Women's Institute for a Secure Retirement publishes Divorce and Retirement: How To Take Control Of Retirement Benefits
The Case for Employer-Sponsored Retirement Plans - Summary: The SPARK Institute issued this white paper that explains why 401k and other employer-sponsored retirement plans are the most effective, secure and viable way for American workers to save and invest to reach their retirement goals. Located at: Spark Institute (PDF File). Click on headline for full article.
One in Five Companies Have Now Reduced 401k Matches - Summary: The number of Americans who no longer have a 401k match is growing exponentially. Some 22 percent of companies report they have recently reduced their contributions to employee 401k or 403(b) accounts. Located at: USnews.com. Click on headline for full article.
What Are Workers' Expected Major Sources of Retirement Income? - Summary: The 2009 Retirement Confidence Survey shows that an employer-sponsored retirement savings plan, such as a 401k plan, is mentioned most frequently by workers, followed by Social Security and a traditional pension. Here are the details. Located at: Employee Benefit Research Institute (PDF File). Click on headline for full article.
FAQs Regarding Hardship Distributions - Summary: This FAQ is provided by the IRS as a general guide and overview regarding hardship distributions from 401k plans. Located at: IRS. Click on headline for full article.
Hard Times Mean More 401k Hardship Distributions - Summary: Hardship distribution provisions in 401k used to be one of those retirement plan matters on which plan sponsors didn't spend a whole lot of time. Lately, however, that's not the case. Located at: Retirement Plan Blog. Click on headline for full article.
Americans Increasingly Concerned About Retirement Income - Summary: For the first time this decade, a majority of non-retired Americans, 52%, doubt they will have enough money to live comfortably once they retire; only 41% say they will. Located at: Gallup. Click on headline for full article.
Plan Participants Play it Cool Amid Crisis - Summary: The ongoing market crisis hasn't changed the behavior of defined contribution plan participants, according to DC experts. Located at: PIonline.com. Click on headline for full article.
ERISA Plan Fiduciaries: What "Prudence" Demands - Summary: As scrutiny of fiduciaries by plan participants and other fiduciaries continues to increase, plan sponsors should take steps to ensure that their retirement plan governance procedures are working to safeguard the plan and its participants. Located at: Towers Perrin. Click on headline for full article.
House Bill on 401k Fee Disclosure Introduced - Summary: The current law is needlessly complex, many agree. Simplifying fee disclosure would allow plan participants to make better investment choices to reduce fees. Located at: Workforce.com (free registration may be required). Click on headline for full article.
404(c) No Defense in Stock Fund Fiduciary Suit - Summary: The U.S. District Court for the District of New Hampshire has determined that Tyco International cannot use Employee Retirement Income Security Act Section 404(c) protection in its defense against participants' fiduciary claims regarding its retirement plan company stock fund offering. Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
Summary of the "Savings Recovery Act" - Summary: Among other things, the Savings Recovery Act would increase contribution and catch-up limits. The act would also double the Social Security earnings limit from $14,161 to $28,320, thereby allowing more Americans to increase their income without being hit by the Social Security earnings penalty. Located at: American Benefits Council (PDF File). Click on headline for full article.
US Reps Wage Campaign for More Disclosure of 401k Charges - Summary: Two U.S. House representatives kicked off a renewed campaign to garner support for legislation that would require 401k and mutual fund managers to disclose more about the fees charged to investment plans. Located at: Wall Street Journal. Click on headline for full article.
US House Bill Addresses Investment Advice for US Workers - Summary: The debate over how best to help U.S. workers access investment advice continued this week with the introduction of a bill in the House of Representatives. Located at: Wall Street Journal. Click on headline for full article.
401k Fair Disclosure for Retirement Security Act of 2009 - Summary: Text of "The 401k Fair Disclosure for Retirement Security Act of 2009" which was introduced on Tuesday, April 21, 2009, by Rep. George Miller (D-CA), chairman of the House Education and Labor Committee, and Rep. Rob Andrews (D-NJ), chairman of the Health, Employment, Labor, and Pensions Subcommittee. Located at: American Benefits Council (PDF File). Click on headline for full article.
ERIC Urges Comprehensive Rewrite of Miller Fee Disclosure Bill - Summary: ERIC urged the committee to simplify the disclosure requirements of the bill so as to not produce lengthy disclosure that are unlikely to be read. Located at: ERISA Industry Committee. Click on headline for full article.
