Target-Date Funds' Design Outdated, Research Concludes - Summary: Most target-date funds are not as diversified as they could be, and particularly as they increase in popularity in 401k plans, their design needs to be revisited, according to Folio Investing. Recent moves by several fund companies to include alternative and other nontraditional assets in their allocations is a step in the right direction, but does not solve their shortcomings. Source: Employee Benefit News, July 2011.

COMMENTARY: ICI President Discusses How the 401k System Is Succeeding - Summary: Text and slides from speech delivered by Paul Schott Stevens, President and CEO, Investment Company Institute, at the Ayco Summer InnerCircle Benefits and Compensation Conference, on "Helping Working Americans Achieve a Financially Secure Retirement How the 401k System Is Succeeding." Source: Investment Company Institute, July 2011.

Due Diligence Processes Are Evolving - Summary: A documented due diligence process that is applied to select the custodian and all other service providers is a criteria of a well run plan. But what does this process look like? Source: FI360.com, July 2011.

Common Plan Mistakes - Improper Forfeiture Suspense Accounts - Summary: Many defined contribution plans require participants to complete a period of service before becoming fully vested in matching or nonelective employer contributions. If a participant leaves a company before completing the service required for full vesting, his or her non-vested account may be forfeited. Some plan administrators place these forfeited amounts into a plan suspense account, allowing them to accumulate over several years. The Internal Revenue Code does not allow this practice. Source: IRS, July 2011.

EBSA Semiannual Regulatory Agenda - Summary: The Employee Benefits Security Administration (EBSA) has released its semiannual regulatory agenda for Spring 2011, which outlines regulations that have been selected for review or development during the next year, including: electronic disclosures, fee disclosures, and the definition of fiduciary. Source: CCH, July 2011.

The Growing Complexities of Administrating an Employee Benefit Plan - Summary: Over the last decade, the rules and regulations governing employee benefit plans have increased and grown more complex. During this same time, enforcement of the rules has become more stringent. The time required for a plan administrator to stay informed of all the rules and properly implement them is significant. However, the time and money to correct an error in the plan's operation, once it has occurred, can be even more significant. The best way to avoid errors is to be informed of the relevant government regulations. Source: EisnerAmper , July 2011.

Update on US Tax Issues for Puerto Rico Plans - Summary: Now that it is mid-2011, it is a good idea to review where things stand with your company's dual and Puerto Rico-only qualified plans and master/group trusts. Unfortunately, many of the key US tax issues remain in limbo due to the lack of further IRS guidance. Source: Groom Law Group , July 2011.

Report on Employee Benefits in the United States - Summary: Among the findings, 64 percent of all private industry employees had access to retirement benefits, compared with 90 percent of state and local government employees. Eighty-five percent of state and local government employees actually participated in a retirement plan, compared with 49 percent of private industry workers. Source: U.S. Bureau of Labor Statistics , July 2011.

Newspaper Dings Employees' Retirement Plan, Then Reconsiders - Summary: An uproar among Chicago Sun-Times newsroom employees has helped reverse a surprise fee slapped on their retirement plans. Employees who are members of the Chicago Newspaper Guild complained to management that their quarterly 401k statements included unexplained May 20 fees of between $500 and $1,200 per person. Source: Workforce.com (free registration may be required), July 2011.

Target-Date Funds' Design Outdated, Research Concludes - Summary: Most target-date funds are not as diversified as they could be, and particularly as they increase in popularity in 401k plans, their design needs to be revisited, according to Folio Investing. Source: Employee Benefit News, July 2011.

Get A Grip On 401k Fiduciary Responsibilities - Summary: You may be helping small business clients manage their 401k plans or even contemplating building a practice in this area. But are you taking adequate compliance steps to protect your clients or yourself from potential litigation? Source: Financial Advisor Magazine, July 2011.

