BPP401k.com Newsletter September

Changes Needed in DC Retirement System Employers have conflicting opinions on the continued viability of 401k plans as a vehicle for retirement savings, and even supporters agree that changes in the current system are needed. Source: Employee Benefit Adviser

BrightScope Launches Advisor Central to Provide 401k Plan Advisors and Consultants Tools to Identify and Service Plans New Product Gives Advisors All They Need to Successfully Get Plan Participants to Retirement Source: SOA World Magazine

Reasonable Approaches to 401k Plan Fees This article by Fred Reish discusses the major categories of 401k expenses and gives tips for evaluating them. Source: Plansponsor.com

Lord Abbett Exits Bundled Small Plan 401(k)s Lord Abbett has decided to exit the bundled small plan 401(k) business, effective Oct. 1, to instead focus on the defined contribution investment only market. Source: Money Management Executive

IRS Issues Guidance on 2009 Required Minimum Distribution Waiver The IRS has provided guidance for retirement plan administrators, plan participants and retirees regarding recent legislation affecting required minimum distributions. Source: IRS

New Accounting Rules Expand 10K Disclosure for DB Plans Evan Inglis, Vanguard chief actuary, explains new FASB rules that require significantly greater disclosure about pension plan assets in a company’s financial statements. Source: Vanguard

10 Steps to Ensure You'll Be in Fiduciary Hot Water There are a few proven ways to make sure you'll end up in fiduciary hot water ... follow these steps and you're sure to find an auditor at your door. Source: Benefit Plans Plus

When will your 401(k) look better? Source: Chicago Tribune

3 Ways Cash Leaks Out of Your 401(k) While many Americans have valid reasons for raiding their 401(k) during their working years, these early withdrawals can have dire consequences in retirement Source: US News & World Report

PSCA Releases 52nd Annual Survey of Profit Sharing and 401(k) Plans New Survey Shows Plan Sponsors and Participants Maintained Their Commitment to 401(k) Plans

Nearly Half of Employers Now Auto-Enroll Employees in 401k Plans In a trend that is likely to continue, nearly half of U.S. companies are automatically enrolling workers into 401k plans to encourage them to save for retirement, according to a survey by Watson Wyatt. Source: 401khelpcenter.com

GAO Suggests Change to 401k Hardship Withdrawal Rule To enable employees to replenish their 401k plan account balances more quickly after they take hardship withdrawals, Congress should consider changing current law that bars plan participants from making new contributions until six months after a hardship withdrawal, the Government Accountability Office suggests in a report. Source: Businessinsurance.com

Are Participants Ready for Annuities? The market's recent plunge likely frightened more Americans into a willingness to consider putting at least some of their 401k assets in a retirement-income product at retirement. Now, Congress may give them a nudge to go ahead with it. Source: Plansponsor.com

11% of Employers Suspend 401k Plan Match More than one in 10 employers have suspended their matching contributions to their 401k plans, and more are considering doing the same, according to a survey released Wednesday. Source: Businessinsurance.com

AUDIO: Preaching a Winning 401k Formula at Verizon Wireless In this podcast, Jonathan Hayes, associate director of retirement benefits at Verizon Wireless and EBN's 2009 Benny winner for Benefits Leadership in Retirement Planning, talks about his winning ways for securing workers' retirement readiness. Source: Employee Benefit News

Financial Crisis Reveals U.S. Retirement-System's Holes With Painful Clarity The destructive effects of the financial crisis may be waning, but your retirement account won't soon forget. Savers lost 40% or more in the downturn -- a collective $2.1 trillion disappeared from 401k and IRA assets in 2008 alone -- and while the recent stock-market recovery may feel good, it's done little to stem a mounting crisis in the retirement system in the United States. Source: Marketwatch.com

This Could Be the Biggest 401k Mistake You'll Ever Make People may or may not learn from their own 401k mistakes, but apparently, the idea that people learn from other folks' mistakes is a myth. Source: MSN.com

Risk Management: Listen to Your Employees Most articles written by lawyers cover technical legal subjects. They educate the reader on the law, but typically give little in the way of guidance about what the client should do . . . or not do. This article goes beyond a discussion of the law and even beyond advice about how to comply with the law. Instead, it discusses practical techniques for avoiding problems. Source: Reish & Reicher

Where Investment Committees Spend Their Time Investment committees often spend too much time on things they can't control and too little time on things they can. Use this tool to see if there are opportunities for your committee to use time more wisely. Source: Vanguard

Investment Committee Decision-Maker Study How do institutional investment committees make their decisions? How do they manage conflict and dissent? To learn more about the dynamics, Vanguard surveyed committee members and analyzed more than 100 responses. This paper summarizes the results. Source: Vanguard

Reenrollment and Target-Date Funds: A Case Study in Portfolio Reconstruction A new research paper from Vanguard Center for Retirement Research examines participant behavior and portfolios after a large defined contribution plan reenrolled participants into target-date funds. The study found that one year after the event, 87% of participants maintained a full or partial position in the target-date approach and that reenrollment had boosted plan diversification substantially. Source: Vanguard

Managing the Road to Retirement This is a national survey of U.S. business employers and workers regarding their attitudes toward retirement. The overall goals for the study are to illuminate emerging trends, promote awareness, and help educate the public. Source: Transamerica

Recent Defined Contribution Plan Guidance This article highlights recent guidance regarding (1) automatic enrollment features in 401k plans, (2) the contribution of unused paid time off to tax-qualified defined contribution plans as either employer contributions or employee salary deferral contributions, and (3) the permissibility of distributing a mutual fund's "Summary Prospectus" to participants to satisfy one of the requirements for limited fiduciary protection under section 404(c). Source: Drinker Biddle & Reath LLP

IRS Illustrates Application of Escalator Provision in 401k Automatic Contribution Arrangements The IRS has issued guidance in Rev. Rul. 2009-30 clarifying the use of escalator provisions in 401k plan automatic contribution arrangements that allow for an adjustment in the amount of an employee's default contributions based on increases in pay. Source: CCH

Sample Plan Amendments for Adding 401k Automatic Contribution Features The IRS has issued two sample plan amendments in IRS Notice 2009-65 that will enable employers to add automatic contribution features to their 401k plans. Sample Amendment One may be used to add an automatic contribution arrangement to a 401k plan. Sample Amendment Two may be used to add an eligible automatic contribution arrangement (authorizing withdrawals of elective deferrals) to a 401k plan. Source: CCH

For more information visit www.bpp401k.com

BPP401k.com Newsletter September 23

10 Steps to Ensure You’ll Be in Fiduciary Hot Water … There are a few proven ways to make sure you’ll end up in Fiduciary hot water … follow these steps and you’re sure to find an auditor at your door. Source: Benefit Plans Plus

Labor Department Nixes Bush Rule to Let Brokers Advise 401k Plans The Department of Labor is killing a regulation issued in the last days of the Bush administration that would have allowed advisers affiliated with mutual funds, brokerage firms and other companies that sell investments to provide investment advice to 401k participants. Source: Investmentnews.com

Brown Smith Wallace Builds Niche Services Five months ago, Marty Doerr joined Brown Smith Wallace as member-in-charge of tax services and said his mission was to expand the accounting firm’s tax services. So far, mission accomplished. The St. Louis-based firm recently added a four-person property tax group formerly of PricewaterhouseCoopers. Source: St. Louis Business Journal

Critical 401(k) Deadline Looms For Small Businesses Entrepreneurs can reap a tax benefit by setting up a Safe Harbor 401(k)--if they act quickly. Source: Forbes.com

What You Need To Know About Social Security This benefit should be the cornerstone of your retirement planning. The answers to these five questions will help you to get the most out of it. Source: CNNMoney.com

