PIMCO Release Study on DC Consulting Trends - Summary: Amid the ongoing turmoil in financial markets, investment consultants say that defined contribution retirement plans, such as 401ks, are most concerned with capital preservation, diversification and inflation protection, according to the "2009 Defined Contribution Consulting Support and Trends Survey" released by PIMCO. Located at: 401khelpcenter.com, March 2009. Click on headline for full article.

Merck Loses Challenge to Company Stock Fiduciary Claims - Summary: The U.S. District Court for the District of New Jersey has refused to issue summary judgment for Merck & Co. on claims the drugmaker breached its fiduciary duties by continuing to offer company stock as an investment option in its retirement plans. Located at: Planadviser.com, March 2009. Click on headline for full article.

IRA Proposal Irks Some Independents - Summary: A congressman's suggestion that only independent advisers be permitted to give advice to participants in the small-company individual retirement accounts proposed by President Obama may not go far enough, according to some financial advisers. Located at: Investment News (free registration may be required), March 2009. Click on headline for full article.

Implications of a Bear Market for Retirement Security - Summary: This paper examines several hypothetical scenarios over the past 138 years in which investors would have faced historically poor markets. Shows impact of a significant market decline on a retiree who followed a "life-cycle" approach to investing. Also shows that if investors focus on areas that they can control, they can measurably improve their long-term prospects for weathering such negative environments. Located at: Vanguard Investment Counseling & Research , March 2009. Click on headline for full article.

COMMENTARY: Fiduciary Prudence in a Post-2008 World -- Part II - Summary: Author discusses an issue that continues to garner a lot of attention, not only in the financial press, but also with lawmakers: fee disclosure. Located at: Capital Directions Investment Advisors, March 2009. Click on headline for full article.

Reaction Mixed as SEC Shelves Reform of 12(b)-1 Fees - Summary: Fee-only financial advisers were unhappy to learn that 12(b)-1 fee reform -— once a top priority for the Securities and Exchange Commission -— is on hold, but others in the investment management industry, specifically those in the brokerage community, welcomed the news. Located at: Investment News (free registration may be required), March 2009. Click on headline for full article.

A Waiver Is Not a QDRO - Summary: The Supreme Court's decision in Kennedy v. Plan Administrator for DuPont Savings and Investment Plan reinforced two principles of ERISA important for participants and beneficiaries and for plan administrators. Located at: Chang, Ruthenberg & Long PC, March 2009. Click on headline for full article.

The Lost Souls of 403(b) and the 2009 Form 5500 - Summary: Discusses the question of the counting of former employees for purposes of the 2009 Form 5500, which 403(b) plans will need to file in toto for the first time. Located at: Business of Benefits Blog, March 2009. Click on headline for full article.

Adding Low Wage Employee and Top-Heavy Status - Summary: Looking at the question, "Does adding a low wage hourly employee as a 401k plan participant help to alleviate a 'top-heavy' problem?" Located at: Benefitslink.com, March 2009. Click on headline for full article.

Market Collapse Places Fiduciaries at Risk - Summary: Beware all who would enter here: the land of the retirement plan fiduciary is not for the weak or faint of heart, or those with a queasy stomach. This article is designed to provide a survey of fiduciary exposure issues in two parts. The first will explore recent trends in fiduciary litigation, and the second will look at some of the pertinent changes in the law and how employers are coping with them. Located at: Holland & Hart LLP , March 2009. Click on headline for full article.

401k Plan Sponsors Not Making Changes During Economic Downturn - Summary: According to a recent survey of 401k plan sponsors, approximately three-fifths of respondents stated that the recent financial crisis had not made any changes to their companies' 401k plans. This is a summary of the results. Located at: CCH, March 2009. Click on headline for full article.

'Stable' Funds in Your 401k May Not Be - Summary: Stable-value funds, available only in 401ks and other tax-deferred savings plans, are designed to preserve capital and generate smooth, positive returns -- hence the name. Investors are pouring billions into these funds just as they are looking less stable than usual. Located at: Wall Street Journal Online, March 2009. Click on headline for full article.

