Should You Carry a Mortgage Into Retirement? Although it remains the goal of many households to repay their mortgage by retirement, an increasing proportion now enters retirement with a mortgage.
Keep it simple for 401(k) fee reporting Research suggests workers participating in a defined contribution plan do not know or have a complete understanding of fees and expenses.
Seven Termites Eating The 401k The average investor received less than a quarter of the general market return and did not even keep pace with inflation.
Retirement Plans Not Targets of Proposed Panel, Frank Says Concerns that a new consumer watchdog agency proposed by the Obama administration could play a role in overseeing retirement plan products are unfounded, Rep. Barney Frank, D-Mass.
Are You Still Matching 401(k) Contributions? A recent study by CFO Research Services and Charles Schwab found that 23 percent of employers had either suspended the company’s matching contribution or were considering it.
Government Studying Company-Sponsored Automatic IRAs Proposal could put participants in an IRA automatically.
You can divorce, but there may be a postnup on your benefits The Supreme Court has ruled that you have to notify your employer's retirement plan administrator in writing that you are changing 401(k) beneficiaries.
Use target date funds the right way Take a defined benefit approach: Focus on a goal, establish a time horizon and watch cash flow.
How Men, Women View Financial Aspects of Retirement - Summary: How do men and women differ in their views of various financial aspects of retirement? Located at: Employee Benefits Research Council. Click on headline for full article.
It's time to rethink retirement plans - Summary: Most investors would fare better if plan sponsors were responsible for investment decisions Located at: Investment News. Click on headline for full article.
Improving financial literacy, simplicity of disclosures essential for promoting personal retirement security - Summary: Testifying before the Department of Labor (DOL) ERISA Advisory Council Working Group on “Promoting Retirement Literacy and Security by Streamlining Disclosures to Participants and Beneficiaries,” American Benefits Council Senior Counsel, Retirement Policy, Jan Jacobson, emphasized that effective communication with the workforce is critical for ensuring beneficiaries’ financial security in retirement. Located at: American Benefits Council. Click on headline for full article.
DOL Avoids A 403(b) Train Wreck With FAB 2009-2. A Learning Opportunity For the IRS? - Summary: The DOL released to Field Assistance Bulletin 2009-2 on July 20th, which provides much needed Title 1 reporting relief for 403(b) plans Located at: BusinessofBenefits.com. Click on headline for full article.
Field Assistance Bulletin No. 2009-02 - Summary: This Bulletin provides guidance on certain Form 5500 Annual Return/Report requirements for tax-sheltered annuity programs described in section 403(b) of the Internal Revenue Code (Code) with respect to contracts issued before January 1, 2009. The guidance in this Bulletin relates solely to Form 5500 reporting obligations and does not address any other issue under Title I of ERISA or any obligations under the Code. Located at: Department of Labor. Click on headline for full article.
DB Pension Relief Under Discussion - Summary: On June 23, Representative Earl Pomeroy (D-N.D.) released a discussion draft for defined benefit (DB) funding relief. Located at: Watsonwyatt.com Click on headline for full article.
403(b) Plan Termination: Illusion or Reality? - Summary: One of the more long awaited provisions of the final 403(b)regulations was the provision permitting an employer to terminate its 403(b) plan. Located at: SunGard Relius. Click on headline for full article.
Groundbreaking Study Reveals African-Americans and Hispanics Significantly Less Prepared for Retirement Than Their White and Asian Counterparts - Summary: The Ariel/Hewitt study highlights disparities in 401(k) saving and investing behaviors by race and ethnicity Located at: Hewitt Associates. Click on headline for full article.
CRS Report Focuses on DC Pension Plan Policy Issues - Summary: The Congressional Research Service (CRS) released a report 401(k) Plans and Retirement Savings: Issues for Congress that focuses on policy issues as they relate to 401(k) and other defined contribution pension plans. The report identifies seven major issues of concern: employee access to employer-sponsored retirement plans; employee participation in retirement plans; contribution rates; investment choices; fee disclosure; retirement savings withdrawal practices; and converting savings into income. Located at: ifebp.org. Click on headline for full article.
For more information visit www.bpp401k.com
7.22.2009
BPP401k.com Newletter July 22
IRS Reminds Taxpayers to Take Advantage of Recovery Act Benefit With 2009 now half over, the Internal Revenue Service reminds taxpayers to take advantage of the numerous tax breaks made available earlier this year in the American Recovery and Reinvestment Act.
Auto Enroll 401(k) Plans A Hit With Young And Low-Income Investors Based on the experience at Fidelity Investments, the majority of people using auto enrollment in 401(k) plans are younger and lower-wage employees.
Is Hiding Your Social Security Number Worth It? Consumers who have spent hours locking up their passports, shredding their billing statements and filing away their tax returns may soon learn they’ve wasted a great deal of time. Their efforts to shield themselves from identity theft by guarding their Social Security numbers are being undermined by government officials and social networking sites.
Is The 401k A Good Thing Reuters' Blogger Felix Salmon reports Mike Konczal says, it is plausibly enough, that the most important financial innovation of the past 30 years is the 401(k). Which is not to say, of course, that it’s a good thing.
Five Things Every 401(k) Plan Should Have Stocks are down but these plans remain a great perk for entrepreneurs and employees. Here's what to look for
DoL Provides Relief on Form 5500 Reporting for 403(b) Plans The Department of Labor, in Field Assistance Bulletin 2009-02 has provided transitional relief for administrators of 403(b) plans that make good faith efforts to transition for the 2009 plan year to the Employee Retirement Income Security Act's generally applicable annual reporting requirements. DOL Bulletin
Bill Would Allow Independent Advisers to Counsel Plan Participants - Summary: A key Congressional committee is expected to vote on a proposal - as early as next week -that could potentially bar thousands of brokers from providing investment advice to 401k participants, according to sources. Located at: Investment News (free registration may be required), June 2009. Click on headline for full article.
