Communicating Benefits During Layoffs Can Be Tricky - Summary: With tens of thousands of layoffs being conducted every month, managers are trying to figure out the best way to communicate important information during an emotion-laden time. Located at: Workforce.com (free registration may be required). Click on headline for full article.
Three Out of Five Employers Maintain 401k Match Despite Economic Crisis - Summary: A new survey of employers released by WorldatWork and the American Benefits Council, "Trends in 401k Plans," finds that the financial crisis has not significantly discouraged 401k contributions or participation. Located at: 401khelpcenter.com. Click on headline for full article.
Average Worker Contribution Rates to 401k-Type Plans - Summary: How much do workers contribute on average to 401k-type plans? Here are the numbers as reported by the nonpartisan Employee Benefit Research Institute. Located at: 401khelpcenter.com. Click on headline for full article.
Mutual Fund Leaders Endorse Reforms to Money Market Funds - Summary: The Investment Company Institute announced that its Board of Governors has received a report from the Money Market Working Group and has unanimously endorsed the Group's recommendations concerning new regulatory and oversight standards for money market funds. Located at: Investment Company Institute. Click on headline for full article.
After the "Crash" of '08, Maybe It's Time to Leave the Driving to the Professionals - Summary: The numbers are in for 2008 and – no surprise here – they're not pretty. Retirement plan accounts took a beating. Sure, the economy was the culprit. But what did we learn? One lesson could be that rather than having employees steer their own investments, it might be smarter to leave the driving to a professional. Located at: Chang, Ruthenberg & Long PC. Click on headline for full article.
Meeting Your Fiduciary Responsibilities - Summary: ERISA's fiduciary requirements are some of the highest under law, making it all the more critical for sponsors to be able to demonstrate how they make decisions and operate their plans in accordance with the law and plan documents. Located at: Grant Thornton LLP (PDF File). Click on headline for full article.
Survey Finds Many Sponsors Lacking Fiduciary Details - Summary: A new survey finds less than a third of retirement plan fiduciaries report a clear chain of authority for their plan’s governance committee. Located at: Planadviser.com. Click on headline for full article.
Research Shows Plan Sponsor Governance Dips - Summary: Plan sponsors are less likely to maintain meeting minutes, use an independent party to analyze fees, or establish a clear chain of authority for their plan’s governance committee, according to a new survey. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
Summary of Pending Legislation April 2009 - Summary: Some topics likely to get Congressional attention in 2009 include the ability of the current 401k system to provide sufficient retirement security, the development of 401k fee disclosure legislation, invest. advice and the appropriateness of pension plan investments. At least two items outlined in the Obama Administration’s 2010 budget proposal (mandatory payroll deduction IRAs and an expansion of the saver’s credit) may also result in legislative initiatives. Located at: Center for Due Diligence (PDF File). Click on headline for full article.
Court: No Affirmative Duty to Disclose Revenue Sharing - Summary: The Court of Appeals upheld a lower court ruling that ERISA's fiduciary standards do not require disclosure of revenue sharing arrangements among the service providers. Located at: Benefitslink.com. Click on headline for full article.
Supreme Court Agrees to Hear Mutual Fund Case - Summary: The US Supreme Court announced that it would hear the case of Jones v. Harris Associates which is an appeal of the Seventh Circuit Court of Appeals' decision in May 2008 that generally disregarded long-standing principles for reviews of investment management contracts and, in particular, fees paid to investment advisers of investment companies. Located at: Kilpatrick Stockton LLP. Click on headline for full article.
Principles for a New Retirement System - Summary: This working paper, according to the proponents, documents the need for a new retirement system in the US, details principles that should guide the development of a new system, and provides examples of plans and proposals that incorporate these principles. Located at: Retirement-usa.com (PDF File). Click on headline for full article.
Fed and FTC Regulation of Retirement Plan Loans to Participants - Summary: Retirement plans have long been subject to certain consumer credit rules primarily intended for very different credit arrangements. Just as plans are being relieved of compliance with one such set of rules, however, a new set of requirements may possibly become applicable. Located at: Sutherland.com (PDF File). Click on headline for full article.
Final Regulations on Automatic Contribution Arrangements - Summary: IRS published final regulations relating to automatic contribution arrangements, i.e., a default election to contribute the automatic deferral percentage set by the plan. Located at: Transamerica Center for Retirement Studies (PDF File). Click on headline for full article.
