COMMENTARY: Retirees Have Choices and Need Flexibility, Not Mandates, in Retirement Planning - Summary: Author suggests that, "government policy should not constrict or distort the market through mandates or incentives that favor one product or approach over others. The government can best help Americans saving for retirement by providing quality education and information about retirement asset distribution at and through retirement." Source: Investment Company Institute, June 2010.

Target-Date Funds and Retirement Savings - Summary: A study by Deloitte Financial Advisory Services LLP in conjunction with Advanced Analytical Consulting Group for the Department of Labor. This study focuses on the effects of target-date funds, as compared to other investments, on the accumulation of DC pension benefits. Source: U.S. Department of Labor , June 2010.

SEC Proposes New Advertising Disclosure Requirements for Target-Date Funds - Summary: The SEC has proposed new advertising and sales literature disclosure requirements for target-date funds. These proposed disclosure requirements are a reaction to concerns relating to shareholder understanding of the risks associated with, and the differences among, target-date funds. Source: Paul, Hastings, Janofsky & Walker LLP , June 2010.

FAQ on Service Provider E-Signature Option - Summary: The DOL recently announced that service providers can, with proper authorization, use their own electronic filing credentials to execute a Form 5500 on behalf of their clients. This FAQ answers some of the questions about this option. Source: Sungard/Relius, June 2010.

Automatic Enrollment in 401k Plans Now Dominates at Large Employers - Summary: A majority of large employers now automatically enroll workers into their 401k plans according to a new survey by Towers Watson. The survey also found that target-date funds are the most prevalent default investment option used for 401k plans. Source: 401khelpcenter.com, June 2010.

The 403(b) Market - Summary: This chart illustrates the distribution of investments in the 403(b) market as of December 31st of each year. The numbers represent billions of dollars invested. Source: 403bwise.com, June 2010.

The Employer Match: Why It Matters - Summary: An employer match is the most popular 401k feature among employees and one of the most important factors driving participation and savings levels. Striking the right balance in a plan matching formula not only can strengthen the plan but also can enhance employees' commitment to their savings goals. Source: Schwab Retirement Plan Services , June 2010.

Plan Participants Make Retirement Savings a Priority, but Many Remain Confused - Summary: BlackRock's second annual Survey of 401k Participant Attitudes and Behaviors indicates that employers have a significant opportunity now to improve the effectiveness of their DC plan by focusing on key plan features that are instrumental in strengthening retirement preparedness. Source: 401khelpcenter.com, June 2010.

Legislation Pending to Permit 401k Rollovers to Plan Roth - Summary: Bill would allow the rollover of amounts in a 401k retirement plan of otherwise permissible distributions to a Roth-type account in the same plan. Source: Planadviser.com, June 2010.

Guaranteed Income Matters - Summary: In theory, the defined contribution system can provide adequate individual and national retirement security, but two major policy issues need to be addressed: Access and guaranteed income. This Nationwide authored paper addresses the issue of retirement income guarantees within 401k plans. Source: Nationwide , June 2010.

ERISA Fidelity Bonds – What to Think About, What to Look For - Summary: Plan fiduciaries rarely have an idea of what losses their ERISA bond covers or whether the persons who caused the loss are covered by the terms of the bond. Fiduciaries who take such a hands off approach are making a mistake, because one of the functions of a fiduciary is to be sure that the plan is properly bonded. Source: Reish & Reicher, June 2010.

Small Plan Litigation - Summary: Flying largely below the media radar are an increasing number of small plan ERISA lawsuits. Of course, most people have heard of the Supreme Court decision in LaRue, but many may not realize that it involved a small plan. Source: Reish & Reicher, June 2010.

For Many Savers, Roth 401k Accounts Are Worth Examining - Summary: Collecting your tax savings up front allows you to invest more and yields an identical amount of after-tax money at retirement. However, the vast majority of retirement savers don't go to the trouble of investing their tax savings into a traditional 401k account, so many are likely to be better served funding a Roth 401k account. Source: Milwaukee Journal Sentinel, June 2010.

2010 Employee Benefits Survey Report - Summary: According to this research, the majority of HR professionals indicated that their organizations have been negatively affected by the U.S. and global economic recession. In this ever-changing economic climate, organizations are looking for ways to manage costs while at the same time dealing with the escalating expenses of employee benefits. Source: Society for Human Resource Management , June 2010.

Court Approves Settlement in Revenue-Sharing Suit - Summary: A federal judge has approved a $13.8 million revenue-sharing based settlement between a provider and the 401k plans it supports, but lawyers will take nearly half. Source: Plansponsor.com, June 2010.

Target-Date Fund Rules May Mean 401k Changes - Summary: The SEC this month proposed a series of rules that would require fund providers to be more explicit about a target-date fund's glide path — or how its asset allocation changes over time. The rules could steer plan sponsors to more conservative target-date funds for their 401k plans, according to some industry experts. Source: Investmentnews.com (free registration may be required), June 2010.

ASPPA & NTSAA Request IRS Guidance Clarification Needed on 403(b) Plan Terminations - Summary: ASPPA and NTSAA filed a comment letter with the IRS asking for guidance with respect to the termination of an IRC §403(b) plan. There is much confusion with respect to the manner in which a liquidating distribution is made when a 403(b) plan is terminated. Source: ASPPA , June 2010.

Freezing Defined Benefit Pension Plans - Summary: In the current economic climate more companies are freezing their defined benefit plans. when considering a plan freeze, a plan sponsor should carefully analyze its long-term strategies for the management and disposition of the frozen plan to avoid significant liability exposure in the future. Source: Groom Law Group, June 2010.

401k Fee Litigation: June Update - Summary: Over the past several years, more than two dozen lawsuits have been filed relating to 401k plan fees and, more specifically, "revenue sharing" arrangements with plan service providers. This is an updated overview of current litigation and background information. Source: Groom Law Group, June 2010.

IRS Employee Plans News - Summer 2010 Edition - Summary: This edition includes articles such as: Who Can Represent a Plan Sponsor During an EP Examination?; 401k Questionnaire Follow-Up - Common Questions; DOL Corner; Electronic Filing is Mandatory for Form 5500; Final Reg. on Investment Diversification Requirements; Nationwide Tax Forums; New FDL Letter 4577 Will Accelerate Processing Form 5307 Applications; PBGC Insights; and User Fee Exemption. Source: IRS , June 2010.

DOL Issues Final Regulations on Timing and Order of QDROs - Summary: The DOL issued final regulations on the timing and order of domestic relations orders (DROs). These final regulations provide plan administrators, service providers, participants and alternate payees with further guidance regarding when a DRO will satisfy the qualified domestic relations order requirements of ERISA. Source: Ice Miller, June 2010.

Congress Kicks Fiduciary Debate to SEC for Study - Summary: Legislators finally reached a compromise on the fiduciary standard bill. While the House's version pushed for the SEC to create a fiduciary standard, the Senate preferred instead to have the SEC study differences between fiduciary standards without giving them the power to do anything about it. The final bill contained elements of both. Source: Financial-planning.com, June 2010.

The Employers' Perspective on Retirement Benefits and Planning - Summary: The 11th Annual Transamerica Retirement Survey finds that employers continue to believe employee-funded retirement plans are important to employees, second only to health insurance. Large companies are more likely than small companies to believe in the importance of these self-funded plans. Trending shows a steady decline in the perceived importance of defined benefit plans to employees. One third of employers do not think they are important, up from just over one quarter last year. Source: Transamerica Center for Retirement Studies , June 2010.

Advice Trumps Performance for Small Plan Sponsors - Summary: Small plan sponsors are generally satisfied with their 401k providers, but most are not happy with the advice they're getting on fiduciary and regulatory matters, says a new survey. Source: Employee Benefit News (free registration may be required), June 2010.

Participants Are Saving More to Make Up for Market Downturn - Summary: More than one-third (38%) of retirement plan participants have increased the amount they are saving for retirement following the market downturn of recent years. In addition, 20% of participants have moved into more aggressive investment options, reports a just released survey of retirement plan participants conducted by Diversified Investment Advisors. Source: 401khelpcenter.com, June 2010.

When It Comes to 401k Fees, More Money = More Problems - Summary: When it comes to 401k fees, a new analysis gives credence to two known clichés: You can't compare apples to oranges, and indeed, the rich are different. Source: Employee Benefit News (free registration may be required), June 2010.

COMMENTARY: Retirement Savings -- Let's Get the Revenue Effect Right - Summary: For fiscal years 2008 -- 2012, the Joint Committee on Taxation estimates that the Federal Government will forgo $626 billion in revenue as the result of contributions and accumulations in employer-provided retirement programs. However, unlike other tax-free benefits and tax credits, contributions and earnings in retirement plans are not tax-free. It is important that we convince policy makers of the difference between tax deferred expenditures and tax-free exclusions. Source: Profit Sharing/401k Council of America, June 2010.

Restoring the 401k Match - Summary: Six months after it suspended its matching contribution to employees' 401k's, Briggs & Stratton decided it was time to bring the dollars back. The company is part of a trend: Of the 293 U.S. employers that suspended matching contributions last year, 44 percent have already restored the match or intend to restore it by next year. Source: Workforce.com (free registration may be required), June 2010.

DC Deferral Amount What Participants Can Afford - Summary: Half of employees participating in a recent survey say they decided on their defined contribution plan contribution because it was the most they could afford. Source: Plansponsor.com, June 2010.