DOL Letter to Rep. Miller Regarding 401k Fair Disclosure Bill - Summary: This is a copy of the letter written by Secretary of Labor Hilda L. Solis to Rep. George Miller regarding the "401k Fair Disclosure for Retirement Security Act of 2009." Located at: American Benefits Council (PDF File). Click on headline for full article.
CIKR, ASPPA and NAIRPA Testimony at Congressional Hearing on Fee Disclosure - Summary: Testimony by Julian Onorato, CEO, ExpertPlan, Inc. on behalf of CIKR, ASPPA and NAIRPA before the US House of Representatives subcommittee on Health, Education, Labor and Pensions regarding the "401k Fair Disclosure for Retirement Security Act of 2009." Located at: ASPPA (PDF File). Click on headline for full article.
The SPARK Institute Testimony at Congressional Hearing on Fee Disclosure - Summary: Testimony of Larry H. Goldbrum, General Counsel, The SPARK Institute before the US House of Representatives subcommittee on Health, Education, Labor and Pensions regarding the "401k Fair Disclosure for Retirement Security Act of 2009." Located at: Spark Institute (PDF File). Click on headline for full article.
Target-Date Funds Could Fall Under ERISA - Summary: Avatar Associates LLC is asking the Department of Labor for an advisory opinion that could, for the first time, subject mutual fund companies offering target-date funds to ERISA. Located at: PIonline.com. Click on headline for full article.
For more information visis www.bpp401k.com
4.22.2009
BPP401k.com Newsletter April 22
How Much Have American Workers Saved for Retirement? - Summary: The short answer is that many have little money put away in savings and investments, according to the 2009 Retirement Confidence Survey. Located at: Employee Benefit Research Institute (PDF File). Click on headline for full article.
Cutting a Safe Harbor Plan Match - Summary: It seems that every day a few more companies are reducing or eliminating their 401k match. For those companies who were maintaining safe harbor plans, this causes some surprising complexities. In this article discusses the traps and pitfalls. Located at: JP Morgan. Click on headline for full article.
Suspending the 401k Match: Look Before You Leap - Summary: While suspending matching or non-elective contributions provides a relatively easy and immediate source of expense reduction, it's important to understand both the implications and the potential pitfalls of taking this action. Mercer reviews the issues in this report. Located at: Mercer (PDF File). Click on headline for full article.
Annual Retirement Confidence Survey Results Released - Summary: Because of the economic downturn, many workers say they expect to work longer, the survey found, and more workers say they are planning to supplement their income in retirement by working for pay. Located at: 401khelpcenter.com. Click on headline for full article.
Yearly Savings From 401k Contribution Halt: $1,500 Per Worker - Summary: Companies that suspend their 401k matching contribution save an average of $1,500 per employee per year, according to an analysis released from Hewitt Associates. Located at: PIonline.com. Click on headline for full article.
Tips on Managing Investment-Related Risks - Summary: Most claims arise from either investment-related activities or the lack of prudent administrative processes and procedures. This article discusses methods of shifting or mitigating liability for investment losses as well as how to ensure that you are meeting your fiduciary duties in doing so. Located at: Reish Luftman Reicher & Cohen. Click on headline for full article.
Offering Range of Funds Not a Fiduciary Protection - Summary: Offering a broad menu of funds or a brokerage window should not relieve 401k plan fiduciaries of the duty to prudently select investments, according to a Department of Labor brief filed in response to a recent appellate decision rejecting claims of excessive plan fees. Located at: Mercer. Click on headline for full article.
Saving on 401k Expenses in Hard Times - Summary: With the bad economy many are looking for ways to reduce costs for 401k plans. While the largest cost is usually the matching contributions, the expenses of operating a plan are next. However, there are traps for the unwary. Not every expense can be paid from plan assets. Some must be paid by the plan sponsor. This article discusses which can and which cannot. Located at: Reish Luftman Reicher & Cohen. Click on headline for full article.
Group Decision-Making: Implications for Investment Committees - Summary: This paper presents existing research on the psychology of group decision-making, and discusses how the research may be applied to investment committees to help them improve the quality of their decisions. Located at: Vanguard Investment Counseling & Research (PDF File). Click on headline for full article.
The 2009 Retirement Confidence Survey - Summary: The recession has cast a pall over the retirement expectations of the vast majority of Americans, leaving a record-low 13 percent this year able to say they are very confident of having enough money to live comfortably in retirement, according to the 19th Annual Retirement Confidence Survey released by the nonpartisan Employee Benefit Research Institute. Located at: Employee Benefit Research Institute (PDF File). Click on headline for full article.