Don't Let Your Ex-Husband Inherit Your 401k - Summary: Women who are divorcing need to re-think the beneficiary designations on wills and all retirement accounts. Then, each one of these documents must be appropriately updated. If you don't, your ex-husband very well could still be eligible for a portion of the funds. Source: Forbes, July 2011.

Plan and Investment Disclosure Requirements - Summary: The ERISA Section 404(a) regulations discussed in this article describe information that plan administrators must provide to participants, and are separate from the ERISA Section 408(b)(2) fee disclosure regulations describing information that service providers must provide to plan fiduciaries. Source: Seyfarth Shaw LLP, July 2011.

Fee Disclosure Compliance: What's the Impact of the Delay? - Summary: The delay will be welcome relief for a variety of service providers, because it will give them additional time to address some of the more complicated issues. Article reviews some examples. It also provides some recommendations. Source: Drinker Biddle & Reath LLP , July 2011.

Pressure for New Fiduciary Proposal Mounting - Summary: Legislators and attorneys have suggested that the U.S. Department of Labor re-propose its change to the definition of fiduciary and include more economic analysis. Source: Planadviser.com, July 2011.

Borzi Makes Case for Fiduciary Definition Change - Summary: Phyllis C. Borzi, Assistant Secretary of Labor, Employee Benefits Security Administration, told legislators it is imperative that good, impartial investment advice be accessible and affordable to retirement plan sponsors and participants. Source: Plansponsor.com, July 2011.

Text of Phyllis C. Borzi's Testimony on Fiduciary Definition Change - Summary: Testimony of Phyllis C. Borzi, Assistant Secretary of Labor, Employee Benefits Security Administration before the House Committee on Education and the Workforce, Subcommittee on Health, Employment, Labor, and Pensions, on the Department of Labor's proposed amendment to its fiduciary regulation. Source: U.S. Department of Labor, July 2011.

2011 TRO Buyer's Guide - Summary: When it comes to retirement plan administration, a growing number of plan sponsors are embracing the bundled construct of total retirement outsourcing, or TRO. For purposes of this Buyer's Guide, TRO refers to the combination of service offerings relating to retirement plans: defined contribution, including employee stock ownership plans (ESOPs); defined benefit; and deferred compensation. Source: Plansponsor.com, July 2011.

Why Financial Education Is Now an Advisor's Best Friend - Summary: With increasing challenges due to the economy and increased client skepticism, a lot of old paradigms need to change. One is regarding financial education. The advisor community is often split on financial education: one camp adamant that they needed to become the sole source of financial information and education for their clients in order to maintain a strong relationship; the other camp believing financial education is a waste of time and ignoring it altogether. Are both camps are wrong? Source: Advisorone.com, July 2011.

Fidelity Finds Link Between HSA Participation and Higher 401k Balances - Summary: An analysis by Fidelity Investments found 401k participants with a health savings account (HSA) accrued more than twice as much in their 401k's as the average participant. Source: Plansponsor.com, July 2011.

Electronic Document Delivery Study Released - Summary: Dalbar released of its national e-Delivery Benchmarks study. This study tracks the trends in delivering statements and other financial documents to investors electronically. Source: 401khelpcenter.com, July 2011.

Supreme Court Addresses the Effect of SPDs and Delves Again Into the World of ERISA's Remedies - Summary: In the process of considering the standard of prejudice, the Supreme Court commented on the legal effect of summary plan descriptions ("SPDs") and once more considered the relief available under ERISA's catch-all civil enforcement provision -- the latter point albeit in dicta. Source: Miller & Chevalier, July 2011.

Digital Marketing Being Used by Asset Managers to Increase Traction With RIAs - Summary: Building trust, brand recognition, and reoccurring business with registered investment advisors continues to elude many asset managers. One of the key developments in this regard is that some firms are now incorporating digital marketing components, such as micro sites, social media technologies, and mobile apps into their marketing campaigns. Source: 401khelpcenter.com, July 2011.