Getting Ready for EFAST2 - Summary: Beginning with the 2009 plan year, the Department of Labor will require retirement and welfare plans to file their annual reports (Form 5500) electronically. To ease the transition, preparers need to familiarize themselves with the new electronic filing system. Located at: Sungard/Relius. Click on headline for full article.
Invest. Advice Rule Implementation Delayed - Summary: The U.S. Department of Labor has delayed the effective date of its final rules about providing retirement plan participant invest. advice. Located at: Planadviser.com. Click on headline for full article.
For more information visit www.bpp401k.com
3.18.2009
BPP401k.com Newsletter March 18
Patrick Shelton, GBA Named Managing Member Patrick Shelton has been named managing member at Benefit Plans Plus.
Courts Could Decide 12b-1 Fee Regulation - Summary: Advisers using revenue-sharing might also face tighter regulation. It is unclear if Congress or regulation will step up, but getting paid out of mutual fund revenues could be at risk. Located at: Planadviser.com. Click on headline for full article.
ICI Chief Favors Fiduciary Role for Advisers - Summary: In what might come as a surprise to the organization's members, the head of the mutual fund industry's biggest trade group said that he supports the idea of requiring all financial advisers to act as fiduciaries. Located at: Investment News (free registration may be required). Click on headline for full article.
Retirement Design: Which Lens Are You Looking Through? - Summary: Regardless of what drives retirement redesign, this article suggests that plan sponsors consider four essential perspectives – external, cost and risk, employee, and employer – to clarify their objectives in offering or amending their retirement provisions. Located at: Mercer. Click on headline for full article.
The Case for a Single Vendor Approach in Higher Education Plans - Summary: With all of the confusion, complexity, and costs that will have to be absorbed by sponsors with multi vendor plans due to 403(b) regulation changes, there is a very strong argument for moving to a single provider model for higher education plans. Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
401k Investors Pour $65M into Company Stock in January - Summary: For the first time in seven years and after the sorry lessons of Enron and WorldCom, investors poured more money into company stock, $65 million, than they did any other investment category in January, according to Hewitt Associates. Located at: Financial-planning.com. Click on headline for full article.
Over a Third of 401k Participants Use Target-Date Funds - Summary: About 37 percent of 401k plan participants who were offered target-date funds had at least some fraction of their account in target-date funds in 2007, and this is expected to increase as the push for better diversification of 401k participants' assets intensifies. Located at: 401khelpcenter.com. Click on headline for full article.
ERISA Conflicts of Interest - Summary: The purpose of this White Paper is to analyze the law relating to conflicts of interest that retirement plan fiduciaries may encounter in selecting the investments and service providers for 401k plans. Located at: Reish Luftman Reicher & Cohen (PDF File). Click on headline for full article.
Fiduciary Fundamentals - Summary: Plan fiduciaries sometimes are not aware that they are fiduciaries—and, even if they are, what that means is not always explained. In this first-ever Plan Sponsor Fiduciary Guide, they hope you will find what you need to know to be a better fiduciary. Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
What Not to do as a Plan Fiduciary - Summary: Plan fiduciaries should not take their duties lightly, especially in turbulent times when participants are extremely sensitive about their retirement accounts. This article provides some tips to help limit plan fiduciary liabilities. Located at: Precept Group Blog. Click on headline for full article.
Non-Disclose of Revenue Sharing Arrangement not Fiduciary Breach - Summary: An employer sponsor of 401k plans did not breach its fiduciary duties by failing to disclose to plan participants a revenue sharing arrangement between the plan’s mutual fund providers, the U.S. Court of Appeals in Chicago has ruled in Hecker v. Deere and Company. Located at: CCH. Click on headline for full article.
The Schwab Self-Directed Brokerage Account Indicators - Summary: Charles Schwab Corporate and Retirement Services released this detailed participant behavior in Self Directed Brokerage Accounts for the fourth quarter and year-end 2008. SDBA accounts are generally used by 401k participants who are looking for more investment options than are available in their core 401k fund line-up. Located at: Charles Schwab (PDF File). Click on headline for full article.
Use of Target-Date Funds in 401k Plans - Summary: Of the 401k plan participants in the EBRI/ICI 401k database who were found to be in plans that offered target-date funds, 37 percent had at least some fraction of their account in target-date funds. Located at: Employee Benefit Research Institute. Click on headline for full article.