COMMENTARY: Who's Minding Your Retirement Plan? - Summary: In good times, when markets are rising and retirement security is a given, very few workers question or care whether their 401k plan's fiduciary is doing their job or not. But these days, it's a valid question and concern, especially in light of a distressing survey. Located at: Marketwatch.com, March 2009. Click on headline for full article.

Conflicts of Interest Can Affect Defined Benefit and Defined Contribution Plans - Summary: Testimony before the Subcommittee on Health, Employment, Labor and Pensions, Education and Labor Committee, House of Representatives by the US Government Accountability Office on conflicts of interest that can affect both DB and DC plans. Located at: US Government Accountability Office , March 2009. Click on headline for full article.

GOP Congressmen Offer Savings Proposal - Summary: A group of Republican Congressmen have proposed a plan they say offers a shot in the arm for American savings. Located at: Planadviser.com, March 2009. Click on headline for full article.

New Rules on Retirement Advice Get Mixed Reviews - Summary: As American workers' retirement assets continue to be devoured by the bear market, the government is reconsidering how best to make invest. advice available to retirement plan participants. Located at: Financial-planning.com, March 2009. Click on headline for full article.

Watch Out for Top-Heavy - Summary: In terminating, freezing or reducing the contributions in a safe harbor 401k plan, an employer must take into account the possibility of incurring a top-heavy minimum contribution which might equal or exceed the safe harbor contribution that the employer is eliminating. Located at: Sungard/Relius, March 2009. Click on headline for full article.

The Importance of an Independent Investment Adviser - Summary: Comments submitted by ASPPA, CIKR, and NAIRPA to the U.S. House of Representatives Committee on Education and Labor Subcommittee on Health, Employment, Labor and Pensions on the issue of the provision of invest. advice to retirement plan participants and on the importance of the independent investment adviser. Located at: ASPPA , March 2009. Click on headline for full article.

5500 Schedule C Reporting Delay and Additional Guidance Needed - Summary: A substantial majority of retirement plan service providers are unsure about how to comply with the new Form 5500 Schedule C reporting requirements, according to a recent survey. Located at: 401khelpcenter.com, March 2009. Click on headline for full article.

Labor Department 401k Rules May Create Conflicts - Summary: Labor Department rules allowing retirement plan administrators to offer specific invest. advice may create a conflict of interest, House Democrats said at a hearing Tuesday. Located at: Bloomberg.com, March 2009. Click on headline for full article.

House Reviews Advice Given to 401k, IRA Holders - Summary: Members of a congressional panel said they wanted to ensure that retirement account holders have access to unbiased invest. advice, an issue that's all the more important since stock market declines drained billions from retirement savings. Located at: New York Times, March 2009. Click on headline for full article.

COMMENTARY: The Problems with Target Funds for 401k Plans - Summary: Author notes, "Common sense will tell you just picking a year to retire should not be the basis for constructing an investment portfolio. The most important information you need to know about a plan participant is their risk tolerance...." Located at: 401khelpcenter.com, March 2009. Click on headline for full article.

Final Regulations on Automatic Contribution Arrangements - Summary: IRS published final regulations relating to automatic contribution arrangements, i.e., a default election to contribute the automatic deferral percentage set by the plan. Located at: Transamerica Center for Retirement Studies , March 2009. Click on headline for full article.

Getting Ready for EFAST2 - Summary: Beginning with the 2009 plan year, the Department of Labor will require retirement and welfare plans to file their annual reports (Form 5500) electronically. To ease the transition, preparers need to familiarize themselves with the new electronic filing system. Located at: Sungard/Relius, March 2009. Click on headline for full article.

Invest. Advice Rule Implementation Delayed - Summary: The U.S. Department of Labor has delayed the effective date of its final rules about providing retirement plan participant invest. advice. Located at: Planadviser.com, March 2009. Click on headline for full article.

Supreme Court Agrees to Hear Mutual Fund Case - Summary: The US Supreme Court announced that it would hear the case of Jones v. Harris Associates which is an appeal of the Seventh Circuit Court of Appeals' decision in May 2008 that generally disregarded long-standing principles for reviews of investment management contracts and, in particular, fees paid to investment advisers of investment companies. Located at: Kilpatrick Stockton LLP, March 2009. Click on headline for full article.

