Lump-Sum Distribution Rollovers, by Age Group - Summary: When a worker changes jobs and receives a lump-sum distribution from his or her retirement plan, a key question is whether he or she will preserve the savings by "rolling over" the entire distribution to another tax-qualified savings vehicle. The age of the worker is a major factor in that decision. Source: 401khelpcenter.com, February 2009. Click on headline for full article.

Congress Takes Up Boomer Retirement Woes - Summary: The Senate Special Committee on Aging is looking into 401k target-date funds, with some members calling for new protections for account holders. Source: Consumeraffairs.com, February 2009. Click on headline for full article.

Senate Committee Takes Aim at Target-Date Funds - Summary: The U.S. Senate Special Committee on Aging held a hearing about the economic downturn's effect on retirement security, particularly for those who are on the brink of retirement. Will also take a close look 401k target-date funds. Source: Planadviser.com, February 2009. Click on headline for full article.

2008 401kExchange Market Share Report - Summary: Based on almost 50,000 surveys with 401k plan sponsors in 2008, many of the top 10 record keepers gained significant market share over the past year and the past three years. Source: 401kexchange.com, February 2009. Click on headline for full article.

COMMENTARY: The 401k Skimming Scam - Summary: The author states, "The real problem with 401k plans has nothing to do with the current market meltdown. These plans are set up to benefit employers and the mutual fund industry. They profit in every kind of market. It's employees who are the losers." Source: Dailyfinance.com, February 2009. Click on headline for full article.

COMMENTARY: Defined Contribution Plan System Must Be Preserved - Summary: Workplace defined contribution plans, like 401ks, provide essential retirement savings for more than 75 million Americans and must be preserved, said American Benefits Council President James A. Klein. Source: Benefitslink.com, February 2009. Click on headline for full article.

Economic Conditions and Retirement Plan Advisors - Summary: This paper discusses items advisors should be prepared for during today's challenging conditions including fiduciary liability, increased claims, inadequate coverage, disgorged compensation and new business. Source: Center for Due Diligence , February 2009. Click on headline for full article.

Changing Safe Harbor Plan Match - Summary: One of the most frequently asked questions (and most misunderstood options) involves whether it is permissible to reduce or suspend the employer safe harbor matching contributions, during a plan year, under a safe harbor 401k plan. Source: Planadviser.com, February 2009. Click on headline for full article.

House Committee Advised not To Scare Participants - Summary: While individuals speaking during the U.S. House Education and Labor Committee's hearing on "Strengthening Worker Retirement Security" described the nation's retirement system as being "in peril," lawmakers were warned not to frighten participants away from it. Source: Planadviser.com, February 2009. Click on headline for full article.

Chairman Miller Statement at Hearing on "Strengthening Worker Retirement Security" - Summary: This is the prepared remarks of U.S. Rep. George Miller (D-CA), chairman of the House Education and Labor Committee, for a February 24, 2009, committee hearing on "Strengthening Worker Retirement Security." Source: 401khelpcenter.com, February 2009. Click on headline for full article.

Investors Sit Tight as Flaws in 401k Plans Exposed - Summary: Overview of testimony before the February 24th hearing by the House Education and Labor Committee to explore the shortcomings of our nation's retirement system. Source: Bloomberg.com, February 2009. Click on headline for full article.

Research Highlights Severity of Market Tumble on Retirement Income Needs - Summary: While most Americans are well aware of the hit their 401k balances have taken in recent months, a new analysis by Hewitt Associates highlights the true severity of the market collapse on employees' retirement savings. Source: 401khelpcenter.com, February 2009. Click on headline for full article.

Six Answers to Key 401k Questions - Summary: It's almost certain that your retirement plan in 2009 looks a lot less promising than it did just a year ago. With the stock market still in the tank and employers cutting back, most Americans are rethinking what it'll take to get them safely into their golden years. This article provides a few tips for dealing with some of the trends in the new financial reality. Source: U.S. News & World Report, February 2009. Click on headline for full article.

Miller Says 401k Plans Are High-Stakes 'Crap Shoot' - Summary: House Education and Labor Committee Chairman George Miller said 401k retirement plans do not provide sufficient retirement security for many Americans and must be revamped. Source: Bloomberg, February 2009. Click on headline for full article.

