Update on Participant Activity Amid Market Volatility - Summary: Volatility in the markets during 2008 was of historic proportions. But how did plan participants on the whole react? To assess participant behavior last year, the Vanguard Center for Retirement Research examined recent transactions and other activities in plan records kept by Vanguard. Located at: Vanguard. Click on headline for full article.
Fewer Employers to Adopt Automatic 401k Enrollment - Summary: The number of employers adopting premium 401k features like automatic enrollment and company matches has slowed in response to the economic climate, according to a survey by Hewitt Associates. Located at: hr.blr.com February 2009. Click on headline for full article.
Forced Investment in the Market Seems Like Bad Timing to Participants - Summary: Plan sponsors have found success with automatic enrollment and new default investment options, but this places them in an awkward situation at the start of 2009. The result of their success has been that a large number of employees took on exposure to financial markets in general and to equity markets in particular virtually on the eve of the biggest market collapse in 70 years. Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
401k Plan Corrective Distributions for 2009 - Summary: The purpose of this technical update is to review the rules, including recent law changes, relating to 401k plan corrective distributions. Located at: Sungard/Relius. Click on headline for full article.
The Future of DC Plans is Full of Change - Summary: The devastation defined contribution plans suffered in last year's market mayhem is expected to lead to major changes in plan design and asset allocation, as well as increased emphasis on retirement income, industry professionals say. Located at: PIonline.com. Click on headline for full article.
Select Compliance Deadlines and Reminders - Summary: Seven page summary of select compliance deadlines compiled by the law firm of Reinhart Boerner Van Deuren. Located at: Reinhart Boerner Van Deuren (PDF File). Click on headline for full article.
Compliance Calendar for 2009 - Summary: Vanguard has created a 2009 compliance calendar that alerts you to key dates and gives you instant access to compliance deadlines. This calendar lists recurring compliance and notice requirements for qualified defined contribution plans. Located at: Vanguard (PDF File). Click on headline for full article.
Boost in Target-Date Funds Hurt 401ks - Summary: Defined contribution plan participants have been exposed to more financial market risk by the increased use of target-date fund strategies as default investment options and away from more secure investments, according to a new study by Greenwich Associates. Located at: PIonline.com. Click on headline for full article.
Advisers Toughing Out Troubled Times - Summary: The times may be troubled, the markets volatile, but advisers seem resilient. Located at: Planadviser.com. Click on headline for full article.
Hearings on Retirement Security, 401k Resurface - Summary: The market's impact continues to weigh on the nation's retirement security – and it seems that Congress wants to do something about it. Located at: Planadviser.com. Click on headline for full article.
Congress Begins Review of 401ks - Summary: Although retirement-plan design is probably not at the top of any company's agenda in these tumultuous times, delaying such consideration may not be an option for long. With trillions being lost and Congress preparing for hearings, HR leaders may need to start paying more attention to this issue. Located at: HREonline.com. Click on headline for full article.
U.S. Retirement Market, Third Quarter 2008 - Summary: Comprehensive reports, charts and graphs are compiled quarterly. This quarter's report notes that U.S. retirement assets totaled $15.9 trillion as of September 30, 2008, down from $16.9 trillion on June 30, 2008. Retirement savings accounted for 35 percent of all household financial assets in the United States. Located at: Investment Company Institute (PDF File). Click on headline for full article.
403(b) Relief is Good News for Plan Sponsors - Summary: The Internal Revenue Service recently cleared up some confusion about its relief of the written plan document requirement for 403(b) plans. Located at: Planadviser.com. Click on headline for full article.
For more information visit http://www.bpp401k.com/
2.18.2009
BPP401k.com Newsletter February 18
Despite Slump, Some Small Firms Add 401k - Summary: Even as the recession is taking its toll, some small-business owners are adopting 401ks for their employees. They see the plans as a way to retain valued workers and get people who otherwise wouldn't save for retirement to do so. But to be able to afford the plans, some companies are having to make some trade-offs. Located at: Wall Street Journal Online. Click on headline for full article.
Divorce and Retirement: Take Control of Retirement Benefits - Summary: From QDROs to the 10 ways to avoid losing the pension - WISER's new guide helps women navigate the complicated financial terrain of dividing retirement benefits at divorce. Located at: WISER (PDF File). Click on headline for full article.
Eliminating or Reducing a Plan's Matching Formula - Summary: As employers continue to struggle with these difficult economic times, many employers are attempting to cut costs by eliminating or reducing their matching contributions. This FAQ deal with the issues relating to the elimination or reduction of a matching contribution formula. Located at: Sungard/Relius. Click on headline for full article.