New Fee Disclosure Compliance Deadlines Extended - Summary: The Department of Labor (DOL) recently announced that the deadlines for complying with new plan service provider and participant fee disclosure rules have been extended. As a result, plan administrators who were working toward a Jan. 1, 2012, implementation date will now have slightly more time to get the required disclosures from plan service providers and to make fee disclosures to plan participants. Source: Davis Wright Tremaine LLP, July 2011.

Experts Predict That More Plan Sponsors Will Rely on Retirement Plan Advisors - Summary: As the retirement plan industry comes of age and enters a period of relative calm following a period characterized by tumultuous economic, socio-cultural and regulatory change, experts predict the growing role of retirement advisors will be one of the most noteworthy changes the industry will see over the next five years. Source: 401khelpcenter.com, July 2011.

New Retirement Plan Disclosures – Are You Ready? - Summary: 2010 brought a flurry of regulatory activity from the DOL. These regulations will impose significant disclosure obligations on service providers, plan sponsors and plan administrators. Provisions of the new regulations require compliance beginning at various times in 2012. This five page legal brief provides an outline of the requirements of the new regulations and steps recommended to assure compliance. Source: Thompson Hine LLP , July 2011.

DOL Begins Crackdown on 401k Providers for Fee Bundling Abuses - Summary: Federal agency hopes to squeeze plan sponsors and custodians for leaner fees and more disclosure on qualified retirement accounts. Experts warn that Washington retirement plan cops won't tolerate schemes to hide fees any more. Source: Trust Advisor Blog, July 2011.

DOL Solicits Nominations for 2012 ERISA Advisory Council - Summary: The U.S. Department of Labor's Employee Benefits Security Administration is soliciting nominations to fill five three-year vacancies on the Advisory Council on Employee Welfare and Pension Benefit Plans, known as the ERISA Advisory Council. The deadline to submit nominations is Sept. 16, 2011. Source: 401khelpcenter.com, July 2011.

Early Retirement: The Dawn of a New Era? - Summary: One purpose of this 19 page white paper is to show that this century- old trend toward earlier and earlier retirement is over, and, in fact, has been over for more than two decades. American men and women are now leaving the labor force later than their predecessors did, not earlier, and many more older Americans are working today than prior trends would have predicted. Source: TIAA-CREF Institute , July 2011.

Plan Sponsors Don't Understand 401k Fees Either, Survey Finds - Summary: All this time, we thought it was just retirement plan participants who didn't understand the fees they were paying. Turns out, according to a recent Spectrem Group study, plan sponsors don't understand plan fees all that well either -- only 45% of plan sponsors fully understand their retirement plan fees, according to the report that evaluated some 600 plan sponsors with assets under management of $10 million to $200 million. Source: Employee Benefit News, July 2011.

What? Not Free? 401k Fees - Summary: 401k savers should brace themselves. Soon, they will start receiving valuable information revealing the previously obscure world of 401k plan fees and expenses. This is all good news, but it will require savers to master complicated new concepts and absorb more detailed data on their investments. Source: Wiserwomen.org , July 2011.

Prevalence of Retirement Plan Types in the Fortune 100 - Summary: Towers Watson has been tracking retirement plans offered to newly hired salaried employees of Fortune 100 companies for many years. In 2011, the number of these large companies offering new salaried employees only a defined contribution plan, such as a 401k plan, grew significantly. Today, less than a third of these companies offer any defined benefit pension to newly hired salaried employees, and only 13 sponsor a traditional DB plan open to newly hired workers. Get a comprehensive look at the data here. Source: Towers Watson, July 2011.

A New Plan Design Feature for Qualified Plans: The Roth "In-Plan" Rollover - Summary: A summary of the prior law is set forth in this four page article that was first published in the Journal of Pension Benefits. Also included is a summary of the new provision and the IRS guidance issued to facilitate implementing the provision. Lastly, the article reviews the key implementation steps when adding the new Roth rollover feature. Source: Groom Law Group , July 2011.

