Category Archives: Fiduciary updates

SECURE Act: The Coming of Multiple-Employer Plans

In April, the House Ways and Means Committee voted to move forward with the retirement legislation entitled the “Setting Every Community Up for Retirement Enhancement (SECURE)” Act of 2019. Among other key features of the legislation that will help improve retirement saving and security for Americans, one of the main proposed benefits is the authorization of multiple-employer plan (MEP) arrangements. A MEP is a single retirement plan that is offered by two or more unrelated employers that share a required common nexus or interest. These types of plans are governed by Section 413(c) of the Internal Revenue Code and have been deployed successfully for many years by trade associations and professional organizations. It is only with the passage of the SECURE Act that the MEP concept will be available for all types of employers. Read more »

Legislative Updates: Third Quarter 2019

THE SECURE ACT OF 2019

As a reminder, in April, the House Ways and Means Committee voted to move forward with the “Setting Every Community Up for Retirement Enhancement” Act (SECURE Act) legislation. Concurrently, the Senate reintroduced similar provisions in the Retirement Enhancement and Savings Act (RESA). The SECURE Act, with its provisions to incentivize retirement plan creation and increase plan accessibility, is designed to help American workers boost their chances of a secure retirement. Read more »

Listen to Part 2 of Arnerich Massena’s Podcast: Investment Committees: More than the sum of their parts, Traditional Versus Discretionary Advisory Services

In Part 2 of our podcast series, Investment Committees: More than the sum of their parts, we take a look at traditional versus discretionary advisory services. Luka Arnerich, CAIA, a consultant with more than ten years of working with committees in both types of engagements, shares his thoughts and insights on what the difference is and how it affects long-term outcomes, as well as how a committee might decide between one or the other. Read more »

Are Target-date Funds Going Global?

The United States stock market currently accounts for about 55 percent of global market cap. While this represents the largest percentage of the world’s market cap held by a single country, it leaves a full 45 percent in markets outside of the U.S.  The U.S. stock market is also the most expensive in the world, with a current (as of June 30, 2019) P/E ratio of 16.7x compared with the global P/E ratio of 13.2x. Though it accounts for 55% of global market value, the U.S. stock market actually only represents about 17 percent of the world’s stocks: approximately 5,000 U.S. companies versus 25,000 non-U.S. companies. Read more »

Pitfalls that Plague Investment Committees

Investment committees serve as a common structure for the decision-making responsibility in overseeing assets, based on the idea that decisions made by a group of people will be better than individual decisions, particularly when it comes to the complexities of investing. But research shows that it takes more than a collection of people to make wise decisions. Why do some committees generate better investment outcomes than others; is it because they are just better investors, or are there group dynamics at work that can systematically rob a committee of its ability to make strong decisions? Here we discuss some of the pitfalls committees fall prey to that can undermine their long-term outcomes. For more information, read Arnerich Massena’s white paper, Investment Committees: More than the sum of their parts. Read more »

Plan Sponsor Council of America Provides 401(k)/403(b) Campaign Materials

Getting participants engaged and educated is a critical part of sponsoring a retirement plan, and the Plan Sponsor Council of America is here to help. The organization has been providing campaign materials to members and non-members to help bring awareness to retirement savings and assist plan sponsors in educating their participants about financial wellness. This year’s campaign, The Retirement Game, brings an element of fun to retirement planning education, with football-themed materials. PSCA member Arnerich Massena assisted in the development of the campaign materials. Read more »

Legislative Updates: Second Quarter 2019

IMPACT OF EARLY WITHDRAWALS FROM RETIREMENT PLANS AND IRAS

In late April, the Government Accountability Office (GAO) published a report on early withdrawals from retirement plans and IRAs. The report examined and reported on the number and amount of early withdrawals, factors leading up to them, and strategies and policies to limit early withdrawals. Examining individuals in their prime working years (ages 25 to 55), the GAO found that individuals withdrew at least $69 billion of retirement savings, resulting in those plan participants and IRA owners paying more than $6 billion in tax penalties associated with these withdrawals. Read more »

Arnerich Massena’s White Paper Featured in Nonprofit Association of Oregon Newsletter: Investment Committees: More than the Sum of their Parts

The Nonprofit Association of Oregon recently featured Arnerich Massena’s white paper, Investment Committees: More than the sum of their parts in its May 2019 issue of Oregon’s Nonprofit Digest. We’re pleased to share this paper, which discusses how an investment committee’s ability to function as a team can impact the performance of their investment portfolios. Based on wide-ranging research and direct experience, we provide strategies for committees to strengthen their decision-making and group processes in order to ultimately improve outcomes. Read more »

Is your retirement plan stuck in the past?

How well are you preparing your employ­ees for a secure future? Are you actively working to build a retirement-ready workforce, or have you left your plan on autopilot? If you haven’t checked in a while, you may be missing out on important services, trends, and cost efficiencies! Review this checklist to find out where paying a bit of attention can pay off for you and your participants. Read more »