Communicate When Curtailing Contributions - Summary: Some companies -- although still a minority -- have begun cutting or stopping matches for 401k retirement accounts as a way to cope with the current economic climate. It's a difficult decision to make, say experts, and if cuts are made, the rationale should be communicated clearly and quickly. Located at: HREonline.com. Click on headline for full article.
Schwab Releases 401k Plan Benchmarking Insights - Summary: Charles Schwab just released information about 401k participation and savings rates broken down across different industries and certain plan participant demographics. Located at: 401khelpcenter.com. Click on headline for full article.
Workers Increasingly See DC Plans as Primary Retirement Savings Vehicle - Summary: A study released by the nonpartisan Employee Benefit Research Institute shows that workers increasingly see defined contribution plans as their primary retirement plan type, with about two-thirds of workers identifying these as their most important plan. Located at: 401khelpcenter.com. Click on headline for full article.
Investors Cling to 401k Dreams - Summary: Employees believe their 401k accounts will provide most of their money for retirement, even as companies cut back on support for the plans. Unfortunately, this recognition comes as cash-strapped employers are cutting back on auto enroll, educational advice and 401k matches. Located at: Financial Advisor Magazine. Click on headline for full article.
Fee Disclosure Bill Introduced in Congress - Summary: Senators introduced legislation that would require defined contribution plan sponsors to disclose fees to participants. Located at: Planadviser.com. Click on headline for full article.
The Defined Contribution Fee Disclosure Act (S. 401) - Summary: Bill to amend the Employee Retirement Income Security Act of 1974 to provide special reporting and fee disclosure rules for individual account plans, and for other purposes. This is the actual text of the bill. Located at: American Benefits Council (PDF File). Click on headline for full article.
Seventh Circuit Affirms Judgment Fee Litigation Case - Summary: The Seventh Circuit Court of Appeals affirmed the dismissal of claimed ERISA violations for alleged revenue sharing and excessive fees against the plan sponsor (Hecker v. Deere & Co.) and the mutual fund complex that provided investment options and trust and other services for the plan. Located at: Sutherland (PDF File). Click on headline for full article.
Failure to Change Beneficiary Negates Waiver in Divorce Decree - Summary: The US Supreme Court has resolved a split of authority among the Federal Circuit Courts by unanimously concluding that: (1) the waiver by a former spouse of a plan interest in a divorce decree that did not constitute a qualified domestic relations order does not violate ERISA's anti-alienation rule, and (2) plan administrators are not required to honor waivers expressed in external documents that do not comply with plan terms and procedures governing beneficiary designations. Located at: CCH. Click on headline for full article.
The Employee Plans Compliance Resolution System - Updated and Improved - Summary: The latest IRS updates to EPCRS (Rev. Proc. 2008-50) became effective January 1, 2009, and result in some very real improvements to the retirement plan correction system. This article analyzes three of those changes. Located at: Chang, Ruthenberg & Long PC. Click on headline for full article.
401k Participants May See Plain-English Summary Prospectus - Summary: Mutual funds may give investors a plain-English summary prospectus, rather than a full prospectus, under a final SEC rule effective March 31, 2009. The rule ultimately may change the form and content of fund information passed through to participants in many 401k, 403(b) and 457 plans. Located at: Mercer. Click on headline for full article.
For more information visit www.bpp401k.com
Divorce and Retirement: Take Control of Retirement Benefits - Summary: From QDROs to the 10 ways to avoid losing the pension - WISER's new guide helps women navigate the complicated financial terrain of dividing retirement benefits at divorce. Located at: WISER (PDF File). Click on headline for full article.
Eliminating or Reducing a Plan's Matching Formula - Summary: As employers continue to struggle with these difficult economic times, many employers are attempting to cut costs by eliminating or reducing their matching contributions. This FAQ deal with the issues relating to the elimination or reduction of a matching contribution formula. Located at: Sungard/Relius. Click on headline for full article.
Communicate When Curtailing Contributions - Summary: Some companies -- although still a minority -- have begun cutting or stopping matches for 401k retirement accounts as a way to cope with the current economic climate. It's a difficult decision to make, say experts, and if cuts are made, the rationale should be communicated clearly and quickly. Located at: HREonline.com. Click on headline for full article.
Schwab Releases 401k Plan Benchmarking Insights - Summary: Charles Schwab just released information about 401k participation and savings rates broken down across different industries and certain plan participant demographics. Located at: 401khelpcenter.com. Click on headline for full article.
