Establishing a High Performing Investment Committee for Corporate Retirement Plans

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.

Best Practices for Setting Up An Investment Committee for Corporate Retirement Plans

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:

Reminder Dates for Retirement Plan Participant Notices

As we approach year end, now is the time to handle the distribution of annual participant notices as required by ERISA.

Strategic Benefit Services created this chart to remind plan administrators of the notices required for distribution, and their applicable deadlines.

Please call or email with questions about this Retirement Plan Participant Notices Chart, or for information on how Strategic Benefit Services can enhance your organization's retirement offering.

Q3 Retirement Market Recap

Stock investors experienced the first correction in nearly four years in August when the S&P 500 declined 12.5% from its recent high. So, what triggered this one?

Read the Q3 Retirement Market Recap to review the key market drivers for the third quarter financial performance. The SBS Retirement Market Recap provides a summary of market and economic events which have influenced the financial markets in the past quarter.

Should you have questions about this Market Recap, or for information on how Strategic Benefit Services can enhance your organization's retirement offering, please contact us by calling (855) 882-9177 or email us at sbs@hanys.org.

IRS Releases Retirement Plan Contribution Limits for 2016

The Internal Revenue Service (IRS) has recently released the contribution limits on Qualified Retirement Plans for 2016.

Strategic Benefit Services created a chart that details the 2016 contribution limits.

Should you have questions, please contact Strategic Benefit Services by calling (855) 882-9177 or email us at sbs@hanys.org.

Penalties Increased for Section 6055 and Section 6056 Reporting Violations

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 Strategic Benefit Services by calling (855) 882-9177 or email us at sbs@hanys.org.

New IRS Resource helps Employers Understand the Health Care Law

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: