BPP401k.com Newsletter June 30

Court Approves Settlement in Revenue-Sharing Suit A federal judge has approved a $13.8 million revenue-sharing based settlement between a provider and the 401(k) plans it supports, but lawyers will take nearly half. Source: Plan Sponsor

The Briskin Consulting Study of Small-Retirement-Plan Sponsors This new research study explores the drivers of satisfaction and discontent among small-plan sponsors. It offers insights into the issues that spur decisions to switch plan providers and reveals which kinds of providers are more likely to be chosen—and why. In short, the Study offers valuable lessons for small-plan providers who wish to improve their client service and retention efforts—and win business from their competitors. Source:Briskin Consulting

Liability Reducing Strategies for Today's 401k Plan Sponsor What can the typical 401k fiduciary do to better prepare for the possible consequence of impending regulatory changes? Here's the straight-forward advice: Be aware, or be at risk. Here are four liability reducing strategies for today's 401k Plan Sponsor. Source: Fiduciarynews.com.

Freezing Defined Benefit Pension Plans In the current economic climate more companies are freezing their defined benefit plans. when considering a plan freeze, a plan sponsor should carefully analyze its long-term strategies for the management and disposition of the frozen plan to avoid significant liability exposure in the future. Source: Groom Law Group.

DC Deferral Amount What Participants Can Afford Half of employees participating in a recent survey say they decided on their defined contribution plan contribution because it was the most they could afford. Source: Plansponsor.com.

When It Comes to Retirement, 67 Is the New 55 Looking forward to retirement? You may have to wait a bit longer. Financial pressures are pushing up retirement ages all over. Benefit cuts and higher retirement ages are becoming the norm. Source: National Public Radio.

Employee Plans News - Summer 2010 Edition The Employee Plans News is a periodic IRS newsletter with retirement plan information for retirement plan practitioners. Source: IRS.gov

DailyAccess Corporation offers a variety of optional financial education resources for retirement plan participants Source: Daily Access

Restoring the 401k Match Six months after it suspended its matching contribution to employees' 401k's, Briggs & Stratton decided it was time to bring the dollars back. The company is part of a trend: Of the 293 U.S. employers that suspended matching contributions last year, 44 percent have already restored the match or intend to restore it by next year. Source: Workforce.com

When it comes to 401(k) fees, more money = more problems When it comes to 401(k) fees, a new analysis gives credence to two known clichés: You can’t compare apples to oranges, and indeed, the rich are different. Source: Employee Benefit News

401k Fee Litigation: June 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. This is an updated overview of current litigation and background information. Source: Groom Law Group.

ERISA Plans' Ultimate and Criminal Prohibited Transaction Rule We all know that doing something as foolish as buying a plan sponsor a car in order to keep its 401k business would clearly step over the line. But there some other, and familiar, arrangements which could raise some issues. Source: Business of Benefits Blog.

The Employers' Perspective on Retirement Benefits and Planning The 11th Annual Transamerica Retirement Survey finds that employers continue to believe employee-funded retirement plans are important to employees, second only to health insurance. Large companies are more likely than small companies to believe in the importance of these self-funded plans. Trending shows a steady decline in the perceived importance of defined benefit plans to employees. One third of employers do not think they are important, up from just over one quarter last year. Source: Transamerica Center for Retirement Studies (PDF File).

Comparative Costs and Risks for Sponsors of Traditional DB, DC, and Hybrid Plans Study results show that costs and risks for sponsors vary significantly with plan type, funding strategy and participant demographics. Throughout the scenarios, the hybrid plan exhibits good features of cost efficiency and risk reduction to the plan sponsor. Source: Social Science Electronic Publishing.

Advice Trumps Performance for Small Plan Sponsors Small plan sponsors are generally satisfied with their 401k providers, but most are not happy with the advice they're getting on fiduciary and regulatory matters, says a new survey. Source: Employee Benefit News

Participants Are Saving More to Make Up for Market Downturn More than one-third (38%) of retirement plan participants have increased the amount they are saving for retirement following the market downturn of recent years. In addition, 20% of participants have moved into more aggressive investment options, reports a just released survey of retirement plan participants conducted by Diversified Investment Advisors. Source: 401khelpcenter.com.

Participant Account Balance Size Influences 401k Plan Fees According to a report published by the 401k Averages Book titled, "Are All $5 million 401k Plans Created Equal?," the size of a 401k plan's average participant account balance will influence the amount of fees they pay. Source: 401khelpcenter.com.

Congress Kicks Fiduciary Debate to SEC for Study Legislators finally reached a compromise on the fiduciary standard bill. While the House's version pushed for the SEC to create a fiduciary standard, the Senate preferred instead to have the SEC study differences between fiduciary standards without giving them the power to do anything about it. The final bill contained elements of both. Source: Financial-planning.com.

H.R. 4213 and How Much Does My 401k Investment Really Cost? U.S. employers should begin by reviewing current fee disclosures and trying to make them as complete and accurate as possible, and consider including some of the new information that would be required if H.R. 4213 became law. Finally, it is important to keep an eye out for new final regulations at all times, as these will affect all 401k sponsors. Source: Pensions & Benefits Law Blog.

IRS Extends 401k Deadlines in Storm-Torn States According to IRS notice 2010-48, the IRS has extended the deadline for restating affected pre-approved defined contribution plans and, if applicable, for submitting determination letters to the IRS to July 30 for Alabama, Connecticut, Massachusetts, Mississippi, New Jersey, Rhode Island, Tennessee and West Virginia declared Presidential Disaster Areas. Source: Credit Union Times.

DOL Issues Final Regulations on Timing and Order of QDROs The DOL issued final regulations on the timing and order of domestic relations orders (DROs). These final regulations provide plan administrators, service providers, participants and alternate payees with further guidance regarding when a DRO will satisfy the qualified domestic relations order requirements of ERISA. Source: Ice Miller.

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