Defined Contribution/401k Fee Study - Summary: As part of an ongoing comprehensive research program, the Investment Company Institute engaged Deloitte to conduct a Survey of defined contribution plan sponsors and create this report to shed light on how fee structures work within the defined contribution plan market. Specifically, this report addresses the mechanics of plan fee structures, components of plan fees and the primary and secondary factors that impact fees. Located at: Investment Company Institute (PDF File). Click on headline for full article.
10th Annual Transamerica Retirement Survey - Summary: Since 1999, the Transamerica Center for Retirement Studies has conducted a national survey of U.S. business employers and workers regarding their attitudes toward retirement. The overall goal for the study is to illuminate emerging trends, promote awareness, and help educate the public. This is the just released published results of the latest survey. Located at: Transamerica Center for Retirement Studies (PDF File). Click on headline for full article.
ERISA Litigation Study - Summary: Based on over 2,400 ERISA cases filed between January 1, 2005 and August 31, 2008, this study provides a statistical overview of pension lawsuits by category, court and case disposition. Study summarizes results and provides an understanding of ERISA litigations trends. Located at: Pension Risk Matters (PDF File). Click on headline for full article.
How Do Emotions Influence Saving Behavior? - Summary: Researchers have explored various factors affecting retirement saving, such as income, age, job tenure, self-control failure, financial literacy and trust. No prior research, however, has looked at the effects of emotions on retirement savings. This paper examines how two different emotions – hope and hopefulness – affect 401k participation and asset allocation. Located at: Center for Retirement Research at Boston College (PDF File). Click on headline for full article.
IRS Announces Intent to Establish Pre-Approved 403(b) Program - Summary: This announcement includes a draft revenue procedure that contains the Service's proposed procedures for issuing opinion letters as to the acceptability under § 403(b) of the form of prototype plans. Located at: Benefitsforward.com. Click on headline for full article.
Require 401k Plans to Offer Fixed-Income Products - Summary: Requiring annuities or other fixed-income products be included as an option in 401k plans is being considered by the House Education and Labor Committee, said Rep. Robert Andrews, D-N.J., chairman of the committee's Health, Employment, Labor and Pensions Subcommittee. Located at: Investment News (free registration may be required). Click on headline for full article.
DOL Voluntary Fiduciary Correction Program - Summary: The Voluntary Fiduciary Correction Program is available to plan sponsors, officers, trustees, plan administrators, parties-in-interest or other persons, who may be liable for certain fiduciary breaches under the Employee Retirement Income Security Act. This publication describes the program as it stands today. Located at: Prudential (PDF File). Click on headline for full article.
IRS Employee Plans News - Special Edition - April 2009 - Summary: This Special Edition contains the IRS's request for comments on drafts of a revenue procedure and sample plan language for §403(b) prototype plans and highlights of the draft revenue procedure. Located at: IRS (PDF File). Click on headline for full article.
For more information visit www.bpp401k.com
Cutting a Safe Harbor Plan Match - Summary: It seems that every day a few more companies are reducing or eliminating their 401k match. For those companies who were maintaining safe harbor plans, this causes some surprising complexities. In this article discusses the traps and pitfalls. Located at: JP Morgan. Click on headline for full article.
Suspending the 401k Match: Look Before You Leap - Summary: While suspending matching or non-elective contributions provides a relatively easy and immediate source of expense reduction, it's important to understand both the implications and the potential pitfalls of taking this action. Mercer reviews the issues in this report. Located at: Mercer (PDF File). Click on headline for full article.
Annual Retirement Confidence Survey Results Released - Summary: Because of the economic downturn, many workers say they expect to work longer, the survey found, and more workers say they are planning to supplement their income in retirement by working for pay. Located at: 401khelpcenter.com. Click on headline for full article.
Yearly Savings From 401k Contribution Halt: $1,500 Per Worker - Summary: Companies that suspend their 401k matching contribution save an average of $1,500 per employee per year, according to an analysis released from Hewitt Associates. Located at: PIonline.com. Click on headline for full article.
Tips on Managing Investment-Related Risks - Summary: Most claims arise from either investment-related activities or the lack of prudent administrative processes and procedures. This article discusses methods of shifting or mitigating liability for investment losses as well as how to ensure that you are meeting your fiduciary duties in doing so. Located at: Reish Luftman Reicher & Cohen. Click on headline for full article.
