Mainspring in Motion

Fall 2011

Helping Plan Sponsors Prepare
For Fee Disclosure

Fee Disclosure For Your Participants

In 2012, participants in defined contribution and defined benefit plans subject to ERISA will start seeing more retirement plan fee details. These requirements, based on the Department of Labor (DOL) regulations, require that participants see this information annually, quarterly and upon request.

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Market Commentary

By Julie Grandstaff, VP & Managing Director, StanCorp Investment Advisers, Inc. August 2011

The market volatility of the last few weeks has been dizzying. Given the big swings in market values, some investors are worried that we are on the brink of another financial crisis. Even if we are not, there is still plenty to worry about. The primary drivers behind the market swings are a dimmer outlook on global economic growth and ongoing concerns about the fiscal crises in Europe.

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Staying The Course During Market Volatility

Turbulence in the global financial system – and the stock market's reaction to it – is creating some concern for plan sponsors and their participants. The Standard is here to help by providing you with information about our ongoing efforts and what you can do to help support the responsibilities you have as the plan's fiduciary for your participants.

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Upcoming Service Enhancements Help Participants Maintain Focus

We're currently enhancing our most prominent tools to help make retirement planning easier for participants and plan administration and management more efficient for plan sponsors. Many of the improvements are already available or will become available in the coming months.

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Plan Sponsors Ask...

We'd like to have an overview of what we should do to keep our retirement plan current and in compliance. How can The Standard help us with that?

The Standard provides a number of services to help our plan sponsors keep their plan in compliance and performing well. Your relationship manager can perform a fiduciary review of your plan in addition to an annual plan review and provide other services to help. Simply contact your relationship manager directly, or call Standard Retirement Services, Inc., at 877.805.1127.

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Web Resources For Plan Sponsors

Retirement Trends Report

Plan sponsors continue to measure the success of their retirement plans primarily by investment performance, cost-effectiveness and satisfactory facilitation of participants' retirement savings and income. This is one of a number of results contained in Aon Hewitt's "2011 Trends & Experience in Defined Contribution Plans" survey report.

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The Mainspring in Motion quarterly newsletter for retirement plan sponsors features market commentary, regulatory and legislative updates, product enhancement announcements and articles on retirement readiness, savings, participant behavior and improving plan effectiveness.

 

Plan Sponsor's Quarterly Calendar

Consult your plan's counsel or tax advisor regarding these and other items that may apply to your plan.

October

  • Now is the time to begin planning a year-end enrollment campaign to motivate employees to increase their contribution rate. Contact your relationship manager early, as their availability may be limited during this busy time of year.
  • Audit third-quarter payroll and plan deposit dates to ensure compliance with the Department of Labor's (DOL's) rules regarding the timely deposit of participant contributions and loan repayments.
  • Verify that employees who became eligible for the plan between July 1 and Sept. 30 received and returned an enrollment form. Follow up on any forms that were not returned.
  • For calendar-year safe harbor plans, issue the required notice to employees during October or November (within 30 to 90 days of the beginning of the plan year in which the safe harbor is to apply). Also, within the same period, distribute the appropriate notice if the plan features an Eligible Automatic Contribution Arrangement (EACA), Qualified Automatic Contribution Arrangement (QACA) and/or Qualified Default Investment Alternative (QDIA).

November

  • Prepare to issue a payroll stuffer, or other announcement, to employees to communicate the plan's advantages and benefits, and any plan changes becoming effective in January.
  • Conduct a campaign to encourage participants to review and, if necessary, update their mailing addresses to ensure their receipt of Form 1099-R to be mailed in January for reportable plan transactions in 2011.
  • Check current editions of enrollment materials, fund prospectuses and other plan information that is available to employees to confirm that they are up-to-date.
  • Let your relationship manager know you're interested in scheduling a 2011 plan review to discuss any changes or improvements you'd like to see in 2012.

December

  • Prepare to send year-end payroll and updated census data to The Standard in January for year-end compliance testing (calendar-year plans).
  • Verify that participants who terminated employment during the second half of the year selected a distribution option for their account balance and returned the necessary form.
  • Review plan operations to determine if any ERISA or tax-qualification violations occurred during the year and if using an Internal Revenue Service (IRS) or DOL self-correction program would be appropriate.
 

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