ERISA Plans' Ultimate and Criminal Prohibited Transaction Rule - Summary: We all know that doing something as foolish as buying a plan sponsor a car in order to keep its 401k business would clearly step over the line. But there some other, and familiar, arrangements which could raise some issues. Source: Business of Benefits Blog, June 2010.

IRS Extends 401k Deadlines in Storm-Torn States - Summary: According to IRS notice 2010-48, the IRS has extended the deadline for restating affected pre-approved defined contribution plans and, if applicable, for submitting determination letters to the IRS to July 30 for Alabama, Connecticut, Massachusetts, Mississippi, New Jersey, Rhode Island, Tennessee and West Virginia declared Presidential Disaster Areas. Source: Credit Union Times, June 2010.

When It Comes to Retirement, 67 Is the New 55 - Summary: Looking forward to retirement? You may have to wait a bit longer. Financial pressures are pushing up retirement ages all over. Benefit cuts and higher retirement ages are becoming the norm. Source: National Public Radio, June 2010.

Liability Reducing Strategies for Today's 401k Plan Sponsor - Summary: What can the typical 401k fiduciary do to better prepare for the possible consequence of impending regulatory changes? Here's the straight-forward advice: Be aware, or be at risk. Here are four liability reducing strategies for today's 401k Plan Sponsor. Source: Fiduciarynews.com, June 2010.

Participant Account Balance Size Influences 401k Plan Fees - Summary: According to a report published by the 401k Averages Book titled, "Are All $5,000,000 401k Plans Created Equal?," the size of a 401k plan's average participant account balance will influence the amount of fees they pay. Source: 401khelpcenter.com, June 2010.

Comparative Costs and Risks for Sponsors of Traditional DB, DC, and Hybrid Plans - Summary: Study results show that costs and risks for sponsors vary significantly with plan type, funding strategy and participant demographics. Throughout the scenarios, the hybrid plan exhibits good features of cost efficiency and risk reduction to the plan sponsor. Source: Social Science Electronic Publishing, June 2010.

H.R. 4213 and How Much Does My 401k Investment Really Cost? - Summary: U.S. employers should begin by reviewing current fee disclosures and trying to make them as complete and accurate as possible, and consider including some of the new information that would be required if H.R. 4213 became law. Finally, it is important to keep an eye out for new final regulations at all times, as these will affect all 401k sponsors. Source: Pensions & Benefits Law Blog, June 2010.

COMMENTARY: SEC's Target-Date Fund Ruling Misses Bulls Eye - Summary: The Securities and Exchange Commission proposed a series of changes last week that that will require funds to explain the asset allocation models for their target date retirement funds in all marketing material. But the SEC's proposed changes mistake more information for truly good information. Source: CBS MoneyWatch, June 2010.

COMMENTARY: QDIA Essentials - Summary: Plansponsor's National Conference last week featured a panel titled "Five Things You Need to Know About QDIA's." Nevin Adams lays out his list in this piece. Source: Planadviser.com, June 2010.

Ten Things 401k Providers Won't Tell You - Summary: We're making money on your 401k — even if you're not; You may not have full disclosure about where all your money is going; You're buying wholesale, but we're charging you retail; and seven other points. Source: Smartmoney.com, June 2010.

IRS Rulings Breathe New Life Into PTO-401k Transfer - Summary: In the early 1990s, the Internal Revenue Service issued a technical advice memorandum on how unused vacation or sick pay can be transferred to 401k plans. The IRS also issued a private-letter ruling providing further insight into this concept. The practice, however, has not seen significant use by employers. Source: Employee Benefit News (free registration may be required), June 2010.

Study Reveals Why Plan Sponsors Select, Stick With, and Switch Plan Providers - Summary: The Briskin Consulting Study of Small Retirement Plan Sponsors explores the issues that concern plan sponsors within smaller companies and reveals their satisfaction and displeasure with the 401k plan services offered by investment and insurance companies, TPAs, RIAs, and banks and broker-dealers. Source: 401khelpcenter.com, June 2010.

ICI's 401k Resource Center - Summary: This resource center provides the fund industry's perspective on developments that affect 401k plans and their investors. It includes ICI's research and analysis of the 401k plan market and participant activity, as well as our advocacy for cost-effective 401k planning tools, services, and disclosure. Source: Investment Company Institute, June 2010.

IRS Reviews Tax Levy Rules for Retirement Plan Funds - Summary: In this Chief Counsel Advice memorandum, the IRS advised its revenue officers on the proper form for serving a tax levy notice on a plan administrator of a retirement plan. Source: Employee Benefits Institute of America, June 2010.

COMMENTARY: Will 401k World Change by Fall? - Summary: Potential new rules may dramatically change how 401k plan sponsors manage their companies' retirement plans. Failure to understand the implication of these changes can ensnare companies and their ERISA trustees with unexpected liability issues. Author reviews three impending changes. Source: Fiduciarynews.com, June 2010.