REVISED Rollover Chart Source: IRS

Beneficiary Options 2009 Chart Source: McKay Hockman

New Retirement Rules: What Small Businesses Need to Know This is the first article in a two-part SmartMoney series on small business retirement. This article looks at the higher fees business owners and their employees can expect to pay. Source: Wall Street Journal Online

New Retirement Rules: 6 Ways to Ease Plan Costs This is the second article in a two-part series on small business retirement. Business owners and their employees can expect to pay higher fees. This articles discusses how to mitigate them. Source: Wall Street Journal Online

401(k) Fixes For All Age Groups Your nest egg isn't just cracked, it's unrecognizable, crushed by a market as ruthless as a 4-year-old on a Big Wheel. Can you put it back together in time for retirement? Source: USA Today

Spark Institute Recommends Simple Universal 401k Plan for Small Employers In testimony submitted today to the U.S. Department of Labor's ERISA Advisory Council, The SPARK Institute recommends the creation of a simplified standardized universal employer-sponsored 401k plan for small employers. Source: 401khelpcenter.com

Survey Finds Very Few Workers Understand Their Retirement Plan One-third of U.S. workers have little or no understanding of their employer-sponsored defined-contribution plan, according to a new survey. Source: Workforce.com

Recent Study Challenges Traditional Thinking About DC Annuities Two recently published studies demonstrate the sort of shift in the "conventional wisdom" related to annuities for DC plans that needs to occur for those products to be successful in the marketplace. Source: Business of Benefits Blog.

Does Better Fiduciary Process Lead to Better Performance? One of the mantra's of the Fixing the 401k Approach is that "better process leads to better decision-making which, over time, increases the probability of better outcomes." But does it? Source: Fixing the 401k Blog.

Current Pension Legislative and Regulatory Outlook This article covers defined contribution plan issues – where initiatives on 401k fee disclosure and invest. advice remain a priority – and broader issues relevant to both DB and DC plans. Source: JPMorgan.com.

Congress Eyes Compromise in 401k Indie-Advice Rule Now that the Department of Labor is scrapping a rule proposal that would have allowed brokers affiliated with financial-services firms to provide advice to 401k participants, Congress will move forward with legislation that would require that such advice be given by independent advisers, according to a key congressman. Source: Investmentnews.com

Early Returns in 401k Fee Cases Favor Defendants A recent spate of so-called 401k fee cases has generated anxiety among employers and 401k service providers. While the majority of these cases remain undecided, the early returns are positive for employers and service providers. This article provides a brief overview of the most significant developments and expected future events in these cases. Source: O'Melveny & Myers LLP.

401k Balances and Changes Due to Market Volatility In this article, the EBRI analysis shows that how workers' 401k accounts have been affected by the current economic recession depends on several factors, chief among them being the worker's age, job tenure with his or her employer and size of the 401k account balances. Source: Employee Benefit Research Institute.

Impact of Individual Account Retirement Plan Ownership on Family Net Worth How is family net worth affected by the ownership of any kind of individual account retirement plan? Quite a lot, according to a study published by the nonpartisan Employee Benefit Research Institute. Source: Employee Benefit Research Institute (PDF File).

Pension Sponsorship and Participation: Summary of Recent Trends According to the U.S. Census Bureau's Current Population Survey (CPS), the number of private sector workers between the ages of 25 and 64 whose employer sponsored a retirement plan fell from 53.5 million in 2007 to 52.3 million in 2008. Source: Congressional Research Service (PDF File).

IRS Issues New Versions of Section 402(f) Tax Notices for Qualified Plan Distributions The Internal Revenue Service has issued two new safe harbor tax notices for qualified plans to provide to participants, which explain their rollover options and tax treatment when receiving an eligible distribution of plan benefits. The new notices are updated to account for changes in the law under the Economic Growth and Tax Relief Reconciliation Act, the Pension Protection Act and other recent legislation. Source: Pillsbury Winthrop Shaw Pittman LLP.

