Checking the Right Box, Insight Into IRS Audits - Summary: The Internal Revenue Service recently published an updated list of common plan mistakes found during the agency’s Employee Plans Team Audits and an internal controls questionnaire used by EPTA auditors. This is an overview of the material. Located at: Employee Benefit News (free registration may be required), November 2009. Click on headline to read full article.

Relief on Contribution Changes Proposed for Safe Harbor 401k Plans - Summary: The Internal Revenue Service recently issued proposed regulations that may provide relief to plan sponsors that have been forced to look for ways to reduce costs by considering reducing or suspending employer contributions to their 401k plans. Located at: Employee Benefit Adviser (free registration may be required), November 2009. Click on headline to read full article.

Loans from 401k Plans: How Many, How Large? - Summary: The latest update of the EBRI/ICI database shows that, at year-end 2008, less than one-fifth of participants had loans from their 401k plan. The average loan balance was down at the end of 2008 compared with year-end 2007. Located at: Employee Benefit Research Institute , November 2009. Click on headline to read full article.

Labor Department Kills Bush Invest. Advice Rule - Summary: The Labor Department has officially killed a Bush administration rule that would have cleared the way for mutual fund companies to offer direct one-on-one invest. advice through their affiliates to defined contribution plan participants. Located at: Investmentnews.com (free registration may be required), November 2009. Click on headline to read full article.

Fidelity Reports Third Quarter 401k Trends - Summary: Fidelity Investments has made available 401k highlights of both employee and employer actions taken during the third quarter of 2009. The data is based on accounts of more than 11 million participants in the more than 17,000 corporate defined contribution plans that Fidelity recordkeeps. Located at: 401khelpcenter.com, November 2009. Click on headline to read full article.

Fiduciary Liabilities: Are You Covered? - Summary: With lawsuits piling up against pension plan sponsors, individual fiduciary would do well to protect themselves against financial risks, experts say. Located at: CFO.com, November 2009. Click on headline to read full article.

401k Plans Need to Reach Out to Minorities - Summary: In a recent Webinar, Mellody Hobson, president of Ariel Investments, said 401k plan sponsors should pay attention to the savings differences among minorities. Located at: Planadviser.com, November 2009. Click on headline to read full article.

Employee Benefits Costs Continue to Pressure Transportation CFOs - Summary: Nearly 69 percent of transportation CFOs and senior comptrollers responding to a survey by consulting firm Grant Thornton indicted that employee benefits — including health care and pensions — are putting the most pressure on their operating costs, emerging as a higher-visibility challenge even than energy costs and insurance costs, which were of concern to some 40 percent of respondents. Located at: Supply & Demand Chain Executive, November 2009. Click on headline to read full article.

EBSA Further Delays Invest. Advice Rule - Summary: The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) announced Monday that it is giving itself until May 17, 2010, to develop a new version of its final invest. advice rule. Located at: Planadviser.com, November 2009. Click on headline to read full article.

Notices to Plan Participants Due by December 1st - Summary: Congress has created a slew of new notices that must be given to all participants in defined contribution plans at least 30 days before the beginning of each plan year. As December 1, 2009, approaches, each sponsor of a defined contribution plan that uses a calendar plan year should make sure that it is prepared to send participants each of the notices that applies to its particular type of plan. Located at: Seyfarth Shaw LLP, November 2009. Click on headline to read full article.

2010 Regulatory Limits Poster and Compliance Calendar - Summary: This poster, compliments of Vanguard Strategic Retirement Consulting (SRC), is a convenient way to remind you of important regulatory limits and dates for retirement plans. SRC also has created a calendar that lists recurring compliance and notice requirements for qualified defined contribution plans. Located at: Vanguard Strategic Retirement Consulting, November 2009. Click on headline to read full article.

Keys to Effective Financial Education - Summary: Do financial education programs work? Plenty of well-informed people — from industry leaders to policymakers — are convinced you cannot turn a nation of consumers into a nation of intentional savers. But there is ample evidence for the opposite view. Located at: Financial-planning.com, November 2009. Click on headline to read full article.

401k Uptake Linked to Employer-Sponsored Education - Summary: What motivates employees to participate in and contribute to voluntary savings plans? According to a new study in Economic Inquiry, the answer lies in how regularly their company holds retirement seminars. Located at: 401khelpcenter.com, November 2009. Click on headline to read full article.

