Connections for Success

 

Employee Benefit Plans

05.19.21

Small Business (and All Other Plan Sponsors) Oversight of Retirement Plan Investments

Prudence dictates that qualified plan sponsors periodically re-examine compliance with the fiduciary obligations of their retirement plans. A major area to consider is your fiduciary responsibilities over plan investments. This is essential for all plan sponsors, and in particular, plan sponsors of small businesses that do not have the resources or the time to oversee […]

04.20.21

Is Your Cybersecurity Policy Up to the Task?
James Quaid

Do you have a robust cybersecurity policy to keep your retirement plan safe from cybercriminals? The 2020 Cyber Security Risk Report by Aon finds that, “organizations often have a false sense of confidence regarding data security, particularly when it comes to risks potentially posed by third-party service providers.” The ever-growing magnitude of the threat and […]

03.29.21

Pooled Employer Plans: A Look at How Small Employers Can Benefit
James Pellino

Employers and retirement plan services providers have had a year to mull over their options since the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 paved the way for the launch of pooled employer plans (PEPs). For small businesses, these new plans may fundamentally change the quality of and access to retirement […]

02.08.21

Watch Employee Turnover Rate to Avoid Partial Termination

If you have laid off more than 20% of your plan participants over the course of your plan year — an unfortunate necessity for many employers during the COVID-19 pandemic — the IRS could deem that your retirement plan has undergone a “partial termination.” Such a partial termination would trigger the immediate vesting of all […]

01.28.21

SECURE Act: Changes to 401(k) Plan Eligibility and Vesting for Part-Time Employees

The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 contained the most significant legislative changes to the private-sector retirement system in decades. One of the SECURE Act’s provisions changes the 401(k) plan eligibility requirements for part-time employees. Related Read: What You Need to Know About the SECURE Act Understanding the rule Previously, part-time […]

12.29.20

Understanding Private Equity Investments in Defined Contribution Plans
James Pellino

The Department of Labor (DOL) recently released an “information letter” in response to inquiries from the private equity industry as to whether private equity investments can be offered to defined contribution plans. Per the DOL’s response, it will allow defined contribution plans to offer indirect investment in private equity funds. Is this a good fit […]

11.05.20

Should You Establish a Retirement Plan Governance Committee?
James Quaid

Retirement plan governance is the system through which key decisions are made about strategy and operations, including plan design, administration and investment choices. Typically, at the core of plan governance is an official plan governance committee. Although the Department of Labor (DOL) and IRS do not require a plan to have a plan governance committee, […]

09.15.20

How to Handle Laid-Off Employees’ 401(k) Accounts Still in Your Plan
Stephanie M. Zaleski-Braatz

As employee headcount grows, some turnover now and then usually does not create many concerns about “orphan” 401(k) accounts.  However, employers forced to downsize during the economic downturn brought on by the COVID-19 pandemic might have a larger proportion of accounts left behind by former employees. This could be a problem, but there are some […]

08.07.20

CARES Act Balancing Act: Helping Employees Recoup Retirement Savings

The Coronavirus Aid, Relief, and Economic Security (CARES) Act’s retirement plan provisions are designed to throw a financial lifeline to people suffering adverse economic consequences from the COVID-19 pandemic. However, they leave plan sponsors largely in the driver’s seat. If you amended your plan to allow employees to take advantage of the CARES Act, what […]

07.23.20

Preventing Cyber Theft of Plan Assets Before it is Too Late

In the employee benefit plan landscape, cyber theft of participant accounts is a disaster waiting to happen. Whether or not you are liable as a plan sponsor, is a situation that you do not want to be in. Fortunately, there are steps plan sponsors can take to safeguard participant accounts from cyber theft. Plan sponsors […]

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