Best of Both Worlds? Combined Pension/401k Plan - Summary: The vulnerabilities of the 401k plan have cast doubt on whether a voluntary savings plan is the best way for workers to prepare for retirement. There are some possible alternatives coming, however, that might just catch on. One that may become available in January offers a guaranteed pension-like retirement benefit alongside a 401k. Located at: Google, November 2009. Click on headline for full article.

Employers Strike Out Supporting Employee's Needs on 401k Plans - Summary: One in five employees indicate they are dissatisfied with the current support they receive from their employer on 401k plan, according to a new national study released this week. Located at: 401khelpcenter.com, November 2009. Click on headline for full article.

403(b) Prototype Likely to Allow for Vesting Schedules - Summary: The Internal Revenue Service is reportedly working on a final revenue procedure for Section 403(b) prototype plans that takes into account comments received including allowing for vesting of employer contributions. Located at: Planadviser.com, November 2009. Click on headline for full article.

An Interview with Fred Reish - Summary: Fred Reish is a shareholder of the law firm of Reish & Reicher. He specializes in employee benefits law and has been engaged to serve as an expert witness in state courts, federal courts and FINRA arbitration proceedings involving issues as diverse as fiduciary liability, fiduciary status of advisers, prohibited transactions and plan interpretation. Located at: Brightscope.com, November 2009. Click on headline for full article.

America's 50-Somethings in a State of Denial When it Comes to Retirement Savings - Summary: When it comes to their retirement, America's 50-somethings seem to be in a state of denial. Although the recent economic downturn has forced pre-retirees ages 50 to 59 to consider working years longer than they had hoped, their current rate of savings is unlikely to fund the retirement lifestyles they expect, according to fifth annual Retirement Fitness Survey from Wells Fargo & Company. Located at: 401khelpcenter.com, November 2009. Click on headline for full article.

Towers Perrin Retirement and Executive Compensation Legislative Tracking Chart - Summary: 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 to retirement and executive compensation. Located at: Towers Perrin , November 2009. Click on headline for full article.

401k Plans Making Comeback - Summary: Most investors with a 401k retirement plan or its virtual twin, the 403(b), have shown nice gains since spring. Nationally, the average account balance for 401k participants ages 25 to 34 who have been with their employer for one to four years, rose 28.3 percent from March 9 to Oct. 27. Located at: Inforum.com (free registration may be required), November 2009. Click on headline for full article.

Half of Laid-Off Workers Raid 401ks - Summary: Almost half of laid-off workers succumbed to the temptation of spending their retirement stash last year. Some 46 percent of retirement savers who left their job in 2008 cashed out their 401k, according to a new Hewitt Associates study of 170,000 401k participants who terminated employment last year. Located at: U.S. News & World Report, November 2009. Click on headline for full article.

Service Requirements for Joining 401k Easing - Summary: Employers are improving access to their 401k plans, according to a survey released Wednesday. Located at: Businessinsurance.com, November 2009. Click on headline for full article.

Retirement Plan Participation Showed Small Declines in 2008 - Summary: Participation in employment-based retirement plans decreased by small amounts for most categories of workers in 2008, but those with the strongest connection to the work force experienced the smallest decline: 0.5 percentage point, according to a study released today by the nonpartisan Employee Benefit Research Institute. Located at: Employee Benefit Research Institute , November 2009. Click on headline for full article.

401k Asset Allocation and Participant Age in 2008 - Summary: The latest update of the EBRI/ICI 401k database shows that at year-end 2008, as in previous years, participants’ asset allocation varied considerably with age. Located at: Employee Benefit Research Institute , November 2009. Click on headline for full article.

Financial Services Committee Approves Investor Protection Act - Summary: The House Financial Services Committee passed H.R. 3817, the Investor Protection Act, by a vote of 41-28. The legislation is part of a broader effort to modernize America’s financial regulatory system. Located at: House Financial Services Committee, November 2009. Click on headline for full article.

