401k Expense Ratios Down - Summary: Plan participants are moving their assets into cheaper mutual funds, selecting no-load options, while expense ratios within the funds themselves are dropping, according to a study by the Investment Company Institute. Source: Investmentnews.com (free registration may be required), June 2011.

Have You Looked at Your Investment Committee Lately? - Summary: The committee by-laws are essential for establishing the process by which the committee operates. Other industry best practices with respect to investment committees include nine items. Source: Fi360.com, June 2011.

Why Small Business Now Has the 401k Benefits Edge on Big Business - Summary: Whether you have one employee or a hundred, it's becoming much easier for small businesses to provide a better 401k benefit than large company plans. This is a stark contrast to the way things have been for years and can be a huge advantage to small businesses in attracting and retaining top talent. So what's making this all possible? Two things. Source: Forbes, June 2011.

Five Things You Need to Know About QDIA's - Summary: Panelists at the PLANSPONSOR National Conference said that according to the Department of Labor, sponsors still have to do their due diligence in the selection and monitoring of QDIA's. Sponsors need to understand what they're buying, how it works, and how much it costs. Source: Plansponsor.com, June 2011.

Qualified Pension Plans for Puerto Rico Employees -- The Perfect Storm Has Arrived - Summary: Over the past few years, a number of law changes have impacted the coverage of Puerto Rico employees in U.S. tax-qualified pension plans. Today, these law changes come together to create the perfect storm -- creating new challenges in finding the right retirement vehicle to provide tax-favored pension benefits to bona fide Puerto Rico employees. The elements of the "perfect storm" are described in this article. Source: Groom Law Group , June 2011.

Three Key Variables That Drive Retirement Preparedness - Summary: In a recent survey of nearly 3,300 working Americans to help determine current levels of retirement preparedness, Putnam Investments identified three key variables that drive successful outcomes. The most powerful factor, regardless of income level, is a pattern of disciplined, long-term savings and investing. Source: 401khelpcenter.com, June 2011.

Does It Ever Make Sense to Reduce Your 401k Contributions? - Summary: Financial planners typically recommend that people save more for retirement in their 401k. There are lots of reasons that this is usually good advice, such as the tax benefits, the convenience of payroll deductions, and maybe an employer match. But can it ever make sense to reduce your 401k contributions? Source: Forbes, June 2011.

DOL's Borzi Fights Critics of Proposed Fiduciary Rule - Summary: Phyllis Borzi, head of the Department of Labor's Employee Benefits Security Administration, fought back on recently against criticisms EBSA has received regarding its controversial regulation amending the definition of fiduciary under ERISA. Source: Advisor One, June 2011.

CIGNA v. Amara: U.S. Supreme Court ERISA Disclosure Decision - Summary: In a "good news, bad news" opinion for plan sponsors, the U.S. Supreme Court, in CIGNA v. Amara, has addressed participants' ability under the Employee Retirement Income Security Act (ERISA) to sue employers for allegedly incomplete, inaccurate and misleading communications. Source: Towers Watson, June 2011.

Fee Disclosure Q&A: Answering Plan Sponsor Questions About New DOL Regulations - Summary: This set of questions and answers can help sponsors sort through issues related to the new DOL fee disclosure requirements. The topics covered are associated with two separate regulations-one designed to provide transparency in plan fees and expenses to participants, and the other to enhance what service providers disclose to retirement plan fiduciaries. Source: Vanguard , June 2011.

SEC Fiduciary Rule 'Likely' This Year, but Not Harmonization - Summary: A senior official at the Securities and Exchange Commission said that while he believed the securities regulator would issue a rule putting brokers under a fiduciary mandate this year, the agency would hold off on issuing one on the overall harmonization of advisor and broker rules. Source: Advisor One, June 2011.

New Puerto Rico Tax Code Requires Big Changes to Retirement Plans for Puerto Rico Employees - Summary: On January 31, 2011, the Commonwealth of Puerto Rico adopted a new Internal Revenue Code which substantially overhauls the tax qualification requirements for retirement plans that cover Puerto Rican employees. The qualified retirement plan provisions found in the 2011 PR Code contain requirements that parallel the requirements found in Section 401(a) of the US Internal Revenue Code. However, the 2011 PR Code made a number of significant changes thereby creating differences between the U.S. Code and the 2011 PR Code. Employers sponsoring Puerto Rican plans or United States plans covering Puerto Rican employees should review their plans. Source: Wagner Law Group , June 2011.

DOL Plugs a Yawning Gap in ERISA Rules - Summary: There is a gaping hole in ERISA regulations that allows many investment service providers to escape fiduciary accountability for the advice that they provide to retirement plan sponsors and participants. But the DOL is working on a change that would extend fiduciary standing to more of those providing retirement plan advice. Source: Investmentnews.com (free registration may be required), June 2011.

Re-thinking Target Date Funds: No Magic Formula - Summary: Is the conceptual design behind Target Date Funds sufficiently robust to warrant the claim of being "the" ideal solution for defined contribution retirement plans? This article aims to make the case for a complete and consistent framework to vet the risk-and-return proposition of TDFs. In particular, financial operators and regulators should re-examine the existing TDF solutions and encourage more accurate disclosure of the expected risks and returns of each product in a manner consistent with (a) rigorous analysis based on commonly accepted financial theory and (b) realistic empirical market evidence. Source: Buck Consultants , June 2011.

Study: Money Trumps Age When Determining Start of Retirement - Summary: Three out of four (73 percent) of our nation's middle-income Baby Boomers say that their financial situation, not age, is now the key trigger for when to retire, according to a recent study conducted by the Bankers Life and Casualty Company Center for a Secure Retirement. Source: 401khelpcenter.com, June 2011.

Ex-Employees Who Don't Rollover – Will 401k Fees Increase Plan Sponsor Liability? - Summary: There's often a debate as to what's in the best interest of ex-employees: to keep their retirement assets in their former company's 401k or to roll those assets over into an IRA? What's often overlooked in this calculation is whether this individual decision can inadvertently increase the fiduciary liability of the 401k plan sponsor at the former firm. Source: Fiduciary News, June 2011.

