HANYS Benefit Services (HBS), has challenged ourselves to take an introspective look at not only what we do, but why we do it. Many retirement advisory firms offer similar services, so we developed a new video to demonstrate how our approach to advisory services distinguishes us from other retirement advisory firms. Deeply ingrained in our corporate culture is the belief that putting the interests of our clients first and foremost is paramount. Staying true to our lineage, we are able to carry that philosophy through to our clients with our advocacy approach to retirement and benefits advisory services. “Our advocacy approach allows us to build real relationships with our clients, creating a shared fiduciary responsibility between HBS and the member organizations we advise,” said James J. Kelley, HBS President. If you have any questions about the video , or would like to speak with an advisor, please get in touch by calling (800) 388-1963 or via e-mail at  hbs@hanys.org.

HANYS Benefit Services (HBS), has challenged ourselves to take an introspective look at not only what we do, but why we do it. Many retirement advisory firms offer similar services, so we developed a new video to demonstrate how our approach to advisory services distinguishes us from other retirement advisory firms. Deeply ingrained in our corporate culture is the belief that putting the interests of our clients first and foremost is paramount. Staying true to our lineage, we are able to carry that philosophy through to our clients with our advocacy approach to retirement and benefits advisory services. “Our advocacy approach allows us to build real relationships with our clients, creating a shared fiduciary responsibility between HBS and the member organizations we advise,” said James J. Kelley, HBS President. If you have any questions about the video , or would like to speak with an advisor, please get in touch by calling (800) 388-1963 or via e-mail at  hbs@hanys.org.

When it comes to reducing retirement plan expenses, there is no time to waste! Saratoga Hospital wanted to quickly establish a solid fiduciary process. Read about  Saratoga Hospital’s challenges with its retirement plan, and how HANYS Benefit Services was able to reduce its retirement plan expenses and ensure it is in compliance with ERISA regulations. If you have any questions or would like to speak with an advisor about reviewing or establishing a plan, please contact us at (800) 388-1963 or via e-mail at  hbs@hanys.org.

The Internal Revenue Service (IRS) has recently released the contribution limits on Qualified Retirement Plans for 2015. HANYS Benefit Services created the  attached chart  that details these contribution limit increases. If you have any questions about the COLA Limits, or would like to speak with an advisor about reviewing or establishing a plan, please contact us at (800) 388-1963 or via e-mail at hbs@hanys.org.

HANYS Benefit Services’ 2014 Retirement Plan Survey uncovers significant uncertainty among employers about retirement plan administration. The survey—which sought to identify significant trends in retirement plan services—found: Nearly 80% of respondents said they were unsure if their plan advisor was acting in a fiduciary capacity; 17% percent of respondents were unsure how their advisors were compensated; and one quarter said they were unsure how often their plan went out to bid—with 22% indicating their plan had never been put out to bid. “Legal and regulatory changes can make it difficult to stay ahead of the fiduciary responsibilities associated with maintaining a retirement plan,” said James J. Kelley, President, Strategic Benefit Services. “However, this survey helped identify key best practices that can not only lead to an increased level of fiduciary protection for plan sponsors, but also result in improved employee participation and outcomes in retirement plans.” The survey

According to the 2014 Retirement Plan Survey conducted by HANYS Benefit Services, approximately one-half of the responding retirement plan sponsors offer automatic enrollment. Offered in conjunction with automatic escalation, such features can positively impact participant behavior and improve retirement readiness. This article examines some best practices to be considered when implementing automatic features in defined contribution plans that can produce greater results per dollar of employer cost. Background The utilization of automatic features in defined contribution plans has increased significantly since they were first introduced as part of the Pension Protection Act of 2006 (PPA). More plans are adopting these provisions, resulting in higher participation rates among employees. Although this is a positive trend, certain design features actually thwart the success that could otherwise be achieved. Specifically: relatively low default deferral rates result in lower savings;

By complying with ERISA section 404(c), sponsors and other fiduciaries of retirement plans with participant-directed investments may shield themselves from liability for poor investment decisions made by plan participants. If a retirement plan meets the requirements of ERISA section 404(c), no plan fiduciary will be liable for any loss that is the direct and necessary result of a participant’s exercise of control over the investment of his or her plan account. For example, ERISA section 404(c) plan protects a plan fiduciary from being liable for the losses suffered in a down market by the 60-year-old who invests his entire account in an aggressive growth fund. However, plan fiduciaries are responsible for the selection or retention of particular investment options and for investments required by the plan or directed by the plan sponsor. This checklist will help you determine how well you are complying with ERISA section 404(c). This checklist is for informational purposes only and is n

Non-ERISA 403(b) plans seem to be dropping in popularity among non-profit organizations. Given regulatory guidelines that can be difficult to follow, many plan sponsors are finding it harder to maintain a fully compliant non-ERISA plan. If your non-profit still operates a non-ERISA plan, you may want to give some thought to changing over. Historically, non-ERISA plans were a popular choice for many non-profit organizations, since they were subject to relatively little regulation. In general, most plan sponsors chose to maintain a plan outside of ERISA to avoid Form 5500 reporting and mandatory audits if the plan had more than 100 participants. To qualify for non-ERISA status, plan sponsors had to have “limited involvement” in the plan. For instance, non-ERISA requirements precluded employers from being involved in certain basic plan functions, such as approval of plan-to-plan transfers, distribution processing, and addressing applicable joint and survivor annuity requirements. That