Prohibited Transactions and Level Fee Advice - Summary: This is the second in a series of articles regarding the Department of Labor's regulation on invest. advice for participants. This article looks at the application of the regulation to pure level fee investment advisers. Located at: Reish Luftman Reicher & Cohen (PDF File). Click on headline for full article.
For more information visit www.bpp401k.com
Courts Could Decide 12b-1 Fee Regulation - Summary: Advisers using revenue-sharing might also face tighter regulation. It is unclear if Congress or regulation will step up, but getting paid out of mutual fund revenues could be at risk. Located at: Planadviser.com. Click on headline for full article.
ICI Chief Favors Fiduciary Role for Advisers - Summary: In what might come as a surprise to the organization's members, the head of the mutual fund industry's biggest trade group said that he supports the idea of requiring all financial advisers to act as fiduciaries. Located at: Investment News (free registration may be required). Click on headline for full article.
Retirement Design: Which Lens Are You Looking Through? - Summary: Regardless of what drives retirement redesign, this article suggests that plan sponsors consider four essential perspectives – external, cost and risk, employee, and employer – to clarify their objectives in offering or amending their retirement provisions. Located at: Mercer. Click on headline for full article.
The Case for a Single Vendor Approach in Higher Education Plans - Summary: With all of the confusion, complexity, and costs that will have to be absorbed by sponsors with multi vendor plans due to 403(b) regulation changes, there is a very strong argument for moving to a single provider model for higher education plans. Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
401k Investors Pour $65M into Company Stock in January - Summary: For the first time in seven years and after the sorry lessons of Enron and WorldCom, investors poured more money into company stock, $65 million, than they did any other investment category in January, according to Hewitt Associates. Located at: Financial-planning.com. Click on headline for full article.
Over a Third of 401k Participants Use Target-Date Funds - Summary: About 37 percent of 401k plan participants who were offered target-date funds had at least some fraction of their account in target-date funds in 2007, and this is expected to increase as the push for better diversification of 401k participants' assets intensifies. Located at: 401khelpcenter.com. Click on headline for full article.
ERISA Conflicts of Interest - Summary: The purpose of this White Paper is to analyze the law relating to conflicts of interest that retirement plan fiduciaries may encounter in selecting the investments and service providers for 401k plans. Located at: Reish Luftman Reicher & Cohen (PDF File). Click on headline for full article.
Fiduciary Fundamentals - Summary: Plan fiduciaries sometimes are not aware that they are fiduciaries—and, even if they are, what that means is not always explained. In this first-ever Plan Sponsor Fiduciary Guide, they hope you will find what you need to know to be a better fiduciary. Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
What Not to do as a Plan Fiduciary - Summary: Plan fiduciaries should not take their duties lightly, especially in turbulent times when participants are extremely sensitive about their retirement accounts. This article provides some tips to help limit plan fiduciary liabilities. Located at: Precept Group Blog. Click on headline for full article.
Non-Disclose of Revenue Sharing Arrangement not Fiduciary Breach - Summary: An employer sponsor of 401k plans did not breach its fiduciary duties by failing to disclose to plan participants a revenue sharing arrangement between the plan’s mutual fund providers, the U.S. Court of Appeals in Chicago has ruled in Hecker v. Deere and Company. Located at: CCH. Click on headline for full article.
The Schwab Self-Directed Brokerage Account Indicators - Summary: Charles Schwab Corporate and Retirement Services released this detailed participant behavior in Self Directed Brokerage Accounts for the fourth quarter and year-end 2008. SDBA accounts are generally used by 401k participants who are looking for more investment options than are available in their core 401k fund line-up. Located at: Charles Schwab (PDF File). Click on headline for full article.
Use of Target-Date Funds in 401k Plans - Summary: Of the 401k plan participants in the EBRI/ICI 401k database who were found to be in plans that offered target-date funds, 37 percent had at least some fraction of their account in target-date funds. Located at: Employee Benefit Research Institute. Click on headline for full article.
Prohibited Transactions and Level Fee Advice - Summary: This is the second in a series of articles regarding the Department of Labor's regulation on invest. advice for participants. This article looks at the application of the regulation to pure level fee investment advisers. Located at: Reish Luftman Reicher & Cohen (PDF File). Click on headline for full article.