Fidelity Released the Results of Its Second Couples Retirement Study - Summary: The results show that despite two years of unprecedented economic and financial instability, which has severely impacted most American households, husbands and wives have done little to improve their communication, planning and management of retirement finances. Located at: Fidelity Investments, June 2009. Click on headline for full article.
Summary of The Defined Contribution Plan Fee Transparency Act of 2009 - Summary: This is the official summary of a bill (H.R. 2779) that would add new Section 4980H to the Internal Revenue Code requiring notice to plan participants and taxes for failure to comply. Located at: American Benefits Council, June 2009. Click on headline for full article.
Schwab Releases Data on Employer and Worker 401k Behavior - Summary: Charles Schwab released new 401k plan data indicating that while the economic downturn has impacted some aspects of employer and worker behavior in plans, both groups have largely stayed the course and remained committed to their plans. Located at: 401khelpcenter.com, June 2009. Click on headline for full article.
Employers Are Divided Over Adequacy of 401ks - Summary: Employers are evenly split between those who say their 401k plans can provide adequate retirement savings for employees and those who say they can't or are unsure, according to a Mercer survey. Located at: Workforce.com (free registration may be required), June 2009. Click on headline for full article.
More 401k Plan Sponsors Considering Collective Trusts - Summary: Move over mutual funds. The number of collective investment trusts available to institutional investors is exploding, and the trusts are offering many 401k plan sponsors a less expensive way to provide competitive investment options to employees. Located at: Workforce.com (free registration may be required), June 2009. Click on headline for full article.
Administration Explores 'R Bond' As Option for Retirement Accounts - Summary: Officials in the Obama administration are moving quickly to develop the investment infrastructure behind the president's proposal for mandatory automatic enrollment in individual retirement accounts, which could be supported by the creation of Treasury-issued retirement bonds. Located at: Investment News (free registration may be required), June 2009. Click on headline for full article.
U.S. Retirement Market Data for 2008 - Summary: ICI published its annual report on the U.S. retirement market, which shows that Americans held $14.0 trillion in retirement assets at year-end 2008, down 22 percent from year-end 2007. Located at: Investment Company Institute, June 2009. Click on headline for full article.
For more information visit www.bpp401k.com
Auto Enroll 401(k) Plans A Hit With Young And Low-Income Investors Based on the experience at Fidelity Investments, the majority of people using auto enrollment in 401(k) plans are younger and lower-wage employees.
Is Hiding Your Social Security Number Worth It? Consumers who have spent hours locking up their passports, shredding their billing statements and filing away their tax returns may soon learn they’ve wasted a great deal of time. Their efforts to shield themselves from identity theft by guarding their Social Security numbers are being undermined by government officials and social networking sites.
Is The 401k A Good Thing Reuters' Blogger Felix Salmon reports Mike Konczal says, it is plausibly enough, that the most important financial innovation of the past 30 years is the 401(k). Which is not to say, of course, that it’s a good thing.
Five Things Every 401(k) Plan Should Have Stocks are down but these plans remain a great perk for entrepreneurs and employees. Here's what to look for
DoL Provides Relief on Form 5500 Reporting for 403(b) Plans The Department of Labor, in Field Assistance Bulletin 2009-02 has provided transitional relief for administrators of 403(b) plans that make good faith efforts to transition for the 2009 plan year to the Employee Retirement Income Security Act's generally applicable annual reporting requirements. DOL Bulletin
Bill Would Allow Independent Advisers to Counsel Plan Participants - Summary: A key Congressional committee is expected to vote on a proposal - as early as next week -that could potentially bar thousands of brokers from providing investment advice to 401k participants, according to sources. Located at: Investment News (free registration may be required), June 2009. Click on headline for full article.
Fidelity Released the Results of Its Second Couples Retirement Study - Summary: The results show that despite two years of unprecedented economic and financial instability, which has severely impacted most American households, husbands and wives have done little to improve their communication, planning and management of retirement finances. Located at: Fidelity Investments, June 2009. Click on headline for full article.
Summary of The Defined Contribution Plan Fee Transparency Act of 2009 - Summary: This is the official summary of a bill (H.R. 2779) that would add new Section 4980H to the Internal Revenue Code requiring notice to plan participants and taxes for failure to comply. Located at: American Benefits Council, June 2009. Click on headline for full article.
Schwab Releases Data on Employer and Worker 401k Behavior - Summary: Charles Schwab released new 401k plan data indicating that while the economic downturn has impacted some aspects of employer and worker behavior in plans, both groups have largely stayed the course and remained committed to their plans. Located at: 401khelpcenter.com, June 2009. Click on headline for full article.
Employers Are Divided Over Adequacy of 401ks - Summary: Employers are evenly split between those who say their 401k plans can provide adequate retirement savings for employees and those who say they can't or are unsure, according to a Mercer survey. Located at: Workforce.com (free registration may be required), June 2009. Click on headline for full article.
More 401k Plan Sponsors Considering Collective Trusts - Summary: Move over mutual funds. The number of collective investment trusts available to institutional investors is exploding, and the trusts are offering many 401k plan sponsors a less expensive way to provide competitive investment options to employees. Located at: Workforce.com (free registration may be required), June 2009. Click on headline for full article.
Administration Explores 'R Bond' As Option for Retirement Accounts - Summary: Officials in the Obama administration are moving quickly to develop the investment infrastructure behind the president's proposal for mandatory automatic enrollment in individual retirement accounts, which could be supported by the creation of Treasury-issued retirement bonds. Located at: Investment News (free registration may be required), June 2009. Click on headline for full article.
