Q1 Market Recap - Yin and Yang

Last quarter we reported to you that investors turned decidedly bullish toward equities after the U.S. election. That trend continued in the first quarter of 2017, with the S&P 500 Index hitting an all-time high of 2395.96 on March 1, immediately following President Trump’s conciliatory speech to Congress. That represented a 12% advance in the Index from pre-election levels. The Index closed the quarter off the all-time high, at 2362.72, as investors re-evaluated the probability of President Trump and Congress’ ability to deliver on tax cuts and increased federal spending on infrastructure. The S&P 500 returned a very strong 6.07% in the first quarter—the sixth consecutive quarter of positive returns for the Index.

In Chinese philosophy, yin and yang describe how seemingly opposite or contrary forces may actually be complementary, interconnected, and how they may give rise to each other as they interrelate. The U.S. has entered a period where proposed policy or political risks, the "yin" have moved to the forefront in driving market volatility, the "yang."

Read the Q1 Retirement Market Recap to learn more about the "yin and yang" forces affecting the U.S. market performance, and also review tips on "Understanding Your Retirement Plan Fee Methodology".

If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.

"Avoiding Litigation and Fiduciary Pitfalls"

Fiduciaries of defined contribution retirement plans are under closer scrutiny than ever before.  Plan participants are filing lawsuits,  and a number of organizations, have recently appeared in the headlines as defendants in class action lawsuits relative to their retirement plans. Lawyers on behalf of retirement plan participants are now setting their sights on non-profit institutions. This is a wake-up call to all non-profit organizations to make sure their retirement plan fiduciary oversight is robust and compliant.

Join us on May 3rd at the 30th Annual FMA Conference where Retirement Advisory experts John Jezsu and Peter Margiotta will present "Avoiding Litigation and Fiduciary Pitfalls." The presentation includes an overview of ERISA and DOL requirements for plan fiduciaries, retirement plan litigation, the risk to the healthcare and not-for-profit industries, preventative measures to avoid litigation, and what the future may hold.

Upcoming Webinar:

Pension Plan Cost Reduction and De-Risking Strategies

Did you know that your PBGC* per-head cost will have increased 130% between 2012 and 2019?

And your PBGC variable rate will have increased by 390%!

This one-hour, free webinar is a must for healthcare finance executives who are interested in paying less to run pension plans. Join us on May 24 at 11 a.m. to learn more about:

• how to decrease costs and save money; 
• pension de-risking concerns and solutions; 
• pension risk transfer steps available to plan sponsors; and 
• why plan sponsors should consider acting now to take advantage of these strategies.

CLICK HERE to register

Wednesday, May 24 at 11:00 a.m.

PRESENTERS:

Peter Margiotta

Vice President, Business Development
HANYS Benefit Services

Michael E. Devlin 

Principal
BCG Pension Risk Consultants

Key Retirement and Employee Benefits Compliance Reminders for April

Due April 1st

• Required minimum distributions (RMD) for first time qualifying participants, including 5% owners.

Due April 17th 

• Deadline for corrective distributions for 402(g) excess contributions.

Download the full 2017 Retirement and Employee Benefits Compliance Calendar.

If you have any questions or would like to begin talking to an advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.

Is It Time to Refresh Your Voluntary Benefits?

by Wesley Price

Voluntary benefits have been around for several decades. These are coverages and products made available to employees for elective purchase at the employee’s expense. Over the years, as the cost of health insurance has continued to increase, employers have shifted the portfolio of offerings from employer-paid to voluntary. As a result voluntary benefits has evolved from being limited to main core benefits like dental, vision, and life insurance to including accident insurance, disability and critical illness. Additionally, new benefits are emerging based on growing demand, such as pet insurance, fraud protection and legal services.

8 Questions Plan Sponsors Should Ask about 457(b) and 457(f) Plans

Background:

457(f) and 457(b) plans are non-qualified deferred compensation plans for eligible highly-compensated employees. A non-qualified plan is a type of tax-deferred, employer-sponsored retirement plan that is not subject to Employee Retirement Income Security Act (ERISA) guidelines. Non-governmental 457 plans are not required to file Form 5500 since they are not subject to ERISA, but they are required within 120 days of the plan’s existence to file a one-time notification (“top hat letter”) with the Department of Labor. These plans are exempt from the non-discrimination testing that is required for qualified plans.

In 1986, Section 457 was added to the Internal Revenue Code (IRC) to specifically address the unique needs of the not-for-profit sector. The rules address governmental plans sponsored by state or local governments and non-governmental plans sponsored by tax-exempt organizations under Section 501(c). This frequently-asked question (FAQ) document will specifically address questions regarding non-governmental 457(b) and 457(f) plans.

Key Retirement and Employee Benefits Compliance Reminders for March

Due March 1st

• Form M-1 must be filed by multiple employer welfare arrangements (MEWAs) and entities claiming an exception from MEWA status (automatic 60-day extension is available upon request).

Due March 2nd

• Section 6055 (Forms 1094-B and 1095-B) Individual statements must be furnished 
• Section 6056 (Forms 1094-C and 1095-C) Individual statements must be furnished 

Due March 15th 

• Corrective distributions for failed actual contribution percentage (ACP)/actual deferral percentage (ADP) test without 10% excise tax penalty (for plans without EACA).
• Corporate tax returns due and contribution deadline for deductibility (without extension). 
• Due date for automatic extension to September 15 for corporate tax returns.

Due March 31st

• Electronic filing of Form 1099-R for distributions made in 2016.

Download the full 2017 Retirement and Employee Benefits Compliance Calendar.

If you have any questions or would like to begin talking to an advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.