Seventh Circuit Dismisses 401k Revenue Sharing & Excessive Fee Lawsuit - Summary: The ruling is the first significant appellate decision in a recent wave of ERISA lawsuits brought by plan participants against large companies and their 401k plans. Source: Littler Mendelson, February 2009. Click on headline for full article.

Impact of Market Losses on 401k Account Balances - Summary: EBRI published an analysis of the impact of the recent financial crisis on 401k retirement account balances from Jan. 1, 2008, to Jan. 20, 2009, showing that participants' losses were largely determined by their account balance, age, and job tenure. Source: 401khelpcenter.com, February 2009. Click on headline for full article.

Final IRS Automatic Contribution Arrangements Regs - Summary: This document contains final regulations relating to automatic contribution arrangements. These regulations affect administrators of, employers maintaining, participants in, and beneficiaries of section 401k plans and other eligible plans that include an automatic contribution arrangement. Source: Benefitslink.com , February 2009. Click on headline for full article.

Disclosure Regs for 401k Fees in Limbo - Summary: The Bush administration's failure to win final approval of new fee disclosure regulations for defined contribution plans, say industry experts, could well turn into a major headache for corporate executives. Source: Financialweek.com, February 2009. Click on headline for full article.

Update on Participant Activity Amid Market Volatility - Summary: Volatility in the markets during 2008 was of historic proportions. But how did plan participants on the whole react? To assess participant behavior last year, the Vanguard Center for Retirement Research examined recent transactions and other activities in plans recordkept by Vanguard. Source: Vanguard, February 2009. Click on headline for full article.

COMMENTARY: DC Plans Serve Workers Well - Summary: The 401k and other defined contribution (DC) retirement plans have served American workers well for nearly 30 years and are likely to continue to be a key vehicle for those seeking to achieve retirement security, Vanguard Principal Ann L. Combs writes in this commentary. Source: Vanguard, February 2009. Click on headline for full article.

Hearings on Retirement Security, 401k Resurface - Summary: The market's impact continues to weigh on the nation's retirement security – and it seems that Congress wants to do something about it. Source: Planadviser.com, February 2009. Click on headline for full article.

COMMENTARY: Implications of the Deere Decision - Summary: Last week, Justice Diane Woods of the federal 7th Circuit Court of Appeals decided on Hecker v. Deere & Company, et. al. in favor of the Deere defendants. The decision deals a major blow to Schlichter, Bogard & Denton, the St. Louis law firm with 13 other ERISA lawsuits pending against some of the largest 401k plan sponsors in the country. Source: BrightScope Blog, February 2009. Click on headline for full article.

Boost in Target-Date Funds Hurts 401ks, Study Says - Summary: DC plan participants have been exposed to more financial market risk by the increased use of target-date fund strategies as default investment options and away from more secure investments, a study by Greenwich Associates concludes. Source: Workforce.com (free registration may be required), February 2009. Click on headline for full article.

Fewer Employers to Adopt Automatic 401k Enrollment - Summary: The number of employers adopting premium 401k features like automatic enrollment and company matches has slowed in response to the economic climate, according to a survey by Hewitt Associates. Source: hr.blr.com February 2009. Click on headline for full article.

403(b) Relief is Good News for Plan Sponsors - Summary: The Internal Revenue Service recently cleared up some confusion about its relief of the written plan document requirement for 403(b) plans. Source: Planadviser.com, February 2009. Click on headline for full article.

401k Plan Corrective Distributions for 2009 - Summary: The purpose of this technical update is to review the rules, including recent law changes, relating to 401k plan corrective distributions. Source: Sungard/Relius, February 2009. Click on headline for full article.

Advisers Toughing Out Troubled Times - Summary: The times may be troubled, the markets volatile, but advisers seem resilient. Source: Planadviser.com, February 2009. Click on headline for full article.

Compliance Calendar for 2009 - Summary: Vanguard has created a 2009 compliance calendar that alerts you to key dates and gives you instant access to compliance deadlines. This calendar lists recurring compliance and notice requirements for qualified defined contribution plans. Source: Vanguard , February 2009. Click on headline for full article.