U.S. Retirement Market Data for 2008 - Summary: ICI published its annual report on the U.S. retirement market, which shows that Americans held $14.0 trillion in retirement assets at year-end 2008, down 22 percent from year-end 2007. Located at: Investment Company Institute, June 2009. Click on headline for full article.
For more information visit www.bpp401k.com
7.15.2009
BPP401k.com Newsletter July 15
Wall Street Journal Quotes BPP's Patrick Shelton GETTING PERSONAL: Small 401(k) Not Immune From Lawsuits Mega retirement plans aren't the only potential targets for lawsuits over fees.
Determining the Right Business Model for You It is critical for retirement advisors to look ahead and evaluate the various options available to them which they should choose depending on the direction they want their business to take.
Changes in Employment Laws and Enforcement Present New Compliance Challenges - Summary: Human Resources departments have faced more changes in employment law this year than they have in decades. Located at: Buck Consultants. Click on headline for full article.
403(b) Fiduciary Challenges Demand Applying ERISA in Unique Way - Summary: Some of the dust is settling, in an odd sort of way, on the IRS issues related to 403(b) plans. Located at: Business of Benefits. Click on headline for full article.
Study Illuminates 401(k) Participants’ Preferences for Fee Disclosures - Summary: While the national policy debate about 401(k) fee disclosure heats up, new research conducted by the Transamerica Center for Retirement Studies® sheds light on preferences among American workers for receiving information about fees and expenses associated with participating in their employers’ 401(k) plans. Located at: Transamerica Center for Retirement Studies. Click on headline for full article.
Concerns Brew About Integration of Watson Wyatt, Towers Perrin - Summary: Experts say the creation of such a large company will end up diluting the services that clients get—at least in the short term. Located at: Workforce.com (free registration may be required). Click on headline for full article.
Deloitte Consumer Spending Index Moves Up in June - Summary: The Deloitte Consumer Spending Index rose in June, after falling four consecutive months. The Index attempts to track consumer cash flow as an indicator of future consumer spending. Located at: Deloitte. Click on headline for full article.
IRS Obsoletes Old 403(b) Guidance; Highlights Unique School Guidance - Summary: The IRS has recently released Revenue Ruling 2009-18 which officially declares to be obsolete many old pre-2009 rulings and notices which dealt with 403(b) plans. Located at: Sungard Relius. Click on headline for full article.
Fidelity's 401(K) Data Show Auto Enrollment Has Biggest Impact On Younger, Lower-Paid Workers. - Summary: Fidelity Investments, the nation's No. 1 provider of workplace retirement savings plans, today announced that auto enrollment in 401(k) plans is proving to have the biggest impact on younger and lower-compensated employees. Located at: Fidelity. Click on headline for full article.
Minn. 403(b) Vendor Dispute Awaits Judge’s Ruling - Summary: A Minnesota state judge told both sides in the continuing dispute over the number of 403(b) vendors for the Winona (Minnesota) School District that she needs more time to review evidence in the case. Located at: Planadvisor.com Click on headline for full article.
Exemption for 401(k) Advice Delayed Pending Review of Comments - Summary: The effective date of an important rule on investment advice under the Pension Protection Act of 2006 (PPA) will be extended an additional 180 days, the U.S. Department of Labor’s (DOL’s) Employee Benefits Security Administration announced. The new effective date is Nov. 18, 2009. Located at: Thompson. Click on headline for full article.
Exchange-Traded Funds Target 401(k) Plans - Summary: ETFs may seem more attractive to plan sponsors, given current market conditions, but there is much for them to consider before adding these products to their plans. Located at: Workforce.com. Click on headline for full article.
Groundbreaking Study Reveals African-Americans and Hispanics Significantly Less Prepared for Retirement Than Their White and Asian Counterparts - Summary: The Ariel/Hewitt study highlights disparities in 401(k) saving and investing behaviors by race and ethnicity. Located at: Hewitt Associates. Click on headline for full article.
U.S. Retirement Market Data for 2008 - Summary: ICI published its annual report on the U.S. retirement market, which shows that Americans held $14.0 trillion in retirement assets at year-end 2008, down 22 percent from year-end 2007. Located at: Investment Company Institute. Click on headline for full article.
MoneyVoices: ICI's Stevens Backs Rival 401(k) Fee Bill - Summary: The Investment Company Institute and its mutual fund members have been advocating better 401(k) disclosure for more than 30 years. The market turmoil and losses of the past two years have only made the case more compelling. Located at: Investment Company Institute. Click on headline for full article.
Monthly Regulatory Round-Up - Summary: This monthly regulatory round-up produced by Towers Perrin is a high-level summary of legal and regulatory developments that occurred during June 2009 that may be relevant to large plan sponsors. Located at: Towers Perrin. Click on headline for full article.
Administration Explores 'R Bond' As Option for Retirement Accounts - Summary: Officials in the Obama administration are moving quickly to develop the investment infrastructure behind the president's proposal for mandatory automatic enrollment in individual retirement accounts, which could be supported by the creation of Treasury-issued retirement bonds. Located at: Investment News (free registration may be required). Click on headline for full article.
Summary of The Defined Contribution Plan Fee Transparency Act of 2009 - Summary: This is the official summary of a bill (H.R. 2779) that would add new Section 4980H to the Internal Revenue Code requiring notice to plan participants and taxes for failure to comply. Located at: American Benefits Council. Click on headline for full article.
ABC's Proposed Modifications to H.R. 1984 - Summary: Paper from the American Benefits Council with suggested modifications to H.R. 1984, The 401k Fair Disclosure for Retirement Security Act Of 2009. Located at: American Benefits Council. Click on headline for full article.
For more information visit www.bpp401k.com
Determining the Right Business Model for You It is critical for retirement advisors to look ahead and evaluate the various options available to them which they should choose depending on the direction they want their business to take.