Experts Pin Hopes on DOL for Retirement Plan Fee Disclosure Regulations Industry experts are hoping the Department of Labor pre-empts Congress in issuing new regulations mandating increased disclosures for retirement plan fees. Source: Workforce.com

Study Shows Employers Cutting 401(k) Matches On top of the declining value of their investments, employees depending on 401(k) plans to build retirement nest eggs are getting another shock courtesy of the economic meltdown. Source: Business Management Daily.

For more information visit www.bpp401k.com

BPP401k.com Newsletter September 16

Did you miss 401k day? It's not to late to schedule your annual Fiduciary Health CheckTM

Obama Retirement Initiatives Draw Interest of Small Businesses, Benefits Providers President Barack Obama has announced a number of new initiatives to promote retirement savings, a few of which have drawn the interest of employers and retirement plan providers. The most notable of these proposals would enable workers to convert unused vacation time or overtime into cash in their retirement accounts. Source: Workforce.com

Boost Retirement Savings For The Long Haul Bad investment choices are costing 401(k) savers big, a new study shows. Source: Forbes

2009 Retirement Plan Trends Report This is one of the most comprehensive reports in the industry on retirement plans. The Total View 2009 includes an annual review, report card and forecast to compare retirement plans with industry benchmarks, and a new analysis section that provides additional insight into the potential meaning of the trends contained in the report. Source: Principal.

Believe It or Not, Your 401k Is Something To Celebrate “Stable” may not be the first word you’d use to describe your 401k, but it’s the word David Wray uses. Soucrce: St. Louis Post-Dispatch

401k Fee Litigation September 2009 Update Over the past several years, more than two dozen lawsuits have been filed relating to 401k plan fees and, more specifically, "revenue sharing" arrangements with plan service providers. Initially, the lawsuits were brought by plan participants against plan sponsors and alleged that, by allowing plan service providers to receive revenue sharing payments, the plan sponsors caused the participants to pay excessive fees, in breach of the sponsors' fiduciary duties to the participants. Source: Groom Law Group.

Hard Times Lead to Hardship Withdrawals From 401k Plans Tapping 401k retirement funds to meet expenses is a last resort for many investors, but the relentless economic downturn took its toll this year, as hardship withdrawals saw double-digit increases, according to record keepers. Source: Investmentnews.com (free registration may be required).

Equities Gaining in 401k Plans Participants in 401k plans shifted $203 million to equities from fixed income in August, according to Hewitt’s 401k index. Source: PIonline.com.

Automatic Contributions Mask Poor 401k Performance One of the biggest mysteries to emerge from the recession is why investors have stuck with their 401k in the face of a 55% market decline between October 2007 and March 2009. The simple reason is the payroll deductions every two weeks continuously pump up participants’ balances, and unwitting, disengaged investors see their balances holding steady. Source: Financial-planning.com.

403(b) Retirement Plan Mini-Course for Employers A presentation for employers and sponsoring organizations operating 403(b) plans. Source: IRS.

Hecker vs. Deere Revisited The Court of Appeals for the 7th Circuit recently issued an order in the case of Hecker v. Deere that “clarifies” its earlier ruling in the case ... though the “clarification” is more of a reversal of course. Source: Reish & Reicher (PDF File).

Fund Industry Fires Back in Supreme Court Fund Fee Case ICI, Directors Forum and U.S. Chamber of Commerce argue that competitive pressures and director diligence keep fees down. Source: Financial-planning.com.

IRS Rev. Rul. 2009-31 on Annual Paid Time Off (Vacation) Contributions This notice discusses requiring or permitting certain annual contributions of the dollar equivalent of unused vacation or paid time off. Source: Benefitslink.com (PDF File).

