Data & Research February 13, 2018

Only Half of Couples Discuss Retirement Savings

While 64% of couples in their 20's discuss retirement savings, this drops to only 48% for those 40 and over.

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Only half of couples who participate in their workplace retirement plan discuss retirement savings and investment decisions with their spouse or partner all or most of the time, Lincoln Financial Group learned in a survey.

While 64% of couples in their 20’s discuss retirement savings and investment decisions with their spouse or partner all or most of the time, this drops to 56% for those in their 30’s and only 48% for those 40 and over.

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“Our Retirement Power study showed that people participating in their employer-sponsored retirement plan are more confident and more optimistic today than they were just five years ago, and that most understand how much they need to save to be on track for retirement,” says Jamie Ohl, president, retirement plan services, Lincoln Financial Group. “Now they need to start having conversations with their significant others about savings, and what they envision for their retirement.”

The survey also found a disconnect between the sexes when it comes to their belief that they work with their spouse or partner to manage retirement planning for their household; 49% of women say that they do, but only 37% of men say the same.

Compliance February 13, 2018

Providers Agree to Pay Back Retirement Plans That Invested in Fraudulent Loans

The DOL has entered into a settlement agreement with U.S. Fiduciary Services and three of its subsidiaries that provides for payment of more than $7 million to 42 retirement plans.

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The U.S. Department of Labor (DOL) has entered into a settlement agreement with U.S. Fiduciary Services and three of its subsidiaries that provides for payment of more than $7 million to 42 retirement plans that suffered losses as a result of investments in fictitious loans made by Florida-based First Farmers Financial LLC (FFF).

The agreement and anticipated future payments from a pending receivership estate case involving FFF are expected to compensate the retirement plans fully for approximately $16 million in losses.

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FFF created the fictitious loans and forged documents stating that the loans were guaranteed by the U.S. Department of Agriculture. Forty-two retirement plans invested in a fund exposed to the fraudulent FFF loans through subsidiaries of U.S. Fiduciary Services.

The DOL’s Employee Benefits Security Administration (EBSA) conducted investigations of the subsidiaries—Salem Trust Company, Pennant Management Inc., and GreatBanc Trust Company—for potential violations of the Employee Retirement Income Security Act (ERISA) in connection with the plans’ investments in a fund exposed to the fictitious FFF loans.

After its investigations, the DOL entered into the settlement agreement with U.S. Fiduciary Services and the three subsidiaries, resolving its claims of ERISA violations. Representatives of the ERISA-covered retirement plans that are due to receive settlement proceeds were also parties to the settlement agreement.

“Fiduciaries must work solely in the interest of participants and beneficiaries,” says Jeffrey A. Monhart, EBSA Regional Director in Chicago. “The Department of Labor conducts investigations and undertakes enforcement actions to protect Americans’ hard-earned benefits. This settlement restores vital benefits that rightfully belong to employees.”

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