Changes in Employment Laws and Enforcement Present New Compliance Challenges - Summary: Human Resources departments have faced more changes in employment law this year than they have in decades. Located at: Buck Consultants. Click on headline for full article.
403(b) Fiduciary Challenges Demand Applying ERISA in Unique Way - Summary: Some of the dust is settling, in an odd sort of way, on the IRS issues related to 403(b) plans. Located at: Business of Benefits. Click on headline for full article.
Study Illuminates 401(k) Participants’ Preferences for Fee Disclosures - Summary: While the national policy debate about 401(k) fee disclosure heats up, new research conducted by the Transamerica Center for Retirement Studies® sheds light on preferences among American workers for receiving information about fees and expenses associated with participating in their employers’ 401(k) plans. Located at: Transamerica Center for Retirement Studies. Click on headline for full article.
Concerns Brew About Integration of Watson Wyatt, Towers Perrin - Summary: Experts say the creation of such a large company will end up diluting the services that clients get—at least in the short term. Located at: Workforce.com (free registration may be required). Click on headline for full article.
Deloitte Consumer Spending Index Moves Up in June - Summary: The Deloitte Consumer Spending Index rose in June, after falling four consecutive months. The Index attempts to track consumer cash flow as an indicator of future consumer spending. Located at: Deloitte. Click on headline for full article.
IRS Obsoletes Old 403(b) Guidance; Highlights Unique School Guidance - Summary: The IRS has recently released Revenue Ruling 2009-18 which officially declares to be obsolete many old pre-2009 rulings and notices which dealt with 403(b) plans. Located at: Sungard Relius. Click on headline for full article.
Fidelity's 401(K) Data Show Auto Enrollment Has Biggest Impact On Younger, Lower-Paid Workers. - Summary: Fidelity Investments, the nation's No. 1 provider of workplace retirement savings plans, today announced that auto enrollment in 401(k) plans is proving to have the biggest impact on younger and lower-compensated employees. Located at: Fidelity. Click on headline for full article.
Minn. 403(b) Vendor Dispute Awaits Judge’s Ruling - Summary: A Minnesota state judge told both sides in the continuing dispute over the number of 403(b) vendors for the Winona (Minnesota) School District that she needs more time to review evidence in the case. Located at: Planadvisor.com Click on headline for full article.
Exemption for 401(k) Advice Delayed Pending Review of Comments - Summary: The effective date of an important rule on investment advice under the Pension Protection Act of 2006 (PPA) will be extended an additional 180 days, the U.S. Department of Labor’s (DOL’s) Employee Benefits Security Administration announced. The new effective date is Nov. 18, 2009. Located at: Thompson. Click on headline for full article.
Exchange-Traded Funds Target 401(k) Plans - Summary: ETFs may seem more attractive to plan sponsors, given current market conditions, but there is much for them to consider before adding these products to their plans. Located at: Workforce.com. Click on headline for full article.
Groundbreaking Study Reveals African-Americans and Hispanics Significantly Less Prepared for Retirement Than Their White and Asian Counterparts - Summary: The Ariel/Hewitt study highlights disparities in 401(k) saving and investing behaviors by race and ethnicity. Located at: Hewitt Associates. Click on headline for full article.
U.S. Retirement Market Data for 2008 - Summary: ICI published its annual report on the U.S. retirement market, which shows that Americans held $14.0 trillion in retirement assets at year-end 2008, down 22 percent from year-end 2007. Located at: Investment Company Institute. Click on headline for full article.
MoneyVoices: ICI's Stevens Backs Rival 401(k) Fee Bill - Summary: The Investment Company Institute and its mutual fund members have been advocating better 401(k) disclosure for more than 30 years. The market turmoil and losses of the past two years have only made the case more compelling. Located at: Investment Company Institute. Click on headline for full article.
Monthly Regulatory Round-Up - Summary: This monthly regulatory round-up produced by Towers Perrin is a high-level summary of legal and regulatory developments that occurred during June 2009 that may be relevant to large plan sponsors. Located at: Towers Perrin. Click on headline for full article.
Administration Explores 'R Bond' As Option for Retirement Accounts - Summary: Officials in the Obama administration are moving quickly to develop the investment infrastructure behind the president's proposal for mandatory automatic enrollment in individual retirement accounts, which could be supported by the creation of Treasury-issued retirement bonds. Located at: Investment News (free registration may be required). Click on headline for full article.
Summary of The Defined Contribution Plan Fee Transparency Act of 2009 - Summary: This is the official summary of a bill (H.R. 2779) that would add new Section 4980H to the Internal Revenue Code requiring notice to plan participants and taxes for failure to comply. Located at: American Benefits Council. Click on headline for full article.
ABC's Proposed Modifications to H.R. 1984 - Summary: Paper from the American Benefits Council with suggested modifications to H.R. 1984, The 401k Fair Disclosure for Retirement Security Act Of 2009. Located at: American Benefits Council. Click on headline for full article.
For more information visit www.bpp401k.com
7.08.2009
BPP401k.com Newsletter July 8
Benefits Groups Ask DOL, SEC For Flexibility In Regulations On Target-Date Funds The Profit Sharing/401k Council of America (PSCA) and the American Benefits Council called for flexibility in any regulations governing target-date funds.
Ten HR Administration Cost-Reduction Strategies for Tough Economic Times - Summary: While reducing HR costs is a challenge in the current environment, the mandate to reduce costs has created a burning platform for HR, opening up new opportunities that may not have been available in the past. Located at: Hewitt Associates. Click on headline for full article.
Research note: When will the recession end? Analysis based on a proprietary index of economic momentum - Summary: With the general improvement in global financial conditions since March, market commentary has focused on evidence of "green shoots" that suggest the rate of economic deterioration is at least slowing. But how can we know if the right signals are being captured, and have they successfully identified the turning points of past business cycles? Located at: institutional.vanguard.com. Click on headline for full article.