2009 End of Year Plan Sponsor "To Do" Lists - Summary: Seven "to do" lists that may require you to take action before the end of 2009 or in early 2010. Many of the action items are a result of the Pension Protection Act of 2006 and may require plan amendments. Located at: Snell & Wilmer LLP, November 2009. Click on headline to read full article.

Plan Action Required: IRS Issues Updated Safe Harbor Rollover Notices - Summary: The Internal Revenue Service recently issued (in IRS Notice 2009-68) two updated model rollover notices for use by plan administrators. The new notices update the previously issued "safe harbor" notices to reflect changes in the law and are written in a more reader-friendly manner to make it easier for recipients to understand. Located at: Patterson Belknap Webb & Tyler LLP , November 2009. Click on headline to read full article.

Required Minimum Distributions in 2009: What the IRS Forgot to Mention - Summary: This article provides the "simplest" approach to dealing with the temporary waiver of the required minimum distribution (RMD) rules and recent IRS guidance on the issue. Located at: BNA/Tax Management, November 2009. Click on headline to read full article.

One Way to Break Into the 401k Market - Summary: Mention 401k to financial advisers and most will say that they lack the knowledge, resources and time to compete with the relative handful of those who specialize in retirement plan sales. But you can turn this perceived weakness into a strength. Located at: Investmentnews.com (free registration may be required), November 2009. Click on headline to read full article.

403(b) Plan Compliance Checklist - Summary: This is a checklist to help determine if your ERISA-covered 403(b) plan is in compliance, and where your exposure may lie in the event of an audit. Located at: Diversified Investment Advisors , November 2009*. Click on headline to read full article.

Retirement-Product Moves Accompany Reform Drive - Summary: Financial services firms are urging Congress to adopt retirement savings reforms in the next few years and are readying products that could profit from them. Located at: Bank Investment Consultant, November 2009. Click on headline to read full article.

Retirement Income: The Axiomatic Case for Annuities - Summary: This is the second in a series of articles on the broad issue of retirement income. In this article JP Morgan lays out the "axiomatic" case for annuities as the investment instrument for providing retirement income. Located at: JP Morgan, November 2009. Click on headline to read full article.

Many Workers Will Outlive Retirement Savings - Summary: 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. Located at: Onwallstreet.com, November 2009. Click on headline to read full article.

The DOL Issues New FAQ on Credentials; EFAST2 - Summary: The article revisits the issue of filing signer credentials. The issue continues to provoke discussion among 5500 preparers because of their concerns regarding the employer's ability to navigate the process for obtaining filing signer credentials. Located at: Sungard/Relius, November 2009. Click on headline to read full article.

COMMENTARY: Broker-Dealers and Other Non-Fiduciaries as Fiduciaries? (Part 2) - Summary: The ultimate outcome of the great wrestling match among the executive and legislative branches of the federal government, and various powerful financial services interest groups as to whether broker-dealers will be turned into fiduciaries and, if so, what kind of fiduciary standard they will have to live up to is not yet known. Located at: Morningstar.com, November 2009. Click on headline to read full article.

COMMENTATY: Time to Focus on Target-Date Fund Reform - Summary: Rather than focusing on past deficiencies in target-date funds, the Senate Special Committee on Aging's recent hearing on the funds focused on how they can be turned around quickly. However, the hearings should serve as notice to all fiduciaries involved — retirement plan sponsors, investment advisers to the plans, fund managers and mutual fund boards — that they are perceived by regulators as the sources of problems with target-date funds and will be held accountable to fix them. Located at: Investmentnews.com (free registration may be required), November 2009. Click on headline to read full article.

Steady Investing Pays Off for Most With 401k - Summary: Nearly About 60 percent of all participants in 401k and other defined-contribution plans who continued to contribute throughout the two-year period ending in September 2009 had as much in their accounts—or more—as they did in September 2007, when the stock market was closing in on a historic high. Located at: AARP, November 2009. Click on headline to read full article.

Retirement is Biggest Investing Goal - Summary: Nearly 70% of men and women in a recent poll said they are in the markets as a way to save for their retirement, while about half of both genders said they are more generally trying to build a financial nest egg. Located at: Plansponsor.com (free registration may be required), November 2009. Click on headline to read full article.

Why Are Stocks So Risky? - Summary: This paper analyzes the risk in stocks, partitioning it into two components. The first reflects the growth of economic activity and corporate earnings. The second reflects the way investors value those earnings. This analysis finds that variations in business activity and profits – the first component – account for a relatively small share of the risk in stocks over holding periods as long as 10 years. Instead, variations in shareholders' valuation of earnings account for most of the volatility of returns. Located at: Center for Retirement Research at Boston College , November 2009. Click on headline to read full article.

