BPP401k.com Newsletter February 1

How to Take Advantage of New 401(k) Fee Disclosures Workers can use this fee information to build a bigger nest egg and maybe even retire sooner. Source: US NEWS

It pays to understand your 401(k) plan fees Still think you don't pay anything for your 401(k) plan? This year you may find out differently. Employers that offer plans to workers will be required to disclose detailed information about the fees they pay vendors that invest and manage the money. Source: Chicago Tribune

IRS Gives Tips for Fixing Problems With Electronic Signatures for Form 5500s The electronic filing system will reject forms not properly signed, potentially resulting in penalties for the plan. In the latest issue of Employee Plans News, the IRS has described the process for validly e-signing Forms 5500 and 5500-SF and the steps to take in fixing problems with these electronic signatures. Source: CCH

A Primer on 401k Plan Design Alternatives Many times a plan sponsor doesn't want to adopt a "standard" 401k plan design because they have different business objectives. Here are some plan design alternatives. Source: Plan Design Consultants

RIA's: Think About Compliance Before Sending or Posting Those Articles You Read To avoid compliance problems, RIAs should become familiar with the SEC's recent guidance related to the use of social media. RIAs' policies and procedures often do not address whether social networking is permitted for business purposes or specify the restrictions on using it. Source: RIAbiz.com

2012 Hot Topics in Retirement Aon Hewitt surveyed more than 500 U.S. employers, representing over 12 million employees, to determine their current and future retirement benefits strategy. The survey explored their focus and expected actions regarding the design, management and delivery of their retirement programs. Source: Aon Hewitt

Five HR Imperatives for 2012 As an HR professional, you might have welcomed the new year with the best of intentions, resolving to make meaningful changes at work. This article focuses on five critical business goals you can aim for, along with some suggestions on how to achieve them. Source: Ceridian

Six Critical Trends for Retirement Plans in 2012 Lincoln Trust Co. released a report on six "mega trends" that would affect the retirement plan industry in 2012. These trends focus largely on upcoming regulatory changes, but also include wider industry changes. Source: Advisorone.com

Fee Disclosure Overview for Plan Sponsors and Their Advisors This year the Department of Labor is implementing two new regulations regarding fees and fee transparency for retirement plans. This is a summary of the provisions of the new regulations and how plan sponsors and participants will be affected. Source: Sentinel Group

Plan Sponsors Lack Knowledge of Revenue-Sharing Fees Defined contribution retirement plan sponsors are not fully knowledgeable on fee issues, including the complicated process known as revenue sharing -- the behind-the-scenes transfer of revenue from investment funds to the plan recordkeeper as an incentive to include the fund on the plan's investment menu. Source: Society for Human Resource Management

Shielding Plan Fiduciaries From Participants' Investment Losses If a company chooses not to be a 404(c) protected retirement plan, plan fiduciaries could be held professionally and personally liable for every investment decision and all the losses each employee makes in his or her 403(b), 401k or other defined contribution plan. To take advantage of ERISA section 404(c) protection, the plan must satisfy three categories of requirements. Source: The Agbay Group

What Plan Fiduciaries Can Expect With the 404(a)(5) Disclosures Covers the participant level disclosure regulations, the labyrinth of temporary rules that permit participant level disclosure to be made electronically, and the expected consequences. Source: Broadridge

Benchmarking: The Key to a 401k Plan Sponsor's Fiduciary Compliance Review Benchmarking is the key component of any 401k plan sponsors fiduciary compliance review. Knowing how one's 401k plan stacks up against one's peer certainly places the plan sponsor on the road to fiduciary diligence. Source: Fiduciarynews.com

Don't Let Your Plan Become an Orphan When talking about mergers, acquisitions and maybe even liquidations, retirement plans can sometimes get lost in the shuffle. Asset purchases that result in the liquidation of the seller company, or acquisitions of assets by buyers, can create problems over legacy retirement plans. These "orphan" plans just don't disappear and they have to be dealt with properly. Source: Fox Rothschild LLP

ICI Surveys Show Americans Committed to Saving, Confident in 401k System - Summary: As U.S. policymakers consider tax policy and how to resolve federal budget deficits, more than eight in 10 U.S. households believe the current tax incentives to encourage retirement saving should be preserved, according to new research released today by the Investment Company Institute. Source: 401khelpcenter.com