For more information visit www.bpp401k.com
3.11.2009
BPP401k.com Newsletter March 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.
Small Businesses Ponder 401k Funding - Summary: One of the first questions many small business owners hear from accountants at tax time is whether they've started or funded a retirement plan. That's a painful topic for many owners during a recession. Located at: AZcentral.com. Click on headline for full article.
Economic Crisis Puts Stable-Value Funds on Shaky Ground - Summary: Despite the comforting name and generally strong track record, stable-value funds aren't entirely stable anymore. Employee-investors can lose money, and the funds also carry a credit risk. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
VIDEO: How Will the Economy Respond to Rescue Efforts? - Summary: Vanguard's chief economist discusses the recent federal stimulus bill and efforts to resolve the banking crisis and the troubled housing market. He also offers his outlook on the economy and the stock market. Located at: Vanguard. Click on headline for full article.
Table of Companies Suspending or Reducing 401k Contributions - Summary: This is a partial listing compiled by the Center for Retirement Research at Boston College of companies that have either suspended or reduced 401k matching contributions in 2008 and 2009. Located at: Center for Retirement Research at Boston College (PDF File). Click on headline for full article.
After a 401k Match is Cut, Do Workers Stop Saving for Retirement? - Summary: A company match to your 401k contributions is a valuable incentive to save for retirement. New research confirms that employees are more likely to participate in a 401k plan when a match is offered. Located at: U.S. News & World Report. Click on headline for full article.
Court Finds no Support for Fiduciary Breach Claim - Summary: The U.S. District Court for the Southern District of Ohio ruled that retirement plan participants did not prove that Fifth Third Bancorp breached its fiduciary duties by continuing to offer company stock as an investment choice. Located at: Planadviser.com. Click on headline for full article.
Judge Backs United Technologies in 401k Lawsuit - Summary: A federal court judge in Bridgeport, CT, ruled that United Technologies Corp. did not breach its fiduciary duties in connection with its 401k plan expenses and investment options. Located at: PIonline.com. Click on headline for full article.
Kohl Calls for Increased Scrutiny of Target-Date Funds - Summary: The chairman of the Senate Special Committee on Aging has called for more scrutiny of target-date retirement funds after several 2010 target-date funds posted huge losses in 2008. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
Reallocation Versus Rebalancing - Summary: The allocation of many portfolios has changed as a result of significant movements in financial markets, especially over the last six months. Given this broad disarray in financial markets, advisors might find a brief discussion about the difference between (1) rebalancing a portfolio's current asset allocation and (2) outright changing a portfolio's target asset allocation to be of interest. Located at: Morningstar.com. Click on headline for full article.
Advice to Participants: What the "Final" DOL Regulation Means - Summary: This article examines the effect of the regulation on broker-dealers and registered investment advisers that provide invest. advice to 401k plan participants and IRA beneficiaries. We first discuss the regulation and then suggest steps that firms should begin taking now to come into compliance with the new rules, whether or not they are effective in their current form. Located at: Reish Luftman Reicher & Cohen (PDF File). Click on headline for full article.
ASPPA Seeks 401k Safe Harbor Relief - Summary: The American Society of Pension Professionals and Actuaries has requested that the IRS and Treasury Department grant relief for sponsors of safe harbor 401k plans who are unable to make required 3% nonelective safe harbor contributions for the entire year due to current economic conditions. Located at: CCH. Click on headline for full article.
IRS Issues Final 401k Auto-Enrollment Regulations - Summary: Containing some notable changes from the proposed version, final Treasury Regulations have been issued for qualified automatic contribution arrangements and for eligible automatic contribution arrangements. Located at: Benefitslink.com. Click on headline for full article.
IRS Rules on 401k Will Help Some Employers - Summary: Final rules issued last week by the Internal Revenue Service will aid employers that want to add an automatic enrollment feature to their 401k plans without running nondiscrimination tests. Located at: Businessinsurance.com. Click on headline for full article.
For more information visit www.bpp401k.com
Small Businesses Ponder 401k Funding - Summary: One of the first questions many small business owners hear from accountants at tax time is whether they've started or funded a retirement plan. That's a painful topic for many owners during a recession. Located at: AZcentral.com. Click on headline for full article.
