|
|
We are all aware that many brokers, consultants and advisors are creating confusion in the market by positioning themselves as fiduciaries to a plan when they are not actually alleviating any fiduciary liability for plan sponsors. Making matters worse, when the plan sponsor believes that an advisor is relieving them of its liability, the plan sponsor may be taking their eye off the ball because they think someone else is handling this for them, putting them at greater risk. This is exactly why the DOL is looking to enhance and evolve the 1974 version of the “Definition of Fiduciary.” The DOL is looking to make it more difficult to avoid fiduciary responsibility and make anyone who states they are a fiduciary to actually take on the corporate and personal liability of a fiduciary. To help alleviate this confusion in the market, we have assembled this piece to help clarify the differences between 3(21) Investment Advisors and 3(38) Investment Managers under ERISA. Let’s take a look:
via fi360 Blog: 3(21) vs. 3(38) and are you holding yourself to the fiduciary standard?.
 401(k)s : 401(k)s
& how they compare to IRAs)
A simple straight forward explanation of what a 401(k) is all about from Khan Academy. Good place to start if you are a new HR manager and need to brush up.
via 401(k)s | Khan Academy.
The Pension Protection Act of 2006 directed the Department of Labor to provide plan participants and beneficiaries sources of information on investing and diversification.
Many employees have the ability to choose or direct their investments in their workplace retirement plans. For example, many people who participate in a 401(k) plan choose where the money in their individual accounts is invested among the plan’s options. The Department of Labor has a number of publications that provide information on various types of investments typically offered in 401(k) and other employer retirement plans, as well as information on the importance of diversification.
The Department’s publication, Savings Fitness: A Guide to Your Money and Your Financial Future, provides an overview of how to include retirement savings in your overall financial plan. The chapter on Strengthening Your Fitness Plan, pages 13–17, describes different types of investments and explains how diversifying investments can reduce investment risk. This publication is available in English and Spanish.
Taking the Mystery Out of Retirement Planning is designed to assist individuals who are within 10 years of retirement plan their finances. Chapter 2, pages 9–11, provides information on investing and diversification. In addition, A Look at 401(k) Plan Fees includes descriptions of different types of investments typically offered through 401(k) plans.
via Investing And Diversification.
SocialFunds.com — Founded in 2007 in response to genocide in the Darfur region of Sudan, where hundreds of thousands of people have been killed and another three million displaced, Investors Against Genocide (IAG) seeks to bring pressure on investment firms to end their investment in companies that contribute to genocide or crimes against humanity.
According to IAG, five Asian oil companies—PetroChina, CNPC Hong Kong, Oil and Natural Gas Corporation, Sinopec, and PETRONAS—have provided revenue to the government of Sudan for arms and funding of genocide, rather than economic development for the poor people of Sudan. Large mutual funds that have not yet made a commitment to genocide-free investing include Fidelity, Franklin Templeton, and Vanguard.
In a white paper entitled Genocide-free Investing: New Opportunities for Investors, IAG documents some of the successes it has had in its engagement with financial institutions on the issue. Unlike the three above-named companies, which continue to hold large investments in companies linked to genocide, American Funds and Teachers Insurance and Annuity Association – College Retirement Equities Fund (TIAA-CREF) have sold their holdings in companies with ties to the government of Sudan.
via Investors Against Genocide Expands Focus Beyond Shareowner Engagement to Include Recommendations for Financial Advisors.
At Least 17 States Already Allow State Employees to Consider SRI Choice for Retirement Funds
The introduction of the Federal Employees Responsible Investment Act (FERIA), is a significant milestone for socially responsible and sustainable investing (SRI), proposing to grant federal employees the opportunity to select an SRI option in their Thrift Savings Plan (TSP).
The Social Investment Forum (SIF) commends Rep. Jim Langevin, the original sponsor of the bill, (D-R.I.) and original co-sponsors Reps. Patrick Kennedy (D-RI), Dennis Kucinich (D-OH), Nita Lowey (D-NY) and James McGovern (D-MA) for their leadership on this legislation.
At least 17 states — Alaska, California, Connecticut, Florida, Illinois, Indiana, Massachusetts, Montana, New York, Nevada, New Mexico, North Carolina, South Carolina, Tennessee, Vermont, Washington and Wisconsin — already offer their employees the option of investing retirement dollars in SRI funds.
SIF CEO Lisa Woll said: “This measure would give federal employees the range of investment options that many state and private sector employees already have access to by allowing investments in at least one socially responsible index fund. Investors are increasingly turning to socially responsible and sustainable investment (SRI) options because good corporate governance and performance on social and environmental issues are often indicators of financial success, good management and less risk. Many federal employees enter the government to pursue social and environmental goals and are looking for investment options that work towards — rather than against — achieving those goals.”
