In our 2014 Retirement Survey Report , about 79% of survey participants said they have an investment committee. Given a complex environment of regulatory scrutiny and fiduciary liability exposure, a committee specifically charged with investment oversight is a sound risk management strategy for plans and organizations of all types and sizes. Although they will differ from one organization to the next, best practices suggest an investment committee’s responsibilities and duties include: developing an investment policy statement; establishing a formal process to manage the plan’s investment strategy; determining and implementing investment decisions; establishing procedures for selecting and monitoring investment options; selecting and removing fund managers and evaluating their performance; and reviewing investment management fees. As these duties suggest, it is also a best practice to ensure that an investment committee is appropriately empowered to make and carry out relevant investme...

Best practices underscore the value of using an independent advisor with regard to developing, implementing, and overseeing a retirement plan. An experienced, independent advisor can offer valuable guidance and feedback to help ensure that a retirement plan is meeting the objectives of both the plan sponsor and participants. A plan fiduciary who lacks the expertise necessary to fulfill their fiduciary obligations must seek the advice of an expert. An independent advisor dedicated to retirement plans offers a broad range of services to assist a plan fiduciary. According to our 2014 Retirement Survey Report , Seventy-three percent of survey participants said they use an independent advisor for at least one of their retirement plans; nearly 25% indicated they do not use an independent advisor. Consistency was evident when respondents were asked to identify those services provided by their retirement plan advisors. Ninety-one percent of those responding said their advisor offered investmen...

As we approach year end, now is the time to handle the distribution of annual participant notices as required by ERISA. HANYS Benefit Services created this chart to remind plan administrators of the notices required for distribution, and their applicable deadlines. Should you have any questions about this Retirement Plan Participant Notices Chart, or for information on how HANYS Benefit Services can enhance your organization's retirement please contact us by calling (800) 388-1963 or email us at hbs@hanys.org.

The Internal Revenue Service (IRS) has recently released the contribution limits on Qualified Retirement Plans for 2016. HANYS Benefit Services created a chart that details the  2016 contribution limits . Should you have questions, please contact HANYS Benefit Services by calling (800) 388-1963 or email us at hbs@hanys.org.

The Affordable Care Act (ACA) created new reporting requirements under Internal Revenue Code (Code) Section 6055 and 6056. These new reporting rules require certain employers to report information to the Internal Revenue Service (IRS) on the health coverage offered during the year. Quick Facts: Signed into law on June 29, 2015, the Trade Preferences Extension Act of 2015 increases the penalties for reporting entities that fail to comply with Section 6055 or 6056 reporting. The increased penalties take effect for returns and statements filed in 2016. Short-term relief from penalties is available in certain limited circumstances. Read the full article  for more information on Section 6055 and Section 6056 reporting violations. Should you have questions, please contact HANYS Benefit Services by calling (800) 388-1963 or email us at hbs@hanys.org.

The new ACA Information Center for Applicable Large Employers page on IRS.gov features information and resources for employers of all sizes on how the health care law may affect them if they fit the definition of an applicable large employer. The web page includes the following sections: What’s Trending for ALEs,  How to Determine if You are an ALE,  Resources for Applicable Large Employers, and  Outreach Materials.  Visitors to the new page will find links to: Detailed information about tax provisions including information reporting requirements for employers,  Questions and answers, and  Forms, instructions, publications, health care tax tips, flyers and videos.  Although the vast majority of employers will not be affected, you should determine if you are an applicable large employer. If you averaged at least 50 full-time employees, including full-time equivalent employees, during 2014, you are most likely an ALE for 2015. If you have fewer than ...

For taxable years beginning in 2018, the Affordable Care Act (ACA) imposes a 40 percent excise tax on high-cost group health coverage. This tax, also known as the “Cadillac tax,” is intended to encourage companies to choose lower-cost health plans for their employees. On July 30, 2015, the Internal Revenue Service (IRS) issued  Notice 2015-52  to continue the process of developing guidance to implement the Cadillac tax. This notice supplements  Notice 2015-16 , issued on Feb. 23, 2015. Notice 2015-52 addresses additional issues under the Cadillac tax, including: Identification of the taxpayers who may be liable for the excise tax; Employer aggregation; Allocation of the tax among the applicable taxpayers; and Payment of the applicable tax. The IRS invites comments on these issues and any other issues under the Cadillac tax. Currently,  proposed or final regulations have not been issued on the ACA’s Cadillac tax provision . After considering the comments on ...

The Affordable Care Act (ACA) has made a number of significant changes to group health plans since the law was enacted over four years ago. Many of these key reforms became effective in 2014 and 2015, including health plan design changes, increased wellness program incentives and the employer shared responsibility penalties. Additional reforms take effect in 2016 for employers sponsoring group health plans. To prepare for 2016, employers should review upcoming requirements and develop a compliance strategy. This Legislative Brief provides a health care reform compliance checklist for 2016. If you have questions about this document or changes that were required in previous years, please contact HANYS Benefit Services by calling (800) 388-1963 or email us at  hbs@hanys.org  for assistance.