IRS Tax Requirements Affect 401k Plan Design - Summary: Like all retirement plans, a 401k plan must meet certain tax requirements to be a qualified plan. It's important to consider how IRS-specific 401k requirements can impact your plan design and ultimately your plan's success. This article reviews the big six 401k requirements. Source: Employee Benefit News (free registration may be required), June 2010.

IRS Reminds Plan Sponsors of Upcoming Form 5500 Deadline - Summary: The IRS has reminded sponsors of plans using a calendar year of the upcoming deadline for filing the Form 5500. Plan sponsors must file Form 5500 series returns on the last day of the seventh month after their plan year ends. Source: CCH, June 2010.

DOL Issues Final Regulations on QDRO Timing - Summary: The DOL has issued final regulations on the timing and order of qualified domestic relations orders (QDROs). The regulations provide that a plan administrator cannot disqualify a QDRO solely because it is issued after or revises another domestic relations order or QDRO, or is issued after the plan participant's death, divorce, or annuity starting date. Source: Buck Consultants , June 2010.

DOL Issues Final Rule on QDROs - Summary: A final rule clarifying certain requirements for qualified domestic relations orders (QDROs) was recently published by The U.S. Department of Labor. The rule is designed to give retirement plan administrators additional guidance when deciding whether to turn over money from the plan to someone other than a plan participant to satisfy a domestic relations obligation, such as alimony or child support. Source: Thompson Publishing, June 2010.

SEC Proposes New Disclosure Rules for Target-Date Funds - Summary: On the heels of the turmoil caused by the financial crisis, regulators are proposing new rules governing how target-date funds are named and marketed. Source: Marketwatch.com, June 2010.

Where Do RIAs Stand in the 401k Business - Summary: Among mega 401k plans that use an outside advisor, nearly half are working with an RIA, according to a new Cogent Research study that also suggests that RIAs are poised to win more of the defined contribution market. Source: RIAbiz.com, June 2010.

Stable Value: A Closer Look at This Hybrid Fixed Income Strategy - Summary: Given investors' risk–reward reassessments as well as the recent cash inflows into fixed income securities, this paper examines some of the unique characteristics of stable value funds and details the benefits and potential downside's to investing in funds of this type. It also look at the performance characteristics as well as recent negative plan events affecting these funds. Source: Vanguard , June 2010.

Individual 401k: The Great Retirement Vehicle for Sole Proprietors - Summary: If you are a sole proprietor and you want to maximize retirement contributions with the lowest cost and highest flexibility, check out five reasons why the Individual 401k (also called a Solo 401k) may be a good fit for you. Source: San Francisco Chronicle, June 2010.

AUDIO: Stable Value Funds: Stable, Valued? - Summary: Capital preservation funds may not have made the list of "long-term" solutions under the final QDIA regulations, but they remain a popular default choice for many plan sponsors, and remain an important asset class overall. What the new generation of stable value choices could bring to your program-and what the next generation has in store. Source: Plansponsor.com, June 2010.

SEC Proposes Disclosure Rules for Target-Date Funds - Summary: Statement by SEC Chairperson Mary L. Schapiro, "Today, the Commission will consider proposed rules that would provide investors with enhanced information about target-date retirement funds.... Together these amendments are designed to foster investor understanding of target-date funds and reduce the possibility that investors will be confused or misled about target-date funds' operations and risk profiles." Full statement here. Source: SEC, June 2010.

Combating Investors Misperceptions by Requiring Higher-Quality Disclosure on Target-Date Funds - Summary: Speech by SEC Commissioner Luis A. Aguilar, "[The] fundamental disconnect between investors' expectation and the reality of [target-date funds] raises serious concerns — and calls for the Commission to act. Investors require not just any disclosure, but high-quality disclosure that equips them to evaluate the fee, structure, and risks of the products they invest in. It is the Commission's mandate and responsibility to equip investors with the tools they need to evaluate investment products." Full speech here. Source: SEC, June 2010.

DC Plan Sponsors Reward Providers That Deliver on Critical 401k Services - Summary: A new study by Cogent Research concludes that retirement plan sponsors' needs and priorities vary significantly by plan size, and providers that succeed in delivering in these specific areas enjoy stronger loyalty among the plans they service. Source: 401khelpcenter.com, June 2010.

Is 401k a Brand Wasteland? - Summary: The 401k industry is full of "brand over spray" from other financial services and industry businesses, and those 401k providers definitely have room for improvement. That's one of the conclusions presented in Cogent Research's inaugural Retirement Planscape study of 401k plan sponsors. Source: Cogent Research , June 2010.

