BPP401k.com Newsletter July 28

Protecting the Business Advisers need to shield themselves legally more than ever, with Congress, the U.S. Department of Labor (DoL), and courts all looking more closely into possible wrongdoings in retirement plans. When searching for professional-services insurance coverage, keep these six things in mind. Source: Plan Adviser

President Signs Sweeping Financial Reform Bill: What Our Non-Bank Public Companies Need to Know Now President Obama has signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act. Included in this reform legislation are provisions that will apply to all publicly traded companies, including provisions relating to “say on pay” shareholder votes, proxy access, executive compensation disclosure and compensation committees. Source: Bryan Cave

Stress test your fiduciary focus: Are you following best practices? For plan sponsors, the fiduciary standards of ERISA are among the highest the law recognizes. Plan fiduciaries are held to an exceptional level of accountability under the law, including the assumption of personal liability for fiduciary decision-making. Source: Vangaurd

Target-Date Funds Evolve With the Times Some in the industry expect to see more providers begin introducing some type of guaranteed component to their target-date funds to help deal with volatility. Source: Employee Benefit News (free registration may be required).

LULAC Issues Call to Action on Retirement Policy to Help Hispanics The League of United Latin American Citizens (LULAC) has taken a strong stance on a critical yet overlooked concern of the Hispanic community -- retirement policy that helps all Americans better manage their savings to provide income that will last a lifetime. Source: 401khelpcenter.com.

Using Behavioral Finance to Help Employees Achieve Their Retirement Goals Despite this sea change in the retirement plan landscape, a startling number of American workers have saved little to nothing for retirement. A number of challenges contribute to this retirement saving deficit, but progress has been made with new programs and tools that use insights gained from behavioral science and psychology about plan participants' behaviors. Source: The Standard (PDF File).

Using the Safe Harbor 401k Plan Top-Heavy Exemption - Part 1 This is the first of a two-part Technical Update dealing with the top-heavy exemption. This Part I explains how the top-heavy rules apply to a 401k plan and defines the top-heavy exemption. Part II will discuss the financial effect, benefits, and limitations of the top-heavy exemption. Source: Sungard/Relius.

Using the Safe Harbor 401k Plan Top-Heavy Exemption - Part II This is the second of a two-part Technical Update dealing with the exemption from the top-heavy rules that may apply to a safe harbor 401k plan. This Part II discusses the financial effect, benefits and limitations of the top-heavy exemption. Source: Sungard/Relius.

What is a SIMPLE 401k plan? A small employer may find that converting its 401k plan into a "SIMPLE" 401k plan is preferable to adopting a traditional safe harbor 401k plan. This article briefly explains a SIMPLE 401k plan. Source: Chang, Ruthenberg & Long PC.

Stress Test Your Fiduciary Focus: Are You Following Best Practices? In today's environment, devoting your attention to meeting your fiduciary responsibilities is even more vital. It's important for every plan fiduciary to be aware of key obligations and duties. Source: Vanguard.

Blackout Notice Suit Allowed to Move Forward A federal judge in Ohio ruled that a 401k profit-sharing plan and two participants can press forward with their lawsuit alleging that Principal Life Insurance Co. breached its duty to make a timely notice of a plan blackout period. Source: Plansponsor.com.

Fiduciaries Breached Duty by Investing in Retail Share Classes A recent federal District Court ruling should make fiduciaries of self-directed retirement plans think twice before offering retail share classes as investment options when less expensive institutional share classes are available. Source: Nixon Peabody LLP.

DC Plan Sponsors Focused on DOL and IRS Activities U.S. sponsors of defined contribution plans are focused on responding to Department of Labor and Internal Revenue Service activities, finds a new Mercer survey of more than 260 DC plan sponsors. Source: Mercer.

Ariel Investments Black Investor Survey According to the survey, 27% of Blacks who participate in a 401k (compared to 16% of Whites) reduced the amount they contribute per month, and 22% of non-retired Blacks (compared to 14% of Whites) borrowed or withdrew money from a retirement account. Source: Ariel Investments (PDF File).

