Webcast: All Eyes are on Rollovers

A growing number of participants are rolling over their 401(k) plan benefits to other 401(k) plans or to IRAs. That’s a good thing because it keeps money intended for retirement in the private retirement system. However, with the increased use of rollovers comes increased scrutiny and regulation by the SEC, FINRA and the DOL. On July 22, NAPA’s Executive Director/CEO Brian Graff and Director of Government Affairs Ronald J. Triche will discuss the latest actions being taken by these regulators and how it will affect your business.   Read More

Thousands of 401(k) Plans Failed Nondiscrimination Tests, Study Shows

Nondiscrimination tests, sometimes described as the “rocket science” of the tax compliance world, can make an employer run afoul. And that’s exactly what happened to 57,277 of the 401(k) plans that Judy Diamond Associates reports in a study it recently released. The study says that the plans in question failed the most recent nondiscrimination tests they conducted in compliance with IRS regulations.   Read More

Last Week’s Top 5 Posts on NAPA Net

The list of the top five most-read posts on NAPA Net last week included the debut of NAPA’s list of the top 50 plan advisors under 40, Paul Mahan’s return to Commonwealth, new EBRI data, the U.S. Supreme Court’s decision in the Fifth Third case and the risk inherent for investment managers in putting proprietary funds in their own 401(k) plans.   Read More

Are Advisors Failing at Succession?

According to a new white paper by SEI and FP Transitions, most financial advisors think they have built a business, but what they have really built is a practice that’s likely to end when they retire. Their research shows that a stark 99% of independent financial services and advisory firms go out of business when their founders retire.   Read More

NAPA Net 2.0 Coming Soon!

On July 7, NAPA Net will be relaunching on a new online platform. The new platform will connect to the ASPPA member database, streamlining the process of registering for NAPA webcasts, certification programs, etc. We’ll also be updating and expanding the pages in the NAPA Partner Corner and adding information about the new NAPA Academy, 401(k) Practice Builder and more.   Read More

Benefits Brokers Take the Off-Ramp

Though benefits brokers say they see a big opportunity in the changing health care landscape, nearly half are considering exiting the business and 67% know of peers who have done so in the past year. A survey commissioned by AFLAC found that while the usage of brokers has increased, smaller advisors seem to be the ones having the most issues adapting to health care reform.   Read More

EBRI Analyzes the Bitter Fruits of Leakage

Early withdrawals — loans taken against plan balances, hardship withdrawals and retirement account payouts when changing jobs — can provide participants quick infusions of cash that help meet pressing needs. But these forms of “leakage” can come at the expense of their future retirement security. A new analysis by EBRI provides empirical data on the full impact of leakage on 401(k) balances.   Read More

NAPA’s Top 50 Plan Advisors Under 40

Today the top plan advisors are highlighted by several organizations. For the most part, though, most of them have been around for a while and benefit from many years of experience. So where is the next generation of advisors coming from? To answer that question, NAPA set out to find the top young advisors — the profession’s “Young Guns.” The results of that effort: our list of the “Top 50 Plan Advisors Under 40.”   Read More

Frank Russell Acquired by LSE

The long rumored divestiture of Frank Russell by Northwestern Mutual was completed with the announcement of a sale to the London Stock Exchange. The sale was reported to be for $2.7 billion. Experts speculated that for LSE, Russell’s index business, second only to S&P and slightly ahead of MSCI, was the key to the deal.   Read More

What Can the Fly-In Do for You?

What separates the generalist from the specialist? Dedication to understanding what is on the horizon from a policy standpoint and taking this knowledge back to clients. Clients expect that. And the best way to show that dedication is to attend this year’s NAPA DC Fly-In Forum, set for Sept. 30-Oct. 1 in Washington.    Read More

High Court: Moench No More

While there are already plenty of reasons why companies may not want to include their own stock in their ERISA plans, the U.S. Supreme Court just gave them another. A unanimous decision by the Court in the Fifth Third court case clearly puts fiduciaries on notice that the so-called Moench presumption is no longer valid and will not give them special protection for the use of company stock.   Read More

OppenheimerFunds Announces EM Fund

OppenheimerFunds has announced their new Oppenheimer Emerging Markets Innovators Fund (EMIAX), which is available to retirement plans. EMIAX will invest in small- and mid-cap companies in the emerging markets with disruptive products, brands, business models or other strategic differentiators.   Read More

Dumb Money vs. Smart Money

No matter how many times you say it — “past performance is not a predictor of future performance” — it just does not sink in. The challenge goes deeper than simply being an educational issue in that we have been hard-wired through many eons of evolution to be backward-looking, pattern-seeking creatures.   Read More

U.S. Household Saving Needs Boosting, Paper Asserts

At their current savings rate, many Americans will have tough choices to make as they age. Not only that, but a low savings rate has broader serious implications for the U.S. economy and its solvency. “Another Penny Saved: The Benefits of Higher U.S. Household Saving,” a paper by Oxford Economics, paints a sobering picture of the current savings rate and its consequences for retirement.   Read More

RCAP’s Chief Explains Management Changes

For those following the acquisitions of five IBDs over the last year (including Cetera and First Allied) by Nicholas Schorsch-led RCAP, recent news about ACRP, their affiliate which focuses on non-traded REITs, might seem ominous for their IBD efforts. But according to Mike Weil, one of the original founders of ACRP and head of RCAP, the reality is quite different.   Read More

Bogle Stirs the Pot

Though he left the company he founded years ago, John Bogle of Vanguard fame still makes headlines. The Wall Street Journal reported on a presentation Bogle gave recently calling for a “Federal Retirement Savings Board” that would approve all investments that retirement plans could use and tax limits for the highest-paid executives. Bogle also called IRAs “fragile instruments” because withdrawals are too easy to make, but stopped short of endorsing mandatory retirement savings.   Read More

OneAmerica to Acquire City National Bank’s Retirement Services Division

OneAmerica will acquire City National Bank’s San Diego-based retirement services record keeping business under an agreement between the companies announced June 25. Once the acquisition is complete, OneAmerica will become OneAmerica Retirement Services LLC. The company plans to maintain business operations at the San Diego location and keep clients working with the same service team.   Read More