Automation, Low-Cost Investment Options and Investment Advice Becoming Standard Features in 401k Plans - Summary: A new survey by Hewitt Associates shows employers continue to design their 401k plans in a way that encourages positive saving and investing behaviors and helps employees meet their increasing retirement income needs. Located at: 401khelpcenter.com, November 2009. Click on headline for full article.

Drastic 401k Reform Unlikely, Expert Says - Summary: Within the past year or so, a major overhaul of the 401k system has seemed quite possible. But such calls have not won over the bulk of Democratic lawmakers or President Obama, a legal expert says. Located at: Workforce.com (free registration may be required), November 2009. Click on headline for full article.

Putnam CEO Calls for 2010 to Be the Year of Retirement Reform - Summary: While 2009 has been the year of healthcare reform in Washington, Putnam Investments President and Chief Executive Officer Robert L. Reynolds called for 2010 to be the year when major retirement reform is finally enacted to make possible a new generation of workplace savings plans that generate more dependable sources of lifetime income. Located at: 401khelpcenter.com, November 2009. Click on headline for full article.

Fiduciary Debate Lands at Supreme Court - Summary: The debate over investment advisors’ fiduciary duty has made it all the way to the Supreme Court. On Monday, November 2, Supreme Court Justices heard oral arguments from lawyers for three investors who claimed that Harris Associates of Chicago, the investment advisor for the Oakmark family of mutual funds, charged them higher fees for similar services than it did to independent institutional investors such as pension funds. Located at: Investmentadvisor.com, November 2009. Click on headline for full article.

Target-Date Funds Survey - Summary: This is the published reults of a recent survey conducted be PSCA on target-date funds. PSCA received 397 responses from plan sponsors. 54.8 percent of responding companies have more than 1,000 participants. Located at: Profit Sharing/401k Council of America , November 2009. Click on headline for full article.

IRS Retirement and Savings Initiatives - Summary: In a recent flurry of activity, the Internal Revenue Service has issued a series of notices and revenue rulings designed to promote retirement savings and address technical issues related to certain plan distributions. Located at: Dechert LLP , November 2009. Click on headline for full article.

Fiduciary Issues for 403(b)s - Summary: At a working lunch sponsored by Cammack LaRhette Consulting, Fred Reish of the law firm Reish & Reicher said the focus in the 403(b) plan space is shifting to the results the plans are producing. Located at: Plansponsor.com (free registration may be required), November 2009. Click on headline for full article.

Auto-Enrollment Increases; Other Plan Features Stay Steady - Summary: The recent economic turmoil brought great change to the markets, but a recent survey by a defined contribution plan consultant indicates most of its clients and prospects came through the ordeal without undergoing enormous alterations to their retirement plans. Located at: Planadviser.com, November 2009. Click on headline for full article.

COMMENTARY: DC and DB Plans - Nothing is Risk Free - Summary: DC plans, like the 401k and DB pension plans, are like apples and oranges, both good for you but very different. Both types of plans have risks for participants. The primary difference is that in a DC plan individuals can take action to manage those risks and react to changing conditions. In DB plans individuals are subject to risks over which they have no control. Located at: Profit Sharing/401k Council of America, November 2009. Click on headline for full article.

Does Your Qualified Retirement Plan Need to Be Amended This Year? - Summary: This advisory is to remind plan sponsors of deadlines for amending qualified retirement plans. Some amendments must be completed by December 31, 2009. Others must be completed by January 31, 2010. Still others must be completed by the deadline for filing the plan sponsor’s 2009 tax return. This advisory identifies those plans that must be amended now or in the near future. Located at: Alston & Bird LLP , November 2009. Click on headline for full article.

Target-Date Retirement Funds: The New Defined Contribution Battleground - Summary: Defined contribution schemes already are driving the innovations required for a second generation of target-date funds, one that addresses some of the faults revealed by the bear market. Plan sponsors are leading this product development, which not only will favor entirely new types of vendors, but also will reshape the defined contribution marketplace. Located at: Casey, Quirk & Associates , November 2009. Click on headline for full article.

