If you administer a 403b plan you should be familiar with the term "universal availability." This concept means that, as a general rule, all employees must be allowed to make elective deferrals into the plan immediately upon hire. There are a few limited exceptions to this rule that permit the plan sponsor to exclude certain groups of people, but compliance with these exclusions is often akin to traversing a minefield ..read more

The final rule has been approved by the OMB and may be publicly available as early as May 1. The changes significantly impact both financial professionals and the financial institutions they represent. However, the impact will be greatest on the distribution of annuities, and regulatory attention is particularly focused on fixed-indexed annuities ..read more

The DOL recently filed an amicus brief in the pending Home Depot 401k litigation. The DOL summed up a fiduciary's duties vis-a-vis cost-consciousness. At first glance, the issue of reasonable expenses would seem to be fairly straightforward. However, cost issues are arguably potentially more complicated, especially in connection with more complicated investments such as annuities, which often lack the transparency of other investments. As a result, plan sponsors may mistakenly believe they understand an investment and its costs, while closer examination often reveals issues they had not initia ..read more

The design of a state-facilitated auto-IRA retirement savings program's investment menu, its cost structure, and fee transparency are important enablers of a participant's ability to build high-quality, well-diversified portfolios that will generate risk-adjusted returns over time. This article provides a comparative review of investment design and cost structures ..read more

Elena Barone Chism, Deputy General Counsel, Retirement Policy, at ICI, writes, "Regrettably, the Department of Labor is rushing to finalize a fiduciary advice rule that threatens to roll back that progress. If implemented, the rule would lead to fewer choices in the marketplace and less access to financial advice and guidance -- losses that would fall heaviest on middle-class investors ..read more

For sponsors in the for-profit world, there is not much choice for defined contribution plans: 401k plans are available, but 403b and 457b plans are not. For sponsors in the tax-exempt, church, and governmental fields, however, all three are available, and there are many trade-offs and nuances to consider in choosing between them ..read more

In this quick-hit series of podcasts, Fred Reish and Brad Campbell offer a high-level view of current trends and recent ERISA developments. In this episode, They provide an update on the DOL's fiduciary proposals ..read more

Washington Governor Jay Inslee last week signed legislation creating a state-facilitated program, Washington Saves, to provide coverage for those private sector employees. The program will launch by January 1, 2027, according to the announcement ..read more

Ron Surz explains how pooled plans can cut down on costs and administrative burdens for small employers looking to sponsor a retirement plan ..read more

Columbus Regional Healthcare System, Inc. and a class of some 6,800 retirement plan participants, recently advised a federal district court that they have reached a $2 million settlement in their pending ERISA case. The parties' joint filing detailed the settlement terms, which would end the plan participants' class action lawsuit in which they accused plan sponsors of losing them millions in retirement funds by charging them excessive administration fees and offering them poor investment choices ..read more