Aug 16

401k Fees … Alarming Results

Results are in from PlanSponsor’s 2011 Defined Contribution Survey. Over 7,000 plan sponsors responded and 75% of those fell under the micro or small plans criteria, which is defined as assets under $50 million. The results may alarm you… 51% of small and micro plan sponsors said they do not know what the average ...

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Jul 13

401(k) plans – are you in compliance?

The Next Step One year ago, we wrote about a Department of Labor (DOL) statistic stating 77% of 401(k) plans are non-compliant in some form. As a result, the DOL has added almost 1,000 employees to their payroll with 70% of those added to the enforcement division. A recent article in BenefitsPro magazine listed 5 risks for ...

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Jan 27

401(k) Fees – Do You Know How Much You are Paying?

Do you know how costs are affecting your 401(k) performance? You may be in for a surprise! According to a study produced by AARP in 2011, “When respondents were told that financial service companies that manage 401(k) charge fees for administering and managing those plans, and that the fees are paid by the employer ...

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Dec 12

Year of the Fiduciary … A December to Remember

Remember St. Nicholas day as a child? You would put your shoes out before going to sleep and in the morning they would be filled with a surprise. On St. Nicholas day 2011, plan sponsors awoke to their own surprise. Unfortunately, not the kind they like. Wal-Mart and Merrill Lynch on December 6th without admitting or denying ...

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Aug 10

The Year of the Fiduciary -August 2011- “The Quandary”

Consulting firm Tower Watson surveyed plan sponsors and found “77% of them stated that the greatest challenge they face over the next few years: identifying retirement benefit costs.” Aon Hewitt recently conducted a survey of plan sponsors and this is what was found:  Fees and expenses were rated the most important ...

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Aug 10

Vanishing Health Benefits

In 2009, the share of small businesses offering coverage dropped in 45 states, as premiums nationwide rose 82 percent over 2000 Just 42 percent of U.S. small employers offered medical insurance in 2009, vs. 47 percent in 2000. In 45 states the share of small businesses offering coverage dropped, as premiums nationwide rose ...

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Jul 06

Rules for Internal and External Claim Reviews Revised

Last week, HHS, Treasury and Labor released revised regulations for group health plans which have not been grandfathered and insurers must now comply for internal claim procedures and external reviews. These revised regulations discuss a variety of issues. They are generally effective July 22, but certain enforcement grace ...

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Jun 15

The Year of the Fiduciary – June 2011

Duck hunting season is open for the DOL “You are scaring me,” is a recent quote from a prospective plan administrator, after explaining exactly what her responsibilities are as a plan fiduciary. While it is not our intention to “scare” any plan administrator, it is our intention to make you aware of the gravity of ...

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May 12

The Year of the Fiduciary – May Update

In past articles, we mentioned that lobbyists will be out in force looking to repeal or delay a rule within the Dodd-Frank Bill that calls for a uniform fiduciary duty of care for retail investment advice. The lobbyists have succeeded in delaying this rule. The SEC recently stated they will look at this matter later in the ...

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