Retirement Benefits Declined 19% between 1998 and 2008 U.S. workers saw the value of their employer-sponsored retirement benefits -- as measured by percentage of pay -- decline by double-digit levels over a 10-year period ending in 2008, according to an analysis conducted by Towers Watson. Source: 401khelpcenter.com.

New ERISA Disclosure Requirements for Plan Service Providers On July 16, 2010, the DOL published "interim" final regulations, proposed in December 2007, imposing new disclosure and related requirements under ERISA for certain service providers to retirement plans. This eight page document reviews the key elements of the final regulation. Source: Sutherland Asbill & Brennan LLP (PDF File).

Penalties for Failure to Disclose Retirement Plan Fees Providers of services to a retirement plan must disclose their fees associated with the plans, according to an updated DOL regulation. Beginning July 16, 2011, a failure to disclose will result in prohibited transaction excise tax penalties of 15 percent of the fees, compounded for each year that the violation continues. Source: Warner Norcross & Judd LLP.

WEBCAST: DOL Fee Disclosure Regulations After many months of speculation, the Department of Labor has released its interim final rule on fee disclosure with an effective date of July 2011. This is a Webcasts with Fred Reish where he reviews these new fee disclosure regulations. Source: The Standard.

DOL Fact Sheet on Fee Disclosure Regulation This is a bullet point overview of the DOL's Interim Final Regulations on ERISA Section 408(b)(2) Fee Disclosure Requirements. Source: American Benefits Council (PDF File).

SEC Plans to Cap 12(b)-1 Fees The Securities and Exchange Commission voted unanimously to propose measures aimed to improve the regulation of 12(b)-1 fees, capping them at 25 bp and provide better disclosure for investors. Source: SEC.

IRS Stresses Requirement for Timely Forfeitures Forfeitures occur in a plan when terminated participants are not fully vested in employer contribution accounts. There are two timing aspects of forfeitures which should be addressed in the plan document: when forfeitures occur and when they must be disposed of. Source: JPMorgan Chase.

For more information about custom retirement plan design and how Benefit Plans Plus can help make your business more successful visit www.bpp401k.com

BPP401k.com Newsletter July 21

Department of Labor unveils 401(k) fee rules Advisers and brokers who manage 401(k) plans will have to provide detailed information about the fees they charge under new rules unveiled by the U.S. Department of Labor on Thursday, but the changes are not as onerous as the brokerage industry first feared. Source: Reuters

PPACA checklist for open enrollment Like Santa, I imagine you’All be making a list and checking it twice (20 times?) to make sure you have all your talking points in order so you can communicate effectively to employees how the Patient Protection and Affordable Care Act will affect their benefits enrollment options. Source: Employee Benefit News

A Step Toward 401(k) Fee Transparency Most savers are now aware of the toll the financial crisis has taken on the balance of their 401(k) plans – but the bite taken by fees is much less visible. A new regulation issued Thursday by the Department of Labor takes a step toward shedding more light on pension plan fees by requiring plan providers to disclose more information to the employers that sponsor these plans. Further regulation on disclosing fees to individuals is expected this fall. Source: Smart Money

401(k) Compliance Checks Under Way While some 401(k) plan sponsors may have received a compliance check questionnaire from the IRS, sponsors shouldn't overreact. Source: Vangaurd

How to Get the Most Out of Your Autopilot Plan Adopting an autopilot plan can help resolve common plan concerns and provide benefits to both plan sponsors and their employees, provided it's implemented with care. Otherwise, plan sponsors may experience unintended consequences. Source: Vanguard Retirement Insights.

The June 2010 Hewitt 401k Index Observations 401k participants transferred monies from equities into fixed income investments for the second consecutive month in June, but to a much lesser degree than May, according to the results of the Hewitt 401k Index. Source: Hewitt Associates.

Safe Harbor 401k Cross-Tested Plan Design Issues A safe harbor 401k cross-tested plan combines two of the most attractive defined contribution plan designs. The plan design provides (1) enhanced disparity; (2) flexibility; and (3) catch-up contribution potential. Understanding how the safe harbor and cross tested rules interact is essential in designing the combined plan. In this article discusses some of the important issues which affect the plan design. Source: Sungard/Relius.