Economic Crisis Puts Stable-Value Funds on Shaky Ground - Summary: Despite the comforting name and generally strong track record, stable-value funds aren't entirely stable anymore. Employee-investors can lose money, and the funds also carry a credit risk. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
VIDEO: How Will the Economy Respond to Rescue Efforts? - Summary: Vanguard's chief economist discusses the recent federal stimulus bill and efforts to resolve the banking crisis and the troubled housing market. He also offers his outlook on the economy and the stock market. Located at: Vanguard. Click on headline for full article.
Table of Companies Suspending or Reducing 401k Contributions - Summary: This is a partial listing compiled by the Center for Retirement Research at Boston College of companies that have either suspended or reduced 401k matching contributions in 2008 and 2009. Located at: Center for Retirement Research at Boston College (PDF File). Click on headline for full article.
After a 401k Match is Cut, Do Workers Stop Saving for Retirement? - Summary: A company match to your 401k contributions is a valuable incentive to save for retirement. New research confirms that employees are more likely to participate in a 401k plan when a match is offered. Located at: U.S. News & World Report. Click on headline for full article.
Court Finds no Support for Fiduciary Breach Claim - Summary: The U.S. District Court for the Southern District of Ohio ruled that retirement plan participants did not prove that Fifth Third Bancorp breached its fiduciary duties by continuing to offer company stock as an investment choice. Located at: Planadviser.com. Click on headline for full article.
Judge Backs United Technologies in 401k Lawsuit - Summary: A federal court judge in Bridgeport, CT, ruled that United Technologies Corp. did not breach its fiduciary duties in connection with its 401k plan expenses and investment options. Located at: PIonline.com. Click on headline for full article.
Kohl Calls for Increased Scrutiny of Target-Date Funds - Summary: The chairman of the Senate Special Committee on Aging has called for more scrutiny of target-date retirement funds after several 2010 target-date funds posted huge losses in 2008. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
Reallocation Versus Rebalancing - Summary: The allocation of many portfolios has changed as a result of significant movements in financial markets, especially over the last six months. Given this broad disarray in financial markets, advisors might find a brief discussion about the difference between (1) rebalancing a portfolio's current asset allocation and (2) outright changing a portfolio's target asset allocation to be of interest. Located at: Morningstar.com. Click on headline for full article.
Advice to Participants: What the "Final" DOL Regulation Means - Summary: This article examines the effect of the regulation on broker-dealers and registered investment advisers that provide invest. advice to 401k plan participants and IRA beneficiaries. We first discuss the regulation and then suggest steps that firms should begin taking now to come into compliance with the new rules, whether or not they are effective in their current form. Located at: Reish Luftman Reicher & Cohen (PDF File). Click on headline for full article.
ASPPA Seeks 401k Safe Harbor Relief - Summary: The American Society of Pension Professionals and Actuaries has requested that the IRS and Treasury Department grant relief for sponsors of safe harbor 401k plans who are unable to make required 3% nonelective safe harbor contributions for the entire year due to current economic conditions. Located at: CCH. Click on headline for full article.
IRS Issues Final 401k Auto-Enrollment Regulations - Summary: Containing some notable changes from the proposed version, final Treasury Regulations have been issued for qualified automatic contribution arrangements and for eligible automatic contribution arrangements. Located at: Benefitslink.com. Click on headline for full article.
IRS Rules on 401k Will Help Some Employers - Summary: Final rules issued last week by the Internal Revenue Service will aid employers that want to add an automatic enrollment feature to their 401k plans without running nondiscrimination tests. Located at: Businessinsurance.com. Click on headline for full article.
For more information visit www.bpp401k.com
New Managing Member Named at Benefit Plans Plus
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 advisers, wholesalers and clients, providing plan design, administration, and fiduciary compliance management services to nearly 500 plans throughout the nation. MOREFor more information about custom retirement plan design and how Benefit Plans Plus can help make your business more successful visit www.bpp401k.com
3.04.2009
BPP401k.com Newsletter March 4
Toolkit Available Saver's Credit rewards middle-and lower-income employees for their retiement plan saving.
Impact of Market Losses on 401k Account Balances - Summary: EBRI published an analysis of the impact of the recent financial crisis on 401k retirement account balances from Jan. 1, 2008, to Jan. 20, 2009, showing that participants' losses were largely determined by their account balance, age, and job tenure. Located at: 401khelpcenter.com. Click on headline for full article.
