Survey participants’ responses in our Retirement Survey Report varied widely as to how often their investment committee met to discuss different kinds of retirement plans. However, most participants generally met on a quarterly basis, particularly so with regard to 401(a) profit sharing plans (78%), 401(a) money purchase plans (75%), and Employee Retirement Income Security Act (ERISA) 403(b) plans (59%). By contrast, 29% met semiannually to discuss 401(k) plans—versus 57% who met quarterly—with an additional 26% meeting semi-annually to address issues related to ERISA 403(b) plans. Only 11% of survey participants said their investment committee reviews 401(a) profit sharing plans annually. Similarly, 20% of investment committees for 457 deferred compensation plans also review their plans annually. This is in keeping with general best practices, which encourage investment committees to meet at least annually and, ideally, on a quarterly basis so critical issues and questions can be ad...

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 ...