Fiduciaries of defined contribution retirement plans are under closer scrutiny than ever before. Plan participants are filing lawsuits, the media has increased its attention on fiduciary failures, and during plan audits the U.S. Department of Labor (DOL) now routinely asks for evidence of fiduciary training. In light of the potential personal liability, it is imperative that plan fiduciaries understand their responsibilities and adhere to the standards of conduct that apply to them. The latest white paper,  Fiduciary Roles and Responsibilities Under ERISA Defined Contribution Retirement Plans , presents an overview of Employee Retirement Income Security Act (ERISA) and DOL requirements for plan fiduciaries and others with direct responsibility for retirement plans. “It is important for plan fiduciaries to be aware of what their responsibilities are regarding plan oversight—not only because of their obligations to plan participants but because of the personal liability they take on by v

Approximately one-third of eligible workers do not participate in their employer-sponsored defined contribution plans, such as ERISA 403(b) and 401(k) plans. Research suggests that almost all of these workers would choose to remain participants if they were automatically enrolled. The increased savings would significantly improve their retirement security and may result in improved workplace satisfaction. Some employers have adopted automatic enrollment plans and many more are interested, but the fact that they are potentially liable for investment losses that may occur in such plans has been a major deterrent to wider adoption of this plan design. The Pension Protection Act (PPA) of 2006 removes several impediments from automatic enrollment plans. A key provision of the PPA is amending the Employee Retirement Income Security Act (ERISA) to provide a safe harbor for plan fiduciaries investing participant assets in certain types of default investment alternatives in the absence of parti

To continue from our previous installment, understanding fiduciary responsibilities is important for the security of a retirement plan and compliance with the law. If you answer “no” to any of the following questions, you may not be complying with federal regulations. 6. Are you prepared to monitor your plan’s service providers? You should create and follow a review process at predetermined intervals to evaluate whether the current service provider is meeting your plan’s needs. This review should take into consideration the provider’s performance, reports, notices, fees, questions and follow-up. The review should include asking the plan’s service providers about policies and practices, ensuring that plan records are properly maintained and following up on participant complaints. The review process should be documented, and when using an internal administrative committee, you should educate committee members on their roles and responsibilities. 7. Have you identified parties-in-interest

Understanding fiduciary responsibilities is important for the security of a retirement plan and compliance with the law. If you answer “no” to any of the following questions, you may not be complying with federal regulations. Have you identified your plan fiduciaries, and are they clear about the extent of their fiduciary responsibilities? ERISA defines a retirement plan fiduciary as a person or entity that does any of the following with respect to a retirement plan: Exercises discretionary control or authority over the management of the plan or its assets; Provides investment advice or manages the plan assets for a fee; Has discretionary responsibility in the administration of the plan; and Is specifically identified in the written plan documents as a fiduciary. Fiduciary responsibilities include: Acting solely in the interest of plan participants and their beneficiaries, and with the exclusive purpose of providing benefits to them and paying plan expenses; Carrying out their duties p

On April 4, 2014, the IRS issued  Notice 2014-19  which provides additional guidance on how qualified retirement plans should treat the marriages of same-sex couples following the June 26, 2013 Supreme Court’s ruling in United States v. Windsor. The Windsor decision invalidated Section 3 of the 1996 Defense of Marriage Act (DOMA) that barred same-sex couples from being treated as married under federal law. Subsequent to the Windsor decision, the IRS issued  Revenue Ruling 2013-17  which stated that a couple would be considered married for federal tax purposes if their marriage certificate was issued by a jurisdiction having the legal authority to sanction marriages. Moreover, once married, the IRS would consider the couple to be married, even if domiciled in a state that does not recognize same-sex marriages. Notice 2014-19 provides guidance on how to comply with the provisions of the Revenue Ruling. Specifically, the Notice provides guidance on the following: Plan operations must refl

HANYS Benefit Services wants to help you stay compliant in 2014 with our  2014 Compliance Calendar . Compliance is just one of many services HBS provides, including Plan Design,Plan Provider Management, and Co-Fiduciary Services. If you have any questions regarding compliance requirements or their application to your plan, contact us at (800) 388-1963 or at hbs@ hanys.org .

HANYS Benefit Services’ Ten New Year’s Resolutions for Plan Fiduciaries: 1) Keep all plan documents and related records. HANYS Benefit Services recommends that you review the most recent version of your plan documents. Documents are often misplaced as human resource personnel change and computer systems are upgraded. Complete a document checklist to make sure that all applicable documents are available and maintained. These include the Internal Revenue Service determination letter, plan amendments and notices, automatic enrollment notifications, and the summary annual report. Service agreements and vendor contracts should be reviewed periodically to ensure all required services are being provided and agreed upon. Service agreements, such as the plan document, should be kept in both electronic and paper form. 2) Review ERISA bond and fiduciary liability insurance. ERISA-covered retirement plans must maintain an ERISA bond to protect assets from theft and fraud. Maintain written proof of

The American Taxpayer Relief Act of 2012 amends the requirement that employees wait until a distributable event (i.e., age 59½, termination, death or disability) for an in-plan Roth conversion. With the release of  Notice 2013-74 , the Internal Revenue Service (IRS) provides additional guidance on in-plan Roth conversions. The Small Business Jobs Act of 2010 permitted retirement plans that provided for Roth contributions to allow employees to roll over amounts (other than designated Roth contributions) from their retirement plans to their Roth account in the plan. However, the amounts that could be rolled over were limited to amounts that were otherwise distributable under the plan. Thus, unless an employee had met a distributable event, a rollover was not possible. Section 902 of the American Taxpayer Relief Act of 2012 expanded the type of amounts that are eligible for an in-plan Roth rollover.  IRS  Notice 2013-74  provides that the following contributions (and any related earnings)