Congress Begins Review of 401ks - Summary: Although retirement-plan design is probably not at the top of any company's agenda in these tumultuous times, delaying such consideration may not be an option for long. With trillions being lost and Congress preparing for hearings, HR leaders may need to start paying more attention to this issue. Source: HREonline.com, February 2009. Click on headline for full article.

Divorce and Retirement: Take Control of Retirement Benefits - Summary: From QDROs to the 10 ways to avoid losing the pension - WISER's new guide helps women navigate the complicated financial terrain of dividing retirement benefits at divorce. Source: WISER , February 2009. Click on headline for full article.

Seventh Circuit Affirms Judgment Fee Litigation Case - Summary: The Seventh Circuit Court of Appeals affirmed the dismissal of claimed ERISA violations for alleged revenue sharing and excessive fees against the plan sponsor (Hecker v. Deere & Co.) and the mutual fund complex that provided investment options and trust and other services for the plan. Source: Sutherland , February 2009. Click on headline for full article.

COMMENTARY: Don't Dance Around Principles - Summary: Author offers four reasons why the Department of Labor should rescind a class exemption that would allow conflicted advisers to offer advice to retirement plans under certain circumstances. Source: Investment News (free registration may be required), February 2009. Click on headline for full article.

Mutual Funds Fees are Too High - Summary: Study on mutual funds by Haslem, Baker and Smith finds that economies of scale are not generally shared with fund holders because the market lacks the competitive pressures to drive fund expense downward. Source: Fiduciary Investor Blog, February 2009. Click on headline for full article.

The Defined Contribution Fee Disclosure Act (S. 401) - Summary: Bill to amend the Employee Retirement Income Security Act of 1974 to provide special reporting and fee disclosure rules for individual account plans, and for other purposes. This is the actual text of the bill. Source: American Benefits Council , February 2009. Click on headline for full article.

Eliminating or Reducing a Plan's Matching Formula - Summary: As employers continue to struggle with these difficult economic times, many employers are attempting to cut costs by eliminating or reducing their matching contributions. This FAQ deal with the issues relating to the elimination or reduction of a matching contribution formula. Source: Sungard/Relius, February 2009. Click on headline for full article.

The Employee Plans Compliance Resolution System - Updated and Improved - Summary: The latest IRS updates to EPCRS (Rev. Proc. 2008-50) became effective January 1, 2009, and result in some very real improvements to the retirement plan correction system. This article analyzes three of those changes. Source: Chang, Ruthenberg & Long PC, February 2009. Click on headline for full article.

Fee Disclosure Bill Introduced in Congress - Summary: Senators introduced legislation that would require defined contribution plan sponsors to disclose fees to participants. Source: Planadviser.com, February 2009. Click on headline for full article.

401k Participants May See Plain-English Summary Prospectus - Summary: Mutual funds may give investors a plain-English summary prospectus, rather than a full prospectus, under a final SEC rule effective March 31, 2009. The rule ultimately may change the form and content of fund information passed through to participants in many 401k, 403(b) and 457 plans. Source: Mercer, February 2009. Click on headline for full article.

Communicate When Curtailing Contributions - Summary: Some companies -- although still a minority -- have begun cutting or stopping matches for 401k retirement accounts as a way to cope with the current economic climate. It's a difficult decision to make, say experts, and if cuts are made, the rationale should be communicated clearly and quickly. Source: HREonline.com, February 2009. Click on headline for full article.

Despite Slump, Some Small Firms Add 401k - Summary: Even as the recession is taking its toll, some small-business owners are adopting 401ks for their employees. They see the plans as a way to retain valued workers and get people who otherwise wouldn't save for retirement to do so. But to be able to afford the plans, some companies are having to make some trade-offs. Source: Wall Street Journal Online, February 2009. Click on headline for full article.

Failure to Change Beneficiary Negates Waiver in Divorce Decree - Summary: The US Supreme Court has resolved a split of authority among the Federal Circuit Courts by unanimously concluding that: (1) the waiver by a former spouse of a plan interest in a divorce decree that did not constitute a qualified domestic relations order does not violate ERISA's anti-alienation rule, and (2) plan administrators are not required to honor waivers expressed in external documents that do not comply with plan terms and procedures governing beneficiary designations. Source: CCH, February 2009. Click on headline for full article.