Caterpillar Suit Could Lower 401k Fees - Summary: If a federal judge and independent fiduciary approve the deal the parties struck, Caterpillar will pay $16.5 million to settle the case. More importantly, it has agreed to make changes to its 401k plan that could potentially save employees millions of dollars. More important still, it may set a precedent for other companies to follow. Located at: Forbes, November 2009. Click on headline to read full article.

Approaching 403(b) Plan Document Deadline - Summary: Employers that allow employees to contribute to 403(b) plans and arrangements need to adopt a plan document by December 31, 2009 if they have not already done so. Those with a plan should contact their retirement providers to ensure their 403(b) plan documents comply with the plan document requirement and changes in the law. Located at: Dorsey & Whitney LLP, November 2009. Click on headline to read full article.

A Study of 401k Savings Disparities Across Racial and Ethnic Groups - Summary: Significant differences can be found across race and ethnicity in the way U.S. employees save and invest in their 401k plans, according to this study -- the largest, most comprehensive examination of 401k saving and investing behaviors of African-American, Hispanic, Asian and white employees. Located at: Ariel Investments , November 2009. Click on headline to read full article.

Texting Can Boost Participant Savings - Summary: A new study by a group of economists looking at why people save money found that sending out text reminders to participants' cell phones increased savings balances by 6%. Located at: Plansponsor.com (free registration may be required), November 2009. Click on headline to read full article.

An Update on 401k Plans: Insights from the 2007 Survey of Consumer Finance - Summary: Given the collapse of the financial markets and the economy, this paper uses the 2007 SCF data as a starting point in evaluating the condition of 401ks and the factors that affect participation and contributions, and relies on more recent data and estimates to paint a full and current picture. Located at: Center for Retirement Research at Boston College , November 2009. Click on headline to read full article.

Fees and Trading Costs of Equity Mutual Funds in 401k Plans and Potential Savings from ETFS and Commingled Trusts - Summary: As the role of 401k and similar defined-contribution plans continues to expand in our retirement system, participants in these plans are paying more of the cost of financing their retirement income. This study examines the fees and trading costs for domestic equity mutual funds held in DC plans and compares them to ETFs or commingled trusts that hold ETFs. Located at: Center for Retirement Research at Boston College , November 2009. Click on headline to read full article.

Effective Communication Can Drive Employee Engagement - Summary: In a business environment that remains tumultuous, companies with highly effective internal communication programs are better placed to keep employees engaged and retain key talent, according to a new survey by Watson Wyatt. Located at: 401khelpcenter.com, November 2009. Click on headline to read full article.

Financial Literacy - Why It Matters to You and Your Employees - Summary: If many of your workers are struggling to concentrate on the job at hand and functioning at less than optimum capacity, the damage to personal lives and business productivity is a serious one. But you as Plan Sponsor are in the unique position of being able to address these issues for your employees. Located at: Lovejoy Associates, November 2009. Click on headline to read full article.

COMMENTARY: Target-Date Fund Shortfalls Not the Reason Americans Face Retirement Crisis - Summary: There is certainly room for improvement in the design, transparency, disclosure, education, and fees associated with target date funds. However, the differences in target date funds' glide paths, and even their inability to fully shelter investors from the near collapse of the U.S. financial system, are not the primary reasons that the typical American household is facing a significant retirement income shortfall. Located at: 401khelpcenter.com, November 2009. Click on headline to read full article.

Specific Corporate Compliance Challenges: ERISA - Summary: Provides a general overview of the Employee Retirement Income Security Act of 1974 (ERISA) and discusses best practices for fiduciary compliance, ERISA litigation and risk management, and ERISA reporting and disclosure requirements. Located at: Seyfarth Shaw LLP , November 2009. Click on headline to read full article.

Cat Settles 401k Fee Lawsuit for $16.5 Million - Summary: Caterpillar and the law firm of Schlichter, Bogard & Denton today announced they have reached a tentative settlement of Martin, et al. v. Caterpillar Inc. The case involves a dispute over the administration of four 401k plans for Caterpillar employees and retirees. Located at: Caterpillar Inc. , November 2009. Click on headline to read full article.

Future Taxes Make 401k Less Advantageous - Summary: The expectation of higher taxes is taking some of the shine off 401k plans, and has savers looking for more post-tax options. Located at: Wall Street Journal, November 2009. Click on headline to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read 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 to read full article.

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