COMMENTARY: Tipping Point Near for 401k Investors - Summary: The new 401k fee disclosure laws to start in January will shed some light on the fact that fees have been collected from the worst, most expensive possible source -- from money that could otherwise have been compounding tax free. And perhaps we'll see a version of the Arab spring among 401k investors. Source: Contra Costa Times, June 2011.

Is It Ever OK to Raid Your 401k? - Summary: When your banker says no, your 401k says yes. That is what many employees nationwide seem to think. In a society already drunk on debt and an economy struggling to recover, people are even hocking their own retirement funds. Most of them are making a mistake. But, crazy though it might seem, there is a case to be made for borrowing from your 401k account, at least in certain circumstances. Source: Wall Street Journal, June 2011.

DC Plan Participants Recognize Benefits of Automatic Investment Programs - Summary: Automatic enrollment continued its upward trend, climbing three points since 2009 to 24% of plans. Participation, however, fell slightly to 74%. Economic conditions that prevented people from contributing offset gains made by automatic enrollment. Almost 30% of 401k participants are enrolled in automatic professionally managed investment programs, including target-date or balanced funds or a managed account advisory service, according to a study released Wednesday by Vanguard. Source: Advisorone.com, June 2011.

AUDIO: The Fiduciary Standard With Blaine Aiken of Fi360 - Summary: The Don Davidson 401k Podcast is a conversation with guest experts about the 401k world. This 17 minute podcast is with Blaine Aiken of Fi360 on the "fiduciary standard." Source: Advisorsaccess.com, June 2011.

SHRM's 2011 Employee Benefits Research Report - Summary: SHRM's 2011 Employee Benefits research report provides comprehensive information about the types of benefits U.S. employers offer to their employees. In 2011, 284 benefits were explored, covering the areas of health care and welfare benefits, preventive health and wellness benefits, retirement savings and planning benefits, financial and compensation benefits, leave benefits, family-friendly benefits, flexible working benefits, employee services benefits, housing and relocation benefits, and business travel benefits. The report also examines trends in employee benefit offerings over the last five years. Source: Society for Human Resource Management, June 2011.

Survey Shows Gap Between Employer Concern and Action Over Plan Compliance - Summary: Managing and governing retirement plans has become increasingly difficult and time-consuming for plan sponsors over the past few years, especially as costs have risen and regulations have grown more complex. The Towers Watson survey found that 40% of employers expect to devote more time addressing retirement plan governance issues over the next two years, while only 2% anticipate spending less time. Among those respondents that expect to spend more time on plan governance, a vast majority (86%) cited regulatory complexity as a major reason. Source: 401khelpcenter.com, June 2011.

401k Companions May Widen Retirement Safety Net - Summary: The financial and emotional scars of the bear market still have many Baby Boomers in limbo, unsure if their savings will last their lifetime. Keying on those worries, the 401k industry has started providing products designed to help transform savings into steady paychecks that will be a safety net throughout retirement. Source: USAToday.com, June 2011.

Helping Improve the Retirement Outlook for the Unemployed - Summary: In order to gauge the impact on the retirement outlook on these displaced workers, Transamerica Retirement conducted a survey among 668 Americans who are either unemployed or underemployed. Not surprising, two-thirds (67 percent) of these un/underemployed workers are less confident in their ability to achieve a financially secure retirement since the recession began. Many have tapped their savings, gone into debt, and taken withdrawals from their retirement accounts to cover expenses during their unemployment or underemployment. Source: Transamerica Retirement Services , June 2011.

The 2011 Higher Education Retirement Confidence Survey - Summary: The college and university workforce is more confident regarding its prospects for a financially secure retirement than are American workers in general. Twenty-five percent of higher education employees are very confident in their retirement income prospects and 50% are somewhat confident, compared with 13% and 36%, respectively, for U.S. workers. Source: TIAA-CREF Institute , June 2011.

Advisers to Hedge Funds Must Register with SEC - Summary: The Securities and Exchange Commission adopted rules that require advisers to hedge funds and other private funds to register with the SEC. The rules also establish new exemptions from SEC registration and reporting requirements for certain advisers, and reallocate regulatory responsibility for advisers between the SEC and states. Source: Planadviser.com, June 2011.

IRS Employee Plans News Issue Number 2011-5 - June 22, 2011 - Summary: Topics include: 2009 Form 8955-SSA and 2010 Form 5500-EZ Released, Form 5500 Special Extensions of Time to File, Employee Plans Rulings & Agreements Priority Items, Are SEP IRA Contributions Deductible if a Return is Filed Late, How to calculate RMDs for employees, retirees and beneficiaries , Form 5300 Applications for Employee Stock Ownership Plans, Completing a Power of Attorney Form for Form 5330, What's on the Employee Plans Compliance Unit's Radar Screen and Tax Relief in Disaster Situations. Source: IRS , June 2011.

IRS Extends the Deadline for Filing the 2009 and 2010 Form 8955-SSA - Summary: In an IRS Employee Plans Newsletter released on June 21, 2011, the IRS announced that it will shortly be releasing guidance extending the filing due date for the 2009 and 2010 Form 8955-SSA, Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits. Source: Sungard/Relius, June 2011.

Retirement Account Balances (Updated 6/11) - Summary: The retirement savings of American households took a big hit when the stock market crashed in 2008. Recently, however, a good portion of these losses has been reversed. This fact sheet follows trends in retirement account balances since the beginning of 2005. Source: Urban Institute, June 2011.

The Pros and Cons of Taking a 401k Loan - Summary: As banks have scaled back on consumer lending, Americans are increasingly borrowing from their 401k retirement accounts. It can make good sense to borrow from a 401k. Still, there are risks to taking out such a loan. Source: Smartmoney.com, June 2011.

Fiduciary Safe Harbor Protection and the Duty to Share - Summary: The Sixth Circuit recently affirmed the decision of a trial court. The case appears to serve as a cautionary tale for participants to choose and monitor their investment advisors more carefully given the protections that the 404(c) safe harbor provides for plan fiduciaries. A closer look at the trial court's decision sheds light on this as the trial court specifically notes that while a plan fiduciary cannot conceal material nonpublic facts from plan participants, ERISA does not require a fiduciary to guarantee that all material facts are shared with participants. Source: Fi360.com, June 2011.