Firms Still Developing Annuity-Enhanced Target-Date Funds Despite a tepid response from plan sponsors, asset management firms continue to develop and promote annuity-enhanced target-date funds, insisting that demand for retirement income will spur interest. Source: Investmentnews.com (free registration may be required).

Fiduciary Fears Make Finding Pension Committee Members a Challenge Attraction and retention of qualified people to serve on DB and DC committees has always been a challenge for plan sponsors. Many times, companies can't find enough people with the necessary expertise to serve on the committee. Or, potential committee members are scared off when they're told they can be held personally liable if they breach their fiduciary responsibilities. Source: Employee Benefit News (free registration may be required).

Essential Principles of 401k Fiduciary Risk Management Tips on minimizing the likelihood of being dragged into 401k litigation and, if you are, maximizing the likelihood of getting the case dismissed quickly. Source: Investmenthorizons.com.

Companies That Don't Offer Retirement Plans Won't The majority of companies that don't offer retirement plans now, especially small businesses, do not intend to provide one in the future, according to a new study. Also, companies remain reluctant to make significant changes to their retirement plans, even though they say they are optimistic about the U.S. economy. Source: IFAwebnews.com.

Study on the Demographics of Target-Date Funds The use of target-date funds, a relatively new 401k plan option, is more likely among participants who are younger, have lower account balances, and have shorter tenure at their current job, according to a study released today by the nonpartisan Employee Benefit Research Institute. Source: 401khelpcenter.com.

The EBRI Retirement Readiness Rating: What is Your Rating? With Americans living longer in retirement, the 2010 EBRI Retirement Readiness Rating released shows dramatically high percentages of Americans-even in the upper-income categories-are likely to run short of money after 10 or 20 years of retirement. Source: Employee Benefit Research Institute.

Court: Employer Violated Duty in Investment Options Energy company Edison International violated its "duty of prudence" under ERISA by offering three retail mutual funds as investment options in its 401k plan rather than their less costly institutional option equivalents, a Los Angeles federal judge has ruled. Source: Businessinsurance.com.

DOL Releases Final Fee Disclosure Regulation Covered service providers will need to comply with the regulation by July 16, 2011, for all contracts or arrangements, regardless of whether they were entered into before the effective date. The new rule finalizes the regulation originally proposed in 2007, and differs from the proposed rule in a number of respects, some of which are fairly significant. Source: Reish & Reicher, PC.

Summary of Major Changes in DOL's Fee Disclosure Rule The Obama Administration made significant changes to the Bush Administration originally proposed regulations. This is a brief summary of some of the major differences between the proposed rule and the interim final regulations. Source: American Benefits Council.

DOL Rule on Fee Disclosure Under Section 408(b)(2) This document contains the text of the DOL's interim final regulation under the ERISA requiring that certain service providers to employee pension benefit plans disclose information to assist plan fiduciaries in assessing the reasonableness of contracts or arrangements, including the reasonableness of the service providers' compensation and potential conflicts of interest that may affect the service providers' performance. Source: U.S. Department of Labor.

DOL Issues 'Final Rule' on 401k Fee Disclosure Rules The final rules do differ from the department's initial proposal. Notably, they not require a formal written contract spelling out the disclosure obligations. Instead, the rules focus on the substance of the disclosure that must be provided. In addition, the final rules modify the categories of service providers that must comply with the disclosure requirements, including fiduciaries, investment advisers and recordkeepers or brokers who make investment alternatives available to a plan. Source: Investmentnews.com (free registration may be required).

DOL Issues New Rules on Fee Disclosure According to the document released this morning by the Employee Benefits Security Administration, the interim final rule is effective on July 16, 2011. However, EBSA is encouraging comments on the interim final rule during a 45-day comment period following publication of the rule. According to EBSA, the final 408(b)2 regulation differs from the proposal in a number of significant respects. Source: Plansponsor.com.

The SEC Targets the Advertising of Target-Date Funds These proposed rules are intended to correct a significant disconnect between the expectations of investors in target-date funds and the actual management of those target-date funds, which was highlighted by the severe market downturn over the last several years, by requiring additional disclosures regarding the management of target-date funds and certain risk information in advertising materials. Source: Kilpatrick Stockton LLP.