Research Highlights Severity of Market Tumble on Retirement Income Needs - Summary: While most Americans are well aware of the hit their 401k balances have taken in recent months, a new analysis by Hewitt Associates highlights the true severity of the market collapse on employees' retirement savings. Located at: 401khelpcenter.com. Click on headline for full article.
DC Plans: A Successful Cornerstone Of Our Nation's Retirement System - Summary: Employer-sponsored 401k and other defined contribution retirement plans are a core element of our nation's retirement system and successfully assist tens of millions of families in accumulating retirement savings. While individuals have understandable retirement income concerns resulting from the recent economic downturn, it is critical to acknowledge the vital role these plans play in ensuring personal financial security. Located at: American Benefits Council (PDF File). Click on headline for full article.
Lump-Sum Distribution Rollovers, by Age Group - Summary: When a worker changes jobs and receives a lump-sum distribution from his or her retirement plan, a key question is whether he or she will preserve the savings by "rolling over" the entire distribution to another tax-qualified savings vehicle. The age of the worker is a major factor in that decision. Located at: 401khelpcenter.com. Click on headline for full article.
Are Terminated 401k Participants Still Costing You Money? - Summary: The answer to this question is almost certainly yes. Former employees/participants don't always focus on moving their accounts to their new employer or a rollover IRA, and it's easily forgotten by plan administrators. There are at least two ways that this could be costing you money—perhaps a lot of money. Located at: Westport Benefits Group. Click on headline for full article.
Matching Contributions Key to 401k Participation - Summary: Workers' participation in 401k plans is largely driven by their companies' matching contributions, so if employers stop contributing, retirement accounts will suffer, according to an analysis released today by Fidelity Investments. Located at: Investment News (free registration may be required). Click on headline for full article.
Changing Safe Harbor Plan Match - Summary: One of the most frequently asked questions (and most misunderstood options) involves whether it is permissible to reduce or suspend the employer safe harbor matching contributions, during a plan year, under a safe harbor 401k plan. Located at: Planadviser.com. Click on headline for full article.
Chairman Miller Statement at Hearing on "Strengthening Worker Retirement Security" - Summary: This is the prepared remarks of U.S. Rep. George Miller (D-CA), chairman of the House Education and Labor Committee, for a February 24, 2009, committee hearing on "Strengthening Worker Retirement Security." Located at: 401khelpcenter.com. Click on headline for full article.
Miller Says 401k Plans Are High-Stakes 'Crap Shoot' - Summary: House Education and Labor Committee Chairman George Miller said 401k retirement plans do not provide sufficient retirement security for many Americans and must be revamped. Located at: Bloomberg. Click on headline for full article.
Five Steps to Restoring Trust in the 401k System - Summary: Statement submitted by Matthew D. Hutcheson, Independent Pension Fiduciary, on solutions to ensure that Americans can enjoy a safe and secure retirement after a lifetime of hard work, to the Committee on Education and Labor, U.S. House of Representatives, February 24, 2009. Located at: 401khelpcenter.com (PDF File). Click on headline for full article.
House Committee Advised not to Scare Participants - Summary: While individuals speaking during the U.S. House Education and Labor Committee's hearing on "Strengthening Worker Retirement Security" described the nation's retirement system as being "in peril," lawmakers were warned not to frighten participants away from it. Located at: Planadviser.com. Click on headline for full article.
Congress Takes Up Boomer Retirement Woes - Summary: The Senate Special Committee on Aging is looking into 401k target-date funds, with some members calling for new protections for account holders. Located at: Consumeraffairs.com. Click on headline for full article.
Senate Committee Takes Aim at Target-Date Funds - Summary: The U.S. Senate Special Committee on Aging held a hearing about the economic downturn's effect on retirement security, particularly for those who are on the brink of retirement. Will also take a close look 401k target-date funds. Located at: Planadviser.com. Click on headline for full article.
Seventh Circuit Dismisses 401k Revenue Sharing & Excessive Fee Lawsuit - Summary: The ruling is the first significant appellate decision in a recent wave of ERISA lawsuits brought by plan participants against large companies and their 401k plans. Located at: Littler Mendelson. Click on headline for full article.