Retirement Calculators Threaten the Stability of Your Entire Plan - Summary: Having a retirement calculator should be a good thing. It helps to perform computations and projections that would otherwise be out of reach to the common 401k participant. Most calculators, without much input other than simple variables, can determine what your savings goal should be. But with a goal established, now what? Source: Invest n Retire, July 2011.

401k Match Motivates Retirement Saving - Summary: Most workers are lured into 401k plans by the promise of an employer contribution. 401k matches are the primary reason that workers participate in 401k plans, according to a Boston Research Group survey of 1,000 current and retired 401k participants sponsored by Fidelity Investments. Source: U.S. News & World Report, July 2011.

Final Regulation on Participant-Level Fee Disclosures - Summary: MetLife announced that it is has prepared this white paper entitled, Final Regulation on Participant-Level Fee Disclosures, to help plan administrators understand their new obligations regarding the communication of investment-related performance and fee information to ERISA plan participants. Source: MetLife , July 2011.

401k Plan Sponsors: Is It Time for a Fee Policy? - Summary: Plan sponsors need to have in place a rigorous governance process to deal with fee decisions and to explain their decision-making to plan participants if necessary. As part of this process, plan sponsors are establishing formal Fee Policy Supplements to Investment Policy Statements to govern fee decisions and importantly, to demonstrate prudent process. Source: Orrick, Herrington & Sutcliffe LLP, July 2011.

COMMENTARY: Gang of Six Plan Reference to Retirement Savings Based on Fuzzy Math - Summary: ASPPA applaud Congressional attempts to reduce the deficit, lift the debt ceiling, and balance the budget in a way that secures our nation's future. However, including retirement savings tax deferrals in the same category as permanent deductions and exclusions may put American workers retirement security in jeopardy and not reduce the long-term deficit as expected because the proposal relies on inflated numbers. Source: ASPPA, July 2011.

Best Practices in Financial Education for Gen X: A Generation Caught in the Middle - Summary: Gen X has a different world view - one where there are no guarantees. The economic situation they came of age in gave them a more skeptical outlook than other generations. Overall, Generation X employees have formidable challenges in planning for retirement, but financial education that is tailored to this generation can help. Here are some best practices in financial education for Generation X employees. Source: 401khelpcenter.com, July 2011.

Fiduciary Liability Policies May Not Cover Costs Associated With DOL Investigations - Summary: Responding to DOL investigations can result in significant expenses -- including legal fees -- even if no violations ultimately are uncovered. This article discusses how a plan's fiduciary liability insurance carrier might respond to claims related to these Department of Labor investigations. Source: Segal Group , July 2011.

COMMENTARY: DOL Coordinates Disclosure Deadlines--The Cart Before the Horse No Longer - Summary: Just as consumers demand to know what they pay for all goods and services, plans sponsors and participants should enjoy the same privilege. Additionally, as fiduciaries, plan sponsors have a legal duty and obligation to determine the reasonableness of plan expenses. Source: Society for Human Resource Management, July 2011.

DOL Aligns Deadlines for Retirement Plan Fee Disclosures - Summary: The final rule extends by three months the applicability date of the DOL's interim final rule on fee disclosures by plan service providers to plan sponsors/fiduciaries (known as ERISA section 408(b)(2) disclosures), and aligns that regulation with its previously issued final rule on quarterly fee disclosures by plan sponsors to plan participants. Source: Society for Human Resource Management, July 2011.

Provider Tenure Less Than Three Years in 30% of Retirement Plan - Summary: A Spectrem Group study looked at the switching behaviors of plan sponsors and found that nearly a third who changed retirement plans in the past 12 months had been with their previous provider less than three years. Source: FA-mag.com, July 2011.

Work Later in Retirement? For Many, it Won't Be Enough - Summary: If you can't afford to retire at 65, how long after that will you have to work before you have enough money? A new analysis by the nonpartisan Employee Benefit Research Institute finds that for many people, it could be a very long time -- for lower-income workers especially, well into their 70's. Source: Employee Benefit Research Institute , July 2011.