One Year Later – Reinstating Your 401k Match - Summary: As we appear to emerge from the worst of the economic doldrums, many companies are reinstating their matching contributions, either to their prior levels or to some other level. While this seems like a simple, well-intentioned change, it could bring with it some challenges. Source: Aon , June 2010.

Chairman Miller Wants Senate to Put 401k Fee Disclosure Back Into H.R. 4213 - Summary: Miller called the elimination of important reforms to expose hidden 401k fees "unacceptable" and vowed to fight to include the reforms. Source: House Education and Labor Committee, June 2010.

Revisiting Auto Enrollment - Summary: The cost of adding more employees to defined-contribution plans has slowed the use of automatic-enrollment features, according to a recent study. HR leaders should focus more on accommodating employee behavioral and post-retirement risks into their organizational retirement-savings plans. Source: HR Executive Online, June 2010.

Time to Consider Adding Roth to the 401k Plan - Summary: Adding and communicating a Roth-designated account can be well worth the effort, especially in the current environment. The addition of Roth can serve as an excellent way of reinvigorating a plan and re-engaging employees in their efforts to save for retirement. Source: Workforce.com (free registration may be required), June 2010.

Form 5500 Schedule C: Eligible Indirect Compensation Disclosure Guide - Summary: This guide was developed by Vanguard to assist plan administrators in completing Form 5500 Schedule C. It contains information regarding eligible indirect compensation received by Vanguard and others from Vanguard investment funds. Source: Vanguard , June 2010.

The Resurgence of Collective Investment Trusts - Summary: Bank collective investment trusts, a first cousin of the mutual fund, have been around for more than 70 years. Offered to both defined benefit and defined contribution plans, collective trusts today are vying to compete with mutual funds and other pooled investment vehicles as a mainstream product in the retirement plan marketplace. Source: Sutherland Asbill & Brennan LLP , June 2010.

The Four "R's" of the Mid-Year 401k Checkup Process - Summary: Recent market volatility has caused many 401k investors to wonder if their retirement savings are on track. Charles Schwab is encouraging people to perform a mid-year review of their 401k plan investments using this simple process. Source: 401khelpcenter.com, June 2010.

Senate Committee to Hold Hearing on Lifetime Income and 401k - Summary: The Senate Special Committee on Aging will hold a hearing to discuss the development of lifetime-income strategies for Americans with workplace-sponsored retirement plans. Source: Kiplinger.com, June 2010.

Understanding Early Withdrawals from Retirement Accounts - Summary: Those with 401k plans are likely to withdraw savings before retirement. About 40 percent of withdrawals can be linked to events such as the onset of poor health, job loss, home purchases, and college expenses. But half of withdrawals may represent unnecessary loss of retirement savings. Source: The Urban Institute , June 2010.

Seven Ways Money Leaks Out of Your 401k - Summary: Most people who dip into their 401k or IRA before retirement aren't buying the latest gadget or financing a lifestyle they can't afford. Savers who take early retirement account withdrawals primarily have a compelling need for the money, such as job loss or a health problem, according to a new Urban Institute study. Source: U.S. News & World Report, June 2010.

Disclosure Rules for 401k Fees Are on the Way (Slowly) - Summary: Who would buy something without knowing exactly how much it costs? Millions of investors do when they sign up for a 401k plan. That's about to change. Source: USA Today, June 2010.

The Spark Institute Comments on IRS 401k Compliance Questionnaire - Summary: The SPARK Institute has submitted a letter to the Internal Revenue Service expressing concerns about its recently initiated 401k Compliance Check Questionnaire Project, which requires a random sample of 1,200 employers to complete a lengthy online survey providing details about their 401k plans. Source: 401khelpcenter.com, June 2010.

Fee Disclosure Not in Senate Tax Extenders Bill - Summary: Senate Finance Committee Chairman Max Baucus' (D-Montana) substitute amendment (S. Amdt. 4301) now pending in the Senate does not include the 401k fee disclosure rules included in a version passed by the House. Source: Planadviser.com, June 2010.

COMMENTARY: Senate Moves to Keep 401k Fees Hidden - Summary: Participants in 401k plans pay billions of dollars in fees, but most of them don't know it. And the U.S. Senate apparently would like to keep it that way. Source: CBS MoneyWatch, June 2010.

Weigh the Cost Without Paying the 403(b) Piper! - Summary: It is very important to consider cost of administration and regulatory guidance that has matured and appears to be less complicated, but you should take a broad look at the before and after prior to making the decision to terminate your 403(b) plan with the intent to set up a 401k plan. Source: Businessofbenefits.com, June 2010.

IRS Issues Final Regulations on PPA Diversification Requirements - Summary: The IRS has released final regulations on the diversification requirements added by the Pension Protection Act of 2006 (PPA) for defined contribution plans holding publicly traded employer securities. The regulations apply for plan years beginning on or after January 1, 2011, but may be relied on immediately. Source: Buck Consultants , June 2010.