COMMENTARY: Target Date Funds Disappoint - Summary: Writer asks, "Should anyone be surprised that target date retirement funds failed to shield investors from the storm last year?" Source: SeekingAlpha.com, February 2009. Click on headline for full article.

Workers Increasingly See DC Plans as Primary Retirement Savings Vehicle - Summary: A study released by the nonpartisan Employee Benefit Research Institute shows that workers increasingly see defined contribution plans as their primary retirement plan type, with about two-thirds of workers identifying these as their most important plan. Source: 401khelpcenter.com, February 2009. Click on headline for full article.

Schwab Releases 401k Plan Benchmarking Insights - Summary: Charles Schwab just released information about 401k participation and savings rates broken down across different industries and certain plan participant demographics. Source: 401khelpcenter.com, February 2009. Click on headline for full article.

Mid-Year Safe Harbor 401k Plan Changes - Summary: As the economy continues to struggle, practitioners have been besieged with questions regarding how employers can reduce or eliminate retirement plan contributions. This FAQ addresses how an employer can eliminate or freeze fixed contributions under a safe harbor 401k plan. Source: Sungard/Relius, February 2009. Click on headline for full article.

Some Items of Interest to Advisors - Summary: Scott Simon writes, "To kick off 2009, I thought it might be a good idea to cover a few items that don't merit treatment in a column on their own but nonetheless may be of interest to advisors." Source: Morningstar.com, February 2009. Click on headline for full article.

401k Fiduciary Responsibilities: Conventional Wisdom is no Longer Conventional - Summary: Given the anger that exists over executive bonuses and the fact that ERISA is ambiguous as to the definitions of the duties of loyalty and prudence, blindly accepting conventional wisdom while waiting for the courts to decide how far fiduciaries have to go in helping employees achieve a financially secure retirement will likely prove to be a costly and painful mistake. Source: Investment Horizons , February 2009. Click on headline for full article.

Steps for Smooth Sailing in 401k Rollovers - Summary: By managing the terminated participant population, plan sponsors can rebalance their ratio of current-to-former participants, and diminish the costs they incur for former employees' retirement benefits and their future legal risks. Source: Employee Benefit News (free registration may be required), February 2009. Click on headline for full article.

The Structure of 401k Fees - Summary: This paper reviews the structure of 401k plans, describing the services they provide and the cost of these services. It also reviews the typical schedules of fees that providers of financial services charge plan sponsors and participants. It finds that 401k fees are so complex, confusing, or obscure that many sponsors and participants report that they do not understand either their magnitude or their consequences. Source: Center for Retirement Research at Boston College , February 2009. Click on headline for full article.

ERISA Reporting and Disclosure: Eight Common Mistakes to Avoid - Summary: Law firm of Chang, Ruthenberg & Long provides a quick overview of eight common mistakes to avoid related to ERISA reporting and disclosure. Source: Chang, Ruthenberg & Long PC, February 2009. Click on headline for full article.

ABC Request for Guidance on Minimum Required Distribution Waivers - Summary: In this letter, the American Benefits Council requests guidance on a number of administrative issues that have arisen under the 2009 minimum required distribution provisions of the Worker, Retiree and Employer Recovery Act of 2008. Source: American Benefits Council , February 2009. Click on headline for full article.

DOL Provides Guidance for Madoff-Maimed Retirement Plan - Summary: With an expanding list of retirement plans snared by investments tied to Bernard L. Madoff, the Labor Department has published some guidance for plan fiduciaries. Source: Planadviser.com, February 2009. Click on headline for full article.

Report on Hard to Value Assets and Target Date Funds - Summary: This report was produced by the Advisory Council on Employee Welfare and Pension Benefit Plans. This Working Group studied issues involving two topics concerning: first, plan assets invested in Hard To Value Assets, or alternative investments, and second, plan assets which allow participants to invest in Target Date Funds. Source: U.S. Department of Labor, February 2009. Click on headline for full article.

Report On Phased Retirement - Summary: This report was produced by the Advisory Council on Employee Welfare and Pension Benefit Plans. This Working Group examined the issues facing employers who wish to create phased retirement plans, the issues facing employees who wish to take part in phased retirement programs, and the various legal and regulatory obstacles to the implementation of a phased retirement arrangement. They also examined whether there were any actions needed to facilitate an improved system of phased retirement. Source: U.S. Department of Labor, February 2009. Click on headline for full article.