SEC and DOL Guidance on Target-Date Funds Target-date funds are the subject of great scrutiny. The DOL and SEC have issued two pieces of guidance to correct the perceived deficiencies. This four page article discusses this guidance. Source: Reish & Reicher, PC.

IRS 401k Compliance Checks Under Way The IRS has been careful not to characterize the questionnaire as an audit. That doesn't mean, however, that plan sponsors shouldn't think about their answers and review their responses with legal counsel before filing. Source: Vanguard Retirement Insights.

For more information about custom retirement plan design and how Benefit Plans Plus can help make your business more successful visit www.bpp401k.com

BPP401k.com Newsletter July 14

Form 8955-SSA, Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits (formerly Schedule SSA (Form5500)) Beginning with returns for the 2009 plan year, the Schedule SSA (Form 5500) has been eliminated as a schedule of the Form 5500 annual return/report and is replaced with Form 8955-SSA. Plan administrators must file this new form with the IRS and not through the EFAST2 filing system. Plan administrators are not required to file the Form 8955-SSA for the 2009 plan year and subsequent years until guidance is issued by the IRS. The IRS anticipates the guidance will establish a special due date, expected to occur in 2011, for the 2009 Form 8955-SSA. After the Form 8955-SSA and related instructions are available for filing, plan administrators should expect to have a reasonable amount of time to complete and file the form by the special due date. The information reported on the new form will be similar to the information previously required for Schedule SSA. Source: IRS.gov

Fiduciary battle moves to SEC The battle over whether stockbrokers should be more accountable to individual investors likely will shift this week from Capitol Hill to the SEC. The massive financial-regulatory-reform bill that the Senate is expected to approve any day would empower the Securities and Exchange Commission to write a rule that would require broker-dealers and insurance agents providing financial advice to act in the best interests of their clients and disclose any conflicts. Source: Investment News

DOL's fee disclosure regulations put on hold Long-pending proposed Department of Labor regulations to enhance 401(k) fee disclosure requirements have been put on hold to give Rep. George Miller, D-Calif., more time to try to pass legislation on the subject. But some Washington insiders don't expect the DOL to sit on its hands forever. Source: Pensions & Investments

Ten Useful Websites for 401k Plan Sponsors and Any ERISA Fiduciary The realm of the ERISA fiduciary sometimes seems complex, especially for the 401k plan sponsor more concerned with meeting this month's production quota or the quarterly sales target. Fortunately, like most industries, a handful of websites have sprung up offering useful information geared specifically to 401k plan sponsors and fiduciaries. Source: Fiduciarynews.com

Can We Feel Good About Retirement? A lot has changed in the past 25 years when it comes to company-sponsored retirement programs. In this column, the author explores the roots of the current shift from defined benefit to defined contribution plans. Source: Human Resource Executive Online.

Trends in Retirement Education What are the key trends in workplace retirement education and financial education? We want to make sure we are ahead of the curve with our programs rather than responding too late to major industry changes. Source: Employersweb.com

The 10 Most Common Retirement Benefits Retirement benefits vary considerably by employer. Most large employers now provide a 401k or similar type of retirement account, but other valuable retirement perks including retiree health insurance and traditional pensions are declining. Here's a look at the most common retirement benefits. Source: U.S. News & World Report.

The 10 Most Generous U.S. Retirement Plans How important is a company contribution in getting you to save for retirement? Very important, according to new research from BlackRock. But who has the most generous U.S. retirement plans? Source: Reuters.

Best Practices for Avoiding Plan Compliance Issues What are the key challenges for employers who sponsor employee benefit plans in complying with ERISA and how can a qualified employee benefit plan auditor be of assistance? Source: Metropolitan Corporate Counsel.

401k Participants not as Knowledgeable as Employers Think A new survey reveals that 401k participants don’t know as much about plan fees and investing as employers think they do. Source: Plansponsor.com.

Retirement Account Balances (Updated 7/10) The retirement savings of American households took a big hit when the stock market crashed in 2008. Recently, however, a good portion of these losses has been reversed. This fact sheet follows trends in retirement account balances since the beginning of 2005. Source: Urban Institute.