Comments on Notice 2009-68, Safe Harbor Explanation – Eligible Rollover Distributions - Summary: ASPPA submitted these comments to the IRS with respect to the safe harbor model notice to participants under IRC §402(f). The comments provide recommendations for areas needing clarification as well as ways the model language could be improved. Source: ASPPA , June 2010.

401k Annuities: An Idea Whose Time Has Come? - Summary: A small but growing number of companies are enhancing their employees' defined contribution plans by offering deferred annuities that provide a guaranteed income stream in retirement. But annuities may not be the right choice for every retiree. Source: AARP, June 2010.

Court Moves Forward Claims of Defaulted Participant - Summary: A federal court judge has refused to dismiss claims by a 401k participant that plan fiduciaries breached their duties when they transferred his accounts into a new default fund. Source: Plansponsor.com, June 2010.

DOL Releases Final Regulations Relating to Time and Order of QDROs - Summary: The regulations, which are effective July 30, 2010, are substantially similar to the interim final rule issued in 2007, but several changes were made to the examples given, and one additional example was added. Source: Sutherland Asbill & Brennan LLP , June 2010.

DOL's Final Rule Relating to Time and Order of Issuance of DROs - Summary: This regulation finalizes an interim rule published in 2007, which was adopted in response to the specific statutory directive contained in the Pension Protection Act of 2006, requiring the Secretary of Labor to issue regulations clarifying certain issues relating to the timing and order of domestic relations orders. Source: U.S. Department of Labor , June 2010.

COMMENTARY: Fee Disclosure is Coming to Your 401k - Summary: Investors lost a battle this week, but the war isn't over. Lawmakers in the Senate decided to drop a measure that would have forced the 401k industry to disclose fees to participants. But that's OK, because the numbers still favor retirement savers. Source: Marketwatch.com, June 2010.

A Dangerous Leap Through the Brokerage Window - Summary: In its survey, Trends and Experience in 401k Plans for 2009, Hewitt Associates noted that more plan sponsors were offering employees the option of a self-directed brokerage window. But, letting 401k plan participants jump through the brokerage window is tantamount to giving the inmates run of the asylum. Source: Workforce.com (free registration may be required), June 2010.

Prevalence of Retirement Plans by Type in the Fortune 100 - Summary: The movement from traditional DB plans to account-based plans has resulted in a redistribution of employer funding toward retirement — with that funding now far less targeted to older workers. Towers Watson has been tracking the retirement plans offered to newly hired employees of Fortune 100 companies for several years. This is their latest report. Source: Towers Watson, June 2010.

The Target-Date Duty - Summary: Target-date funds have enjoyed remarkable acceptance by 401k fiduciaries, and why not? They "solve" the problem of lack of investment knowledge of many participants—and they are eligible for the QDIA fiduciary safe harbor for defaulted participants. However, that acceptance may have been too fast. Source: Reish & Reicher, June 2010.

Study Examines the Motivations of Plan Sponsors - Summary: Employers considering finding a new defined contribution provider in the next two years are almost equally concerned with understanding legislation, costs/fees, and encouraging employee participation, according to a new study. Source: Planadviser.com, June 2010.

Supreme Court Ruling May Have Implications for ERISA Excessive Fee Cases - Summary: The Jones v. Harris Associates decision is expected to have a substantial impact for plans and fiduciaries defending the rash of pending litigation under the ERISA, involving allegations of excessive fees charged by service providers under 401k plans. Source: McDermott Will & Emery, June 2010.

In Volatile Times, It Pays to Revisit the IPS - Summary: By laying out the strategy and processes used to manage a portfolio in a manner that best serves the interests of investors, the IPS is essentially a business plan for the portfolio. Unlike a standard business plan, however, the IPS is a governing document that sets directives and constraints. Consequently, stewards and advisers should be careful to amend the IPS if they intend to depart from its terms. Source: Investmentnews.com (free registration may be required), June 2010.

IRS Launches 401k Compliance Checklist - Summary: The information collected reportedly will be used to influence future IRS efforts on guidance and outreach – as well as possible enforcement activity. The results are expected to be summarized in a report next year. Source: Groom Law Group, June 2010.

The Six Biggest 401k Mistakes - Summary: Like everything else in life, 401ks don't provide absolute retirement security. Here are six mistakes many people are making with their 401k plan. Source: U.S. News & World Report, June 2010.

The Top Ten 401k Mistakes to Avoid - Summary: The 401k program could be said to be the most important, and most effective, retirement savings vehicle on the market. Unfortunately, there are several common mistakes that people make with their 401k accounts and the costs can be significant. Source: Creditloan.com, June 2010.