Five things advisers can do to help participants 50 and older to prepare for a leaner, and likely meaner, retirement - Summary: Overall, just 13% of Americans surveyed in the Employee Benefit Research Institute’s (EBRI) 19th Annual Retirement Confidence Survey say they feel very confident that they have enough money to live comfortably in retirement—a record low. That represents a one-half decline in worker confidence since 2007, EBRI says in the survey that was released in April. Located at: Plan Adviser Magazine. Click on headline for full article.
Concerns Brew About Integration of Watson Wyatt, Towers Perrin - Summary: Experts say the creation of such a large company will end up diluting the services that clients get—at least in the short term. Located at: Workforce.com (free registration may be required). Click on headline for full article.
Employers Back 401(k) as Vital Retirement Savings Tool - Summary: A new study from Schwab reveals that a majority of senior finance and human resource executives in corporate America support the 401(k) as an effective savings tool for retirement. Located at: Businesswire.com. Click on headline for full article.
IRS Obsoletes Old 403(b) Guidance; Highlights Unique School Guidance - Summary: The IRS has recently released Revenue Ruling 2009-18 which officially declares to be obsolete many old pre-2009 rulings and notices which dealt with 403(b) plans. Located at: Sungard Relius. Click on headline for full article.
Current Economic Climate, Shrinking Retirement Funds Leave Many Without Options - Summary: Despite diminishing employment opportunities and an economy threatening job security, new research by Charles Schwab & Co., Inc shows that as many as 9.5 million retired Americans are considering at least a partial return to the workforce. Located at: Businesswire.com. Click on headline for full article.
New Online Resource from The Principal Estimates Time it Might Take to Rebuild 401(k) Account Balance - Summary: A lot of participants may be asking themselves: how long might it take to rebuild 401(k) balances after the stock market decline in 2008? A new resource from the Principal Financial Group® estimates the time it might take to rebuild 401(k) account balances to January 2008 levels. Located at: Principle.com Click on headline for full article.
Nonparticipant-directed plans as an alternative to employee investment education - Summary: Personal financial education is an important public and private policy tool. 401(k) plan sponsors, credit card companies, insurance companies, banks, investment companies, Federal Reserve, and federal and state governments all offer and promote financial literacy Located at: Employee Benefit News. Click on headline for full article.
Borrowing From 401ks - Summary: A new government report breaks from conventional wisdom and casts doubt on some long-held beliefs about the negative effects of borrowing from a 401k fund. Shifting expensive consumer debt to defined-contribution plans may make sense for some workers. Located at: Human Resource Executive Online. Click on headline for full article.
The Effect of Uncertain Labor Income and Social Security on Life-cycle Portfolios - Summary: This paper examines how labor income volatility and social security benefits influence life-cycle household portfolios. We examine how much the individual saves, and where, taking into account liquid financial wealth and annuities, and stocks versus bonds. Located at: Pension Research Council at The Wharton School (free registration may be required). Click on headline for full article.
U.S. Retirement Market Data for 2008 - Summary: ICI published its annual report on the U.S. retirement market, which shows that Americans held $14.0 trillion in retirement assets at year-end 2008, down 22 percent from year-end 2007. Located at: Investment Company Institute. Click on headline for full article.
Tips for IPS Refining your 401(k) IPS and other fiduciary compliance tips - Summary: In evaluating many 401 (k) plans over the past 25 years, I have found many fiduciary nonconformities and lots of opportunities for improvement, beginning with the investment policy statement Located at: Employee Benefit News. Click on headline for full article.
Monthly Regulatory Round-Up - Summary: This monthly regulatory round-up produced by Towers Perrin is a high-level summary of legal and regulatory developments that occurred during May 2009 that may be relevant to large plan sponsors. Located at: Towers Perrin. Click on headline for full article.
Administration Explores 'R Bond' As Option for Retirement Accounts - Summary: Officials in the Obama administration are moving quickly to develop the investment infrastructure behind the president's proposal for mandatory automatic enrollment in individual retirement accounts, which could be supported by the creation of Treasury-issued retirement bonds. Located at: Investment News (free registration may be required). Click on headline for full article.
Summary of The Defined Contribution Plan Fee Transparency Act of 2009 - Summary: This is the official summary of a bill (H.R. 2779) that would add new Section 4980H to the Internal Revenue Code requiring notice to plan participants and taxes for failure to comply. Located at: American Benefits Council. Click on headline for full article.
ABC's Proposed Modifications to H.R. 1984 - Summary: Paper from the American Benefits Council with suggested modifications to H.R. 1984, The 401k Fair Disclosure for Retirement Security Act Of 2009. Located at: American Benefits Council. Click on headline for full article.
Austen Riggs Center Selects MassMutual for 403(b) Plan
White Horse Advisors Selected by Republic National Distributing to Provide Plan Services
Great-West to Sponsor 403(b) Prototype Plan
Diversified Investment Advisors Introduces Retirement Readiness Report
CPI Introduces Same-Day Investment of Payroll Contributions
Ten HR Administration Cost-Reduction Strategies for Tough Economic Times - Summary: While reducing HR costs is a challenge in the current environment, the mandate to reduce costs has created a burning platform for HR, opening up new opportunities that may not have been available in the past. Located at: Hewitt Associates. Click on headline for full article.
Research note: When will the recession end? Analysis based on a proprietary index of economic momentum - Summary: With the general improvement in global financial conditions since March, market commentary has focused on evidence of "green shoots" that suggest the rate of economic deterioration is at least slowing. But how can we know if the right signals are being captured, and have they successfully identified the turning points of past business cycles? Located at: institutional.vanguard.com. Click on headline for full article.