Retirement Income Adequacy at Large Companies This study assesses projected retirement resources at retirement versus financial needs during retirement, using actual data of more than 2 million employees, real retirement benefit plan designs at 84 large U.S. companies, and current employee savings behavior. The resulting measure of retirement readiness, or the difference between projected resources and needs, is expressed as a multiple of pay at retirement. Source: Hewitt Associates (PDF File).

Good News for Retirement Plan Sponsors Two new pieces of legislation hammered out at the end of June give retirement plan sponsors two new reasons to breathe a sigh of relief. Source: CFO.com

Deadline Approaching for U.S. Qualified Plans With Puerto Rico Participants Sponsors of U.S. retirement plans with Puerto Rican participants (including "dual-qualified" plans) have until the end of 2010 to eliminate some potential tax troubles. In Revenue Ruling 2008-40, the IRS offered tax relief for transfers of assets and liabilities for Puerto Rican participants from the U.S. plan to a plan qualified under Puerto Rico law with a related Puerto Rico trust. Source: Towers Watson.Form 5500-EZ FAQs - Part I This Form 5500-EZ FAQ, part one of two parts, address issues relating to the annual reporting requirements for one-participant plans. Source: Sungard/Relius.

Form 5500-EZ FAQs - Part II This Form 5500-EZ FAQ, part two of two parts, address issues relating to the annual reporting requirements for one-participant plans. Source: Sungard/Relius.

DOL Adopts Amendment to Class Exemption Involving QPAMs This document amends PTE 84-14, a class exemption that permits various parties that are related to employee benefit plans to engage in transactions involving plan assets if, among other conditions, the assets are managed by "qualified professional asset managers" (QPAMs), which are independent of the parties in interest and which meet specified financial standards. Source: U.S. Department of Labor.

For more information about custom retirement plan design and how Benefit Plans Plus can help make your business more successful visit www.bpp401k.com

Top Three Reasons Financial Advisors Should Partner With A Third-Party Administrator

Whether you’ve been in the retirement plan business for decades or you’re just getting started, current regulatory, enforcement and competitive environments indicate the time is right to make sure you have the expertise required. A retirement plan Third Party Administrator (TPA) has the knowledge and experience you need.

With so many choices, how can you be sure you’re working with the right TPA? The stakes are high: uninformed decisions about plan design, investments, and administration can leave employees at all levels short on retirement funds. Mistakes can also result in significant financial penalties or legal consequences for plan sponsors. Facing new rules and continued scrutiny, many plan sponsors seek local help with plan design and administration. There are many TPAs but they are not all created equal. To make finding the right expert easier, remember these three important tips:

1. Your interests and those of the TPA should align with your clients’ interests.
When the TPA is more focused on selling products than on servicing their clients, quality suffers. A TPA’s revenue should come from providing high quality service to their clients, not from force-feeding a specific product line. Choose a non-producing TPA with product neutrality that can work with virtually any provider, allowing a more consultative approach to plan design and administration.

2. Capacity, variety and planning are key.
Has the TPA worked with a variety of client situations, from the simple to the complex? Find a firm whose depth of experience means they can be identify problems and resolve unusual situations. Choose a partner with an established consulting unit. Experience is crucial. Require the TPA to be an ASPPA /CEFEX certified recordkeeper. Make sure your TPA partner’s staff maturity aligns with your own business model. Taking a long-term view is critical: turnover of key employees could interrupt business continuity for you and your clients; also your TPA partner should have the capacity to take on a block of business, not just a plan here and there.

3. An ideal TPA partner should provide business development support.
Growing your business doesn’t just happen. Look for a TPA that offers sales support, like the ability to research prospects; works with a wide variety of plan types and situations; has a reputation as a problem-solver; and is recommended by other business professionals, like CPAs and investment advisors.

Never has the expertise of plan advisors been more important. To help your clients maximize contributions, minimize taxes, or offer employees a chance at a secure retirement, you need the right partner. Ask around. Benefit Plans Plus makes A Measurable Difference.