Report On The Spend Down Of Defined Contribution Assets At Retirement - Summary: This report was produced by the Advisory Council on Employee Welfare and Pension Benefit Plans. This Working Group examined and reviewed the spend down of DC assets at retirement to assess the issues and barriers facing plan fiduciaries, plan sponsors and plan participants. Source: U.S. Department of Labor, February 2009. Click on headline for full article.

Stopping 401k Matches: The New No-brainer - Summary: It was easy to see why CFOs might want to stop providing a match to employees' 401k savings. In many cases, it's an easy way to cut a cost worth two percent or three percent of your payroll without having to give employees more than a week's notice. Source: CFO.com, February 2009. Click on headline for full article.

Five Ways Your 401k Will be Changed in 2009 - Summary: Employers have already largely shifted from providing workers with traditional pensions to 401ks. But now, even 401ks are proving too costly for some employers to sponsor and manage. Here is a look at how some employers may alter their 401ks in 2009. Source: U.S. News & World Report, February 2009. Click on headline for full article.

The Confusion Over Required Withdrawals - Summary: For 2009 only, there will not be the usual required minimum distributions from retirement plans such as 401ks, Roth 401ks, 403(b)s and certain 457(b)s. The distribution rules also apply to traditional individual retirement arrangements and accounts and IRA-based plans such as Simple IRAs and SEPs. But some people still have questions. Source: Washington Post, February 2009. Click on headline for full article.

Retirement Plan Participation and Contribution Trends - Summary: The U.S. Census Bureau periodically collects information from individuals about their participation in employer-sponsored retirement plans. This CRS report presents a summary of the data and a comparison of the results of the 2006 survey with similar surveys that the Census Bureau conducted in 1998 and 2003. Source: Congressional Research Service , February 2009. Click on headline for full article.

Markets Put Employers on Defensive About 401k Plans - Summary: Corporations that sponsor 401k plans may have more pressing issues at the moment, but that hardly means they should ignore the waning confidence in what has become their primary retirement benefits offering. Source: Workforce.com (free registration may be required), February 2009. Click on headline for full article.

Conflict-Free 401k Advice Still not Foolproof - Summary: Just when the Labor Department thought it had buttoned up the final regulations governing the advice given to 401k plan participants, new questions are being asked about conflicts of interest and the quality of the advice. Source: Chicago Tribune, February 2009. Click on headline for full article.

Setting Up a 401k Plan for a Small Business - Summary: Small-business owners can easily get so buried in the daily minutiae of running a business and trying to survive that they often don't give much thought to retirement planning for themselves or their employees. Source: Newsday.com, February 2009. Click on headline for full article.

401k Apathy Cuts Dangerously Deep - Summary: Following the economic meltdown of 2008, many 401k participants are taking the ostrich approach to investing. In a just-completed survey of middle-income investors conducted by I-Pension LLC, 27% of respondents admitted to not even opening their fourth-quarter statements. Source: 401khelpcenter.com, February 2009. Click on headline for full article.

Bunch v. W.R. Grace: What a Breach of Fiduciary Duty Doesn't Look Like - Summary: Anybody interested in fiduciary obligations under ERISA should become familiar with the First Circuit's decision in Bunch v. W.R. Grace & Co, where what was at issue is whether it was a breach of fiduciary duty to sell company stock after retaining outside advisors to investigate the stock's value, potential and appropriateness as an investment option. Source: Boston ERISA Law Blog, February 2009. Click on headline for full article.

73% of DC Sponsors Plan No 2009 Match Changes - Summary: While media accounts may be full of reports of employer decisions to suspend their retirement plan company match contributions, 73% of DC plan sponsors in a new survey plan no match changes. Source: Planadviser.com, February 2009. Click on headline for full article.

Fewer Companies Adopting Automatic Enrollment and Other High-Cost Retirement Programs - Summary: According to a new survey by Hewitt Associates the number of employers adopting premium retirement features, such as automatic enrollment and company matches, has plateaued in response to the economic climate. Instead, they are focusing their efforts on offering more lower-cost strategies. Source: 401khelpcenter.com, February 2009. Click on headline for full article.

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