Justices Seem Unwilling to Get Involved in Mutual Fund Fees - Summary: Several Supreme Court justices seemed unsympathetic to calls for the courts to get involved in reining in what investors are calling "excessive" fees on mutual funds. Located at: Google.com, November 2009. Click on headline for full article.

Supreme Court Considers Mutual Fund Fees - Summary: In an era of rebellion against Wall Street pay, the Supreme Court hears arguments in a case testing whether some mutual funds are charging excessive fees. Located at: National Public Radio, November 2009. Click on headline for full article.

COMMENTARY: Wish List for Better 401k - Summary: The author writes, "...I'm not in the camp who believe we should chuck the 401k completely. Here is my wish list for an improved 401k." Located at: Minneapolis Star Tribune, November 2009. Click on headline for full article.

Solo 401k Offers Big Tax Savings For Self-Employed - Summary: How would you like to put away almost $50,000 in your own 401k plan? Well, if you're self-employed, you should check out the solo 401k. It provides opportunities for large retirement plan contributions, and there's still time to open one for 2009.How would you like to put away almost $50,000 in your own 401k plan? Well, if you're self-employed, you should check out the solo 401k. It provides opportunities for large retirement plan contributions, and there's still time to open one for 2009. Located at: CBS Money Watch, November 2009. Click on headline for full article.

401k's Getting Little Respect, at Least for Now - Summary: In light of recent downturns, some financial experts have declared that 401k's are a poor way to save for retirement, partly because market volatility can make them so vulnerable. Located at: New York Times, November 2009. Click on headline for full article.

Companies Start to Phase Back in Matching on 401k - Summary: One of the easiest ways for companies to cut costs during the height of the recent recession was to reduce or eliminate the matching contribution that they provided to their employees' 401k or other retirement plans. But there is growing evidence that many companies are resuming their 401k matching. Located at: San Diego Daily Transcript, October 2009*. Click on headline for full article.

COMMENTARY: Five Concerns About Target-Date Funds - Summary: Over the past several months, target-date mutual funds have been increasingly scrutinized for their losses, raising questions about the transparency and suitability of these ostensibly safe investments. Morningstar's vice president of research John Rekenthaler testified Wednesday before the Senate Special Committee on Aging about this issue. The text of his testimony. Located at: Morningstar.com, October 2009. Click on headline for full article.

Target-Date Fund Liquidations Double From Full-Year-2008 Levels - Summary: There have already been more than double the number of target date fund liquidations so far this year than there were in all of 2008. Moreover, experts predict that trend to increase as smaller fund managers are finding it nearly impossible to gain traction in the market. Located at: Investmentnews.com (free registration may be required), October 2009. Click on headline for full article.

SEC Will Begin Scrutinize Risks Related to Retirement Products - Summary: Responsibility for identifying potential risks related to investing in retirement investment products will fall primarily on the SEC's newly formed division of risk, strategy and financial innovation. That unit, which was formed last month, combined the agency's office of economic analysis and its risk assessment division. Located at: Workforce.com (free registration may be required), October 2009. Click on headline for full article.

Defined Benefit 401ks Set to Make Their Debut - Summary: Why haven't you heard more about the DB/401k? The authority for this new plan, which becomes available on Jan. 1, 2010, was buried deep within the massive Pension Protection Act of 2006. But interest in DB/401ks is expected to heat up during the coming year. Located at: Accountingweb.com, October 2009. Click on headline for full article.

Four 401k Options to Consider When Job Changes - Summary: If you're facing a job change or you've lost your job and are wondering what to do with the money in your 401k account, there are generally four options. Located at: New York Times, October 2009. Click on headline for full article.

COMMENTARY: The 401k: Don't Believe the Hype - Summary: The author writes, "If someone made me America's personal-finance dictator, I'd scrap the 401k. These workplace retirement plans are inequitable, as some companies offer good ones, some bad ones and others none at all. Fees are often too high. And even the better plans often don't provide enough investment options." Located at: Nightly Business Report Blog, October 2009. Click on headline for full article.