401k Participants Retreat from Equities in May - Summary: As the Dow Jones Industrial Average slid more than seven percent in May, 401k participant transfers became strongly fixed income-oriented, according to the results of the Hewitt 401k Index. Source: Planadviser.com, June 2010.

Most 401k Plans Have Yet to Adopt Auto Enrollment - Summary: Although familiarity with automatic enrollment and automatic escalation is high among large employers with 401k plans, the majority of respondents to a new AARP survey have yet to adopt either feature. Source: Financial-planning.com, June 2010.

Study: Most Roadblocks to Successful Retirement Savings Self-Imposed - Summary: A new survey of financial advisors across the U.S. found that the top three roadblocks to Americans' financial security are living beyond ones means (70 percent), not saving enough (66 percent) and just plain fear (62 percent). Source: 401khelpcenter.com, June 2010.

Nine On-Line DOL Resources for 401k Plan Sponsors - Summary: The DOL has put together several free on-line "booklets" and "fact sheets" to assist and inform 401k plan sponsors and fiduciaries. Source: Fiduciarynews.com, June 2010.

Keeping Defaulted Participants from Defaulting on Retirement Savings Goals - Summary: As more and more employers opt to auto-enroll employees in target-date funds to give workers a nudge toward a secure retirement, new research from J.P. Morgan shows that while plan sponsors are aiming for the bulls eye, they may be shooting slightly off center with their target-date strategy. Source: Employee Benefit News (free registration may be required), June 2010.

COMMENTARY: How to Bring Better Investment Success to the 401k? - Summary: Right now, participants randomly select funds. That means they risk over-concentration in more volatile asset classes while making feeble attempts to time the market, which leads them to sell low and buy high, or sell low and not buy at all. This arrangement must be replaced by one in which professional managers design portfolios to meet investor risk profiles and objectives. Source: Financial Advisor Magazine, June 2010.

Long 401k Menus Prove Hard to Digest - Summary: Providers of 401k plans face a fundamental question these days: Is more, or is more less? In theory, it would seem employees are better off having a wide range of fund offerings in a plan. But, it's a really tricky issue, and the pendulum has swung back and forth. Source: Wall Street Journal, June 2010.

Launch a Solo 401k for Small-Business Clients - Summary: Many small-business clients run their operation as a one-person show. Once the business has turned the corner, the owner can focus on setting aside more funds for retirement. And the more he or she can save each year, the merrier the client will be. Strategy: Point out the benefits of a solo 401k plan. Source: Accountingweb.com, June 2010.

Proskauer Rose's ERISA Litigation Newsletter - Summary: This newsletter focuses on two different, but equally important, sections of ERISA. The first article provides insight on the U.S. Supreme Court's decision in Hardt v. Reliance Insurance Co., and the second article reviews a recent decision from the U.S. District Court for the Northern District of Illinois in Rogers v. Baxter, Int'l. Source: Proskauer Rose LLP, June 2010.

Beware of Trap in Restarting Matching Contributions - Summary: Many employers discontinued matching contributions for 2009 because of the downturn in the economy. Some of these employers are intending to resume matching contributions at some time during 2010 or 2011. However, the employer should be careful to avoid a "trap" that could occur for the plan year in which the matching contributions are restarted. Source: Miller, Johnson, Snell & Cummiskey, June 2010.

Knowing About Auto Features in DC Plans Doesn't Mean They're Used - Summary: Ninety-four percent of large employers with defined-contribution plans are familiar with 401k automatic enrollment and 78 percent are familiar with automatic escalation, but only 42 percent use auto enrollment and 28 percent use auto escalation. Source: Workforce.com (free registration may be required), June 2010.

Investment Committees: Vanguard's View of Best Practices - Summary: This update to a previously published Vanguard paper discusses the best practices for investment committees as well as advice on how investment committees can adopt these best practices for their committees. Source: Vanguard , June 2010.

FTC Postpones Its Enforcement of Identity Theft Red Flags Rule - Summary: The Red Flags Rule's broad definitions have raised questions about whether and how the Red Flags Rule applies to various employee benefit programs. While FTC guidance has clarified that a 401k plan's accounts would not need to be included in a written identity theft prevention program, further clarification would be helpful about the Red Flags Rule's application to other benefits. Source: Employee Benefits Institute of America, June 2010.

Spark Institute Opposes Pending Fee Disclosure Legislation - Summary: The Spark Institute has submitted a letter to the Senate expressing concerns about, and opposing, the defined contribution plan fee disclosure provisions in the American Jobs and Closing Tax Loopholes Act (H.R. 4213). Source: 401khelpcenter.com, June 2010.

401k Plan Sponsors on the Move to New Providers - Summary: Continuing the trend since the third quarter of 2008, new data from LIMRA found that the percentage of new 401k plans sold by leading providers remains lower than the percentage of plans taken over from other providers. Source: Planadviser.com, June 2010.