About Benefit Plans Plus
Benefit Plans Plus, LLC (BPP) offers customized retirement plan design, plan administration, fiduciary compliance management and consulting services for retirement plans. Through unique offerings including the Fiduciary Health Check™ and the SBO 401k BPP serves nearly 750 retirement plans throughout the Midwest. BPP holds the Centre for Fiduciary Excellence, LLC (CEFEX) recordkeeper certification for third party administrator services and the American Society of Pension Professionals and Actuaries (ASPPA) seal of service for provider excellence -- the top recognitions in the industry. BPP is a member of NIPA, ASPPA and ICEBS. Our credentialed teams of retirement plan specialists averages at least 17 years of experience each and have earned numerous professional designations. For more information about Benefit Plans Plus, a subsidiary of Brown Smith Wallace, LLC, visit www.bpp401k.com or call 314.824.5200.

About The Author
Patrick M. Shelton, GBA Managing Member Patrick is the Managing Member in Benefit Plans Plus, LLC has more than 19 years of retirement plan industry experience and is responsible for business development , developing new initiatives overall practice management and growth. . In addition, he specializes in financial advisor relations, including 401k sales prospecting, presentations, vendor searches and fiduciary consulting. He has received “Recognition of Academic Achievement in Group Benefits” from CEBS. Pat also holds a Life & Health insurance license in the state of Missouri. A graduate of Westminster College in Fulton, Missouri, Patrick holds a Bachelor of Arts degree in Business/Committee Plan. pshelton@bpp401k.com 314.824.5252

For more information contact Danielle Oser, APR doser@bpp401k.com

BPP401k.com Newsletter July 7

MO House Passes Pension Changes The Missouri House has passed a pension reform bill. However, its version differs from the version approved by the Missouri Senate. While the Senate pensions bill would create a new investment board for the state's pension system, which supporters say could provide a one-time savings of $150 million, the version passed by the House doesn't include such a board, according to a St. Louis Public Radio news report. Both versions would require new state workers to contribute 4% of their pay to their pensions, but the House bill would allow them to qualify for pensions after five years of employment, instead of ten as some lawmakers had wanted. Source: Plan Sponsor

HSAs becoming mainstream health plan option Health savings accounts are going mainstream. According to the 2010 Consumer Benchmark Survey, over 76 percent of respondents had an HSA-compatible health care plan. Of those, nearly 85 percent also had an HSA. Source: Benefits Selling

Retirement Roundup: New Rules, New Risks For example, the final version of the financial reform legislation agreed upon by lawmakers includes a provision that would give the Securities and Exchange Commission the power to hold brokers who give investment advice to a fiduciary duty standard. That means they would be required to suggest investments that are in their client’s best financial interest. However, the law doesn’t actually require the SEC to make such a rule; it just allows them to consider it after a six-month study. Source: SmartMoney

Fidelity: Free app lets users access 401(k) and 403(b) Fidelity Investments has improved its free iPhone® and iPod Touch application that allows users to securely access the information in their workplace retirement plan. Fidelity’s secure mobile application allows participants in 401(k) and 403(b) plans to see their balances, history and personal rate of return (PRR). The application is available to download from iTunes. Source: Business Review

How continuous controls monitoring can help prevent fraud Continuous controls monitoring (CCM) has been on the radar for many companies for the last 20 years, but only recently have organizations really pushed toward meeting this goal. Source: Smart Business

The Employer Match: Why It Matters An employer match is the most popular 401k feature among employees and one of the most important factors driving participation and savings levels. Striking the right balance in a plan matching formula not only can strengthen the plan but also can enhance employees' commitment to their savings goals. Source: Schwab Retirement Plan Services

Putnam Launches Enhanced Website for 401(k) Plan Sponsors Putnam Investments has launched an enhanced website for sponsors of 401(k) plans and other defined-contribution retirement programs. Source: Financial Planning

Guaranteed Income Matters In theory, the defined contribution system can provide adequate individual and national retirement security, but two major policy issues need to be addressed: Access and guaranteed income. This Nationwide authored paper addresses the issue of retirement income guarantees within 401k plans. Source: Nationwide

For Many Savers, Roth 401k Accounts Are Worth Examining Collecting your tax savings up front allows you to invest more and yields an identical amount of after-tax money at retirement. However, the vast majority of retirement savers don't go to the trouble of investing their tax savings into a traditional 401k account, so many are likely to be better served funding a Roth 401k account. Source: Milwaukee Journal Sentinel.

