September 2017 Newsletter Fiduciary - The New "F" Word [...]
Times can get tough for people. With the onset of Hurri [...]
CEFEX, Centre for Fiduciary Excellence, LLC, has certified RPG Consultants of Valley Stream, NY as adhering to the American Society of Pension Professionals & Actuaries (ASPPA) Standard of Practice for Retirement Plan Service Providers. RPG Consultants (RPG) was among the first firms in the United States to successfully complete the independent certification process for recordkeepers, and has now earned the certification for the 6th consecutive year.
RPG Consultants was invited to participate in the PLANSPONSOR magazine 2017 DC Recordkeeping survey along with Fidelity, Empower, Vanguard and other top recordkeepers in the industry. We are proud to say that in over 30 years of service and company growth, we continue to maintain the small-business mentality and personal client relationships as we rank with multi-billion dollar corporations. We are recognized in our industry for our unparalleled service, personalized solutions, client retention and success.
The latest news regarding retirement plans has centered around service provider fees. While fees are a highly important aspect of managing an employer-sponsored retirement plan, they are not the only metric of your overall retirement plan's health. A low-cost retirement plan does not necessarily parallel a fruitful pension program for employees. Studies show that since Social Security was never designed to fully fund an individual's retirement, employer-sponsored retirement plans have become an integral part of employees' overall financial plan for their future. Relying so heavily on this one component should prompt any plan sponsor to ask one very straightforward question… How healthy is my company's retirement program?
With communication mediums like email, text, and IM's becoming the standard in business industries worldwide, plan sponsors are becoming increasingly interested in abandoning paper processes for a more electronic means of communication with plan participants and beneficiaries. Since e-delivery is not an "all or nothing" prospect, this new approach presents itself as an accessible and easily implemented process with many advantages.
It is estimated that uncashed checks account for billions of dollars, representing a fortune of uncollected funds belonging to plan participants or beneficiaries that they are not able to use and also represent serious issues for fiduciaries.
A 401(k) plan permits employees to defer a portion of their salaries on a pre-tax basis with the objective of accumulating assets for retirement. Additional assets are accumulated if the employer makes contributions to the participant's account.
If you have a 401(k) plan, you've likely had participants ask about taking loans from their accounts. If you haven't yet, it is only a matter of time. While the concept of taking a loan is pretty straightforward—you borrow money, you repay it with interest—there are some pretty detailed rules that govern loans in the retirement plan world.
On April 8, 2016 the Department of Labor (DOL) issued final guidance that greatly expands the types of retirement investment advice that will be subject to the fiduciary duty rules under the Employee Retirement Income Security Act of 1974 (ERISA). The so-called "conflict of interest" rule for retirement investments will have a significant effect on those who provide investment advice and sell investment products and services to retirement plans and IRAs. The central focus of the DOL guidance is to protect plan participants from conflicts of interest that could threaten their retirement savings.