Research Shows Plan Sponsor Governance Dips - Summary: Plan sponsors are less likely to maintain meeting minutes, use an independent party to analyze fees, or establish a clear chain of authority for their plan's governance committee, according to a new survey. Located at: Employee Benefit News (free registration may be required), March 2009. Click on headline for full article.

After the "Crash" of '08, Maybe It's Time to Leave the Driving to the Professionals - Summary: The numbers are in for 2008 and – no surprise here – they're not pretty. Retirement plan accounts took a beating. Sure, the economy was the culprit. But what did we learn? One lesson could be that rather than having employees steer their own investments, it might be smarter to leave the driving to a professional. Located at: Chang, Ruthenberg & Long PC, March 2009. Click on headline for full article.

Summary of Pending Legislation April 2009 - Summary: Some topics likely to get Congressional attention in 2009 include the ability of the current 401k system to provide sufficient retirement security, the development of 401k fee disclosure legislation, invest. advice and the appropriateness of pension plan investments. At least two items outlined in the Obama Administration's 2010 budget proposal (mandatory payroll deduction IRAs and an expansion of the saver's credit) may also result in legislative initiatives. Located at: Center for Due Diligence , March 2009. Click on headline for full article.

How Does Your 401k Stack Up? - Summary: Having watched 401k account values drop precipitously, investors may fear that their savings in these defined-contribution plans will never get them through retirement. They may also wonder how their plans measure up against others. So what does the 401k landscape look like? Located at: Yahoo Finance, March 2009. Click on headline for full article.

Invest. Advice for Participants: Capturing Rollovers - Summary: This is the third in a series of bulletins regarding the DOL regulation on invest. advice for participants. In this bulletin, Reish Luftman examine comments made by the DOL in the Preamble to the regulation regarding recommendations by fiduciaries and service providers concerning distributions and rollovers from qualified plans to IRAs. Located at: Reish Luftman Reicher & Cohen , March 2009. Click on headline for full article.

Average Worker Contribution Rates to 401k-Type Plans - Summary: How much do workers contribute on average to 401k-type plans? Here are the numbers as reported by the nonpartisan Employee Benefit Research Institute. Located at: 401khelpcenter.com, March 2009. Click on headline for full article.

Court: No Affirmative Duty to Disclose Revenue Sharing - Summary: The Court of Appeals upheld a lower court ruling that ERISA's fiduciary standards do not require disclosure of revenue sharing arrangements among the service providers. Located at: Benefitslink.com, March 2009. Click on headline for full article.

Three Out of Five Employers Maintain 401k Match Despite Economic Crisis - Summary: A new survey of employers released by WorldatWork and the American Benefits Council, "Trends in 401k Plans," finds that the financial crisis has not significantly discouraged 401k contributions or participation. Located at: 401khelpcenter.com, March 2009. Click on headline for full article.

COMMENTARY: How Congress, Banks and Wall Street Ruined Your 401k Plan - Summary: Author pointedly states that, "Due to a perfect storm of financial incompetence created by Congress, banks, and Wall Street our clients are going through an economic downturn that is destroying their retirement." Located at: 401khelpcenter.com, March 2009. Click on headline for full article.

Survey Finds Many Sponsors Lacking Fiduciary Details - Summary: A new survey finds less than a third of retirement plan fiduciaries report a clear chain of authority for their plan's governance committee. Located at: Planadviser.com, March 2009. Click on headline for full article.

Meeting Your Fiduciary Responsibilities - Summary: ERISA's fiduciary requirements are some of the highest under law, making it all the more critical for sponsors to be able to demonstrate how they make decisions and operate their plans in accordance with the law and plan documents. Located at: Grant Thornton LLP , March 2009. Click on headline for full article.

Communicating Benefits During Layoffs Can Be Tricky - Summary: With tens of thousands of layoffs being conducted every month, managers are trying to figure out the best way to communicate important information during an emotion-laden time. Located at: Workforce.com (free registration may be required), March 2009. Click on headline for full article.