Workers Increasingly See DC Plans as Primary Retirement Savings Vehicle - Summary: A study released by the nonpartisan Employee Benefit Research Institute shows that workers increasingly see defined contribution plans as their primary retirement plan type, with about two-thirds of workers identifying these as their most important plan. Located at: 401khelpcenter.com. Click on headline for full article.
Investors Cling to 401k Dreams - Summary: Employees believe their 401k accounts will provide most of their money for retirement, even as companies cut back on support for the plans. Unfortunately, this recognition comes as cash-strapped employers are cutting back on auto enroll, educational advice and 401k matches. Located at: Financial Advisor Magazine. Click on headline for full article.
Fee Disclosure Bill Introduced in Congress - Summary: Senators introduced legislation that would require defined contribution plan sponsors to disclose fees to participants. Located at: Planadviser.com. Click on headline for full article.
The Defined Contribution Fee Disclosure Act (S. 401) - Summary: Bill to amend the Employee Retirement Income Security Act of 1974 to provide special reporting and fee disclosure rules for individual account plans, and for other purposes. This is the actual text of the bill. Located at: American Benefits Council (PDF File). Click on headline for full article.
Seventh Circuit Affirms Judgment Fee Litigation Case - Summary: The Seventh Circuit Court of Appeals affirmed the dismissal of claimed ERISA violations for alleged revenue sharing and excessive fees against the plan sponsor (Hecker v. Deere & Co.) and the mutual fund complex that provided investment options and trust and other services for the plan. Located at: Sutherland (PDF File). Click on headline for full article.
Failure to Change Beneficiary Negates Waiver in Divorce Decree - Summary: The US Supreme Court has resolved a split of authority among the Federal Circuit Courts by unanimously concluding that: (1) the waiver by a former spouse of a plan interest in a divorce decree that did not constitute a qualified domestic relations order does not violate ERISA's anti-alienation rule, and (2) plan administrators are not required to honor waivers expressed in external documents that do not comply with plan terms and procedures governing beneficiary designations. Located at: CCH. Click on headline for full article.
The Employee Plans Compliance Resolution System - Updated and Improved - Summary: The latest IRS updates to EPCRS (Rev. Proc. 2008-50) became effective January 1, 2009, and result in some very real improvements to the retirement plan correction system. This article analyzes three of those changes. Located at: Chang, Ruthenberg & Long PC. Click on headline for full article.
401k Participants May See Plain-English Summary Prospectus - Summary: Mutual funds may give investors a plain-English summary prospectus, rather than a full prospectus, under a final SEC rule effective March 31, 2009. The rule ultimately may change the form and content of fund information passed through to participants in many 401k, 403(b) and 457 plans. Located at: Mercer. Click on headline for full article.
For more information visit www.bpp401k.com
2.11.2009
Patrick Shelton, GBA Named Managing Member
Patrick Shelton has been named Managing Member at Benefit Plans Plus.
Shelton’s role as managing member recognizes his more than 19 years experience providing retirement plan administration and consulting services for clients in a variety of industries. Shelton takes pride in working closely with financial advisors, wholesalers and clients, providing plan design, administration, and fiduciary compliance management services to nearly 500 plans throughout the nation.
As managing member Shelton will maintain responsibility for overall practice management and
growth. In addition he is responsible for business development as well as developing new initiatives. Shelton specializes in financial advisor relations, including 401k sales prospecting presentations, vendor searches and fiduciary consulting. Shelton is a nationally recognized industry expert who has been a speaker at a number of conferences and quoted by national publications including Inc. and the Wall Street Journal.
“It is an honor to be recognized by the leadership of Brown Smith Wallace, LLC and formally charged with continuing to develop Benefit Plans Plus, LLC into the premiere retirement plan (TPA) in the Midwest,” says Shelton. “My success to date is directly related to my faith, guidance of mentors and the support of my staff and family, especially my wife.”
Under Shelton’s leadership Benefit Plans Plus has attained the American Society of Pension
Professionals and Actuaries (ASPPA) seal of recordkeeper excellence for third party administrators, as certified by the Centre for Fiduciary Excellence, LLC (CEFEX). This is the top recognition in the industry. Shelton has earned the Group Benefits Associate (GBA) designation from the International Foundation of Employee Benefits Plans Certified Employee Benefit Specialist (CEBS) program and is currently completing the required curriculum for the CEBS designation. He has received “Recognition of Academic Achievement in Group Benefits” from CEBS. Pat also holds a Life & Health insurance license in the state of Missouri. Additionally he is a member of the Financial Planning Association, the International Federation of Employee Benefit Plans, the National Association of Insurance and Financial Advisers and the Profit Sharing Council of America.