IRS Rev. Rul. 2009-32 on Paid Time Off Contributions at Termination of Employment This notice discusses requiring or permitting certain contributions to the plan of the dollar equivalent of unused paid time off at a participant’s termination of employment. Source: Benefitslink.com (PDF File).

IRS Notice 2009-68 on Safe Harbor Explanation of Eligible Rollover Distributions This notice contains two safe harbor explanations that may be provided to recipients of eligible rollover distributions from an employer plan in order to satisfy § 402(f) of the Internal Revenue Code. Source: Benefitslink.com (PDF File).

The IRS Retirement Plans Navigator A Web guide to help small business owners choose a retirement plan that is right for their business. The guide also contains information and resources on maintaining plans and correcting plan errors. Source: IRS.

Retirement & Savings Initiatives On 09/05/09, the Obama administration announced new Retirement & Savings Initiatives. The initiatives expand opportunities for automatic enrollment in plans, permit workers to save payments they would receive for unused vacation or other similar leave in their retirement plan, help employees and employers better understand their tax-favored savings options, and make it easier to save tax refunds. Source: IRS.

For more information visit www.bpp401k.com

BPP401k.com Newsletter September 9

Lost in Translation So, how's that 401k investment education working out? Not real well, if you consider recent survey data. Survey data show investment education not sinking in with employees. Source: Employee Benefit News.

The 401(k) Fee Fiasco Congress wants to shed light on 401(k) fees. It's about time. Source: Forbes

Shrinking Retirement Funds Put Pressure On Missouri To Find Alternatives A guaranteed monthly pension check — with annual increases — is a dream in the private sector. But it's a given in state government. Source: St. Louis Post-Dispatch.

IRS Launches Multimedia Help on ARRA The Internal Revenue Service (IRS) has announced the availability of video and audio products to help taxpayers take “full advantage of the 2009 tax provisions in the American Recovery and Reinvestment Act.” Source: Plan Sponsor.

DOL Scrutinizes ERISA Plan Audits The U.S. Department of Labor has increased its efforts to assess and improve the quality of employee benefit plan audits. Source: Porter Wright Morris & Arthur LLP (PDF File).

2009 Form 5500 Schedules A and C Will Create New Fiduciary Burdens For Plan Sponsors Retirement plan vendors throughout the industry are engaging in efforts to prepare for the new disclosure requirements for the 2009 Form 5500 schedules, particularly the disclosures related to direct and indirect compensation under Schedule C and the substantial requirements for Schedule A. Source: Business of Benefits Blog.

Rollovers for Business Start-ups (ROBS) The IRS is always watching for abusive or non-compliant transactions. Source: McKay Hochman.

Why Do Investors Sit Tight in 401ks? These are the legions of 401k investors who don't merely buy and hold; they buy, hold and sit stock-still. Why? Source: Wall Street Journal.

Improving the Effectiveness of Investment Committees Recent market volatility and uncertainty have put a renewed focus on the role, governance, and fiduciary responsibilities of investment committees. This paper offers insights on how to bring clarity, self-awareness, discipline, and perspective to the investment committee process. Source: Vanguard (PDF File).

Labor Day a Perfect Time to Review 401k Goals The Labor Day holiday is the perfect opportunity to take stock of how you are progressing towards your retirement goals in order to make sure you reap the fruits of your labor. Source: Reuters.

The Economic Crisis: What Can DC Plan Sponsors Do Now? Plan participants have lost money, but account balances can be rebuilt and strategies can be adopted that may make future downturns less dramatic. Source: Milliman (PDF File).

DC Plan Contribution Rate Increasers Still Outnumber Decreasers A new report from the Vanguard Center for Retirement Research indicates that during the recent equity market decline, the proportion of defined contribution plan participants who decreased or stopped contributions rose; however, the percentage of participants who increased contributions still exceeded those decreasing or stopping. Source: Plansponsor.com (free registration may be required).