Five things advisers can do to help participants 50 and older to prepare for a leaner, and likely meaner, retirement - Summary: Overall, just 13% of Americans surveyed in the Employee Benefit Research Institute’s (EBRI) 19th Annual Retirement Confidence Survey say they feel very confident that they have enough money to live comfortably in retirement—a record low. That represents a one-half decline in worker confidence since 2007, EBRI says in the survey that was released in April. Located at: Plan Adviser Magazine. Click on headline for full article.
Concerns Brew About Integration of Watson Wyatt, Towers Perrin - Summary: Experts say the creation of such a large company will end up diluting the services that clients get—at least in the short term. Located at: Workforce.com (free registration may be required). Click on headline for full article.
Employers Back 401(k) as Vital Retirement Savings Tool - Summary: A new study from Schwab reveals that a majority of senior finance and human resource executives in corporate America support the 401(k) as an effective savings tool for retirement. Located at: Businesswire.com. Click on headline for full article.
IRS Obsoletes Old 403(b) Guidance; Highlights Unique School Guidance - Summary: The IRS has recently released Revenue Ruling 2009-18 which officially declares to be obsolete many old pre-2009 rulings and notices which dealt with 403(b) plans. Located at: Sungard Relius. Click on headline for full article.
Current Economic Climate, Shrinking Retirement Funds Leave Many Without Options - Summary: Despite diminishing employment opportunities and an economy threatening job security, new research by Charles Schwab & Co., Inc shows that as many as 9.5 million retired Americans are considering at least a partial return to the workforce. Located at: Businesswire.com. Click on headline for full article.
New Online Resource from The Principal Estimates Time it Might Take to Rebuild 401(k) Account Balance - Summary: A lot of participants may be asking themselves: how long might it take to rebuild 401(k) balances after the stock market decline in 2008? A new resource from the Principal Financial Group® estimates the time it might take to rebuild 401(k) account balances to January 2008 levels. Located at: Principle.com Click on headline for full article.
Nonparticipant-directed plans as an alternative to employee investment education - Summary: Personal financial education is an important public and private policy tool. 401(k) plan sponsors, credit card companies, insurance companies, banks, investment companies, Federal Reserve, and federal and state governments all offer and promote financial literacy Located at: Employee Benefit News. Click on headline for full article.
Borrowing From 401ks - Summary: A new government report breaks from conventional wisdom and casts doubt on some long-held beliefs about the negative effects of borrowing from a 401k fund. Shifting expensive consumer debt to defined-contribution plans may make sense for some workers. Located at: Human Resource Executive Online. Click on headline for full article.
The Effect of Uncertain Labor Income and Social Security on Life-cycle Portfolios - Summary: This paper examines how labor income volatility and social security benefits influence life-cycle household portfolios. We examine how much the individual saves, and where, taking into account liquid financial wealth and annuities, and stocks versus bonds. Located at: Pension Research Council at The Wharton School (free registration may be required). Click on headline for full article.
U.S. Retirement Market Data for 2008 - Summary: ICI published its annual report on the U.S. retirement market, which shows that Americans held $14.0 trillion in retirement assets at year-end 2008, down 22 percent from year-end 2007. Located at: Investment Company Institute. Click on headline for full article.
Tips for IPS Refining your 401(k) IPS and other fiduciary compliance tips - Summary: In evaluating many 401 (k) plans over the past 25 years, I have found many fiduciary nonconformities and lots of opportunities for improvement, beginning with the investment policy statement Located at: Employee Benefit News. Click on headline for full article.
Monthly Regulatory Round-Up - Summary: This monthly regulatory round-up produced by Towers Perrin is a high-level summary of legal and regulatory developments that occurred during May 2009 that may be relevant to large plan sponsors. Located at: Towers Perrin. Click on headline for full article.
Administration Explores 'R Bond' As Option for Retirement Accounts - Summary: Officials in the Obama administration are moving quickly to develop the investment infrastructure behind the president's proposal for mandatory automatic enrollment in individual retirement accounts, which could be supported by the creation of Treasury-issued retirement bonds. Located at: Investment News (free registration may be required). Click on headline for full article.
Summary of The Defined Contribution Plan Fee Transparency Act of 2009 - Summary: This is the official summary of a bill (H.R. 2779) that would add new Section 4980H to the Internal Revenue Code requiring notice to plan participants and taxes for failure to comply. Located at: American Benefits Council. Click on headline for full article.
ABC's Proposed Modifications to H.R. 1984 - Summary: Paper from the American Benefits Council with suggested modifications to H.R. 1984, The 401k Fair Disclosure for Retirement Security Act Of 2009. Located at: American Benefits Council. Click on headline for full article.
Austen Riggs Center Selects MassMutual for 403(b) Plan
White Horse Advisors Selected by Republic National Distributing to Provide Plan Services
Great-West to Sponsor 403(b) Prototype Plan
Diversified Investment Advisors Introduces Retirement Readiness Report
CPI Introduces Same-Day Investment of Payroll Contributions
7.01.2009
BPP401k.com Newsletter July 1
Cost and Compliance; How to assess your retirement plan in this recession During this recession, business owners are concerned with decreasing cash flows. As a result, many are scrutinizing their retirement plans to ensure that they’re spending wisely.
Changes to SBA 504 Loan Program Will Allow Businesses to Refinance Existing Debt, Expand, Create New Jobs Small businesses seeking to expand will be able to refinance existing loans used to purchase real estate and other fixed assets as a result of permanent changes to the U.S. Small Business Administration’s 504 Certified Development Company loan program.
CFDD October 5-7, 2009 Advisor Conference ADAPT, SURVIVE & PROSPER The CFDD's Advisor Conference is an all business event designed to help retirement plan advisors adapt to unprecedented challenges. Distinguished by accomplished advisor attendance and rich content, the advisor-centric conference has become the industry's premier networking and educational event. To benefit from unbiased guidance, generate NEW business now, IMPROVE investment returns and LIMIT liability, register at a discount NOW!