Shelton is a graduate of Westminster College in Fulton, Missouri and holds a Bachelor of Arts degree in Business/Committee Plan. Shelton resides in Ballwin, Missouri with his wife and three children.
About Benefit Plans Plus
Benefit Plans Plus, LLC offers customized retirement plan design and administration, fiduciary
compliance management and consulting services for retirement plans. Through unique offerings
including the Fiduciary Health Check™ and the SBO 401k BPP serves more than 500 clients nationwide. Benefit Plans Plus holds the Centre for Fiduciary Excellence, LLC (CEFEX) recordkeeper certification for third party administrator services and the American Society of Pension Professionals and Actuaries (ASPPA) seal of service for provider excellence -- the top recognitions in the industry. In addition, the well credentialed team of retirement plan experts boasts more than 16 years experience each. For more information about Benefit Plans Plus, a subsidiary of Brown Smith Wallace, LLC, visit www.bpp401k.com or call 314.983.1200.
Shelton’s role as managing member recognizes his more than 19 years experience providing retirement plan administration and consulting services for clients in a variety of industries. Shelton takes pride in working closely with financial advisors, wholesalers and clients, providing plan design, administration, and fiduciary compliance management services to nearly 500 plans throughout the nation.
As managing member Shelton will maintain responsibility for overall practice management and
growth. In addition he is responsible for business development as well as developing new initiatives. Shelton specializes in financial advisor relations, including 401k sales prospecting presentations, vendor searches and fiduciary consulting. Shelton is a nationally recognized industry expert who has been a speaker at a number of conferences and quoted by national publications including Inc. and the Wall Street Journal.
“It is an honor to be recognized by the leadership of Brown Smith Wallace, LLC and formally charged with continuing to develop Benefit Plans Plus, LLC into the premiere retirement plan (TPA) in the Midwest,” says Shelton. “My success to date is directly related to my faith, guidance of mentors and the support of my staff and family, especially my wife.”
Under Shelton’s leadership Benefit Plans Plus has attained the American Society of Pension
Professionals and Actuaries (ASPPA) seal of recordkeeper excellence for third party administrators, as certified by the Centre for Fiduciary Excellence, LLC (CEFEX). This is the top recognition in the industry. Shelton has earned the Group Benefits Associate (GBA) designation from the International Foundation of Employee Benefits Plans Certified Employee Benefit Specialist (CEBS) program and is currently completing the required curriculum for the CEBS designation. He has received “Recognition of Academic Achievement in Group Benefits” from CEBS. Pat also holds a Life & Health insurance license in the state of Missouri. Additionally he is a member of the Financial Planning Association, the International Federation of Employee Benefit Plans, the National Association of Insurance and Financial Advisers and the Profit Sharing Council of America.
Shelton is a graduate of Westminster College in Fulton, Missouri and holds a Bachelor of Arts degree in Business/Committee Plan. Shelton resides in Ballwin, Missouri with his wife and three children.
About Benefit Plans Plus
Benefit Plans Plus, LLC offers customized retirement plan design and administration, fiduciary
compliance management and consulting services for retirement plans. Through unique offerings
including the Fiduciary Health Check™ and the SBO 401k BPP serves more than 500 clients nationwide. Benefit Plans Plus holds the Centre for Fiduciary Excellence, LLC (CEFEX) recordkeeper certification for third party administrator services and the American Society of Pension Professionals and Actuaries (ASPPA) seal of service for provider excellence -- the top recognitions in the industry. In addition, the well credentialed team of retirement plan experts boasts more than 16 years experience each. For more information about Benefit Plans Plus, a subsidiary of Brown Smith Wallace, LLC, visit www.bpp401k.com or call 314.983.1200.
BPP401k.com Newsletter February 11
Markets Put Employers on Defensive About 401k Plans - Summary: Corporations that sponsor 401k plans may have more pressing issues at the moment, but that hardly means they should ignore the waning confidence in what has become their primary retirement benefits offering. Located at: Workforce.com (free registration may be required). Click on headline for full article.
Mid-Year Safe Harbor 401k Plan Changes - Summary: As the economy continues to struggle, practitioners have been besieged with questions regarding how employers can reduce or eliminate retirement plan contributions. This FAQ addresses how an employer can eliminate or freeze fixed contributions under a safe harbor 401k plan. Located at: Sungard/Relius. Click on headline for full article.