The New Reality of Pension Investment Strategies To understand how U.S.-based companies are adjusting their pension investment strategies for a post-economic crisis environment, Watson Wyatt conducted a short survey of 85 senior-level financial executives. The analysis focuses on how investors are seeking to manage their risks, optimize returns and improve their governance strategies. Source: Watson Wyatt (PDF File).

Time to Readjust 401k Plans, Again Even investors who didn't panic and cash out investments last fall need to go back and take a look now. By doing nothing, their asset allocation has changed dramatically. Source: Wall Street Journal.

Deflation Could Wallop Your 401k Plan A decline in consumer prices this quarter – i.e., deflation – could result in 401k contribution limits being lowered next year for the first time since Congress imposed the limits in 1986. Source: The Dallas Morning News.

The Future of the 401k After the latest market drop, planners and investors are trying to figure out that means for their retirement plans. Source: CNN Money.

Establishing a Fiduciary Due Diligence Process at 403(b)s In a recent Webinar for 403(b) plan sponsors sponsored by Cammack LaRhette Consulting, Mike Webb, vice president, Retirement Plan Services at Cammack LaRhette, discussed considerations for establishing a fiduciary due diligence process and the benefits of having one. Source: Planadviser.com.

Citigroup 401k Participant Lawsuit Dismissed A federal judge dismissed a class-action lawsuit filed on behalf of 150,000 participants in Citigroup’s two 401k plans, saying the company’s inclusion of company stock as an investment option did not violate its fiduciary duties under ERISA. Source: PIonline.com.

Employees Satisfied With Retirement Plans Despite Economy Despite recent events in the economy, a majority of workers are satisfied with their current employer-sponsored retirement benefits. In particular, many place a high value on plans that offer security and flexibility, according to a survey by Watson Wyatt. Source: Watson Wyatt.

For more information visit www.bpp401k.com

BPP401k.com Newsletter September 2

In 2010 IRS Could Cut 401k Contribution Limit to $16,000 Low inflation has made food and gas more affordable during the recession, but there's a downside: Social Security beneficiaries probably won't get a raise next year, and the IRS may reduce the amount workers can contribute to their 401k plans. Source: USA Today.

Duty Call? When it comes to qualified retirement plans, there are three kinds of people: people who are fiduciaries and know it, people who aren’t fiduciaries and know it, and people who are fiduciaries and don’t know it. Source: Plan Sponsor.

“To Do” List—Part 2 10 Things You’re (Probably) Doing Wrong—or Not Doing Right—as a Plan Fiduciary. Source: Plan Sponsor.

Constructing New Retirement Systems: Choosing between Insurance and Investment, Choice and Default The balance between investment and insurance, choice and default, highlight roles for stakeholders is ever changing and this article suggests new ways of bringing people together to prepare for their retirement. Source: Pension Research Council.

IRS Seeks Comments on Upcoming DB-K Plan Guidance The IRS has issued IRS Notice 2009-71 requesting comments on guidance that it plans to issue relating to eligible combined plans under Code Sec. 414(x). Source: CCH.

The DB(k): Pension of the Future An attractive new option for employer sponsored retirement pla-ns becomes available next year. The "DB(k)" offers businesses with 500 or fewer employees an opportunity to provide a strong retirement plan for their employees with fewer hassles and less financial drain than a traditional pension plan. Kiplinger

DOL Staff Members Provide Informal Views on Uncashed Checks, Plan Audits, and Class Action Lawsuits The Joint Committee on Employee Benefits (JCEB) of the American Bar Association has reported on its May 7, 2009 Q&A session with DOL staff members. Highlights include unofficial, nonbinding remarks about these 401k-related plan topics: uncashed checks and unresponsive participants, plan audits, and class action lawsuits. Source: Employee Benefits Institute of America.

Get Your 401k Back In The Game Even investors who didn't panic and cash out investments last fall need to go back and take a look now. Source: The Wall Street Journal.

