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.

Many Americans Are Not Financially or Emotionally Prepared for Retirement - Summary: Almost four in 10 Americans are not currently saving for retirement and, despite market losses, six in 10 Americans have not adjusted their thinking about what age they will retire, according to a survey by Charles Schwab. Located at: 401khelpcenter.com, June 2009. 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 , June 2009. Click on headline for full article.

Default, Framing and Spillover Effects: The Case of Lifecycle Funds in 401k Plans - Summary: 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), June 2009. 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 , June 2009. Click on headline for full article.

Economy Not Putting Pressure on Small Biz Ability to Offer 401k - Summary: According to a Nationwide Financial Services survey released today, most small businesses don't think the economy will impact their ability to offer a 401k retirement plan. Located at: 401khelpcenter.com, June 2009. 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, June 2009. Click on headline for full article.

Study Shows 401k Participants' Continued Resilience During Volatile First Quarter of 2009 - Summary: 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, June 2009. Click on headline for full article.

401k Plans Eye Annuities With Caution - Summary: Given the stock market's volatility, a number of plan sponsors are seriously discussing adding an annuity option to their 401k plans. Located at: Workforce.com (free registration may be required), June 2009*. Click on headline for full article.

401k Fees Showdown - Summary: Although courts have sided with 401k plan sponsors in lawsuits over plan costs and revenue sharing, the government is preparing to pounce. Located at: Treasuryandrisk.com, June 2009. Click on headline for full article.

Responding to Participant Requests for Information - Summary: The Employee Retirement Income Security Act of 1974 regulates how employers respond to requests for plan-related information by participants and beneficiaries. No request for information should be taken lightly. Located at: Reish & Reicher, June 2009. Click on headline for full article.

RIAs: Fiduciaries for What? - Summary: Fred Reish writes that, "...advisers need to be prepared for the high cost of litigation. Of course, fiduciary liability insurance is one way to do that. As a word of warning, don't rely on your malpractice, or errors and omissions, insurance to guard you against fiduciary breaches. Most have specific exclusions from fiduciary coverage." Located at: Reish & Reicher, June 2009. Click on headline for full article.

Post-Modern Asset Management: The Credit Crisis and Beyond - Summary: This brief collection of articles produced by investment professionals at J.P. Morgan Asset Management is an effort to inform individual and institutional investors on the lessons of the credit crisis with thoughts on the likely consequences for investment management. Located at: JP Morgan , June 2009. Click on headline for full article.

Surveys Relating to ERISA Fiduciary Performance and Litigation - Summary: This article is a list of surveys which contain some great information about how retirement plan fiduciaries are doing and the risks that they are facing. Located at: Fiduciary Guide Book Blog, June 2009. Click on headline for full article.

Behavioral Economics Can Increase Plan Participation - Summary: There is much employers can learn from the three principles of behavioral economics -- loss aversion, social norms and hyperbolic discounting (aka procrastination) -- when it comes to employee health care. And it also applies to retirement plans. Located at: Employee Benefit News (free registration may be required), June 2009. Click on headline for full article.

SECs and DOLs Cross Agency Waltz - Summary: The SEC showing an increasing interest in all retirement plans and a "commonality of interests" with the DOL on things like disclosure and advice. Located at: Business of Benefits , June 2009. Click on headline for full article.

Leaving 401k Money With Former Employer Could Protect Savings - Summary: If you've been fielding irate calls or notices from creditors, or worry about the impact of a creditor judgment from medical bills or a lawsuit on your retirement account, you could be better off leaving your 401k with your former employer. Located at: Wall Street Journal Online, June 2009. Click on headline for full article.

Target-Date Funds: A Favorite of Hands-Off Investors - Summary: Target-date funds have been under fire ever since they took a drubbing in last year's market plunge. Workers near retirement were devastated to find that their funds had far more exposure to the stock market than they thought and suffered steep losses. Despite the uproar, target-date funds remain a good option for many workers. Located at: Baltimore Sun, June 2009. Click on headline for full article.

Can 401k Plans Provide Adequate Retirement Resources? - Summary: This paper illustrates that moderate 401k contribution rates can lead to adequate income replacement rates in retirement for many workers; that adequate asset accumulation can be achieved using only a 401k plan; and that these results do not rely on earning an investment premium on risky assets. Located at: Pension Research Council at The Wharton School (free registration may be required), June 2009. Click on headline for full article.

Key Issues 401k Plan Fiduciaries Need to Know - Summary: This is an outline of some of the issues that plan fiduciaries must consider in selecting and monitoring investment options and the costs associated with the management of plan investments. Located at: Kelley Drye & Warren LLP , June 2009. Click on headline for full article.

Bolster Employee Retirement Benefits by Making Statements Comprehensible - Summary: Participants who open and read their 401k statements, almost three-fourths (72%) took less than three minutes to consume and process information that many individuals readily admit they do not understand. Article suggests some solutions. Located at: Employee Benefit News (free registration may be required), June 2009. Click on headline for full article.

Delegation for Plan Sponsors (Part 3) - Summary: In this article, the author will describe in some detail how it's possible to insulate the sponsor of a qualified retirement plan from virtually all day-to-day fiduciary investment risk as well as operational/administrative risk to which they would otherwise be subject in the act of sponsoring the plan. Located at: Morningstar.com, June 2009. Click on headline for full article.