Fewer Companies Adopting Automatic Enrollment and Other High-Cost Retirement Programs - Summary: According to a new survey by Hewitt Associates the number of employers adopting premium retirement features, such as automatic enrollment and company matches, has reached a plateau in response to the economic climate. Instead, they are focusing their efforts on offering more lower-cost strategies. Located at: 401khelpcenter.com. Click on headline for full article.
73% of DC Sponsors Plan No 2009 Match Changes - Summary: While media accounts may be full of reports of employer decisions to suspend their retirement plan company match contributions, 73% of DC plan sponsors in a new survey plan no match changes. Located at: Planadviser.com. Click on headline for full article.
70% of U.S. Households Have Retirement Savings - Summary: Seven in 10 U.S. households have some type of tax-advantaged retirement savings through work or through Individual Retirement Accounts (IRAs), according to a new Investment Company Institute study. Located at: Investment Company Institute. Click on headline for full article.
44% of DC Plans Expect to Replace Options in '09 - Summary: A Callan survey just released showed 44% of private and public defined contribution plans expect to replace an investment option for performance-related reasons in 2009, up from 39% that did so last year. Located at: PIonline.com. Click on headline for full article.
ERISA Reporting and Disclosure: Eight Common Mistakes to Avoid - Summary: Law firm of Chang, Ruthenberg & Long provides a quick overview of eight common mistakes to avoid related to ERISA reporting and disclosure. Located at: Chang, Ruthenberg & Long PC. Click on headline for full article.
Steps for Smooth Sailing in 401k Rollovers - Summary: By managing the terminated participant population, plan sponsors can rebalance their ratio of current-to-former participants, and diminish the costs they incur for former employees' retirement benefits and their future legal risks. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
Some Items of Interest to Advisors - Summary: Scott Simon writes, "To kick off 2009, I thought it might be a good idea to cover a few items that don't merit treatment in a column on their own but nonetheless may be of interest to advisors." Located at: Morningstar.com. Click on headline for full article.
Conflict-Free 401k Advice Still not Foolproof - Summary: Just when the Labor Department thought it had buttoned up the final regulations governing the advice given to 401k plan participants, new questions are being asked about conflicts of interest and the quality of the advice. Located at: Chicago Tribune. Click on headline for full article.
The Structure of 401k Fees - Summary: This paper reviews the structure of 401k plans, describing the services they provide and the cost of these services. It also reviews the typical schedules of fees that providers of financial services charge plan sponsors and participants. It finds that 401k fees are so complex, confusing, or obscure that many sponsors and participants report that they do not understand either their magnitude or their consequences. Located at: Center for Retirement Research at Boston College (PDF File). Click on headline for full article.
Retirement Plan Participation and Contribution Trends - Summary: The U.S. Census Bureau periodically collects information from individuals about their participation in employer-sponsored retirement plans. This CRS report presents a summary of the data and a comparison of the results of the 2006 survey with similar surveys that the Census Bureau conducted in 1998 and 2003. Located at: Congressional Research Service (PDF File). Click on headline for full article.
Bunch v. W.R. Grace: What a Breach of Fiduciary Duty Doesn't Look Like - Summary: Anybody interested in fiduciary obligations under ERISA should become familiar with the First Circuit's decision in Bunch v. W.R. Grace & Co, where what was at issue is whether it was a breach of fiduciary duty to sell company stock after retaining outside advisors to investigate the stock's value, potential and appropriateness as an investment option. Located at: Boston ERISA Law Blog. Click on headline for full article.
DOL Proposes to Delay Final Advice Regulations - Summary: The DOL notice does not explain which of the OMB factors triggered its decision to propose an extension, but there have been numerous reports of Congressional opposition to the PTE, so the DOL's willingness to consider an extension is not too surprising (notwithstanding its staunch defense of the PTE in the preamble to the regulations). Located at: Employee Benefits Institute of America. Click on headline for full article.
DOL Provides Guidance for Madoff-Maimed Retirement Plan - Summary: With an expanding list of retirement plans snared by investments tied to Bernard L. Madoff, the Labor Department has published some guidance for plan fiduciaries. Located at: Planadviser.com. Click on headline for full article.
For more information visit www.bpp401k.com
Mid-Year Safe Harbor 401k Plan Changes - Summary: As the economy continues to struggle, practitioners have been besieged with questions regarding how employers can reduce or eliminate retirement plan contributions. This FAQ addresses how an employer can eliminate or freeze fixed contributions under a safe harbor 401k plan. Located at: Sungard/Relius. Click on headline for full article.