Hands Out of the Cookie Jar: Expenses Paid With 401k Plan Assets The decision to pay fees from the plan is a fiduciary decision subject to ERISA's fiduciary rules. That is, the plan must be established and maintained by the employer for the "exclusive benefit" of the employees and beneficiaries. That means that the plan cannot pay for expenses that are considered to be the responsibility of the employer. Source: Employee Benefit News (free registration may be required).

ERISA Fidelity Bonds – What to Think About, What to Look For Plan fiduciaries rarely have an idea of what losses their ERISA bond covers or whether the persons who caused the loss are covered by the terms of the bond. Fiduciaries who take such a hands off approach are making a mistake, because one of the functions of a fiduciary is to be sure that the plan is properly bonded. Source: Reish & Reicher.

2010 Employee Benefits Survey Report According to this research, the majority of HR professionals indicated that their organizations have been negatively affected by the U.S. and global economic recession. In this ever-changing economic climate, organizations are looking for ways to manage costs while at the same time dealing with the escalating expenses of employee benefits. Source: Society for Human Resource Management

Plan Participants Make Retirement Savings a Priority, but Many Remain Confused BlackRock's second annual Survey of 401k Participant Attitudes and Behaviors indicates that employers have a significant opportunity now to improve the effectiveness of their DC plan by focusing on key plan features that are instrumental in strengthening retirement preparedness. Source: 401khelpcenter.com.

Automatic Enrollment in 401k Plans Now Dominates at Large Employers A majority of large employers now automatically enroll workers into their 401k plans according to a new survey by Towers Watson. The survey also found that target-date funds are the most prevalent default investment option used for 401k plans. Source: 401khelpcenter.com.

Target-Date Funds and Retirement Savings A study by Deloitte Financial Advisory Services LLP in conjunction with Advanced Analytical Consulting Group for the Department of Labor. This study focuses on the effects of target-date funds, as compared to other investments, on the accumulation of DC pension benefits. Source: U.S. Department of Labor

Small Plan Litigation Flying largely below the media radar are an increasing number of small plan ERISA lawsuits. Of course, most people have heard of the Supreme Court decision in LaRue, but many may not realize that it involved a small plan. Source: Reish & Reicher.

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 401k plans it supports, but lawyers will take nearly half. Source: Plansponsor.com.

Gulf Oil 401k Suits Spill Over to Anadarko Stull, Stull & Brody has started an investigation relating to the 401k defined contribution retirement plans of Anadarko Petroleum Corporation. Source: Planadviser.com.

Scott+Scott Announces BP 401k Plan Investigation Another law firm has launched an investigation into possible violations of the Employee Retirement Income Security Act by BP PLC and fiduciaries of the its Employee Savings Plan. Source: Planadviser.com.

Legislation Pending to Permit 401k Rollovers to Plan Roth Bill would allow the rollover of amounts in a 401k retirement plan of otherwise permissible distributions to a Roth-type account in the same plan. Source: Planadviser.com.

A Squabble Over Proposed 401k Advice Rules One area of the proposed DOL 401k advice rule that's receiving considerable attention by industry participants is the DOL's request for comments on whether it should provide regulations on what constitutes generally accepted investment theories. Source: Investment Advisor.

FAQ on Service Provider E-Signature Option The DOL recently announced that service providers can, with proper authorization, use their own electronic filing credentials to execute a Form 5500 on behalf of their clients. This FAQ answers some of the questions about this option. Source: Sungard/Relius.SEC Adopts "Pay to Play" Restrictions The Securities and Exchange Commission voted unanimously to impose strict limitations on investments advisers engaging in the practice known as "pay to play." The new rule – proposed in July 2009 – relates to the practice of making campaign contributions to political figures who may be in a position to influence the hiring of money managers by public pension funds and "section 529" college savings plans. Source: Groom Law Group

SEC Proposes New Advertising Disclosure Requirements for Target-Date Funds The SEC has proposed new advertising and sales literature disclosure requirements for target-date funds. These proposed disclosure requirements are a reaction to concerns relating to shareholder understanding of the risks associated with, and the differences among, target-date funds. Source: Paul, Hastings, Janofsky & Walker LLP

For more information about custom retirement plan design and how Benefit Plans Plus can help make your business more successful visit www.bpp401k.com