Products April 1, 2014

CFDD Launches Liquid Alternatives Resource Site

April 1, 2014 (PLANSPONSOR.com) – The Center for Due Diligence (CFDD) launched a liquid alternatives Web page designed to help manufacturers, distributors and advisers of these products.
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The page provides fund information, education, due diligence and research on liquid alternative investments for defined contribution (DC) plans. The CFDD anticipates the free resource will assist in the appropriate use of these investments as a plan level option or as a diversifier in a custom asset-allocation solution. According to the CFDD, the resource is the only centralized product depository and resource of its kind currently available.

The page provides advisers with an overview of each fund, and identifies the most competitive share class with low or minimum requirements for retirement plans as well as the applicable revenue sharing. Additional resources, such as a featured “Liquid Alt Fund of the Month” and application (app), will become available as product listings are added, and the CFDD has announced that a dedicated institutional Web page will follow this one.

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Select vendors may list their products, services and research on the site at no cost; all product listings link back to the vendor’s website. 

The resource is here.

Compliance April 1, 2014

PBGC Proposes Rules for DC Rollovers into Pensions

April 1, 2014 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation (PBGC) outlined a proposal it says makes it easier for participants in defined contribution (DC) plans to get higher returns and get lifetime income.
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The agency wants employees who have rollover options to move their benefits from DC plans to defined benefit (DB) plans. A proposed rule slated for publication in the Federal Register on Wednesday outlines safeguards for benefits that are rolled over from defined contribution plans.

“What we’re doing will hopefully give people an incentive to choose a savings option that they can’t outlive or outspend,” says PBGC Director Josh Gotbaum. “Annuities always offer greater retirement security.”

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Under the new proposal, benefits earned from a rollover generally would not be affected by PBGC’s maximum guarantee limits. Currently the agency’s maximum guaranteed benefit for a 65-year-old retiree is almost $59,320 a year.

Also, rollover amounts generally would remain untouched by PBGC’s so-called “five-year phase-in limits.” Normally, benefit increases from changes to a plan in the five years before it ends are partially guaranteed. For instance, 20% of the increase is paid after one year, 40% after two years and so on. Under the new proposal, these restrictions generally would not apply.

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