Offering Range of Funds Not a Fiduciary Protection - Summary: Offering a broad menu of funds or a brokerage window should not relieve 401k plan fiduciaries of the duty to prudently select investments, according to a Department of Labor brief filed in response to a recent appellate decision rejecting claims of excessive plan fees. Located at: Mercer. Click on headline for full article.
Saving on 401k Expenses in Hard Times - Summary: With the bad economy many are looking for ways to reduce costs for 401k plans. While the largest cost is usually the matching contributions, the expenses of operating a plan are next. However, there are traps for the unwary. Not every expense can be paid from plan assets. Some must be paid by the plan sponsor. This article discusses which can and which cannot. Located at: Reish Luftman Reicher & Cohen. Click on headline for full article.
Group Decision-Making: Implications for Investment Committees - Summary: This paper presents existing research on the psychology of group decision-making, and discusses how the research may be applied to investment committees to help them improve the quality of their decisions. Located at: Vanguard Investment Counseling & Research (PDF File). Click on headline for full article.
The 2009 Retirement Confidence Survey - Summary: The recession has cast a pall over the retirement expectations of the vast majority of Americans, leaving a record-low 13 percent this year able to say they are very confident of having enough money to live comfortably in retirement, according to the 19th Annual Retirement Confidence Survey released by the nonpartisan Employee Benefit Research Institute. Located at: Employee Benefit Research Institute (PDF File). Click on headline for full article.
Defined Contribution/401k Fee Study - Summary: As part of an ongoing comprehensive research program, the Investment Company Institute engaged Deloitte to conduct a Survey of defined contribution plan sponsors and create this report to shed light on how fee structures work within the defined contribution plan market. Specifically, this report addresses the mechanics of plan fee structures, components of plan fees and the primary and secondary factors that impact fees. Located at: Investment Company Institute (PDF File). Click on headline for full article.
10th Annual Transamerica Retirement Survey - Summary: Since 1999, the Transamerica Center for Retirement Studies has conducted a national survey of U.S. business employers and workers regarding their attitudes toward retirement. The overall goal for the study is to illuminate emerging trends, promote awareness, and help educate the public. This is the just released published results of the latest survey. Located at: Transamerica Center for Retirement Studies (PDF File). Click on headline for full article.
ERISA Litigation Study - Summary: Based on over 2,400 ERISA cases filed between January 1, 2005 and August 31, 2008, this study provides a statistical overview of pension lawsuits by category, court and case disposition. Study summarizes results and provides an understanding of ERISA litigations trends. Located at: Pension Risk Matters (PDF File). Click on headline for full article.
How Do Emotions Influence Saving Behavior? - Summary: Researchers have explored various factors affecting retirement saving, such as income, age, job tenure, self-control failure, financial literacy and trust. No prior research, however, has looked at the effects of emotions on retirement savings. This paper examines how two different emotions – hope and hopefulness – affect 401k participation and asset allocation. Located at: Center for Retirement Research at Boston College (PDF File). Click on headline for full article.
IRS Announces Intent to Establish Pre-Approved 403(b) Program - Summary: This announcement includes a draft revenue procedure that contains the Service's proposed procedures for issuing opinion letters as to the acceptability under § 403(b) of the form of prototype plans. Located at: Benefitsforward.com. Click on headline for full article.
Require 401k Plans to Offer Fixed-Income Products - Summary: Requiring annuities or other fixed-income products be included as an option in 401k plans is being considered by the House Education and Labor Committee, said Rep. Robert Andrews, D-N.J., chairman of the committee's Health, Employment, Labor and Pensions Subcommittee. Located at: Investment News (free registration may be required). Click on headline for full article.
DOL Voluntary Fiduciary Correction Program - Summary: The Voluntary Fiduciary Correction Program is available to plan sponsors, officers, trustees, plan administrators, parties-in-interest or other persons, who may be liable for certain fiduciary breaches under the Employee Retirement Income Security Act. This publication describes the program as it stands today. Located at: Prudential (PDF File). Click on headline for full article.
IRS Employee Plans News - Special Edition - April 2009 - Summary: This Special Edition contains the IRS's request for comments on drafts of a revenue procedure and sample plan language for §403(b) prototype plans and highlights of the draft revenue procedure. Located at: IRS (PDF File). Click on headline for full article.