New Investment Options for Your 401(k) Just over half of companies have made changes to their 401(k) investment lineups since June 2008. Most employers have both added new funds and eliminated existing funds, according to a small Watson Wyatt survey of 85 senior-level financial executives at large U.S. companies. Source: US News and World Report.

How does your 401k plan stack up? USA Today had a good summary of attempts to rein in 401k fees. New to me, though, was mention of BrightScope, a website that rates employers’ 401k plans. It gives each plan a numeric score based on costs, quality of the investment choices, employees’ participation and other factors. Source: St. Louis Post-Dispatch.

PSCA Offers Free Communication Program to 401(k) Plan Sponsors The Profit Sharing/401k Council of America (PSCA), announced that it is making their annual 401(k) Day communication and education campaign available free to plan sponsors throughout the country. Source: PSCA.

Are fees draining your 401(k) retirement savings? Quick question: How much are 401(k) fees removing from your retirement nest egg each year? Source: USA Today.

Participant Loan Extension Can Carry Unexpected Consequences Failure to comply with the Tax Code's constraints on participant loans can subject a borrowing participant to immediate income taxation and, if the participant is not yet age 59½, a 10% penalty tax. Two recent Tax Court decisions highlight one aspect of these participant loan rules that can easily be overlooked, thereby subjecting participants to these adverse tax consequences. Source: Spencer Fane Britt & Browne LLP.

Five Tips to Maximize Your 401k Match The median Vanguard 401k account balance fell by 14 percent among continuous participants between 2007 and 2008. Ongoing contributions and maximizing your 401k match are the best way to recoup those losses. Source: US News.

Audit CAP as a Dispute Resolution Technique While Audit CAP requires the payment of a monetary sanction that can be substantial, depending on the facts and circumstances of the case, there is flexibility under the program to negotiate both the amount of the sanction and - more importantly for purposes of this article - the methodology for correction. Source: Reish & Reicher (PDF File).

Safe Harbor for 2010 It will soon be time to consider whether to start or continue a safe harbor 401k plan for next year. Obviously, the harsh economic times have influenced the future use of the guaranteed NEC option and brought new favor to the use of the flexible NEC. Source: McKay Hochman.

Fiduciary Status for Broker-Dealers The Administration has included a provision to establish a fiduciary duty for broker-dealers who offer invest. advice and to harmonize the regulation of investment advisers and broker-dealers. While the proposal was written from the perspective of the retail investor, the authors believe that it will have a significant impact on invest. advice for 401k plans—particularly in the mid-sized and small plan market. Source: Reish & Reicher (PDF File).

U.S. Recession and Its Impact on Employee Retirement This SHRM Poll provides data on approaches that companies plan to take in terms of employee retirement options. Employee confidence in the current state of their retirement savings is also explored. Nearly a third of respondents believe the biggest threats to retirement savings are that employees are simply not saving enough and the overall instability of the financial markets. Source: Society for Human Resource Management.

Seventh Circuit Emphasizes Need to Assess the "Gravity" of Any Conflict of Interest in Its Latest Post-Glenn Decision The Seventh Circuit has decided another case addressing the effect of the Supreme Court’s Glenn decision when applying the deferential abuse of discretion standard of review in a conflict of interest situation. Source: Employee Benefits Institute of America.

Dynamics of Participant Plan Contributions, 2006–2008 A new Vanguard Center for Retirement Research study reveals that participants' inertia continues to work to their benefit, so most didn't overreact to the 2008 market downturn. Discover how participants' tendency to take no action affected their plan deferral rates over a three-year period. Source: Vanguard (PDF File).

Important IRS Survey on New Retirement Plan IRS Determination Letter Process An IRS advisory council is studying the retirement plan document determination letter process. A new online survey form asks for the views of employers, benefits attorneys, third-party administrators, consultants, providers of master & prototype documents, and other stakeholders. Source: IRS.

For more information visit www.bpp401k.com