Saving Habits Change Little, Despite the Economy Despite U.S. employees sustaining record losses in their 401(k) savings in 2008, their 401(k) saving and investing habits showed very little change, according to an annual study by Hewitt Associates Located at: Hewitt Associates.
Study Illuminates 401(k) Participants' Preferences for Fee Disclosures While the national policy debate about 401(k) fee disclosure heats up, new research conducted by the Transamerica Center for Retirement Studies(R) sheds light on preferences among American workers for receiving information about fees and expenses associated with participating in their employers' 401(k) plans. Located at: marketwatch.com.
House Committee Approves Bill to Restrict 401(k) Advisers An influential House committee approved a comprehensive package of retirement legislation that includes a provision that would permit only independent financial advisers to counsel 401(k) participants on their investment decisions. Located at: Investment News.
Employers Are Divided Over Adequacy of 401ks Employers are evenly split between those who say their 401k plans can provide adequate retirement savings for employees and those who say they can't or are unsure, according to a Mercer survey. Located at: Workforce.com (free registration may be required).
Employers Back 401(k) as Vital Retirement Savings Tool A new study from Schwab reveals that a majority of senior finance and human resource executives in corporate America support the 401(k) as an effective savings tool for retirement. Located at: Businesswire.com.
IRS Allows Struggling Employers to Reduce or Suspend Nonelective Contributions to 401(k) Plans Under regulations proposed by the IRS, an employer undergoing a substantial business hardship can reduce or suspend 401(k) safe harbor nonelective contributions during a plan year. The rules give employers an alternative to terminating their safe harbor plans. Located at: Watson Wyatt Worldwide.
Study Shows 401k Participants' Continued Resilience During Volatile First Quarter of 2009 In the face of the U.S. stock market's 44% drop over the 15 months ended March 31, 2009, the 3 million participants in defined contribution plans administered by Vanguard experienced a median decline in their account balance of less than half of that for the period, according to new research from Vanguard. Located at: 401khelpcenter.com
More 401k Plan Sponsors Considering Collective Trusts Move over mutual funds. The number of collective investment trusts available to institutional investors is exploding, and the trusts are offering many 401k plan sponsors a less expensive way to provide competitive investment options to employees. Located at: Workforce.com (free registration may be required).
Scrutinizing Target-Date Funds In a joint hearing before the Department of Labor and the Securities and Exchange Commission, regulators questioned the make-up of target-date funds and the disclosures related to them. Such funds have been increasingly popular with plan sponsors -- as well as employees -- but even some with the same target date have widely divergent equity allocations. Located at: Human Resource Executive Online.
Changes on the Way for Target Date Funds? Regulators are eyeing the popular retirement plan options, which recorded surprisingly poor results last year.
Borrowing From 401ks A new government report breaks from conventional wisdom and casts doubt on some long-held beliefs about the negative effects of borrowing from a 401k fund. Shifting expensive consumer debt to defined-contribution plans may make sense for some workers. Located at: Human Resource Executive Online.
Default, Framing and Spillover Effects: The Case of Lifecycle Funds in 401k Plans Important behavioral factors such as default and framing effects are increasingly being employed to optimize decision-making in a variety of settings, including individually-directed retirement plans. Yet such approaches may have unintended "spillover" effects, as this paper shows with regard to the introduction of lifecycle funds in U.S. 401k plans. Located at: Pension Research Council at The Wharton School (free registration may be required).
U.S. Retirement Market Data for 2008 ICI published its annual report on the U.S. retirement market, which shows that Americans held $14.0 trillion in retirement assets at year-end 2008, down 22 percent from year-end 2007. Located at: Investment Company Institute
Modest Retirement Income Loss from Stock Crash? The Urban Institute has modeled the impact on retirement earnings of three alternative scenarios for equity values following the big 2008 stock market crash. Under a partial recovery in equities scenario, the majority of all workers in the study, who ranged in age from 43 to 67, will see no loss in retirement income compared to a scenario in which no crash occurred. Located at: Mind Over Market Blog.
Monthly Regulatory Round-Up This monthly regulatory round-up produced by Towers Perrin is a high-level summary of legal and regulatory developments that occurred during May 2009 that may be relevant to large plan sponsors. Located at: Towers Perrin.
Administration Explores 'R Bond' As Option for Retirement Accounts Officials in the Obama administration are moving quickly to develop the investment infrastructure behind the president's proposal for mandatory automatic enrollment in individual retirement accounts, which could be supported by the creation of Treasury-issued retirement bonds. Located at: Investment News (free registration may be required).
Summary of The Defined Contribution Plan Fee Transparency Act of 2009 This is the official summary of a bill (H.R. 2779) that would add new Section 4980H to the Internal Revenue Code requiring notice to plan participants and taxes for failure to comply. Located at: American Benefits Council
ABC's Proposed Modifications to H.R. 1984 Paper from the American Benefits Council with suggested modifications to H.R. 1984, The 401k Fair Disclosure for Retirement Security Act Of 2009. Located at: American Benefits Council.
Austen Riggs Center Selects MassMutual for 403(b) Plan
White Horse Advisors Selected by Republic National Distributing to Provide Plan Services
Great-West to Sponsor 403(b) Prototype Plan
Diversified Investment Advisors Introduces Retirement Readiness Report
CPI Introduces Same-Day Investment of Payroll Contributions
For more information visit www.bpp401k.com
Changes to SBA 504 Loan Program Will Allow Businesses to Refinance Existing Debt, Expand, Create New Jobs Small businesses seeking to expand will be able to refinance existing loans used to purchase real estate and other fixed assets as a result of permanent changes to the U.S. Small Business Administration’s 504 Certified Development Company loan program.