Vanguard Finds More 401k Participants Getting Professional Investment Help - Summary: The portfolios of nearly 30% of participants in 401k retirement plans at Vanguard are in automatic professionally managed investment programs, which particularly benefit individuals who lack the skills to invest properly on their own, according to Vanguard's How America Saves 2011. Source: 401khelpcenter.com, June 2011.

How America Saves 2011: A Report on Vanguard 2010 Defined Contribution Plan Data - Summary: This 92 page report, now in its 10th edition, is widely used as a barometer of retirement planning trends. Along with a look at the overall patterns of Vanguard's three million-plus participants, How America Saves this year includes supplemental reports with analyses of participant behavior in the defined contribution retirement plans of eight specific industries. Source: Vanguard , June 2011.

IASB Adopts International Accounting Rule on Employee Benefits - Summary: The International Accounting Standards Board (IASB) has released an amended version of its Financial Reporting Standard IAS 19 Employee Benefits, completing its project to "improve" the accounting for pensions and other post-employment benefits. For U.S. employers that will be required to comply with this standard, the effective date is for fiscal years beginning on or after January 1, 2013. Source: Milliman, June 2011.

IRS Releases 2009 Form 8955-SSA - Summary: The IRS has released the final version of the 2009 Form 8955-SSA and its instructions. The Service has not released the 2010 version or the updated Form 5558 extension request. Employers have the option of using the 2009 to list all persons that the employer would otherwise list on the 2010 form. Such a form would still include a 2009 date. Source: Sungard/Relius, June 2011.

ASPPA and NAIRPA Support SEC Investor Education Efforts - Summary: ASPPA and National Association of Independent Retirement Plan Advisors comment letter in response to the request for comment from the U.S. Securities and Exchange Commission existing private and public efforts to educate investors. Source: ASPPA , June 2011.

COMMENTARY: Why Should 401k Plan Sponsors Care What Others Think About the Fiduciary Standard? - Summary: Confirming earlier studies, J.D. Power & Associates released their 2011 study on investor satisfaction and found retail investors have no awareness of the difference between the fiduciary standard and the suitability standard. This lack of awareness on the part of investors stood out as one of the cornerstone reasons why the SEC recommended the adoption of a uniform fiduciary standard. Source: Fiduciary News, June 2011.

Why Fees Matter for 401k Plan Fiduciaries, But Not DB Pension Plans - Summary: It's okay with the DOL if plan sponsors spend money foolishly on the administration and management of defined benefit pension plans. However, DOL balks at similar behavior for defined contribution plans. To understand the difference, let's look at who bears the risks in providing for plan participants' retirement. Source: Smart Investor, June 2011.

Study Shows Gen-Xers Fear Bleak Retirement - Summary: Only about one in ten so-called Generation-Xers is very confident of being be able to maintain their current standard of living when they retire, and 82 percent cannot say they are well along their path to planning a successful retirement, the study revealed. Source: 401khelpcenter.com, June 2011.

COMMENTARY: How Much Are We Really Saving in Our 401k's? - Summary: The hope for the future is that workers in younger age groups will have spent more years covered by 401k plans and have been exposed to more automatic provisions, such as auto enrollment and auto escalation in the default contribution rate, than the early boomers. But it's clear we have a long way to go before 401ks will provide meaningful retirement income. Source: Smartmoney.com, June 2011.

On the Hunt For a Better 401k Plan - Summary: If you run a small company, you have hundreds of tasks to take care of. Fixing a middling 401k plan is something you end up doing if and when you have a spare minute. There are firms who specialize in small 401k's and will help you clear the obstacles in getting a better plan. Source: New York Times, June 2011.

Nowhere to Hide on Hidden 401k Fees - Summary: Under ERISA, CFOs and other retirement-plan fiduciaries are required to understand the fees and expenses charged and the services provided to the plan. With plan participants increasingly litigious, plan sponsors must take care that investment and administration expenses are "reasonable." Source: CFO Magazine, June 2011.

Research Finds That Written Retirement Income Plans Can Help Drive Business Growth for Advisors - Summary: The Fidelity survey of more than 500 financial advisors and 500 pre-retirees and retirees reveals that advisors who provide comprehensive retirement income planning -- specifically, written, detailed plans -- generally receive higher satisfaction, referrals and, ultimately, higher concentrations of client assets. Source: 401khelpcenter.com, June 2011.

The 401k Auditor's Wish List - Summary: As we approach the audit deadline for employee benefit audit plans, hopefully things are already in motion with your plan auditors. You have received the list of items they need to complete the audit, documents have been exchanged and meetings are planned. But what else can you do to make this year's audit more efficient, less painful and - dare we say - more enjoyable than last year? Source: Employee Benefit News, June 2011.

Why Retirement Plan Sponsors Shouldn't Only Focus on Low Fees - Summary: While paying unreasonable plan expenses is a breach of fiduciary duty, picking providers solely or mainly because they are low in fees can also breach the fiduciary duty. The duty of prudence requires the selection of competent plan providers and selecting an incompetent provider is a certain breach of that duty. So a plan provider needs to select competent plan providers, not just the lowest cost vendor. Source: The Rosenbaum Law Firm, June 2011.

Gender Gap in Financial Literacy - Summary: Perhaps due to the economic recovery, the gender gap in financial literacy narrowed significantly after widening in 2010 -- with women gaining ground in virtually all areas of financial planning. Young women under 30, in particular, gained the most ground on their male counterparts. Source: Financial Finesse , June 2011.

Investment Committee Leadership Styles Matter? - Summary: Vanguard examined the impact of various leadership styles on investment committee decision-making. Results of this survey reinforce the presumption that there will always be powerful situational determinants that drive leadership effectiveness. This reality should serve as a reminder to all investment committee leaders to focus on what they can control. Source: Vanguard , June 2011.

Some Fiduciary Services Are More Equal Than Others - Summary: With the increased focus by the Department of Labor on the fiduciary aspects of 401k plans, the market place has responded. 401k providers offer services allowing fiduciaries to delegate some or all of their responsibility for plan investments. But some fiduciary services are more equal than others. Source: Retirementplanblog.com, June 2011.