Senate Aging Committee on Target-Date Funds - Summary: Video and written testimony of the Senate Special Committee on Aging's October 28, 2009, hearing on the use of target-date funds. Located at: Aging.Senate.gov, October 2009. Click on headline for full article.

NAIRPA Comments to Senate Aging Committee on Target-Date Funds - Summary: The National Association of Independent Retirement Plan Advisors submitted these comments for the record to the Senate Special Committee on Aging's hearing entitled, "Default Nation: Are 401k Target-Date Funds Missing the Mark?" Located at: ASPPA , October 2009. Click on headline for full article.

DOL Official Testifies Before Senate Aging Committee on Target-Date Funds - Summary: Overview of testimony by Phyllis C. Borzi, assistant secretary of labor for the DOLs Employee Benefits Security Administration, before the Senate Special Committee on Aging on the use of target-date funds as investment options for 401k-type plans. Located at: US Department of Labor, October 2009. Click on headline for full article.

Increasing Litigation Against Advisers - Summary: There are straightforward steps that can substantially reduce an adviser's exposure to liability. This article covers some basic steps as a good starting point. Located at: Reish & Reicher, October 2009. Click on headline for full article.

Fiduciary Liability Insurance vs. ERISA Fidelity Bonds – What's the Difference? - Summary: This article addresses an issue that every plan sponsor should consider whether they have ever been sued or not. Specifically, the author talks about the issue of insurance, and more particularly, the distinction between fidelity bonds and fiduciary liability insurance. Located at: Reish & Reicher, October 2009. Click on headline for full article.

Increasing Number of Employers Plan to Reverse Reductions of 401k Match - Summary: Watson Wyatt reported that a recent survey found that an increasing number of employers are planning to reverse reductions to 401k match contributions. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

Effects of the 401k Fair Disclosure and Pension Security Act - Summary: This article from the New York Law Journal discusses how employers providing 401k plans to their employees will be affected by the 401k Fair Disclosure and Pension Security Act of 2009 in the realm of fee disclosure. Located at: Patterson Belknap Webb & Tyler LLP , October 2009. Click on headline for full article.

Nearly Half of Employees Cash Out Their 401k Accounts When Leaving Their Jobs - Summary: Increased efforts to caution Americans about the negative financial consequences of cashing out their 401k plans have had little impact in changing their behavior over the past few years, according to a new study by Hewitt Associates. In fact, the number of workers who took a cash distribution from their 401k plan when they left their job was alarmingly high-46 percent-and has remained virtually unchanged since 2005. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

What Sponsors and Advisors Should Know About Retirement Plans - Summary: According to a 2007 U.S. Labor Dept. survey, 68% of small business owners feel unprepared for retirement and just 42% maintain a retirement plan. Here are four frequently overlooked tips about retirement plans for plan sponsors and their advisors. Located at: Businessweek.com, October 2009. Click on headline for full article.

EBSA Webcast to Address Form 5500 Issues - Summary: Plan sponsors (and "plan professionals," including advisers) looking to bone up on the new Form 5500 will have another chance to do so online. Located at: Planadviser.com, October 2009. Click on headline for full article.

More Americans Plan to Delay Retirement - Summary: More Americans plan to delay retirement following steep drops in the value of their savings accounts, data from several new surveys show. Located at: Reuters, October 2009. Click on headline for full article.

National Retirement Risk Index: 51 Percent Now "At Risk" for Retirement - Summary: The updated National Retirement Risk Index includes assumptions accounting for the economic turmoil. It finds that 51 percent of Americans are not prepared to retire at age 65 compared to 44 percent in 2007. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

The National Retirement Risk Index: After the Crash - Summary: A new update of the National Retirement Risk Index quantifies the impact of the recession of 2008 and 2009 on retirement readiness for households across the United States. The Center for Retirement Research at Boston College released this update of the NRRI that shows a seven percentage-point drop in the share of households that are positioned to maintain their current standard of living in retirement. Located at: Center for Retirement Research at Boston College , October 2009. Click on headline for full article.