For more information visit www.bpp401k.com
4.08.2009
BPP401k.com Newsletter April 8
Towers Perrin Legislative Tracking Chart - Summary: This chart tracks bills related to retirement and executive compensation. Thousands of bills are introduced in Congress but only a select few are summarized on this chart. This selection represents Towers Perrin's best judgment on the likelihood of enactment and the relevance of the issue for employers. Located at: Towers Perrin (PDF File). Click on headline for full article.
Retirement Plans for Small Businesses - Summary: Implementing a retirement plan for your company accomplishes two goals: It sends a message to current and prospective employees that you're concerned about their standard of living in retirement, which helps attract and retain employees. In addition, the plan can also offer the employer tax savings and a way to secure their own retirement along with that of their employees. Located at: CNBC. Click on headline for full article.
401(k)risis: Brace for Repercussions - Summary: The stock-market meltdown has dealt a crushing blow to retirement plans. But far more profound may be the impacts still to come: lawsuits, new regulations, and the specter of an aging workforce that, like a bad party guest, shows no inclination to leave. Located at: CFO.com. Click on headline for full article.
Survey Sees Increased Savings, Steady 401k Contributions - Summary: Compared to MMI's June 2008 survey, 50 percent more Americans are increasing their savings. Gen Ys are leading the nation at 44 percent. And only 15 percent of consumers surveyed say they are cutting back or eliminating contributions to 401k plans. Located at: 401khelpcenter.com. Click on headline for full article.
Feeling the Pinch from Shortfalls in Retirement Funding - Summary: The ripple effect of shrinking retirement accounts and under-funded pensions threatens to undermine the broader economy as older Americans delay retirement, local governments raise taxes, and companies challenged with withering pension balances lay off workers in response to the shortfall. Located at: Wharton School. Click on headline for full article.
ERISA Delegation for Plan Sponsors - Summary: There is a widespread misconception even among many otherwise well-informed employee benefits attorneys that sponsors of qualified retirement plans such as 401k plans cannot delegate their day-to-day administrative and investment fiduciary responsibilities and liabilities to others. Located at: Morningstar.com. Click on headline for full article.
How Much Information Is Enough to Decide a Breach of Fiduciary Duty Lawsuit? - Summary: Is a motion to dismiss a good tool for disposing of major breach of fiduciary duty lawsuits? In essence, should it be treated as a mini-summary judgment proceeding, that tests the sufficiency of the case's theories against, not the detailed facts of a specific case, but instead against the world as a whole as understood by the court? Located at: Boston ERISA Law Blog. Click on headline for full article.
Merck Loses Challenge to Company Stock Fiduciary Claims - Summary: The U.S. District Court for the District of New Jersey has refused to issue summary judgment for Merck & Co. on claims the drug maker breached its fiduciary duties by continuing to offer company stock as an investment option in its retirement plans. Located at: Planadviser.com. Click on headline for full article.
PIMCO Release Study on DC Consulting Trends - Summary: Amid the ongoing turmoil in financial markets, investment consultants say that defined contribution retirement plans, such as 401ks, are most concerned with capital preservation, diversification and inflation protection, according to the "2009 Defined Contribution Consulting Support and Trends Survey" released by PIMCO. Located at: 401khelpcenter.com. Click on headline for full article.
Fiduciary Standard an Issue in Unifying Advisory Regulations - Summary: A consensus appears to be developing in Washington under which FINRA could gain regulatory control over investment advisers in return for requiring all of them, including brokers, to come under fiduciary standards. Located at: Investment News (free registration may be required). Click on headline for full article.
IRA Proposal Irks Some Independents - Summary: A congressman's suggestion that only independent advisers be permitted to give advice to participants in the small-company individual retirement accounts proposed by President Obama may not go far enough, according to some financial advisers. Located at: Investment News (free registration may be required). Click on headline for full article.
AARP Bulletin Survey on Retirement Savings - Summary: The AARP Bulletin commissioned a nationwide survey in February 2009 to find out if and how Americans are changing their general savings and retirement savings behaviors. This is the executive summary. Located at: AARP (PDF File). Click on headline for full article.
Workers' Primary Retirement Plan Type - Summary: What is the primary type of retirement plan among workers who participate in a such a plan? Located at: Employee Benefit Research Institute (PDF File). Click on headline for full article.