Fed and FTC Regulation of Retirement Plan Loans to Participants - Summary: Retirement plans have long been subject to certain consumer credit rules primarily intended for very different credit arrangements. Just as plans are being relieved of compliance with one such set of rules, however, a new set of requirements may possibly become applicable. Located at: Sutherland.com , March 2009. Click on headline for full article.

Principles for a New Retirement System - Summary: This working paper, according to the proponents, documents the need for a new retirement system in the US, details principles that should guide the development of a new system, and provides examples of plans and proposals that incorporate these principles. Located at: Retirement-usa.com , March 2009. Click on headline for full article.

COMMENTARY: Time to Embrace Fiduciary Standard - Summary: A consensus is forming that financial regulatory reform should include provisions to require anyone providing advice to adhere to a fiduciary standard of care. Located at: Investment News (free registration may be required), March 2009. Click on headline for full article.

Summarizing the Risks That Threaten 401k Providers - Summary: The ability to achieve the desired level of profitability will stem primarily from technology and the willingness of management and staff to use the technology effectively. A provider must determine whether it has all the data it needs to ask hard questions. Located at: Investment Horizons , March 2009. Click on headline for full article.

COMMENTARY: The 403(b) Regs Unintended Consequence - Summary: One of the most unfortunate and unintended consequences of the new 403(b) regulations is the freezing of hardship distributions and loans from contracts of deselected vendors, at a time when these funds are needed the most. Located at: Business of Benefits Blog, March 2009. Click on headline for full article.

The Schwab Self-Directed Brokerage Account Indicators - Summary: Charles Schwab Corporate and Retirement Services released this detailed participant behavior in Self Directed Brokerage Accounts for the fourth quarter and year-end 2008. SDBA accounts are generally used by 401k participants who are looking for more investment options than are available in their core 401k fund line-up. Located at: Charles Schwab , March 2009. Click on headline for full article.

Prohibited Transactions and Level Fee Advice - Summary: This is the second in a series of articles regarding the Department of Labor's regulation on invest. advice for participants. This article looks at the application of the regulation to pure level fee investment advisers. Located at: Reish Luftman Reicher & Cohen , March 2009. Click on headline for full article.

Courts Could Decide 12b-1 Fee Regulation - Summary: Advisers using revenue-sharing might also face tighter regulation. It is unclear if Congress or regulation will step up, but getting paid out of mutual fund revenues could be at risk. Located at: Planadviser.com, March 2009. Click on headline for full article.

Non-Disclose of Revenue Sharing Arrangement not Fiduciary Breach - Summary: An employer sponsor of 401k plans did not breach its fiduciary duties by failing to disclose to plan participants a revenue sharing arrangement between the plan's mutual fund providers, the U.S. Court of Appeals in Chicago has ruled in Hecker v. Deere and Company. Located at: CCH, March 2009. Click on headline for full article.

ERISA Conflicts of Interest - Summary: The purpose of this White Paper is to analyze the law relating to conflicts of interest that retirement plan fiduciaries may encounter in selecting the investments and service providers for 401k plans. Located at: Reish Luftman Reicher & Cohen , March 2009. Click on headline for full article.

ICI Chief Favors Fiduciary Role for Advisers - Summary: In what might come as a surprise to the organization's members, the head of the mutual fund industry's biggest trade group said that he supports the idea of requiring all financial advisers to act as fiduciaries. Located at: Investment News (free registration may be required), March 2009. Click on headline for full article.

401k Investors Pour $65M into Company Stock in January - Summary: For the first time in seven years and after the sorry lessons of Enron and WorldCom, investors poured more money into company stock, $65 million, than they did any other investment category in January, according to Hewitt Associates. Located at: Financial-planning.com, March 2009. Click on headline for full article.

Schwab Offers Guidance to Near Retirees & 401k Investors - Summary: Those in or near retirement should reassess their willingness to withstand both volatility and risk. Investors must also be mindful of the risks associated with cash. Cash-heavy portfolios typically tend to be less volatile, but we believe they also have poor, long-term return prospects. Located at: Financial-planning.com, March 2009. Click on headline for full article.