Interpretive Issue under Notice 2009-68 – Partial Rollovers - Summary: The American Benefits Council is writing to urge the Internal Revenue Service to clarify the treatment of a partial rollover to an IRA of a distribution from a tax-preferred employer plan that includes after-tax contributions. Located at: American Benefits Council , October 2009. Click on headline for full article.

New Data Reveals Increase in 401k Plan Participation - Summary: Charles Schwab released new data showing the number of workers participating in 401k plans increased even as the stock market declined and the economy weakened. In addition, most 401k plan participants continued to receive matching contributions from their employer. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

MassMutual's Plan Data Shows Participants 'Highly Engaged' - Summary: MassMutual's Retirement Services Division released data indicating that participants in retirement plans administered by MassMutual are highly engaged in planning and saving for retirement. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

Automatic Enrollment Shows Promise for Some Workers; Other Workers Could Face Challenges - Summary: Because of questions about the extent of retirement savings and prospects for a sound retirement for all Americans, GAO was asked to determine (1) what is known about the effect of automatic enrollment policies among the nation's 401k plans, and the extent of and future prospect for such policies; and (2) the potential benefits and limitations of automatic IRA proposals and state-assisted retirement savings proposals. To answer these questions, GAO reviewed available reports and data, and interviewed plan sponsors, industry groups, investment professionals, and relevant federal agencies. Located at: GAO , October 2009. Click on headline for full article.

Survey Reveals Healthcare Retirement Plans Are Being Redesigned in a Dynamic Market - Summary: Market volatility and regulatory requirements were the driving forces behind healthcare retirement plan sponsors' actions in 2009. According to a just-released survey of healthcare employers, more than one-third (37%) said that implementing a new fiduciary process associated with the new 403(b) regulations that went into effect earlier this year was their primary challenge. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

Senate to Address Conflicts in Proprietary Target Funds - Summary: Insiders say that the Senate Special Committee on Aging hearings Wednesday will focus on the potential for conflict of interest within proprietary target date funds. Located at: Investmentnews.com (free registration may be required), October 2009. Click on headline for full article.

Most 401k Investors Don't Read Investment Information - Summary: Two-thirds of 401k participants don't read investment information provided by their plan executives -- a surprising finding given the calls by some legislators for DC plan executives and money managers to provide participants with more fee disclosure and financial information. Located at: Investmentnews.com (free registration may be required), October 2009. Click on headline for full article.

Industry Rails Against Claims the 401k Should be Retired - Summary: Providers of 401k plans have lambasted a critical article published October 9 in Time magazine denouncing the 401k system. Located at: Investmentnews.com (free registration may be required), October 2009. Click on headline for full article.

Supplemental FAQs About the 2009 Schedule C - Summary: The U.S. Department of Labor released this additional guidance to help plan administrators and service providers comply with the expanded requirements for reporting service provider fee and compensation information on the Form 5500 Annual Returns/Reports. Located at: Department of Labor, October 2009. Click on headline for full article.

Target Date Funds a "Particular Focus" for SEC - Summary: The Securities and Exchange Commission is taking a hard look at retirement products, including the positioning of target date funds. Located at: Planadviser.com, October 2009. Click on headline for full article.

COMMENTARY: 401k Performance: The Numbers Add Up - Summary: Even with little more than a single year's time in between us and the beginning of the financial crisis, the author can't see what supports the notion that balanced investing "doesn't work" or that the 401k system is dangerously broken. Located at: Vanguard Blog, October 2009. Click on headline for full article.

403(b) Plans and EFAST2 - Summary: This article focuses on how EFAST2 will affect the Form 5500 filing requirements for 403(b) plans. In addition, the article discusses the DOL's changes to the Form 5500 filing requirements for 403(b) plans. Located at: Sungard/Relius, October 2009. Click on headline for full article.

Should You Use Your 401k to Buy an Annuity? - Summary: If a plan offers any of the three guaranteed-income solutions -– the option to annuitize at retirement, the ability to purchase annuity shares with each paycheck or invest in a mutual fund with an income guarantee -– you should make sure it's the right solution for you. Article covers three important questions to ask. Located at: Smartmoney.com, October 2009. Click on headline for full article.

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