DOL & SEC to Probe Target Date Funds - Summary: The Department of Labor is set to begin an “immediate review” of target date funds — one that could lead to new regulations placed on the all-in-one investment strategies. Located at: Investment News (free registration may be required). Click on headline for full article
For more information visit www.bpp401k.com
Retirement Plans for Small Businesses - Summary: Implementing a retirement plan for your company accomplishes two goals: It sends a message to current and prospective employees that you're concerned about their standard of living in retirement, which helps attract and retain employees. In addition, the plan can also offer the employer tax savings and a way to secure their own retirement along with that of their employees. Located at: CNBC. Click on headline for full article.
401(k)risis: Brace for Repercussions - Summary: The stock-market meltdown has dealt a crushing blow to retirement plans. But far more profound may be the impacts still to come: lawsuits, new regulations, and the specter of an aging workforce that, like a bad party guest, shows no inclination to leave. Located at: CFO.com. Click on headline for full article.
Survey Sees Increased Savings, Steady 401k Contributions - Summary: Compared to MMI's June 2008 survey, 50 percent more Americans are increasing their savings. Gen Ys are leading the nation at 44 percent. And only 15 percent of consumers surveyed say they are cutting back or eliminating contributions to 401k plans. Located at: 401khelpcenter.com. Click on headline for full article.
Feeling the Pinch from Shortfalls in Retirement Funding - Summary: The ripple effect of shrinking retirement accounts and under-funded pensions threatens to undermine the broader economy as older Americans delay retirement, local governments raise taxes, and companies challenged with withering pension balances lay off workers in response to the shortfall. Located at: Wharton School. Click on headline for full article.
ERISA Delegation for Plan Sponsors - Summary: There is a widespread misconception even among many otherwise well-informed employee benefits attorneys that sponsors of qualified retirement plans such as 401k plans cannot delegate their day-to-day administrative and investment fiduciary responsibilities and liabilities to others. Located at: Morningstar.com. Click on headline for full article.
How Much Information Is Enough to Decide a Breach of Fiduciary Duty Lawsuit? - Summary: Is a motion to dismiss a good tool for disposing of major breach of fiduciary duty lawsuits? In essence, should it be treated as a mini-summary judgment proceeding, that tests the sufficiency of the case's theories against, not the detailed facts of a specific case, but instead against the world as a whole as understood by the court? Located at: Boston ERISA Law Blog. Click on headline for full article.
Merck Loses Challenge to Company Stock Fiduciary Claims - Summary: The U.S. District Court for the District of New Jersey has refused to issue summary judgment for Merck & Co. on claims the drug maker breached its fiduciary duties by continuing to offer company stock as an investment option in its retirement plans. Located at: Planadviser.com. Click on headline for full article.
PIMCO Release Study on DC Consulting Trends - Summary: Amid the ongoing turmoil in financial markets, investment consultants say that defined contribution retirement plans, such as 401ks, are most concerned with capital preservation, diversification and inflation protection, according to the "2009 Defined Contribution Consulting Support and Trends Survey" released by PIMCO. Located at: 401khelpcenter.com. Click on headline for full article.
Fiduciary Standard an Issue in Unifying Advisory Regulations - Summary: A consensus appears to be developing in Washington under which FINRA could gain regulatory control over investment advisers in return for requiring all of them, including brokers, to come under fiduciary standards. Located at: Investment News (free registration may be required). Click on headline for full article.
IRA Proposal Irks Some Independents - Summary: A congressman's suggestion that only independent advisers be permitted to give advice to participants in the small-company individual retirement accounts proposed by President Obama may not go far enough, according to some financial advisers. Located at: Investment News (free registration may be required). Click on headline for full article.
AARP Bulletin Survey on Retirement Savings - Summary: The AARP Bulletin commissioned a nationwide survey in February 2009 to find out if and how Americans are changing their general savings and retirement savings behaviors. This is the executive summary. Located at: AARP (PDF File). Click on headline for full article.
Workers' Primary Retirement Plan Type - Summary: What is the primary type of retirement plan among workers who participate in a such a plan? Located at: Employee Benefit Research Institute (PDF File). Click on headline for full article.
DOL & SEC to Probe Target Date Funds - Summary: The Department of Labor is set to begin an “immediate review” of target date funds — one that could lead to new regulations placed on the all-in-one investment strategies. Located at: Investment News (free registration may be required). Click on headline for full article
For more information visit www.bpp401k.com
4.01.2009
BPP401k.com Newsletter April 1
Why You're Making Dumb 401(k) Choices Five common mistakes that drain money from retirement accounts.