Rep. Langevin said: “The reckless actions of financial institutions over the past few years provide a clear illustration of why we need to place a greater importance on good corporate governance. That is why I reintroduced the Federal Employees Responsible Investment Act — a bill I have sponsored for the past five years. Investing in companies that are committed to corporate responsibility and sustainability will have a positive impact on our financial system, as well as empower federal employees to reward companies that share their values.”
via Social Investment Forum: Press Release: Social Investment Forum Applauds Introduction of Bill Allowing Federal Employees to Select SRI Retirement Option (9/21/2010).
Roth 401(k) accounts are becoming more prevalent in company-sponsored retirement plans. Whether one is right for you depends on factors including your expectations of future income-tax rates.
As with a traditional 401(k), a Roth 401(k) allows an employee to save up to $16,500 a year. (For those 50 or older, the cap is $22,000.) The difference between the two comes down to the timing of the tax breaks participants receive.
With a traditional 401(k), employees make contributions that reduce their taxable income for the year — and pay income tax on withdrawals. With a Roth, contributions receive no tax break. But withdrawals are generally tax-free.
Currently, 29% of mid-size to large employers offer the Roth (401)k option, which became permanently available to 401(k) plans in 2006, according to Hewitt Associates. An additional 25% say they are likely to add one by year end. Roths are likely to become more popular still thanks to a measure Congress passed Thursday that allows employees to transfer funds to Roth 401(k) accounts from traditional 401(k)s. (Income tax is due in the process.)
via Is a Roth 401(k) Right for You? – WSJ.com.
The U.S. Department of Veterans Affairs failed to inform 6 million soldiers and their families of an agreement enabling Prudential Financial Inc. to withhold lump-sum payments of life insurance benefits for survivors of fallen service members, according to records made public through a Freedom of Information request.
The amendment to Prudential’s contract is the first document to show how VA officials sanctioned a payment practice that has spurred investigations by lawmakers and regulators. Since 1999, Prudential has used so-called retained-asset accounts, which allow the company to withhold lump sum payments due to survivors and earn investment income on the money for itself.
The Sept. 1, 2009, amendment to Prudential’s contract with the VA ratified another unpublicized deal that had been struck between the insurer and the government 10 years earlier — one that was never put into writing, Bloomberg Markets magazine reports in its November issue. This verbal agreement in 1999 provoked concern among top insurance officials of the agency, the documents released in the FOIA request show.
via Veterans Agency Made Secret Deal With Prudential Over Benefits – Bloomberg.
Environmentally responsible investing is about more than just avoiding unfriendly companies. Green Century Capital Management (Green Century) is committed to shareholder advocacy as a critical component of environmentally responsible investing, and the promotion of corporate environmental responsibility through active dialogue with companies has been a primary mission of Green Century since our inception in 1991.
What is Shareholder Advocacy? Green Century helps foster a sustainable economy by directly encouraging companies to lessen their environmental impacts. From strategic dialogue with management and top executives, to raising issues with the public and other shareholders through the filing of shareholder resolutions, to responsible proxy voting at the companies in which the Green Century Funds hold shares, Green Century employs numerous strategies to encourage improvements in corporate behavior. We work in coalition with other socially responsible investors, religious leaders and our environmental non-profit partners to actively encourage companies to adopt cleaner and healthier practices and products.
via Shareholder Advocacy – Engaging companies in dialogue.
With the new oil spill cap put in place over the weekend seeming to last long enough for permanent fixes to come on line, the BP oil spill crisis is likely to shift out of disaster response mode and accountants will ramp up the tallying of costs. However, one group of investors that managed to shuck their exposure early on, often before the crisis even hit, will be counting profits instead, gains secured by following the emerging use of ESG investment screens, analysis that considers environmental, social and governance factors.
via BP: the landmine ESG investors avoided – Thomas Van Dyck.
THE HAGUE, Netherlands (AP) – The International Criminal Court on Monday charged Sudanese President Omar al-Bashir with three counts of genocide in Darfur, a move that will pile further diplomatic pressure on his isolated regime.
The decision marked the first time the world’s first permanent war crimes tribunal has issued genocide charges.
An arrest warrant for al-Bashir said there were “reasonable grounds to believe” that since April 2003 Sudanese forces attempted genocide against the Darfur tribal groups Fur, Masalit and Zaghawa.
Last year, judges issued a warrant against the president for crimes against humanity, but refused to indict al-Bashir on genocide charges as sought by prosecutor Luis Moreno Ocampo. The prosecutor appealed that ruling, and four months ago an appellate court ruled that the lower court’s decision was legally wrong.
Prosecutors then filed their case again, and on Monday judges issued an arrest warrant charging al-Bashir with three counts of genocide: by killing, by causing mental and physical harm, and “by deliberately inflicting conditions of life calculated to bring about physical destruction.”
In Washington, U.S. State Department spokesman P.J. Crowley urged al-Bashir to submit himself to the International Criminal Court to face the genocide charges. “We believe that he should present himself to the ICC and answer the charges that have been leveled against him,” Crowley said.
via Int’l Court charges Sudan president with genocide.
|
Latest Online Reviews 3121company3380side_bardirectorieshttp://reputationdatabase.com/625544 |
Recent Comments