Treasury Set to Offer Guidance on 401k Income Products - Summary: Aiming to curb the number of individuals who are likely to outlive their retirement savings, the Treasury Department soon will offer guidance on lifetime income options that 401k plan participants should have available when they retire. Source: Investmentnews.com (free registration may be required), June 2011.

IRS and Treasury Officials Provide Informal Views on 401k Plan Topics - Summary: The Joint Committee on Employee Benefits (JCEB) of the American Bar Association has reported on its May 2011 Q&A session with IRS and Treasury officials. Highlights include unofficial, nonbinding remarks about a number of issues, reviewed in this article, affecting 401k plans. Source: Thomson Reuters/EBIA, June 2011.

401k and 403(b) Plans - Siblings, Not Twins - Summary: Kind of similar, but really different, 401k plans and 403(b) plans are the fraternal twins of the retirement plan universe. People think that 403(b) plans are just a funny version of a 401k, but that is not true. While the rules for the two different types of plans are similar, there are significant differences, and advisers need to know the differences. This article covers five common misperceptions and misunderstandings about 403(b) plans (and how they compare with their 401k brethren). Source: Planadviser.com, June 2011.

VIDEO: Regulatory Update: 401k Fee Disclosure - Summary: Retirement plan fee disclosure is a top priority for the U.S. Department of Labor but delays in the final regulations could put employers in a time crunch to communicate these updates to their plan participants. ASPPA's General Counsel and Director of Regulatory Affairs, Craig Hoffman explains what ASPPA is doing to raise the issue with the DOL. Source: ASPPA, June 2011.

Trading in 401k Plans During the Financial Crisis - Summary: Study finds that most 401k participants did not trade much in their retirement accounts during the recent financial crisis. Yet the proportion of plan participants trading did rise by almost a quarter and the mean portfolio fraction shifted away from equities rose almost eightfold during the crisis. Traders' responsiveness to monthly stock market volatility also more than doubled, contributing to a sharp increase in the sale of equities. Source: Pension Research Council (free registration may be required), June 2011.

Investors Clueless on Suitability vs. Fiduciary Standards - Summary: By a vast majority, investors don't know the difference between the standards that are now in effect. At issue is the question of a suitability standard (under which an advisor is required to make investments he judges to be suitable for his clients) vs. a fiduciary standard (under which an advisor is required to act in his clients' best interests, and disclose to them all conflicts of interest). Source: Advisorone.com, June 2011.

ASPPA Asks DOL For Extension on Fee Disclosure - Summary: ASPPA says additional time will be required after the regulation is issued because only then will the final system design parameters be known. Source: 401khelpcenter.com, June 2011.

Will Congress Slash Your 401k Tax Break? - Summary: Is Congress getting ready to slash the tax deduction on retirement saving? This might be Washington's second most important retirement policy regulatory issue - coming right after the Department of Labor's preparations to add fiduciary responsibility to workplace retirement plan platform providers. Yet the odds look long for any immediate action on retirement savings deductibility. Still, the retirement industry is taking the matter seriously. Source: Reuters, June 2011.

How Does Your Retirement Program Stack Up? - 2011 Edition - Summary: This report provides a comprehensive review of retirement plan benchmark data from a broad range of perspectives and financial effects. Includes perspectives and in-depth analysis on the current state of pension programs (pension health and materiality), risk management with regard to benefits earned and the assets backing them (volatility), delivery of future benefits and retirement program life cycles (sustainability), and management assumptions and decisions that drive accounting results. Source: Mercer, June 2011.

Seventh Circuit Requires 401k Plan Fiduciaries to Stand Trial - Summary: The litigation was brought by participants of a 401k plan against the plan's sponsor and various individuals affiliated with the plan sponsor, as well as the relevant corporate committee that was responsible for overseeing the plan. After earlier having certified the case as a class action, the district court thereafter ended the case in its entirety by granting summary judgment to all defendants. An appeal followed. A panel of the Seventh Circuit reversed the decision, in part, thereby setting the case on track for trial, unless further appeals are allowed or the case is resolved by the parties. Source: Goodwin Procter LLP, June 2011.

The Two Biggest Traps Behind 401k Loans and How to Avoid Them - Summary: Most financial experts will tell you that tapping a 401k for a loan should always be viewed as a last resort. But, for many they can still sound pretty attractive. If you're thinking about taking one out, you need to understand the down side of 401k loans and, in particular, two areas that are especially hazardous. Source: Forbes, June 2011.

Prepping Participants Ahead of New Fee Disclosure Regulations - Summary: That their plan is free to them is a very common misconception that plan participants have. With new participant fee disclosure regulations coming into effect next year, some employees may be in for a shock. Here's what you can do to start prepping them now. Source: Employee Benefit News, June 2011.

Lack of Retirement Funds Is Americans' Biggest Financial Worry - Summary: More Americans are worried about not having enough money for retirement (66%) than are worried about seven other financial matters Gallup asked about. Majorities of Americans, however, are also very or moderately worried about not being able to pay medical costs for a serious illness or accident and about not being able to maintain their standard of living. Source: Gallup, June 2011.

2010 Form 5500-EZ Released - Summary: The IRS has released Form 5500-EZ is used by one-participant plans that are not subject to the requirements of section 104(a) of the ERISA and that are not eligible or choose not to file Form 5500-SF electronically to satisfy certain annual reporting and filing obligations imposed by the Code. Source: IRS , June 2011.

Guidance Imminent on 401k Income Products - Summary: Aiming to curb the number of individuals who are likely to outlive their retirement savings, the Treasury Department soon will offer guidance on lifetime income options that 401k plan participants should have available when they retire. Source: Investmentnews.com (free registration may be required), June 2011.

What You Need to Know About TDFs - Summary: Many fiduciaries may not be aware of their duties in selecting target-date funds for their plan or how to fulfill them. The worst fiduciary "sin" is to fail to engage in a prudent process-a nonexistent process cannot be a prudent process. For target-date funds, that process should include the asset allocations and glide paths-particularly over the last 10 years-and the needs of the participants. Source: Plansponsor.com, June 2011.

