Hot Topics for 2021
Recent changes continue to reshape the Retirement landscape due to Recordkeeper and Advisor/Consultant Consolidation. Plan Sponsors should be prepared to evaluate how these changes will affect their plans and participants.
Managed Accounts
Managed Accounts All 401(k) Plan recordkeeping firms are experiencing margin compression in their core business and seeking ways to increase their revenue in other areas, such as selling Managed Accounts. It is critical that Plan Sponsors realize Managed Accounts are NOT a service but an investment product. Why the distinction? A Managed Account as an investment product means you have a fiduciary duty to conduct due diligence to evaluate the benefits. As with any fiduciary decision, it is important for…
OCIO/ERISA 3(38)
OCIO/ERISA 3(38) As this consolidation has occurred on the advisor side, Advisor firms are actively positioning OCIO (Outsourced Chief Investment Officers), ERISA 3(38) or Discretionary Asset Management services to Plan Sponsors. The three terms are used interchangeable and relate to hiring an advisor/consultant to take fiduciary responsibility from the Retirement Committee for all investment related decisions including hiring and firing investment managers/funds in your retirement plan. Generally, Committees are utilizing this service due to: Plan Sponsors considering the implementation of…
Advisors/Consultants Consolidation
Advisors/Consultants Consolidation The consolidation craze has made its way to the Retirement Plan Advisor/Consultant marketplace. Private equity firms, large financial services organizations and national benefits firms have all entered into agreements to acquire retirement plan advisory/consulting resources. Examples include: With 401(k) and other types of retirement plans becoming more complex, Plan Sponsors have become reliant on their advisor/consultant to provide unbiased advice. The recent advisor/consultant consolidation is blurring the lines as firms, who were primarily focused on independent 401(k) consulting,…
Recordkeeping Consolidation
Recordkeeping Consolidation Continued fee compression in 401(k) plan recordkeeping services is accelerating the need for economies of scale. Whether it is continued technological improvements, such as the adoption of cloud technologies or the need to offer a wider suite of services, recordkeepers are realizing they need to adjust or exit the business. Perhaps the best example of this trend occurred in 2020 when Vanguard partnered with Infosys, Ltd. of India. Infosys has assumed operational control of the recordkeeping platform, including integrating all…
CARES Act Update
CARES Act – New Employee Benefit Tools to Support Affected Employees By: Jim Rourke and Mike Brittingham with Nexsen Pruet, LLC. Signed by President Trump on March 27, 2020, the CARES Act adds a few new tools to employers’ employee benefit arsenal. Many changes – such as the increase in plan loans limits and hardship distribution conditions – expand longstanding benefits concepts. However, other changes – such as the availability of federal loans, that may be forgiven, to cover payroll…
COVID-19: Update on Monetary & Fiscal Policy Efforts
COVID-19: Update on Monetary & Fiscal Policy Efforts PLAN SPONSOR USE ONLY Monday, March 23, 2020 at 4:30pm Good afternoon. The staff at Comperio wanted to provide another update given the unprecedented nature of this crisis and the market’s response to it. And once again, we ask for your understanding that the situation is unfolding rapidly and that this communication may be outdated in a short period of time. Nevertheless, we feel it is imperative to provide you with the…
Coronavirus Update
Gradually…then Suddenly Warning: due to the rapidly evolving situation, this update will likely become outdated in a very short period of time. In a few short minutes after this article was written, the Fed announced $700 billion in asset purchases and cut the Fed Funds rate to 0% – 0.25%. And the governors of Ohio and Illinois mandated the closing of bars and restaurants indefinitely. PLAN SPONSOR USE ONLY March 15, 2020 It seems like just yesterday that we were…
S&P 500 Price Returns during Presidential Election Years
S&P 500 Price Returns during Presidential Elections Years It’s Super Tuesday! Heading into the year, all eyes were on the upcoming Presidential Election. Impeachment, trade disputes, and Brexit were all seemingly behind us and the only unknown on the horizon was the election. Then along came Corona… the Virus. Ahem. But here’s what we were thinking about before the pandemic. Below is a chart showing the price return (return excluding dividends) of the S&P 500 Index during each Presidential Election…
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