Fewer Companies Adopting Automatic Enrollment and Other High-Cost Retirement Programs - Summary: According to a new survey by Hewitt Associates the number of employers adopting premium retirement features, such as automatic enrollment and company matches, has reached a plateau in response to the economic climate. Instead, they are focusing their efforts on offering more lower-cost strategies. Located at: 401khelpcenter.com. Click on headline for full article.
73% of DC Sponsors Plan No 2009 Match Changes - Summary: While media accounts may be full of reports of employer decisions to suspend their retirement plan company match contributions, 73% of DC plan sponsors in a new survey plan no match changes. Located at: Planadviser.com. Click on headline for full article.
70% of U.S. Households Have Retirement Savings - Summary: Seven in 10 U.S. households have some type of tax-advantaged retirement savings through work or through Individual Retirement Accounts (IRAs), according to a new Investment Company Institute study. Located at: Investment Company Institute. Click on headline for full article.
44% of DC Plans Expect to Replace Options in '09 - Summary: A Callan survey just released showed 44% of private and public defined contribution plans expect to replace an investment option for performance-related reasons in 2009, up from 39% that did so last year. Located at: PIonline.com. Click on headline for full article.
ERISA Reporting and Disclosure: Eight Common Mistakes to Avoid - Summary: Law firm of Chang, Ruthenberg & Long provides a quick overview of eight common mistakes to avoid related to ERISA reporting and disclosure. Located at: Chang, Ruthenberg & Long PC. Click on headline for full article.
Steps for Smooth Sailing in 401k Rollovers - Summary: By managing the terminated participant population, plan sponsors can rebalance their ratio of current-to-former participants, and diminish the costs they incur for former employees' retirement benefits and their future legal risks. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
Some Items of Interest to Advisors - Summary: Scott Simon writes, "To kick off 2009, I thought it might be a good idea to cover a few items that don't merit treatment in a column on their own but nonetheless may be of interest to advisors." Located at: Morningstar.com. Click on headline for full article.
Conflict-Free 401k Advice Still not Foolproof - Summary: Just when the Labor Department thought it had buttoned up the final regulations governing the advice given to 401k plan participants, new questions are being asked about conflicts of interest and the quality of the advice. Located at: Chicago Tribune. Click on headline for full article.
The Structure of 401k Fees - Summary: This paper reviews the structure of 401k plans, describing the services they provide and the cost of these services. It also reviews the typical schedules of fees that providers of financial services charge plan sponsors and participants. It finds that 401k fees are so complex, confusing, or obscure that many sponsors and participants report that they do not understand either their magnitude or their consequences. Located at: Center for Retirement Research at Boston College (PDF File). Click on headline for full article.
Retirement Plan Participation and Contribution Trends - Summary: The U.S. Census Bureau periodically collects information from individuals about their participation in employer-sponsored retirement plans. This CRS report presents a summary of the data and a comparison of the results of the 2006 survey with similar surveys that the Census Bureau conducted in 1998 and 2003. Located at: Congressional Research Service (PDF File). Click on headline for full article.
Bunch v. W.R. Grace: What a Breach of Fiduciary Duty Doesn't Look Like - Summary: Anybody interested in fiduciary obligations under ERISA should become familiar with the First Circuit's decision in Bunch v. W.R. Grace & Co, where what was at issue is whether it was a breach of fiduciary duty to sell company stock after retaining outside advisors to investigate the stock's value, potential and appropriateness as an investment option. Located at: Boston ERISA Law Blog. Click on headline for full article.
DOL Proposes to Delay Final Advice Regulations - Summary: The DOL notice does not explain which of the OMB factors triggered its decision to propose an extension, but there have been numerous reports of Congressional opposition to the PTE, so the DOL's willingness to consider an extension is not too surprising (notwithstanding its staunch defense of the PTE in the preamble to the regulations). Located at: Employee Benefits Institute of America. Click on headline for full article.
DOL Provides Guidance for Madoff-Maimed Retirement Plan - Summary: With an expanding list of retirement plans snared by investments tied to Bernard L. Madoff, the Labor Department has published some guidance for plan fiduciaries. Located at: Planadviser.com. Click on headline for full article.
For more information visit www.bpp401k.com
2.04.2009
BPP401k.com Newsletter February 4
Worst Decline in 30 Years for the Largest U.S. Retirement Funds - Summary: U.S. retirement funds lost almost $1 trillion of their value in the year ended Sept. 30, 2008, the worst decline in the 30 years Pensions & Investments has tracked the largest 1,000 plans. Located at: 401khelpcenter.com. Click on headline for full article.