CFDD October 5-7, 2009 Advisor Conference ADAPT, SURVIVE & PROSPER The CFDD's Advisor Conference is an all business event designed to help retirement plan advisors adapt to unprecedented challenges. Distinguished by accomplished advisor attendance and rich content, the advisor-centric conference has become the industry's premier networking and educational event. To benefit from unbiased guidance, generate NEW business now, IMPROVE investment returns and LIMIT liability, register at a discount NOW!
Saving Habits Change Little, Despite the Economy Despite U.S. employees sustaining record losses in their 401(k) savings in 2008, their 401(k) saving and investing habits showed very little change, according to an annual study by Hewitt Associates Located at: Hewitt Associates.
Study Illuminates 401(k) Participants' Preferences for Fee Disclosures While the national policy debate about 401(k) fee disclosure heats up, new research conducted by the Transamerica Center for Retirement Studies(R) sheds light on preferences among American workers for receiving information about fees and expenses associated with participating in their employers' 401(k) plans. Located at: marketwatch.com.
House Committee Approves Bill to Restrict 401(k) Advisers An influential House committee approved a comprehensive package of retirement legislation that includes a provision that would permit only independent financial advisers to counsel 401(k) participants on their investment decisions. Located at: Investment News.
Employers Are Divided Over Adequacy of 401ks Employers are evenly split between those who say their 401k plans can provide adequate retirement savings for employees and those who say they can't or are unsure, according to a Mercer survey. Located at: Workforce.com (free registration may be required).
Employers Back 401(k) as Vital Retirement Savings Tool A new study from Schwab reveals that a majority of senior finance and human resource executives in corporate America support the 401(k) as an effective savings tool for retirement. Located at: Businesswire.com.
IRS Allows Struggling Employers to Reduce or Suspend Nonelective Contributions to 401(k) Plans Under regulations proposed by the IRS, an employer undergoing a substantial business hardship can reduce or suspend 401(k) safe harbor nonelective contributions during a plan year. The rules give employers an alternative to terminating their safe harbor plans. Located at: Watson Wyatt Worldwide.
Study Shows 401k Participants' Continued Resilience During Volatile First Quarter of 2009 In the face of the U.S. stock market's 44% drop over the 15 months ended March 31, 2009, the 3 million participants in defined contribution plans administered by Vanguard experienced a median decline in their account balance of less than half of that for the period, according to new research from Vanguard. Located at: 401khelpcenter.com
More 401k Plan Sponsors Considering Collective Trusts Move over mutual funds. The number of collective investment trusts available to institutional investors is exploding, and the trusts are offering many 401k plan sponsors a less expensive way to provide competitive investment options to employees. Located at: Workforce.com (free registration may be required).
Scrutinizing Target-Date Funds In a joint hearing before the Department of Labor and the Securities and Exchange Commission, regulators questioned the make-up of target-date funds and the disclosures related to them. Such funds have been increasingly popular with plan sponsors -- as well as employees -- but even some with the same target date have widely divergent equity allocations. Located at: Human Resource Executive Online.
Changes on the Way for Target Date Funds? Regulators are eyeing the popular retirement plan options, which recorded surprisingly poor results last year.
Borrowing From 401ks A new government report breaks from conventional wisdom and casts doubt on some long-held beliefs about the negative effects of borrowing from a 401k fund. Shifting expensive consumer debt to defined-contribution plans may make sense for some workers. Located at: Human Resource Executive Online.
Default, Framing and Spillover Effects: The Case of Lifecycle Funds in 401k Plans Important behavioral factors such as default and framing effects are increasingly being employed to optimize decision-making in a variety of settings, including individually-directed retirement plans. Yet such approaches may have unintended "spillover" effects, as this paper shows with regard to the introduction of lifecycle funds in U.S. 401k plans. Located at: Pension Research Council at The Wharton School (free registration may be required).
U.S. Retirement Market Data for 2008 ICI published its annual report on the U.S. retirement market, which shows that Americans held $14.0 trillion in retirement assets at year-end 2008, down 22 percent from year-end 2007. Located at: Investment Company Institute
Modest Retirement Income Loss from Stock Crash? The Urban Institute has modeled the impact on retirement earnings of three alternative scenarios for equity values following the big 2008 stock market crash. Under a partial recovery in equities scenario, the majority of all workers in the study, who ranged in age from 43 to 67, will see no loss in retirement income compared to a scenario in which no crash occurred. Located at: Mind Over Market Blog.
Monthly Regulatory Round-Up This monthly regulatory round-up produced by Towers Perrin is a high-level summary of legal and regulatory developments that occurred during May 2009 that may be relevant to large plan sponsors. Located at: Towers Perrin.
Administration Explores 'R Bond' As Option for Retirement Accounts Officials in the Obama administration are moving quickly to develop the investment infrastructure behind the president's proposal for mandatory automatic enrollment in individual retirement accounts, which could be supported by the creation of Treasury-issued retirement bonds. Located at: Investment News (free registration may be required).
Summary of The Defined Contribution Plan Fee Transparency Act of 2009 This is the official summary of a bill (H.R. 2779) that would add new Section 4980H to the Internal Revenue Code requiring notice to plan participants and taxes for failure to comply. Located at: American Benefits Council
ABC's Proposed Modifications to H.R. 1984 Paper from the American Benefits Council with suggested modifications to H.R. 1984, The 401k Fair Disclosure for Retirement Security Act Of 2009. Located at: American Benefits Council.
Austen Riggs Center Selects MassMutual for 403(b) Plan
White Horse Advisors Selected by Republic National Distributing to Provide Plan Services
Great-West to Sponsor 403(b) Prototype Plan
Diversified Investment Advisors Introduces Retirement Readiness Report
CPI Introduces Same-Day Investment of Payroll Contributions
For more information visit www.bpp401k.com
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