The 1972 Stealers Wheel song, “Stuck in the Middle with You” comes to mind when you look at the U.S. economy and stock market in the second quarter of 2015. Read the Q2 Retirement Market Recap to review the key market drivers for the second quarter financial performance. The HBS Retirement Market Recap provides a summary of market and economic events which have influenced the financial markets in the past quarter. HBS Retirement Market Recap also includes a feature segment called “What’s Happening in the Retirement Market?” which selects a notable industry event to highlight for the quarter. For questions about this Market Recap, or for information on how HANYS Benefit Services can enhance your organization's retirement offering, please get in touch by calling (800) 388-1963 or email us at hbs@hanys.org .

To meet the growing need in the New York City area, HANYS Benefit Services (HBS), an industry leader with more than 45 years of providing trusted advisory services, retirement plan offerings, and best-in-class employee benefits products, recently expanded operations to a new location in Melville, New York. HBS hired a new team of executives, led by Peter Margiotta, Vice President, Client Relationship Development, to deepen access to senior executives for New York City area clients. “We are very excited to have Peter on board, leading the charge to strengthen our downstate presence,” said James Kelley, HBS President. “HBS strives to build real relationships with our clients, creating a shared fiduciary responsibility with the companies we advise. Having a full team based in Melville will allow us to better serve our New York City clients in this capacity.” Peter Margiotta has more than 25 years of experience in the retirement benefit planning industry, specializing in retirement plans ...

The recent U.S. Supreme Court ruling in Tibble vs. Edison has been described as “historic,” “ground-breaking,” and even “revolutionary.” The significant attention this case has generated is due in large part to the fact that a case about retirement plans reached the Supreme Court and that the Supreme Court unanimously overturned the lower courts’ decisions. Yet, the underlying premise behind the decision in this case is not particularly glamorous. It is very familiar to us all: the fiduciary responsibilities of a plan sponsor. The key points of the case are as follows: Mr. Tibble argued that his employer, Edison International, acted imprudently by including higher-cost retail mutual funds in the retirement plan when lower-cost institutional-class funds were available. Both the District Court and the Ninth Circuit Court ruled that the six-year statute of limitations precluded the claims from being brought. The Supreme Court overturned the lower courts’ rulings and declared that “a fi...

The Internal Revenue Service (IRS) recently announced modified correction methods for errors relating to automatic contribution features, including automatic enrollment, automatic escalation, and employee elective deferrals in both 401(k) and 403(b) plans. The correction methods in the new Revenue Procedure 2015-28 are in addition to those previously identified in Revenue Procedure 2013-12. These new correction methods will encourage employers to more readily include automatic enrollment features in their defined contribution plans. BACKGROUND: ELECTIVE DEFERRAL FAILURES Defined contribution plans with automatic enrollment or automatic escalation must take deductions from employees as soon as possible after enrollment. An “elective deferral failure” occurs if an employer fails to implement deductions properly or in a timely manner because: the eligible employee was not automatically enrolled; the employee’s deferral election was not properly implemented; the deferral percentage was ...

We have a powerful agenda including Bruce Tulgan and Stuart Levine, internationally recognized keynote speakers for our 2015 Human Resources Conference, Embrace, Engage, Elevate—Leading High-Performing Talent , which will be held April 23-24 at the New York Marriott at the Brooklyn Bridge. Listen to an excerpt from one of Bruce Tulgan’s recent appearances and an interview with Stuart Levine on ABC World News This Morning .  I am sure you will find both Bruce and Stuart informative, empowering, and energizing. This program has been approved for 9 HR General recertification credit hours toward CA, GPHR, HRBP, HRMP, PHR, and SPHR recertification through the HR Certification Institute.  The complete agenda and reservation details are available online. We look forward to seeing you at the Conference.

We have a powerful agenda including Bruce Tulgan and Stuart Levine, internationally recognized keynote speakers for our 2015 Human Resources Conference, Embrace, Engage, Elevate—Leading High-Performing Talent , which will be held April 23-24 at the New York Marriott at the Brooklyn Bridge. Listen to an excerpt from one of Bruce Tulgan’s recent appearances and an interview with Stuart Levine on ABC World News This Morning .  I am sure you will find both Bruce and Stuart informative, empowering, and energizing. This program has been approved for 9 HR General recertification credit hours toward CA, GPHR, HRBP, HRMP, PHR, and SPHR recertification through the HR Certification Institute.  The complete agenda and reservation details are available online. We look forward to seeing you at the Conference.

REGISTER TODAY HANYS Benefit Services Human Resources Conference Embrace, Engage, Elevate:  Leading High-Performing Talent Human resources’ top thought leaders offer the latest insights and ideas on guiding your workforce through compliance, key retirement plan topics, total rewards, employee engagement, and more! Session topics will include: Current Direction of Workforce and Executive Compensation Programs Technology Impact on Employee Benefits Strategic Change Management Getting the Most Value Out of Your Retirement Program in Today’s Challenging Environment Legal Developments and Updates Leadership Development and Coaching a Motivated and Engaged Workforce Healthcare 2.0 – Post-ACA Group Health and Welfare Benefits Trends * SHRM & HRCI Strategic Credits Pending When:      April 22:  6 p.m.  – Welcome Reception                  April 23:  8:30 a.m. – 5 p.m. – Sessions; Dinner to follow   ...