401k Plan Sponsors Not Making Changes During Economic Downturn - Summary: According to a recent survey of 401k plan sponsors, approximately three-fifths of respondents stated that the recent financial crisis had not made any changes to their companies' 401k plans. This is a summary of the results. Located at: CCH. Click on headline for full article.
Third of Sponsors in Poll Dropped, Reduced DC Match - Summary: A Spectrem Group news release about its "Plan Sponsor Attitudes at the End of a Tumultuous Year" report said 34% of the February 2009 online poll of 150 plan sponsors had taken steps to change their match policies. Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
Adding Low Wage Employee and Top-Heavy Status - Summary: Looking at the question, "Does adding a low wage hourly employee as a 401k plan participant help to alleviate a 'top-heavy' problem?" Located at: Benefitslink.com. Click on headline for full article.
Watch Out for Top-Heavy - Summary: In terminating, freezing or reducing the contributions in a safe harbor 401k plan, an employer must take into account the possibility of incurring a top-heavy minimum contribution which might equal or exceed the safe harbor contribution that the employer is eliminating. Located at: Sungard/Relius. Click on headline for full article.
A Waiver Is Not a QDRO - Summary: The Supreme Court's decision in Kennedy v. Plan Administrator for DuPont Savings and Investment Plan reinforced two principles of ERISA important for participants and beneficiaries and for plan administrators. Located at: Chang, Ruthenberg & Long PC. Click on headline for full article.
GOP Congressmen Offer Savings Proposal - Summary: A group of Republican Congressmen have proposed a plan they say offers a shot in the arm for American savings. Located at: Planadviser.com. Click on headline for full article.
House Reviews Advice Given to 401k, IRA Holders - Summary: Members of a congressional panel said they wanted to ensure that retirement account holders have access to unbiased invest. advice, an issue that's all the more important since stock market declines drained billions from retirement savings. Located at: New York Times. Click on headline for full article.
Market Collapse Places Fiduciaries at Risk - Summary: Beware all who would enter here: the land of the retirement plan fiduciary is not for the weak or faint of heart, or those with a queasy stomach. This article is designed to provide a survey of fiduciary exposure issues in two parts. The first will explore recent trends in fiduciary litigation, and the second will look at some of the pertinent changes in the law and how employers are coping with them. Located at: Holland & Hart LLP (PDF File). Click on headline for full article.
The Lost Souls of 403(b) and the 2009 Form 5500 - Summary: Discusses the question of the counting of former employees for purposes of the 2009 Form 5500, which 403(b) plans will need to file in toto for the first time. Located at: Business of Benefits Blog. Click on headline for full article.
Implications of a Bear Market for Retirement Security - Summary: This paper examines several hypothetical scenarios over the past 138 years in which investors would have faced historically poor markets. Shows impact of a significant market decline on a retiree who followed a "life-cycle" approach to investing. Also shows that if investors focus on areas that they can control, they can measurably improve their long-term prospects for weathering such negative environments. Located at: Vanguard Investment Counseling & Research (PDF File). Click on headline for full article.
Conflicts of Interest Can Affect Defined Benefit and Defined Contribution Plans - Summary: Testimony before the Subcommittee on Health, Employment, Labor and Pensions, Education and Labor Committee, House of Representatives by the US Government Accountability Office on conflicts of interest that can affect both DB and DC plans. Located at: US Government Accountability Office (PDF File). Click on headline for full article.
Labor Department 401k Rules May Create Conflicts - Summary: Labor Department rules allowing retirement plan administrators to offer specific invest. advice may create a conflict of interest, House Democrats said at a hearing Tuesday. Located at: Bloomberg.com. Click on headline for full article.
DOL Delays Final Invest. Advice Regulations - Summary: The DOL's notice does not offer any clues as to what changes, if any, might follow from its legal and policy review, so plan sponsors and others will simply have to wait and see what the DOL decides. Located at: Employee Benefits Institute of America. Click on headline for full article.
New Rules on Retirement Advice Get Mixed Reviews - Summary: As American workers' retirement assets continue to be devoured by the bear market, the government is reconsidering how best to make invest. advice available to retirement plan participants. Located at: Financial-planning.com. Click on headline for full article.
5500 Schedule C Reporting Delay and Additional Guidance Needed - Summary: A substantial majority of retirement plan service providers are unsure about how to comply with the new Form 5500 Schedule C reporting requirements, according to a recent survey. Located at: 401khelpcenter.com. Click on headline for full article.