Automatic 401k Plans: Employer Views - Summary: Although nearly all large employers with 401k plans are at least somewhat familiar with automatic enrollment, the majority have not adopted it for their own 401k plan. Specifically, less than half (42%) of respondents report that their 401k plan includes automatic enrollment. Source: AARP, June 2010.

Treasury Torpedoes Key 401k Benefit - Summary: The Treasury has effectively killed a key 401k benefit that allows 401k participants to buy disability insurance with their 401k contributions. Source: Businesswire.com, June 2010.

An Employer Checklist of 401k Plan Responsibilities Under ERISA - Summary: As plan sponsor, an employer must ensure that those considered ERISA fiduciaries fulfill their responsibilities. This article is a review of subjects that can assist the employer sponsoring a 401k plan in avoiding or minimizing legal liability related to the plan. Source: Duane Morris LLP, June 2010.

COMMENTARY: Yale/Harvard Study Reveals Disturbing 401k Fee Paradox - Summary: Will a 401k investor choose a fund with lower fees or a fund with higher returns? The average fiduciary might think this a silly question, but its answer might just reveal a hidden liability should the Department of Labor make good on its proposed advice rule. Source: Fiduciarynews.com, June 2010.

How Does Your Retirement Program Stack Up? - Summary: This report provides a comprehensive review of retirement plan benchmark data from a broad range of perspectives and financial effects. The report includes perspectives and in-depth analysis on the current state of pension programs, risk management with regard to benefits earned and the assets backing them, delivery of future benefits and retirement program life cycles, and management assumptions and decisions that drive accounting results. Source: Mercer, June 2010.

DOL Should Not Regulate Generally Accepted Investment Theories - Summary: Employer groups, responding to the Labor Department's proposed investment advice regulations, said that the DOL should not attempt to regulate what constitutes generally accepted investment theories. Source: CCH, June 2010.

The Saga of Relevant Minutiae Continues.... - Summary: The author writes, "We have written often over the past few years on the minutiae of 403(b), particularly where they demonstrate the often goofy differences between 401k plans and 403(b) plans. We have also written some on the finer technical rules which apply to plan distributed annuities, which tend to apply in some pretty unusual ways." Source: Business of Benefits Blog, June 2010.

Required 2010 Tax-Qualified Plan Amendments - Summary: Each year, plan sponsors should consider whether amendments are needed to reflect any intended design changes or to address any items contained in the latest "cumulative list" of plan amendments issued by the IRS. The IRS updates the "cumulative list" annually to include the latest regulatory and statutory changes that must be reflected in plan documents. Source: Groom Law Group, June 2010.

House 401k Plan 'Slap in the Face' to Obama Administration - Summary: A retirement plan fee disclosure provision that was passed in the House last Friday may clash with upcoming rules from the Labor Department. Source: Investmentnews.com (free registration may be required), June 2010.

Outsourcing Does Not Make a Fiduciary Bullet Proof - Summary: It has come in vogue to advocate hiring an "independent" third-party fiduciary to take responsibility for a plan's investments and other fiduciary functions in order to relieve the plan's sponsor, in-house, or named fiduciaries of liability under ERISA. However, the fact is that a named fiduciary is never completely free from fiduciary responsibility for the plan. Source: Profit Sharing/401k Council of America , June 2010.

Measuring the Impact of 401k Fee Disclosures - Summary: Starting soon, 401k plan sponsors will be required to tell employees clearly just how much they pay in fees. In turn, investment firms will have to spell out for plan sponsors what they shell out in charges. How might all this candor about costs change the settled world of 401k plans? Source: Institutional Investor, June 2010.

AUDIO: 403(b) Adviser Opportunity - Summary: The Principal's Aaron Friedman discusses opportunities for retirement plan advisers in the 403(b) plan market and why plan sponsors might need an adviser. Source: Plansponsor.com, June 2010.

2009 Required Minimum Distribution Waiver - Summary: The "2009 distribution calendar year" waiver of the required minimum distribution is over. As of 2010, required minimum distributions resume. However, for beneficiary's there may be some ripple effects from the 2009 RMD waiver. Source: McKay Hochman, June 2010.

Supreme Court Changes Rules for ERISA Attorney Fees - Summary: This decision will likely result in an increase in fee petition filings under ERISA Section 502(g)(1) because claimants will now ask district courts to examine whether they achieved "some degree of success" under the Supreme Court's new test. Source: McDermott Will & Emery, June 2010.

Independent Fiduciary Role Set to "Explode" - Summary: When sponsors understand that they can outsource the fiduciary responsibility to an expert, it would seem to be an easy choice for them to make. And doing so may be ready to "explode," especially with the changes pending in DOL legislation that is expected to require that plans reveal all fees or costs to participants. Source: Wealth Manager, June 2010.

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