COMMENTARY: New Fiduciary Definition Widens the Net - Summary: The DOL has proposed to expand the definition of "fiduciary" under ERISA section 3(21) with regard to investment advisers and those providing valuation services to employee benefit plans. The proposal has come under heavy criticism, and the author is concerned that the proposal could drastically limit the types of sales presentations investment professionals could provide to a plan or its participants without assuming ERISA "fiduciary" status. Source: Plansponsor.com, June 2011.

Five Things You Need to Understand About Target-Date Fund Glide Paths - Summary: Only 34% of defined contribution sponsors see target-date funds as the best QDIA for their plan, down from 57% a year earlier. Confusion about glide paths clearly plays a role: Fifty percent do not know the end date of their funds' glide paths, and more than a third are unfamiliar with the "to" versus "through" decision. Sponsors evaluating target-date fund glide paths should make sure they understand five factors. Source: Plansponsor.com, June 2011.

Picking the Best Provider - Summary: A bad provider selection can ruin even the best-designed plan. Plan sponsors who want to build a better 401k plan can, however, build on the success and ideas fostered by a great provider relationship-and that is why your choice of a recordkeeping provider may well be the most critical you will make as a plan fiduciary. Source: Plansponsor.com, June 2011.

A Look Inside Fee Benchmarking Services - Summary: A number of fee benchmarking services have come to the fore in recent years, employing different assumptions, built on different databases, and deployed in different ways and through varying media. This article touches on four of these services as well as the controversies around them that have emerged. Source: Plansponsor.com, June 2011.

Delivering DC Plan ERISA Disclosures: Why the Time Has Come to Prefer Electronic Delivery - Summary: This 46 page white paper systematically evaluates the facts and law relevant to deciding when to favor electronic or paper delivery of notices for defined contribution plans. The paper offers the perspective of a law professor and former White House official who has written on information technology and Internet law and policy. Based on this experience and extensive research for this project, the paper concludes that the time has come for a major shift toward greater reliance on electronic delivery of defined contribution plan notices. Source: ASPPA , June 2011.

COMMENTARY: DOL's Fiduciary Proposal Misses the Mark - Summary: Author suggests that, "although DOL's fiduciary proposal is equally well-intentioned and has real potential, it badly misses the mark. It is unfair to the industry because it disregards decades of administrative law and practice under ERISA. It is bad for investors because it strips them of fiduciary protections when they are needed most." Source: Morningstar.com, June 2011.

Retirement Plans Make Comeback, With Limits - Summary: Many U.S. companies that during the recession cut 401k matching contributions--one of the most valuable employee benefits--are beginning to restore them. But a number of firms are contributing less than before, are linking contributions to profits or are making workers save more on their own before kicking in, say benefits consultants. Source: Wall Street Journal, June 2011.

Study Finds Benefit Plans Key to Employer Talent Retention Strategies - Summary: Bank of America Merrill Lynch released these findings from its Workplace Benefits Report, a new study focused on the role financial benefit plans play in employers' talent management strategies and the overall financial well-being of their employees. The study includes responses from 650 C-level executives, HR and benefit plan leaders and examines ways in which employers are helping to address the financial needs of perhaps the most demographically diverse workforce in history. Source: 401khelpcenter.com, June 2011.

COMMENTARY: Does Pending Appeal Decision Doom 401k Plan Sponsors? - Summary: Like a Damocles Sword, the decision of the U.S. Ninth Circuit Court of Appeals looms precariously over 401k plan sponsors. It could do what the DOL, promoters of the fiduciary standard and far sighted industry experts have long failed to accomplish – get 401k plan sponsors to recognize, and even fear, their increasing fiduciary liability. Source: Fiduciarynews.com, June 2011.

COMMENTARY: How Four Years of Work Might Make or Break Retirement - Summary: Today, the average retirement age for men is 64 and for women, it's 62. But if people continue to retire this early, they are going to face a severe decline in their living standards. The reasons for this decline are twofold. Source: Smartmoney.com, June 2011.

ASPPA Offers IRS Ideas to Simplify Paperwork for Retirement Plan Filings - Summary: One of the primary purposes of the pre-approved plan and determination letter program is to reduce both the IRS's and practitioners' workloads by having the IRS review and approve specimen plan documents that can be used by many plan sponsors. ASPPA believes additional improvements can be made to the program in order to provide even greater efficiencies. Source: 401khelpcenter.com, June 2011.

The Availability and Utilization of 401k Loans - Summary: This research documents loan provisions in 401k savings plans and how participants use 401k loans. For example, research found that although only about 22% of savings plan participants who are allowed to borrow from their 401k have such a loan at any given point in time, almost half had used a 401k loan over a longer, seven-year horizon. Source: Yale University , June 2011.

Your 401k Shouldn't Be Risky Business - Summary: Offering a 401k is a great benefit for a business and its employees, but more often than not, business owners and administrators are unaware of the duties they're required to manage and the fiduciary role they take on. This article reviews the key duties. Source: Forbes, June 2011.

Large-Cap Funds Dominate DC Index Landscape - Summary: Although most defined contribution plans offer at least one index fund option, investment menus -- regardless of a plan's size -- remain dramatically tilted toward large-cap domestic equity index funds, according to new research by Standard & Poor's Financial Services LLC. Source: Pension and Investments (free registration may be required), June 2011.

VIDEO: Understanding 401k Fees - Summary: Fees associated with 401k plans are often unknown, hard to identify and difficult to review. This AARP video introduces some common 401k fees and explains how those fees may impact your retirement security. Source: Youtube.com, June 2011.

COMMENTARY: Have 401k plans succeeded? - Summary: About 30 years ago, the tide shifted in terms of the fundamental way corporations in America provided retirement strategies for employees. The 401k plan was born, and the trend from Defined Benefit (employer funded) to Defined Contribution (employer/employee funded) had its beginning. So how successful has this financial and philosophical shift been for the American employee? Well, the jury is still out on that. Source: Shreveport Times, June 2011.