Fee Disclosure Deadlines Extended - Summary: On July 13th, 2011 the Department of Labor issued a final rule delaying the deadlines for compliance with the new fee disclosure regulations. This final rule affects both the participant level fee disclosure and the sponsor level fee disclosure. Source: Sentinel Benefits & Financial Group, July 2011.

Retirement Income and the 4% Rule - Summary: Is it prudent to set a withdrawal rate of 4% from a portfolio that is intended to support retirement income? For many years, 4% has been the "rule of thumb" in financial planning community. But the 4% rule is controversial, and there are strong opinions on both sides. Source: Schultz Collins Lawson Chambers , July 2011.

New Reality: Pensions Have Become an Acceptable Expense - Summary: Companies have successfully shifted a considerable amount of the risk associated with DB programs to set DC programs, transferring the risk from the company to the individual. The result is a legacy program which over the next several decades will mostly work its way out of the last bastions of the U.S. labor market, and out of existence. Source: Businessweek.com, July 2011.

Not Saving Enough and Living Beyond Means Are Top Obstacles to Financial Success - Summary: Americans continue to show resilience post-financial crisis, but a new study released by the Principal Financial Group and conducted by Harris Interactive reveals that many still need help to envision their financial dreams. Only 1 in 10 financial professionals said their clients find it easy to visualize their financial dreams, according to the study. Source: 401khelpcenter.com, July 2011.

Expert Discusses Elements of a Legally Sound Handbook - Summary: Christine V. Walters, MAS, JD, SPHR, discussed how to develop or improve upon various handbook sections and what they should be used for. Source: CCH, July 2011.

IRS Seeks Comments on Instructions for Requesting Rulings and Determination Letters - Summary: The IRS is seeking comments on an extension of a currently approved collection of information in final regulations (T.D. 9006) concerning requirements for requesting rulings and determination letters. Written comments should be received on or before August 22, 2011. Source: CCH, July 2011.

Fiduciary Issues Related to the Allocation of Revenue Sharing - Summary: In this white paper, Fred Reish and Bruce Ashton examine the duty owed by 401k plan fiduciaries under ERISA to act prudently in how the plan deals with revenue sharing available on a plan's investments. After discussing the legal principles that apply, they then look at how one system, developed by Securian Retirement, assists fiduciaries in meeting their obligations on this emerging issue. Source: Securian Retirement , July 2011.

The Hartford Finds More Americans Saving for Retirement - Summary: Despite a sluggish economy, more Americans say they are confident their personal finances will improve during the next 12 months. This trend is translating into more people saving for retirement, according to new research from The Hartford. Source: 401khelpcenter.com, July 2011.

HR Focuses on Retirement-Plan Governance - Summary: The number of lawsuits, combined with regulatory complexity, the growing cost of benefits and the volatility of investments, has motivated some U.S. companies to beef up the governance of their retirement plans, say experts. But relatively few are proactively addressing governance risks. Source: HREonline.com, July 2011.

Retirement Plan Audits, From the CPA Perspective - Summary: At last week's Northeast Area Benefits Conference, co-sponsored by the IRS and ASPPA, two Certified Public Accountants discussed the many moving parts of a retirement plan audit. Source: Planadviser.com, July 2011.

Fiduciary Support Services Not a Differentiator for DC Plan Providers - Summary: Although regulatory changes to fiduciary responsibilities and disclosures loom on the horizon, plan sponsors of all sizes say that strong fiduciary support services falls low on the list of factors that influence their choice of plan providers. While concerning, this lack of focus is a blessing for most plan providers who have yet to convince plan sponsors that they provide strong fiduciary support services. Source: 401khelpcenter.com, July 2011.

VIDEO: ASPPA Regulatory Update: Electronic Disclosure - Summary: In this two minute video, ASPPA's General Counsel and Director of Regulatory Affairs, Craig Hoffman explains why it's crucial to harmonize the rules between the IRS and DOL for efficiency and to make electronic disclosure the default an option for participants. Source: ASPPA, July 2011.