Fidelity Reports on 2008 Trends in 401k Plans - Summary: In a year of unprecedented market volatility that negatively impacted most asset classes in both retirement and non-retirement investment vehicles alike, employees in workplace savings plans contributed to their accounts at normal historical levels, took fewer loans than in 2007, improved their asset diversification and continued to decrease company stock holdings. Located at: 401khelpcenter.com. Click on headline for full article.
Online 401k Plans Warrant Consideration by Small Companies - Summary: Are you one of the small business owners who have dismissed 401k plans because you feared they would be too costly, too difficult to administer and would saddle you with unwanted liability? The online resolution to the cost and administrative problem is already at hand and recent legislation has addressed potential liabilities. Located at: Resourcenation.com. Click on headline for full article.
Companies and Their 401k Matching Contributions - Summary: This is a list of employers that have announced plans to change or stop making matching contributions to their employees' 401k plan accounts since June 2008. Located at: Pensionrights.org. Click on headline for full article.
AUDIO: Podcast with Matt Hutcheson, an Independent Fiduciary - Summary: Participants need to better understand what's going on with their employer-sponsored retirement plans. That's why Hutcheson has gotten behind the BrightScope startup. Listen in as he talks about what needs to change in the 401k marketplace. Located at: Employee Benefit Adviser. Click on headline for full article.
Tracing the Life Cycle of Alternative Investments - Summary: What are the distinct phases of an investment's life cycle, and how can investors use this framework to enhance their investment decisions? Located at: Vanguard. Click on headline for full article.
Advisers Still Headed for More Fee Transparency - Summary: Fee disclosure regulations did not make it into the Federal Register before the new administration stepped in, but that is not necessarily a signal for advisers to relax about fee disclosure. Located at: Planadviser.com. Click on headline for full article.
Where are Fiduciary Issues Headed in 2009 - Summary: Prepared by the Wagner Law Group, reviews recent ERISA litigation and where fiduciary issues are heading in 2009. Located at: Center for Due Diligence (Word Document). Click on headline for full article.
Not All Target-Date Funds are Created Equal - Summary: Target-Date funds are still a very good one-stop shopping option for investors, especially for 401k investors who may not have a lot of investing experience. This article provides tips on how to get the most out of a target-date fund and find a good match for your risk tolerance. Located at: Google.com. Click on headline for full article.
401k Fee Litigation January 2009 Update - Summary: Over the past several years, more than two dozen lawsuits have been filed relating to 401k plan fees and, more specifically, "revenue sharing" arrangements with plan service providers. In addition to the lawsuits against plan sponsors, lawsuits have been brought against 401k plan service providers. This is a new update on these lawsuits. Located at: Groom Law Group (PDF File). Click on headline for full article.
401ks Come Up Short - Summary: While the Obama administration hasn't revealed its suggestions for retirement savings account policy, change is coming. Democrats and Republicans agree that retirement savings plans demand reform. Whatever happens, corporations will likely lead the way. Located at: Treasury and Risk. Click on headline for full article.
Procedures for Assessing Civil Penalties under ERISA Are Finalized - Summary: Effective March 3, 2009, procedures go into effect by which the Secretary of Labor can assess civil penalties against a plan administrator for the failure to provide certain PPA-required notices. Penalties are based on the "degree or willfulness" of the failure, but may not exceed $1,000 per day for each violation. Located at: Benefitslink.com. Click on headline for full article.
Winter Edition of IRS's Employee Plans News - Summary: The Winter Edition of the IRS's Employee Plans News includes an interview with Joyce Kahn, Manager, Voluntary Compliance on improving compliance via SCP as well as a separate article containing tips to making a better determination letter submission. Located at: IRS (PDF File). Click on headline for full article.
2009 Suspension of RMD Rules - Summary: Groom Law Group believes that there are a number of issues relating to the suspension of 2009 RMDs that should addressed by additional guidance. They propose a number of potential guidance positions. Located at: Groom Law Group (PDF File). Click on headline for full article.
Delay on Advice Rule May Lead to Revamp - Summary: The mutual fund industry's longtime quest to provide direct invest. advice to participants in defined contribution plans took a potentially disabling hit, thanks in part to one of the first official acts of President Barack Obama's administration. Located at: PIonline.com. Click on headline for full article.
Suspension of Minimum Required Distributions for 2009 - Summary: This waiver is designed to limit the impact of decreases in financial markets on plan participants and IRA holders by allowing individuals to avoid distributions from retirement accounts that have dramatically reduced in value over the last year. Located at: Dow Lohnes (PDF File). Click on headline for full article.