Improving the Auditing of Employee Benefit Plans - Summary: The 2010 Employee Retirement Income Security Act Advisory Council recently issued a report, "Employee Benefit Plan Auditing and Financial Reporting Models." The report focused on retirement plans, given the many industry changes that have occurred since ERISA's audit requirements were enacted in 1974. More specifically, the Council zeroed in on three areas: the quality of plan audits and auditors, limited scope audits, and 403(b) plans. The Council provides support to the Secretary of Labor. Source: IDG News Service, June 2011.

Schwab Plan Points Toward a Changing 401k Market - Summary: Charles Schwab has long been a leader in low-cost retail investing. Now, it's gearing up for a run at the 401k market by hitching its wagon to two ideas whose time may have come: low-cost passive investing and investment advice for plan participants. Source: Reuters.com, June 2011.

Offering Company Stock As an Investment Option in Retirement Plans - Summary: Given the current wave of lawsuits over plummeting stock prices and retirement plan mismanagement relating to company stock, it is more important than ever to be aware of the risks of fiduciary liability associated with offering company stock in a retirement plan. Source: McKenna Long & Aldridge LLP , June 2011.

The SPARK Institute Urges DOL to Further Extend Applicability Dates for Fee Disclosure Rules - Summary: The SPARK Institute urged the Department of Labor to extend the compliance dates for its 408(b)(2) and participant disclosure rules beyond the extensions proposed by DOL on June 1, 2011. In a comment letter to the DOL, the Institute outlined its concerns regarding compliance with the disclosure rules and made several recommendations for extending and aligning the compliance dates. Source: 401khelpcenter.com, June 2011.

Supreme Court Retools ERISA Remedies for Misleading Summary Plan Descriptions - Summary: The Supreme Court's opinion provides insight into what equitable remedies may be available to participants under Section 502(a)(3) of ERISA. These remedies include judicial reformation of a plan's terms, so that it conforms to representations made to plan participants. Source: Pillsbury Winthrop Shaw Pittman LLP, June 2011.

Fiduciaries and the Attorney-Client Privilege - Summary: Courts have consistently held that the attorney-client privilege should not be used as a shield against the parties who the fiduciaries are obligated to serve. Consequently, the 4th Circuit recently confirmed (in Solis v. Food Employers Labor Relations Ass'n) that the attorney-client privilege does not extend to communications between a plan fiduciary and legal counsel related to plan administration. Source: Employee Benefit News, June 2011.

WEBINAR: Conversion Considerations -- Understanding Fiduciary Responsibilities - Summary: There are countless reasons why plan sponsors decide to change retirement plan providers, ranging from fees and service to your advice. As this webinar reveals, the decision to convert a plan should instead be approached in a more uniform, quantitative way. Using ERISA, Department of Labor regulations and advice, case law and industry best practices, the presentation will explain how plan conversion decisions will now be held to the same standard and scrutiny as any other made by a fiduciary. Source: The Standard, June 2011.

Four Misconceptions About Fiduciary Liability Insurance - Summary: With the increasing spotlight on fiduciaries and their responsibilities for ERISA plans, many employers are asking themselves whether it's time to buy fiduciary liability insurance. But, if you are a fiduciary considering fiduciary liability insurance, here are four misconceptions that can get in the way of proper decision making. Source: Retirementplanblog.com, June 2011.

COMMENTARY: DC System Passes Its Stress Test - Summary: Those concerned in the 1980s with how the employer-sponsored defined contribution system would perform in difficult times have their answer. The employer-sponsored defined contribution system has been put to the ultimate stress test resulting in little change in employer sponsorship and employee participation in the plans. Source: Profit Sharing/401k Council of America, June 2011.

Do Your Plan Communications Mislead Participants? - Summary: Plan fiduciaries and ERISA litigators got a few surprises in a recent United States Supreme Court decision on whether participants can be awarded benefits promised to them in plan communications, but not in the plan document. The decision, CIGNA v. Amara, has been described as a victory for plan sponsors by defense counsel. Source: Pensionsbenefitslaw.com, June 2011.

401k Fees Can Shave Thousands From Nest Egg - Summary: Millions of Americans save for retirement by using 401k accounts, employer-based retirement plans that help workers put a portion of their salary into mutual funds or other investments. But most of those plans have fees and hidden expenses. And as personal finance columnist Ron Lieber of The New York Times tells NPR's Linda Wertheimer, those fees can mean that an investor pays more than $1,000 annually. Source: NPR, June 2011.

White Paper Takes a Closer Look at ETFs and Index Mutual Funds in 401k's - Summary: Lincoln Trust Company has released a white paper comparing the use of index mutual funds and ETFs in 401k plans. The white paper -- "401k Index Investing: Index Mutual Funds or ETFs" -- evaluates which investment product and accompanying variables may produce a higher account balance over varying time frames. Source: 401khelpcenter.com, June 2011.

A Closer Look at Passive Investment Options for 401k Plans - Summary: It's no surprise that many retirement plans tilt toward passive investment products. Historically this has meant passively-managed index mutual funds. Recently, however, many retirement plan providers have also made exchange-traded funds (ETFs) available. It is worth the effort for an advisor to evaluate these two investment vehicles and determine which may be a more advantageous option to incorporate in a retirement plan. Source: Lincoln Trust Company , June 2011.

The Top Four Things to Look for When Shopping for a 401k - Summary: Whether you're a business owner thinking about starting your company's first 401k or already have a plan in-place and want to audit how it compares to others on the market, there are four critical things to look for that can help ensure you're getting the best value and performance. Source: Forbes, June 2011.

The Secret to Sharply Cutting 401k Fees - Summary: Average 401k plan participants currently pay more than 1.5 percent of their accounts' asset values in fees each year to the companies that provide the plans with investment management, record keeping, and advisory services. According to one source, the secret to sharply cutting 401k fees is no secret at all. It would come from building 401k plans that rely extensively, if not exclusively, on passively managed funds that track major investment indexes. Source: U.S.News & World Report, June 2011.

ERISA Litigation Newsletter - June 2011 - Summary: Leads with an article addressing the Supreme Court's decision in CIGNA Corp. v. Amara. The opinion provides useful guidance with respect to the content of plan documents, but the eventual impact of this decision on the scope of available ERISA equitable remedies remains uncertain. Also has article on a recent Seventh Circuit decision, Peabody v. Davis, that exposes potential risks for the fiduciaries of eligible individual account plans. Source: Proskauer Rose LLP, June 2011.