What Not to do as a Plan Fiduciary - Summary: Plan fiduciaries should not take their duties lightly, especially in turbulent times when participants are extremely sensitive about their retirement accounts. This article provides some tips to help limit plan fiduciary liabilities. Located at: Precept Group Blog, March 2009. Click on headline for full article.

Retirement Design: Which Lens Are You Looking Through? - Summary: Regardless of what drives retirement redesign, this article suggests that plan sponsors consider four essential perspectives – external, cost and risk, employee, and employer – to clarify their objectives in offering or amending their retirement provisions. Located at: Mercer, March 2009. Click on headline for full article.

Study Reveals Carnage for Equity, Bond and Asset Allocation Fund Shareholders - Summary: In its 15th annual study of mutual fund investor behavior, DALBAR discovered that equity, fixed income and asset allocation fund investors experienced average annual losses for all time periods examined except the longest (20-year) time frame. Located at: 401khelpcenter.com, March 2009. Click on headline for full article.

Over a Third of 401k Participants Use Target-Date Funds - Summary: About 37 percent of 401k plan participants who were offered target-date funds had at least some fraction of their account in target-date funds in 2007, and this is expected to increase as the push for better diversification of 401k participants' assets intensifies. Located at: 401khelpcenter.com, March 2009. Click on headline for full article.

Use of Target-Date Funds in 401k Plans - Summary: Of the 401k plan participants in the EBRI/ICI 401k database who were found to be in plans that offered target-date funds, 37 percent had at least some fraction of their account in target-date funds. Located at: Employee Benefit Research Institute, March 2009. Click on headline for full article.

VIDEO: How Will the Economy Respond to Rescue Efforts? - Summary: Vanguard's chief economist discusses the recent federal stimulus bill and efforts to resolve the banking crisis and the troubled housing market. He also offers his outlook on the economy and the stock market. Located at: Vanguard, March 2009. Click on headline for full article.

Advice to Participants: What the "Final" DOL Regulation Means - Summary: This article examines the effect of the regulation on broker-dealers and registered investment advisers that provide invest. advice to 401k plan participants and IRA beneficiaries. We first discuss the regulation and then suggest steps that firms should begin taking now to come into compliance with the new rules, whether or not they are effective in their current form. Located at: Reish Luftman Reicher & Cohen, March 2009. Click on headline for full article.

Reallocation Versus Rebalancing - Summary: The allocation of many portfolios has changed as a result of significant movements in financial markets, especially over the last six months. Given this broad disarray in financial markets, advisors might find a brief discussion about the difference between (1) rebalancing a portfolio's current asset allocation and (2) outright changing a portfolio's target asset allocation to be of interest. Located at: Morningstar.com, March 2009. Click on headline for full article.

Economic Crisis Puts Stable-Value Funds on Shaky Ground - Summary: Despite the comforting name and generally strong track record, stable-value funds aren't entirely stable anymore. Employee-investors can lose money, and the funds also carry a credit risk. Located at: Employee Benefit News (free registration may be required), March 2009. Click on headline for full article.

Table of Companies Suspending or Reducing 401k Contributions - Summary: This is a partial listing compiled by the Center for Retirement Research at Boston College of companies that have either suspended or reduced 401k matching contributions in 2008 and 2009. Located at: Center for Retirement Research at Boston College , March 2009. Click on headline for full article.

Kohl Calls for Increased Scrutiny of Target-Date Funds - Summary: The chairman of the Senate Special Committee on Aging has called for more scrutiny of target-date retirement funds after several 2010 target-date funds posted huge losses in 2008. Located at: Employee Benefit News (free registration may be required), March 2009. Click on headline for full article.

ASPPA's Comments on Final Invest. Advice Regulation - Summary: On March 6, 2009, ASPPA and CIKR submitted comments to the DOL on legal and policy questions relating to the final invest. advice regulation, recommending that the DOL withdraw the class exemption portion of the final regulation. Located at: ASPPA , March 2009. Click on headline for full article.