EESA Affects Retirement Plan Administration - Summary: This relief is available to sponsors of qualified plans, ERISA 403(b) plans, and governmental section 457(b) plans whose participants were directly affected by the flooding, severe storms and tornadoes that occurred in the Midwestern disaster area. It is also available to affected participants in non-ERISA 403(b) programs. Located at: Prudential (PDF File). Click on headline for full article.
Devil is in the Details of RMD Suspension - Summary: WRERA suspends for 2009 IRS rules that compelled retirees age 70 1/2 and older to take required minimum distributions from defined contribution retirement plans and IRAs. Although the law's goal was reasonable and the solution simple, it leads to inevitable complexity. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
2008 401kExchange Market Share Report - Summary: Based on almost 50,000 surveys with 401k plan sponsors in 2008, many of the top 10 record keepers gained significant market share over the past year and the past three years. Located at: 401kexchange.com. Click on headline for full article.
Economic Conditions and Retirement Plan Advisors - Summary: This paper discusses items advisors should be prepared for during today's challenging conditions including fiduciary liability, increased claims, inadequate coverage, disgorged compensation and new business. Located at: Center for Due Diligence (PDF File). Click on headline for full article.
Participant Decisions to Stop Contributions 2006–2008 - Summary: In response to current market conditions, slightly more participants than in the past have stopped contributing to their retirement plans. This research provides insight into who these participants are and why they may have stopped contributing. Located at: Vanguard (PDF File). Click on headline for full article.
Final IRS Automatic Contribution Arrangements Regs - Summary: This document contains final regulations relating to automatic contribution arrangements. These regulations affect administrators of, employers maintaining, participants in, and beneficiaries of section 401k plans and other eligible plans that include an automatic contribution arrangement. Located at: Benefitslink.com (PDF File). Click on headline for full article.
Disclosure Regs for 401k Fees in Limbo - Summary: The Bush administration's failure to win final approval of new fee disclosure regulations for defined contribution plans, say industry experts, could well turn into a major headache for corporate executives. Located at: Financialweek.com. Click on headline for full article.
For more information visit www.bpp401k.com
Impact of Market Losses on 401k Account Balances - Summary: EBRI published an analysis of the impact of the recent financial crisis on 401k retirement account balances from Jan. 1, 2008, to Jan. 20, 2009, showing that participants' losses were largely determined by their account balance, age, and job tenure. Located at: 401khelpcenter.com. Click on headline for full article.
Research Highlights Severity of Market Tumble on Retirement Income Needs - Summary: While most Americans are well aware of the hit their 401k balances have taken in recent months, a new analysis by Hewitt Associates highlights the true severity of the market collapse on employees' retirement savings. Located at: 401khelpcenter.com. Click on headline for full article.
DC Plans: A Successful Cornerstone Of Our Nation's Retirement System - Summary: Employer-sponsored 401k and other defined contribution retirement plans are a core element of our nation's retirement system and successfully assist tens of millions of families in accumulating retirement savings. While individuals have understandable retirement income concerns resulting from the recent economic downturn, it is critical to acknowledge the vital role these plans play in ensuring personal financial security. Located at: American Benefits Council (PDF File). Click on headline for full article.
Lump-Sum Distribution Rollovers, by Age Group - Summary: When a worker changes jobs and receives a lump-sum distribution from his or her retirement plan, a key question is whether he or she will preserve the savings by "rolling over" the entire distribution to another tax-qualified savings vehicle. The age of the worker is a major factor in that decision. Located at: 401khelpcenter.com. Click on headline for full article.
Are Terminated 401k Participants Still Costing You Money? - Summary: The answer to this question is almost certainly yes. Former employees/participants don't always focus on moving their accounts to their new employer or a rollover IRA, and it's easily forgotten by plan administrators. There are at least two ways that this could be costing you money—perhaps a lot of money. Located at: Westport Benefits Group. Click on headline for full article.
Matching Contributions Key to 401k Participation - Summary: Workers' participation in 401k plans is largely driven by their companies' matching contributions, so if employers stop contributing, retirement accounts will suffer, according to an analysis released today by Fidelity Investments. Located at: Investment News (free registration may be required). Click on headline for full article.
Changing Safe Harbor Plan Match - Summary: One of the most frequently asked questions (and most misunderstood options) involves whether it is permissible to reduce or suspend the employer safe harbor matching contributions, during a plan year, under a safe harbor 401k plan. Located at: Planadviser.com. Click on headline for full article.