How to Effectively Educate Baby Boomers to Prepare for Retirement - Summary: More and more employers are grappling with how to help the Baby Boomer generation address the gap between what they have saved and what they will need to save to comfortably retire. It is a challenging problem. Here's some thoughts. Source: 401khelpcenter.com, June 2011.

12(b)-1 Ruling Eases Fund Firms', B-Ds' Worries -- for Now - Summary: Mutual fund companies won a victory yesterday when a judge dismissed a case that could have forced funds to pay back years worth of 12(b)-1 fees -- and created yet another pressure on broker-dealers to register as investment advisers. Source: Investmentnews.com (free registration may be required), June 2011.

ASPPA Requests Electronic Disclosure Default From DOL - Summary: The following is a statement from Craig P. Hoffman, General Counsel and Director of Regulatory Affairs of ASPPA responding to the U.S. Department of Labor request for information about the use of electronic disclosure to deliver notices required under ERISA. Source: 401khelpcenter.com, June 2011.

Constructing an Appropriate Investment Policy Statement - Summary: Constructing an appropriate Investment Policy Statement represents the best method to alleviate and reduce of liability concerns. Without a written statement in place, 401k plan sponsors will not be able to effectively evaluate their true fiduciary liability. Does your plan have all the elements of an appropriate Investment Policy Statement or do you only think you have all the elements? Source: Fiduciarynews.com, June 2011.

Court Grants Class Certification in First Horizon 401k Suit - Summary: The U.S. District Court for the Western District of Tennessee has granted conditional class certification in a lawsuit concerning the 401k plan of First Horizon National Corporation (FHN). Source: Planadviser.com, June 2011.

Study: The Impact of Deferring Retirement Age on Retirement Income Adequacy - Summary: A new study released today by the nonpartisan Employee Benefit Research Institute (EBRI) finds that if Baby Boomers and Gen Xers delay their retirement past the age of 65, many of them still would not have adequate income to cover their basic retirement expenses and uninsured health care costs. Source: 401khelpcenter.com, June 2011.

COMMENTARY: All Americans Need 401k Loan Insurance - Summary: Former Secretary of Labor Elaine Chao writes, "American families are losing a shocking $5 billion to $7 billion in retirement savings annually due to [401k loan] defaults. To equip 401k participants with a means of guarding against such defaults, a proposal is being advanced to allow auto-enrollment into loan life and disability insurance or a similar safeguard. This proposal would…provide guaranteed protection to the 20 million Americans with outstanding retirement loans totaling about $241 billion." Source: Rollcall.com, June 2011.

401k Participant Assets Finally Surpass Previous High From 2007 - Summary: According to PLANSPONSOR's just-released annual recordkeeping survey, total assets for 401k and other defined contribution plans at the end of 2010 exceeded $4 trillion, well beyond the previous high of $3.72 trillion in 2007, and 14% higher than 2009's total. Source: 401khelpcenter.com, June 2011.

401k Advisors Are Optimistic About Future Prospects in a Shifting Regulatory Landscape - Summary: New DOL rules issued under Section 408(b)(2) of ERISA will require providers and plan sponsors of defined contribution and defined pension plans subject to the act to clearly disclose services provided, explain fees, reveal conflicts of interest and indicate who is acting as a plan fiduciary. It's also likely to open doors for financial advisors interested in building a niche in 401k plan management for small- to midsize businesses. Source: Financial Advisor Magazine, June 2011.

The DOL's 408(b)(2) Regulation: Impact on Investment Managers - Summary: This alert discusses the impact on investment managers of the DOL's "interim final" regulation under ERISA §408(b)(2). Our reference to "investment managers" is intended to cover those investment advisers who have discretionary management authority over "plan assets" directly or through vehicles such as collective investment funds, hedge funds or partnerships that are deemed to hold plan assets. Source: Drinker Biddle & Reath LLP , June 2011.

Retirement Plan Disqualification -- Not Just a Threat - Summary: Although the IRS can disqualify ongoing qualified retirement plans, the agency generally tries to avoid such draconian measures. But in two recent cases - Michael C. Hollen v. Commissioner and Christy & Swan Profit Sharing Plan v. Commissioner - the U.S. Tax Court upheld the IRS's disqualification of a retirement plan because of plan document and operational failures. Source: Towers Watson, June 2011.

'In Plan' Roth Conversions and New Electronic Deposit Rules for Payment of Retirement Plan Withholding Taxes - Summary: The IRS finalized regulations that, in general, require taxes withheld from retirement plan distributions to be deposited using the Electronic Federal Tax Payment System. Under the prior regulations, taxes withheld from retiree merit plan distributions could be deposited at an authorized financial institution using Form 8109, Federal Tax Deposit Coupon. However, effective January 1, 2011, taxes withheld from retirement plan distributions must be deposited using the EFTPS. Source: Wagner Law Group , June 2011.

Summary Plan Descriptions and the Supreme Court - Summary: The Supreme Court affirmed unanimously that the Summary Plan Description can not be used to support claims of participant plaintiffs when suing for harm due to a misleading SPD (Cigna vs. Amara) . The only presiding document is the official plan document. If you follow the legislative world closely, this is a big deal. Source: Milliman, June 2011.

Fiduciary Responsibility Checklist - Summary: This fiduciary responsibility checklist is a handy tool for you to compare your plan against best practices. Completing the checklist may highlight areas where you should take further steps to help manage fiduciary liability associated with your plan. Source: Putnam Retirement Services , June 2011.

ERISA Section 404(c) Checklist - Summary: This ERISA section 404(c) checklist provides a handy tool for you to compare your plan against best practices. Completing the checklist may highlight areas where additional steps are needed to improve ERISA section 404(c) compliance. Source: Putnam Retirement Services , June 2011.

ASPPA Study Says Bad Math Targets 401k Plans - Summary: Proposals to scale back or eliminate retirement savings incentives in 401k plans not only endanger the ability of low- and moderate-income workers to enjoy secure retirements but are based on faulty math, according to new research from ASPPA. Their analysis shows the real cost of retirement savings incentives to be 55 to 75 percent lower than claimed by budget hawks. Source: 401khelpcenter.com, June 2011.