For more information visit www.bpp401k.com
401k Plan Sponsors Not Making Changes During Economic Downturn - Summary: According to a recent survey of 401k plan sponsors, approximately three-fifths of respondents stated that the recent financial crisis had not made any changes to their companies' 401k plans. This is a summary of the results. Located at: CCH. Click on headline for full article.
Third of Sponsors in Poll Dropped, Reduced DC Match - Summary: A Spectrem Group news release about its "Plan Sponsor Attitudes at the End of a Tumultuous Year" report said 34% of the February 2009 online poll of 150 plan sponsors had taken steps to change their match policies. Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
Adding Low Wage Employee and Top-Heavy Status - Summary: Looking at the question, "Does adding a low wage hourly employee as a 401k plan participant help to alleviate a 'top-heavy' problem?" Located at: Benefitslink.com. Click on headline for full article.
Watch Out for Top-Heavy - Summary: In terminating, freezing or reducing the contributions in a safe harbor 401k plan, an employer must take into account the possibility of incurring a top-heavy minimum contribution which might equal or exceed the safe harbor contribution that the employer is eliminating. Located at: Sungard/Relius. Click on headline for full article.
A Waiver Is Not a QDRO - Summary: The Supreme Court's decision in Kennedy v. Plan Administrator for DuPont Savings and Investment Plan reinforced two principles of ERISA important for participants and beneficiaries and for plan administrators. Located at: Chang, Ruthenberg & Long PC. Click on headline for full article.
GOP Congressmen Offer Savings Proposal - Summary: A group of Republican Congressmen have proposed a plan they say offers a shot in the arm for American savings. Located at: Planadviser.com. Click on headline for full article.
House Reviews Advice Given to 401k, IRA Holders - Summary: Members of a congressional panel said they wanted to ensure that retirement account holders have access to unbiased invest. advice, an issue that's all the more important since stock market declines drained billions from retirement savings. Located at: New York Times. Click on headline for full article.
Market Collapse Places Fiduciaries at Risk - Summary: Beware all who would enter here: the land of the retirement plan fiduciary is not for the weak or faint of heart, or those with a queasy stomach. This article is designed to provide a survey of fiduciary exposure issues in two parts. The first will explore recent trends in fiduciary litigation, and the second will look at some of the pertinent changes in the law and how employers are coping with them. Located at: Holland & Hart LLP (PDF File). Click on headline for full article.
The Lost Souls of 403(b) and the 2009 Form 5500 - Summary: Discusses the question of the counting of former employees for purposes of the 2009 Form 5500, which 403(b) plans will need to file in toto for the first time. Located at: Business of Benefits Blog. Click on headline for full article.
Implications of a Bear Market for Retirement Security - Summary: This paper examines several hypothetical scenarios over the past 138 years in which investors would have faced historically poor markets. Shows impact of a significant market decline on a retiree who followed a "life-cycle" approach to investing. Also shows that if investors focus on areas that they can control, they can measurably improve their long-term prospects for weathering such negative environments. Located at: Vanguard Investment Counseling & Research (PDF File). Click on headline for full article.
Conflicts of Interest Can Affect Defined Benefit and Defined Contribution Plans - Summary: Testimony before the Subcommittee on Health, Employment, Labor and Pensions, Education and Labor Committee, House of Representatives by the US Government Accountability Office on conflicts of interest that can affect both DB and DC plans. Located at: US Government Accountability Office (PDF File). Click on headline for full article.
Labor Department 401k Rules May Create Conflicts - Summary: Labor Department rules allowing retirement plan administrators to offer specific invest. advice may create a conflict of interest, House Democrats said at a hearing Tuesday. Located at: Bloomberg.com. Click on headline for full article.
DOL Delays Final Invest. Advice Regulations - Summary: The DOL's notice does not offer any clues as to what changes, if any, might follow from its legal and policy review, so plan sponsors and others will simply have to wait and see what the DOL decides. Located at: Employee Benefits Institute of America. Click on headline for full article.
New Rules on Retirement Advice Get Mixed Reviews - Summary: As American workers' retirement assets continue to be devoured by the bear market, the government is reconsidering how best to make invest. advice available to retirement plan participants. Located at: Financial-planning.com. Click on headline for full article.
5500 Schedule C Reporting Delay and Additional Guidance Needed - Summary: A substantial majority of retirement plan service providers are unsure about how to comply with the new Form 5500 Schedule C reporting requirements, according to a recent survey. Located at: 401khelpcenter.com. Click on headline for full article.
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