America's Commitment to Retirement Security: Investor Attitudes and Actions - Summary: This survey polled respondents about their views on DC retirement plan saving and their confidence in 401k and other DC plan accounts. Survey responses indicated that households value the discipline and investment opportunity that 401k plans represent and that households were largely opposed to changing the tax preferences or investment control in those accounts. Source: Investment Company Institute

Majority of Plan Participants Lost on Retirement Planning, Seek Direction From Employers A survey released today by State Street Global Advisors suggests that employees around the country are in need of direct, simple guidance to help them reach their retirement goals. Source: 401khelpcenter.com

Personal Financial Stress Affecting Employee Retirement Savings A survey of employer-sponsored financial education initiatives shows that U.S. workers' money worries are impacting their work performance and retirement savings plans. Source: 401khelpcenter.com

Survey Finds Employers Doubtful About Workers Ability to Adequately Prepare for Retirement As the economy continues to falter, employers have become increasingly reticent about their employees' ability to successfully save for retirement, according to a new survey by Aon Hewitt. In response, employers are embracing innovative solutions to help rethink their retirement benefits plan strategies and assist their employees in better preparing for retirement. Source: 401khelpcenter.com

Reminder of Annual Requirements for Investment Managers This 13 page document is a summary of the primary annual or periodic compliance-related requirements or best-practice obligations that may apply to many Investment Managers. Source: Winston & Strawn LLP

Capturing Rollovers This article examines statements made by the DOL regarding distributions and rollovers from qualified plans to IRAs. Fred Reish is advising RIA and broker-dealer clients on how to structure their rollover programs in light of this guidance, and it is important for advisers to understand the DOL's views on this significant issue. Source: Drinker Biddle & Reath LLP

FINRA Provides Guidance on Application of Communications Rules to Disclosures Required by the DOL FINRA is providing this guidance to firms on the application of NASD Rules 2210 and 2211 to information provided by a firm to participant-directed individual account plan participants pursuant to U.S. Department of Labor Rule 404a-5 under ERISA. Source: FINRA

Developing a Sustainable Business and Succession Plan: An Independent Advisor's Guide This guidebook examines the critical elements of business and succession plans. Includes: Key Elements of an Advisory Firm's Business Plan, Succession Plan Options for Owners, Mitigating Risk and Protecting Owner's Equity, and Resources Available to Advisors. Source: Registeredrep.com

Low-Cost Entries Shake Up Small Retirement Plan Market Low-cost plans are cropping up, as new federal regulations kicking in this year call for greater disclosure of fee information to plan participants and sponsors. Source: Reuters

A Look at Case Law for Important Plan Documentation Reminders Two important cases provide good reminders to plan fiduciaries about (1) the importance of documentation of fiduciary processes, and (2) accurate communication of plan design changes to participants and beneficiaries. Source: Ice Miller

ERISA Claim Based on Wal-Mart Gender Discrimination Dismissed The A federal court dismissed a claim that Wal-Mart Stores breached its fiduciary duties in underpaying retirement plan contributions based on wages that were discriminatory against women. Source: Plansponsor.com

Citigroup ERISA Litigation: Has the Death Knell Sounded for Stock Drop Cases? - Summary: Following the spectacular collapse of Enron in 2001, a cottage litigation industry was created in which a handful of plaintiffs' firms now routinely rush to bring ERISA class actions whenever a pension plan invests in the stock of the corporate sponsor and the stock price declines significantly. Source: Metropolitan Corporate Counsel

Numerous Changes Have Been Made to Determination Letter Procedures The IRS has issued revised procedures for issuing determination letters on the qualified status of pension, profit-sharing, stock bonus, annuity, and ESOPs, and the status for exemption of any related trusts or custodial accounts. Revisions have been made throughout the revenue procedure. Source: CCH

Labor Department Offers Guidance on Electronic Disclosure Last month, the DOL published Technical Release 2011-03R, which describes when and how electronic delivery can be used to fulfill a plan administrator's disclosure obligations under the Regulation. This article reviews the options available to plan administrators under the Release. Source: McGuireWoods LLP

Employee Plan Determination Letter User Fees Stable in 2012 The IRS has updated its user fee schedule, generally effective February 1, 2012, for requests for various types of employee plan letter rulings and determination letters, and other matters under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division. The employee plan user fees for determination letters are generally the same as last year's fees. Source: CCH

Recent Developments Affect Puerto Rico Retirement Plans Employers with employees in Puerto Rico should be aware of three recent developments affecting Puerto Rico retirement plans. Source: Buck Consultants

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