Chairman Miller Statement at Hearing on "Strengthening Worker Retirement Security" - Summary: This is the prepared remarks of U.S. Rep. George Miller (D-CA), chairman of the House Education and Labor Committee, for a February 24, 2009, committee hearing on "Strengthening Worker Retirement Security." Located at: 401khelpcenter.com. Click on headline for full article.
Miller Says 401k Plans Are High-Stakes 'Crap Shoot' - Summary: House Education and Labor Committee Chairman George Miller said 401k retirement plans do not provide sufficient retirement security for many Americans and must be revamped. Located at: Bloomberg. Click on headline for full article.
Five Steps to Restoring Trust in the 401k System - Summary: Statement submitted by Matthew D. Hutcheson, Independent Pension Fiduciary, on solutions to ensure that Americans can enjoy a safe and secure retirement after a lifetime of hard work, to the Committee on Education and Labor, U.S. House of Representatives, February 24, 2009. Located at: 401khelpcenter.com (PDF File). Click on headline for full article.
House Committee Advised not to Scare Participants - Summary: While individuals speaking during the U.S. House Education and Labor Committee's hearing on "Strengthening Worker Retirement Security" described the nation's retirement system as being "in peril," lawmakers were warned not to frighten participants away from it. Located at: Planadviser.com. Click on headline for full article.
Congress Takes Up Boomer Retirement Woes - Summary: The Senate Special Committee on Aging is looking into 401k target-date funds, with some members calling for new protections for account holders. Located at: Consumeraffairs.com. Click on headline for full article.
Senate Committee Takes Aim at Target-Date Funds - Summary: The U.S. Senate Special Committee on Aging held a hearing about the economic downturn's effect on retirement security, particularly for those who are on the brink of retirement. Will also take a close look 401k target-date funds. Located at: Planadviser.com. Click on headline for full article.
Seventh Circuit Dismisses 401k Revenue Sharing & Excessive Fee Lawsuit - Summary: The ruling is the first significant appellate decision in a recent wave of ERISA lawsuits brought by plan participants against large companies and their 401k plans. Located at: Littler Mendelson. Click on headline for full article.
EESA Affects Retirement Plan Administration - Summary: This relief is available to sponsors of qualified plans, ERISA 403(b) plans, and governmental section 457(b) plans whose participants were directly affected by the flooding, severe storms and tornadoes that occurred in the Midwestern disaster area. It is also available to affected participants in non-ERISA 403(b) programs. Located at: Prudential (PDF File). Click on headline for full article.
Devil is in the Details of RMD Suspension - Summary: WRERA suspends for 2009 IRS rules that compelled retirees age 70 1/2 and older to take required minimum distributions from defined contribution retirement plans and IRAs. Although the law's goal was reasonable and the solution simple, it leads to inevitable complexity. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
2008 401kExchange Market Share Report - Summary: Based on almost 50,000 surveys with 401k plan sponsors in 2008, many of the top 10 record keepers gained significant market share over the past year and the past three years. Located at: 401kexchange.com. Click on headline for full article.
Economic Conditions and Retirement Plan Advisors - Summary: This paper discusses items advisors should be prepared for during today's challenging conditions including fiduciary liability, increased claims, inadequate coverage, disgorged compensation and new business. Located at: Center for Due Diligence (PDF File). Click on headline for full article.
Participant Decisions to Stop Contributions 2006–2008 - Summary: In response to current market conditions, slightly more participants than in the past have stopped contributing to their retirement plans. This research provides insight into who these participants are and why they may have stopped contributing. Located at: Vanguard (PDF File). Click on headline for full article.
Final IRS Automatic Contribution Arrangements Regs - Summary: This document contains final regulations relating to automatic contribution arrangements. These regulations affect administrators of, employers maintaining, participants in, and beneficiaries of section 401k plans and other eligible plans that include an automatic contribution arrangement. Located at: Benefitslink.com (PDF File). Click on headline for full article.
Disclosure Regs for 401k Fees in Limbo - Summary: The Bush administration's failure to win final approval of new fee disclosure regulations for defined contribution plans, say industry experts, could well turn into a major headache for corporate executives. Located at: Financialweek.com. Click on headline for full article.
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