Advisers Are Ahead of the Game on DOL Rule Compliance - Summary: Instead of standing on the sidelines waiting for a number of long-awaited Labor Department rules to take effect, advisers are figuring out how things will change and are wasting no time as they gear up. Source: Investmentnews.com (free registration may be required), June 2011.

401k Eligibility Vs. 403(b) Universal Availability - Summary: There is a distinct difference between when employees become eligible to participate in a 401k plan and a 403(b) plan. This article reviews the general distinctions. Source: WithumSmith+Brown PC, June 2011.

Selecting a QDIA is a Fiduciary Decision - Summary: Since the Pension Protection Act of 2006 and the associated Qualified Default Investment Alternative (QDIA) Regulation were passed, many plan sponsors have added a QDIA option to their plans. Of the three choices for options, 1) age-based (target-date funds - TDFs), 2) risk-based (balanced funds), and 3) managed accounts, TDFs are the most popular to date by far. TDFs remain a work-in-progress and are but one of three choices for a QDIA. Making that choice is clearly a fiduciary decision and plan sponsors need to treat it as such. Source: Fi360.com, June 2011.

Senate Bill Targets 401k Plan "Leakage" - Summary: A Senate bill with bi-partisan support was recently introduced to minimize the leakage from 401k plans occurring as a result of plan loans and hardship withdrawals. Source: Benefitslink.com, June 2011.

Do Commodities Fit in Your 401k? - Summary: In the latest, but potentially risky, move to fight inflation, some of the nation's largest 401k providers are adding commodities funds and other alternative assets to normally play-it-safe retirement plans. But, does doing so add too much risk? Source: Smartmoney.com, June 2011.

Shooting Towards Wider Acceptance of ETFs in 401ks - Summary: Long-term investors have been looking into exchange traded funds as a possible instrument to plan for the golden years ahead, but the financial tool has not made significant headway into 401k plans. However, the ETF-based 401k landscape may likely experience significant changes in the years ahead. Source: ETFtrends.com, June 2011.

Plan Leakage Can be Less of an Issue Than Participation - Summary: "Leakage" from defined contribution plans -- cash-outs from job changes, loan defaults, and hardship and non-hardship withdrawals -- has the potential to put a crimp in participants' retirement savings, if the leakage is a steady flow. However, while leakage can be vexing, participation rates pose a much bigger problem overall-one that plan sponsors should have high on their "punch list." Here's a look at the numbers. Source: Vanguard, June 2011.

How to Protect Your 401k If You Leave Your Job - Summary: You thought the hardest part about saving for retirement was figuring out the best place to invest your money? Here's another head-scratcher: what to do with your 401k when you leave your job. Source: Marketwatch.com, June 2011.

COMMENTARY: Do 401k Retirement Plan Contribution Limits Make Sense? - Summary: Why does the government place these limits on retirement plans? The short answer: so that the 401k plan doesn't discriminate against certain employees participating in the plan on the basis of contributions. Another factor may be tax revenue. Sponsors and employees have questions about the present testing requirements. Channeling this perspective, here are some questions and considerations. Source: Milliman, June 2011.

Top 10 Inflation Protected Treasury Funds Held in 401k Plans - Summary: BrightScope announced the Top 10 Treasury Inflation Protected Securities (TIPS) Fund Distribution List for the 401k and defined contribution industry. Source: 401khelpcenter.com, June 2011.

Study Uncovers Behaviors That Help Americans Achieve Retirement Readiness - Summary: Lincoln Financial Group offers a new way to help people take an optimistic approach to saving for retirement has identified an easy-to-use retirement planning score, giving people a simple way to understand and track their retirement readiness. Source: 401khelpcenter.com, June 2011.

SPARK Institute Urges DOL to Issue New Rules on Electronic Disclosure for Retirement Plans - Summary: The SPARK Institute urged the DOL to act quickly to issue new rules that would permit widespread use of electronic media for required disclosures. They also recommended several changes to the current DOL safe harbor for electronic disclosure which are outlined here. Source: 401khelpcenter.com, June 2011.

Multiple Employer Plans: An Opportunity for Expanding Retirement Plan Coverage - Summary: Multiple employer plans offer great potential as a savings option for small-business owners who want to provide their employees the same flexible features and benefits of a traditional 401k plan but may not have the internal expertise to manage a stand-alone plan. This paper provides an analysis and specific recommendations for the enhancement of defined contribution MEPs to facilitate their usage by employers who do not sponsor a retirement savings plan for their workers. Source: Transamerica Retirement Services , June 2011.

Retired Nurse Takes Employer to Court for ERISA Violations - Summary: A retired Pennsylvania nurse was very upset that her former employer had never kept track of the extra, unpaid hours during which she had worked. She believed they should have been included in hours worked for the purposes of her retirement benefits. So she sued her former employer in federal court for ERISA violations and in state court for violations of two state wage laws. Source: Compensation.blr.com, June 2011.

Five Characteristics of a Great 401k Plan - Summary: It is not that hard to enhance a 401k plan to be great. This article outlines five characteristics of a great 401k plan, keeping in mind that the goal of all great 401k plans is to provide meaningful retirement income for the employees of the plan. Source: Forbes, June 2011.

Report: Retirement Savings and Tax Expenditure Estimates - Summary: To measure the correct value of the tax expenditure for retirement savings in a way that makes these provisions directly comparable to other tax expenditures, one should measure the present value of the tax benefits attributable to the current-year retirement saving contributions. This ASPPA report presents present-value tax expenditure estimates that measure the true tax benefits provided for contributions to defined contribution retirement plans, using an approach that captures the benefit of current contributions over the lifetime of the taxpayers who contribute. Source: ASPPA , June 2011.

Effect of 401k Tax Changes Called Exaggerated - Summary: Proposals to scale back or eliminate the tax incentives of investing in 401k retirement plans, as called for by some budget deficit reduction plans, would not only endanger the ability of low- and moderate-income workers to enjoy secure retirements, but are based on faulty math, according to new research. Source: Accountingtoday.com, June 2011.

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