After a 401k Match is Cut, Do Workers Stop Saving for Retirement? - Summary: A company match to your 401k contributions is a valuable incentive to save for retirement. New research confirms that employees are more likely to participate in a 401k plan when a match is offered. Located at: U.S. News & World Report, March 2009. Click on headline for full article.

IRS Issues Final 401k Auto-Enrollment Regulations - Summary: Containing some notable changes from the proposed version, final Treasury Regulations have been issued for qualified automatic contribution arrangements and for eligible automatic contribution arrangements. Located at: Benefitslink.com, March 2009. Click on headline for full article.

Court Finds no Support for Fiduciary Breach Claim - Summary: The U.S. District Court for the Southern District of Ohio ruled that retirement plan participants did not prove that Fifth Third Bancorp breached its fiduciary duties by continuing to offer company stock as an investment choice. Located at: Planadviser.com, March 2009. Click on headline for full article.

ASPPA Seeks 401k Safe Harbor Relief - Summary: The American Society of Pension Professionals and Actuaries has requested that the IRS and Treasury Department grant relief for sponsors of safe harbor 401k plans who are unable to make required 3% nonelective safe harbor contributions for the entire year due to current economic conditions. Located at: CCH, March 2009. Click on headline for full article.

An Update on 401k Plans: Insights From the 2007 Survey of Consumer Finances - Summary: Given the collapse of the financial markets and the economy, this paper uses the Federal Reserve's 2007 Survey of Consumer Finances data as a starting point in evaluating the condition of 401ks and relies on more recent data and estimates to paint a full and current picture. Located at: Center for Retirement Research at Boston College , March 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. Located at: Workforce.com (free registration may be required), March 2009. Click on headline for full article.

IRS Rules on 401k Will Help Some Employers - Summary: Final rules issued last week by the Internal Revenue Service will aid employers that want to add an automatic enrollment feature to their 401k plans without running nondiscrimination tests. Located at: Businessinsurance.com, March 2009. Click on headline for full article.

Are Terminated 401k Participants Still Costing You Money? - Summary: The answer to this question is almost certainly yes. Former employees/participants don't always focus on moving their accounts to their new employer or a rollover IRA, and it's easily forgotten by plan administrators. There are at least two ways that this could be costing you money—perhaps a lot of money. Located at: Westport Benefits Group, March 2009. Click on headline for full article.

Participant Decisions to Stop Contributions 2006–2008 - Summary: In response to current market conditions, slightly more participants than in the past have stopped contributing to their retirement plans. This research provides insight into who these participants are and why they may have stopped contributing. Located at: Vanguard , March 2009. Click on headline for full article.

EESA Affects Retirement Plan Administration - Summary: This relief is available to sponsors of qualified plans, ERISA 403(b) plans, and governmental section 457(b) plans whose participants were directly affected by the flooding, severe storms and tornadoes that occurred in the Midwestern disaster area. It is also available to affected participants in non-ERISA 403(b) programs. Located at: Prudential , March 2009. Click on headline for full article.

Devil is in the Details of RMD Suspension - Summary: WRERA suspends for 2009 IRS rules that compelled retirees age 70 1/2 and older to take required minimum distributions from defined contribution retirement plans and IRAs. Although the law's goal was reasonable and the solution simple, it leads to inevitable complexity. Located at: Employee Benefit News (free registration may be required), March 2009. Click on headline for full article.

COMMENTARY: Obama's Automatic Workplace Pensions: 403(b) Redux? - Summary: Workers' participation in 401k plans is largely driven by their companies' matching contributions, so if employers stop contributing, retirement accounts will suffer, according to an analysis released today by Fidelity Investments. Located at: Business of Benefits Blog, March 2009. Click on headline for full article.

DC Plans: A Successful Cornerstone Of Our Nation's Retirement System - Summary: Employer-sponsored 401k and other defined contribution retirement plans are a core element of our nation's retirement system and successfully assist tens of millions of families in accumulating retirement savings. While individuals have understandable retirement income concerns resulting from the recent economic downturn, it is critical to acknowledge the vital role these plans play in ensuring personal financial security. Located at: American Benefits Council , March 2009. Click on headline for full article.

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