Definiti LLC’s Post

Missing participants—former employees whose benefits remain in the plan but who cannot be contacted or don’t respond to communications—are a headache for a variety of reasons. For a retirement plan, they create administrative burdens, make distributions difficult, and pose fiduciary and audit risks; for participants and their beneficiaries, they spell lack of access to plan benefits and lost revenue. Click on the article below to address how and why this happens.    https://lnkd.in/gdVcgB-m   #participant #retirementplan #srpretirementgeeks

In what may come as no surprise, a new survey that looks at plan sponsor attitudes toward retirement plan management finds that plan sponsors that use outsourced fiduciaries highly value the service as an important backstop. #fiduciary #FinancialAdvisors #RetirementPlanning #CashBalancePlans #CunaMutual #RetirementPlanning #CashBalanceSolution #CunaMutual #401k #403b #retirementplans #tpa #advisors #401kplan #erisa #financialservices #NQDC

On April 23, 2024, the U.S. Department of Labor (DOL) released its much-anticipated Retirement Security Rule for retirement plans. This rule redefines "investment advice fiduciary" under ERISA, ensuring financial advisors prioritize the interests of retirement investors. The new rule takes effect on September 23, 2024. At Employee Fiduciary, we fully support this rule. Fiduciary-grade investment advice tends to lower 401(k) plan costs, leading to higher returns for participants. Our recent study on fees charged by 1,109 fiduciary-grade financial advisors highlights how affordable small business 401(k) plans with fiduciary-grade investment advice can be. Read our full blog to learn more about the findings here: https://hubs.ly/Q02y9zQs0

Spring cleaning is well underway. But that need not be limited to closets, kitchens, and garages—it can serve retirement plans and their administrators too. And one such prime function is addressing missing participants. Missing participants—former employees whose benefits remain in the plan but who cannot be contacted or don’t respond to communications—are a headache for a variety of reasons. For a retirement plan, they create administrative burdens, make distributions difficult, and pose fiduciary and audit risks; for participants and their beneficiaries, they spell a lack of access to plan benefits and lost revenue. And this is not an isolated phenomenon. Definiti LLC reports that there are estimates that every year, tens of thousands of participants lose track of their savings in defined contribution plans. https://lnkd.in/g6GV_cSp #benficiary #planparticipants #plansponsors #401k

📰 In a recent webinar, the IRFA brought together industry experts and regulatory authorities to demystify the complexities arising from the latest financial reporting and audit requirements for retirement funds. Read the full article here: https://buff.ly/4bJWxhY

In a continued effort to enhance investor protection and promote transparency when it comes to financial advice, the Department of Labor (DOL) has introduced a new fiduciary rule. The proposed DOL rule, called the Retirement Security Rule: Definition of an Investment Advice Fiduciary, updates the definition of an investment advice fiduciary under the Employee Retirement Income Security Act (ERISA). This regulation places a heightened emphasis on the best interests of plan participants who rely on financial service providers for advice. Advisory products and services offered through Pension Advisory Services, Inc., (“PCA”), a Registered Investment Advisor. The information in this article is for informational purposes only and should not be considered as investment advice or as a recommendation of any particular strategy or investment product. Information prepared from third-party sources is believed to be reliable though its accuracy is not guaranteed. Opinions expressed in commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. For more information about PCA, including our Form ADV Part 2A Brochure, please visit https://lnkd.in/e4WAF-yF. https://lnkd.in/gtp5cTQi

Thinking about succession planning with an IPP or Personal Pension Plan? This article dives into how pension plans can play a key role in passing on wealth to the next generation - but it’s not a one-size-fits-all solution. Learn about the pros, cons, and potential pitfalls of involving family members in these plans. Click the link to read more and make informed decisions. https://lnkd.in/grQ-_zav #successionplanning #individualpensionplan

Have you heard of a Pension-Linked Emergency Savings Account (PLESA)? Find out more about this newly passed retirement plan feature, which can be a way for non-highly compensated employees to save for unexpected emergencies: https://bit.ly/4aVRUjK #PLESA

Have you heard of a Pension-Linked Emergency Savings Account (PLESA)? Find out more about this newly passed retirement plan feature, which can be a way for non-highly compensated employees to save for unexpected emergencies: https://bit.ly/4aVRUjK #PLESA

#PersonalFinance | Contribution to National Pension System (#NPS) is usually done for the long-term wealth creation. Nevertheless, there could be certain exigencies which call for the need to withdraw a part of the corpus. The Pension Fund Regulatory and Development Authority (#PFRDA) rules stipulate that a subscriber can make partial withdrawal but only up to 25 percent of their contributions to their individual pension account excluding the employer’s contribution.