten altogether.

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DC: Where the Action…Isn’t

Washington’s current inactivity poses a challenge for defined contribution (DC) plan sponsors, investment management providers and record keepers. We’ve heard rumblings of legislative, regulatory and perhaps even taxation changes…but what changes seem likely to happen?

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Safe Harbor Is Safe for Secure Lifetime Income Default Investments

The new frontier in US defined contribution (DC) plans involves qualified default investment alternatives (QDIAs) with a secure lifetime income component. Will such vehicles retain their safe-harbor protections? Yes.

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Tips for Kicking the Tires on Target-Date Funds

The US Department of Labor (DOL) recently issued some tips to guide defined contribution (DC) plan sponsors when selecting a target-date fund as an investment option in their plan. The tips are sensible—one may be even a bit surprising. And they should probably be taken quite seriously, considering the source.

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