For more information visit www.bpp401k.com
Fidelity Reports on 2008 Trends in 401k Plans - Summary: In a year of unprecedented market volatility that negatively impacted most asset classes in both retirement and non-retirement investment vehicles alike, employees in workplace savings plans contributed to their accounts at normal historical levels, took fewer loans than in 2007, improved their asset diversification and continued to decrease company stock holdings. Located at: 401khelpcenter.com. Click on headline for full article.
Online 401k Plans Warrant Consideration by Small Companies - Summary: Are you one of the small business owners who have dismissed 401k plans because you feared they would be too costly, too difficult to administer and would saddle you with unwanted liability? The online resolution to the cost and administrative problem is already at hand and recent legislation has addressed potential liabilities. Located at: Resourcenation.com. Click on headline for full article.
Companies and Their 401k Matching Contributions - Summary: This is a list of employers that have announced plans to change or stop making matching contributions to their employees' 401k plan accounts since June 2008. Located at: Pensionrights.org. Click on headline for full article.
AUDIO: Podcast with Matt Hutcheson, an Independent Fiduciary - Summary: Participants need to better understand what's going on with their employer-sponsored retirement plans. That's why Hutcheson has gotten behind the BrightScope startup. Listen in as he talks about what needs to change in the 401k marketplace. Located at: Employee Benefit Adviser. Click on headline for full article.
Tracing the Life Cycle of Alternative Investments - Summary: What are the distinct phases of an investment's life cycle, and how can investors use this framework to enhance their investment decisions? Located at: Vanguard. Click on headline for full article.
Advisers Still Headed for More Fee Transparency - Summary: Fee disclosure regulations did not make it into the Federal Register before the new administration stepped in, but that is not necessarily a signal for advisers to relax about fee disclosure. Located at: Planadviser.com. Click on headline for full article.
Where are Fiduciary Issues Headed in 2009 - Summary: Prepared by the Wagner Law Group, reviews recent ERISA litigation and where fiduciary issues are heading in 2009. Located at: Center for Due Diligence (Word Document). Click on headline for full article.
Not All Target-Date Funds are Created Equal - Summary: Target-Date funds are still a very good one-stop shopping option for investors, especially for 401k investors who may not have a lot of investing experience. This article provides tips on how to get the most out of a target-date fund and find a good match for your risk tolerance. Located at: Google.com. Click on headline for full article.
401k Fee Litigation January 2009 Update - Summary: Over the past several years, more than two dozen lawsuits have been filed relating to 401k plan fees and, more specifically, "revenue sharing" arrangements with plan service providers. In addition to the lawsuits against plan sponsors, lawsuits have been brought against 401k plan service providers. This is a new update on these lawsuits. Located at: Groom Law Group (PDF File). Click on headline for full article.
401ks Come Up Short - Summary: While the Obama administration hasn't revealed its suggestions for retirement savings account policy, change is coming. Democrats and Republicans agree that retirement savings plans demand reform. Whatever happens, corporations will likely lead the way. Located at: Treasury and Risk. Click on headline for full article.
Procedures for Assessing Civil Penalties under ERISA Are Finalized - Summary: Effective March 3, 2009, procedures go into effect by which the Secretary of Labor can assess civil penalties against a plan administrator for the failure to provide certain PPA-required notices. Penalties are based on the "degree or willfulness" of the failure, but may not exceed $1,000 per day for each violation. Located at: Benefitslink.com. Click on headline for full article.
Winter Edition of IRS's Employee Plans News - Summary: The Winter Edition of the IRS's Employee Plans News includes an interview with Joyce Kahn, Manager, Voluntary Compliance on improving compliance via SCP as well as a separate article containing tips to making a better determination letter submission. Located at: IRS (PDF File). Click on headline for full article.
2009 Suspension of RMD Rules - Summary: Groom Law Group believes that there are a number of issues relating to the suspension of 2009 RMDs that should addressed by additional guidance. They propose a number of potential guidance positions. Located at: Groom Law Group (PDF File). Click on headline for full article.
Delay on Advice Rule May Lead to Revamp - Summary: The mutual fund industry's longtime quest to provide direct invest. advice to participants in defined contribution plans took a potentially disabling hit, thanks in part to one of the first official acts of President Barack Obama's administration. Located at: PIonline.com. Click on headline for full article.
Suspension of Minimum Required Distributions for 2009 - Summary: This waiver is designed to limit the impact of decreases in financial markets on plan participants and IRA holders by allowing individuals to avoid distributions from retirement accounts that have dramatically reduced in value over the last year. Located at: Dow Lohnes (PDF File). Click on headline for full article.
For more information visit www.bpp401k.com
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