Target-Date Funds Under the Microscope - Summary: Target-date funds, once considered the be-all, end-all mutual-fund product for investors who don't have the time or inclination to build their own retirement portfolios, are about to be scrutinized by federal regulators. Located at: Marketwatch.com, June 2009. Click on headline for full article.

Cutting Through Retirement Myths and Misinformation - Summary: Dallas Salisbury, president of the Employee Benefit Research Institute, has long been a go-to numbers guy for anyone writing about retirement issues. He urges reporters to use data to knock down myths and cut through political rhetoric. Located at: St. Louis Post-Dispatch, June 2009. Click on headline for full article.

Does Your 401k Need an Annuity? - Summary: Several firms have introduced a new type of 401k plan that combines elements of traditional pensions and 401k accounts. Like pensions, they offer a deferred annuity to provide a guaranteed income throughout retirement. As a result, the new 401k plans allow you to essentially create a steady paycheck for your retirement. Located at: Mainstreet.com, June 2009. Click on headline for full article.

SEC Staff to Recommend Change for 12(b)-1 Fees - Summary: Rule governing mutual fund compensation is not well understood by investors, so SEC Commission Chairman Mary Schapiro has asked SEC staff to prepare a recommendation to change Rule 12(b)-1. Located at: Investment News (free registration may be required), June 2009. Click on headline for full article.

Older Worker Confidence in Retirement Security Drops Sharply - Summary: Older workers are much less confident about their retirement security than they were two years ago as a result of the financial crisis, according to a new survey by Watson Wyatt. Located at: 401khelpcenter.com, June 2009. Click on headline for full article.

SPARK Comments on Revenue Procedure for 403(b) Plans - Summary: In this comment letter, SPARK suggests changes and revisions to the draft language of the plan document and adoption agreement. Located at: Spark Institute , June 2009. Click on headline for full article.

ASPPA Comments on 403(b) Prototype Plan Program - Summary: Under Announcement 2009-34, the Internal Revenue Service announced its intention to establish a program for the pre-approval of prototype plans under §403(b) of the Internal Revenue Code. ASPPA provides their comments and recommendations in this letter. Located at: ASPPA , June 2009. Click on headline for full article.

COMMENTARY: Retirement Crisis: Real or Imagined? - Summary: Are American workers going to be financially ready to retire? Two recent articles posed different answers to this question. Who is right? Located at: Examiner.com, June 2009. Click on headline for full article.

Is the 401k a Good Deal for America's Workers? - Summary: Some believe the 401k system can be reformed to encourage workers to invest more and protect them from market swings. Other experts have suggested a hybrid system that would put workers into government-sponsored purchasing pools, in which investors would benefit from lower fees and more professional management. Located at: National Public Radio, June 2009. Click on headline for full article.

Industry Opposes Mandatory Index Funds in 401k Plans - Summary: While index funds already have a place in the lineup of most 401k plans, a proposed federal mandate to require at least one index fund option in these plans is intrusive and unnecessary, according to industry experts. Located at: Financial-Planning.com, June 2009. Click on headline for full article.

New Evidence on 401k Borrowing and Household Balance Sheets - Summary: This working paper posits that households might utilize 401k loans less than expected due to risk-aversion, self-control problems, and confusion about the potential gains, and suggest better financial education that clarifies the conditions under which 401k borrowing is advantageous. Finally, it suggests that allowing households to repay 401k loans gradually even after separation from their employers could improve household welfare by reducing the risks of 401k borrowing. Located at: Federal Reserve Board, June 2009. Click on headline for full article.

Rethinking Conventional Wisdom About 401k Loans - Summary: Americans could save as much as $5 billion a year -- or $275 per household -- by borrowing from their 401k retirement accounts instead of more costly consumer loans, Federal Reserve economists Geng Li and Paul A. Smith conclude in a recent Fed working paper. Located at: Wall Street Journal, June 2009. Click on headline for full article.

Court Finds 401k Loan Not a "Necessary Expense" - Summary: The repayment of a 401k loan may be a real debt obligation, but it's not a "necessary expense" for bankruptcy purposes, according to a recent court decision. Located at: Planadviser.com, June 2009. Click on headline for full article.

The Burden of Good Intentions: Opportunities and Challenges for Target-Date Funds - Summary: Target-date funds may have the potential to become the preferred retirement investment vehicle for defined contribution plan participants. However, much remains to be done to see that they live up to this promise. Recent research shows that there are a number of significant challenges that may impact the continued viability and growth of target-date funds, from broad participant misuse and misunderstanding, to a lack of comprehensive education and fund due diligence on the part of plan sponsors. This paper summarizes the key findings of the research. Located at: Janus Capital Group (free registration may be required), June 2009. Click on headline for full article.

Towers Perrin Legislative Tracking Chart - Summary: This chart tracks bills related to retirement and executive compensation. Thousands of bills are introduced in Congress but only a select few are summarized on this chart. This selection represents Towers Perrin's best judgment on the likelihood of enactment and the relevance of the issue for employers. Located at: Towers Perrin , June 2009. Click on headline for full article.

Target-Date Glide Paths Should Match Plan Demographics - Summary: A study by the Employee Benefit Research Institute (EBRI) found plan demographics affect individual participant contribution rates and target-date fund investment choices by participants. Located at: Planadviser.com, June 2009. Click on headline for full article.

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