Investments
While the Wall Street Journal was taking shots at TDFs, claiming they lagged the S&P average for 2012 [1. https://www.napa-net.org/news/plan-optimization/target-date-funds/wsj-takes-a-shot-at-tdfs-2/] and don’t help participants who need to catch up, Morningstar [2. https://www.napa-net.org/news/plan-optimization/target-date-funds/morningstar-tdfs-did-well-in-2012/] painted a different picture, showing that almost all categories did well led by the 2035 funds. Mercer’s 5th annual study [3. https://www.napa-net.org/news/managing-a-practice/industry-trends-and-research/fund-fees-remain-stable-except-for-alternatives/] showed that most fund categories fees remained stable (other than alternatives) even as active equity funds are under attack. Roth 401(k)s [4. https://www.napa-net.org/news/plan-optimization/roth-conversion-opportunities-expand-but-practical-questions-remain/] may be popular in the wake of the American Taxpayer Relief Act — but before plans rush in, they should carefully consider the implications. The various choices for retirement income products [5. https://www.napa-net.org/news/plan-optimization/evaluating-retirement-income-product-options-a-prudent-process/] were reviewed, even as very few plans have adopted them.
Research, Regulatory and Legal Updates
The HelloWallet study about leakage seems to have captured the interest of the popular media, with Time magazine [6. https://www.napa-net.org/news/plan-optimization/leakage-issue-leads-some-to-question-dc-system/] the latest to use the study to question the efficacy of the 401(k) system. Regulatory news included the distinct possibility that the Consumer Financial Protection Bureau [7. https://www.napa-net.org/news/managing-a-practice/regulatory-compliance/tired-of-federal-regulators-get-ready-for-another-one/] may get involved with oversight of IRAs. The Department of Labor [8. https://www.napa-net.org/news/technical-competence/erisa/will-dol-require-plan-fiduciary-training/] seems to be signaling that training of fiduciaries may be a very good thing and certainly evidence of a prudent process, while Trish Brambley [9. https://www.napa-net.org/news/sales-marketing/advisor-due-diligence-checklist/] set out criteria sponsors could use when selecting an advisor. Finally, the case against BoA’s DB plan [10. https://www.napa-net.org/news/technical-competence/bank-of-america-db-participant-suit-dismissed/] for selecting proprietary funds was dismissed on procedural grounds.
Conductor and Summit Speaker Posts
John Carl [11. https://www.napa-net.org/news/technical-competence/case-of-the-week/case-of-the-week-help-for-delinquent-form-5500-filers/] focused on how plans can cure delinquent 5500 filings. Nevin Adams defended TDFs in “Freedom from Choice” [12. https://www.napa-net.org/news/managing-a-practice/industry-trends-and-research/freedom-from-choice/] while Marcus Chandler [13. https://www.napa-net.org/news/sales-marketing/sales-process-development/prospecting-strategy-step-1-plan-sponsor-intelligence/] focused on practical prospecting strategies. Finally, we heard from the upcoming March 3-5 Summit speakers Charlie Epstein and Marcia Wagner [14. https://www.napa-net.org/news/managing-a-practice/views-from-the-summit-accepting-rollover-business-if-youre-not-a-fiduciary/] about how plan advisors acting as fiduciaries can accept rollovers, as well as the panel speaking about the state of stable value funds. [15. https://www.napa-net.org/news/plan-optimization/views-from-the-summit-the-state-of-stable-value/]