Distribution of Custodial Accounts on 403(b) Plan Termination - Summary: ASPPA and NTSAA submitted these comments to the Internal Revenue Service regarding the termination of a 403(b) plan which is funded, in whole or in part, by 403(b)(7) custodial accounts. Source: ASPPA , July 2011.

Target-Date Funds: Are They Hitting the Target - Summary: Are target-date funds accomplishing their goal of providing long-term investment allocations that will provide growth, preservation of capital, and, finally, a secure nest egg for participants? This white paper reviews their progress, discuss the changes they have undergone, and ultimately ask the question, "Are they hitting the target?" Source: Arnerich Massena , July 2011.

COMMENTARY: Time to Put the Kibosh on Fiduciary Exemptions - Summary: The author writes, "SIFMA has demanded that the Employee Benefits Security Administration of the Department of Labor withdraw its proposed rule redefining a "fiduciary" and then re-propose it--in accordance, of course, with the dictates of SIFMA. Here are a few quotable nuggets from the SIFMA communication--followed by my interpretation of what I think they really mean." Source: Morningstar.com, July 2011.

Best Practices for Electronic Communications - Summary: Litigation discovery increasingly focuses on electronic messaging. Here are some tips on how best to communicate inside and outside your company in today's world of e-mails, texts, instant messages, tweets, Facebook postings, and LinkedIn messages. Source: Mintz Levin , July 2011.

Your 401k Plan Has Auto-Enrollment, Now What? - Summary: There has been a good deal of discussion on success measures for auto-enrollment, and we've previously established that by adding auto-enrollment a plan sponsor can immediately make its plan appear to have 100% participation. But is that enough? Source: Milliman, July 2011.

Deadlines Revised; Prepare Now for New Rules for Retirement Plan Fiduciaries - Summary: The DOL has slightly delayed the deadlines on significant new affirmative obligations for fiduciaries of retirement plans subject to ERISA. Although the deadlines have been pushed back to April 1, 2012, employers should be preparing now to ensure that they are ready to comply with the new requirements. Source: Ballard Spahr, July 2011.

DOL Extends Deadlines for Fiduciary and Participant Level Disclosures - Summary: On July 13, 2011, the DOL issued new guidance delaying the effective date of the new fiduciary-level disclosure rules required by interim final regulations under Section 408(b)(2) of ERISA until April 1, 2012. The DOL's new guidance also delayed the date that initial participant-level fee disclosures must be provided under the final regulations under Sections 404(a) and 404(c) of ERISA (the "Participant Disclosure Regulations"). Source: Proskauer Rose LLP, July 2011.

SIFMA Gives SEC Ideas for a New Fiduciary Standard - Summary: In anticipation of the agency's moving ahead with a rule that would require broker-dealers to meet the same requirements as investment advisers -- acting in a client's best interests -- the Securities Industry and Financial Markets Association laid out in a letter to the SEC what it called a fiduciary framework. Source: Investmentnews.com (free registration may be required), July 2011.

The One Thing Small Business Can Count on for Retirement - Summary: For small business owners, the decision is often between a personal IRA and a 401k plan for their business. A 401k can provide a real leg up in tax-deferred savings versus an IRA. You'll likely find it's a pretty easy to setup a plan and probably costs less than your smart phone bill too. It's a small price to pay for retirement, and it's an edge small business can now have over big business in attracting employees. Source: Forbes, July 2011.

COMMENTARY: Why the Gap in Women's Financial Literacy is a Risk to Plan Sponsors - Summary: If you've read about the alarming gender gap we've recently identified between men's and women's financial literacy, you might already know some of the risks it poses to plan sponsors from both a financial perspective and from a long-term cultural perspective. The most tangible costs can be broken down into three main categories. Source: Benefitspro.com, July 2011.

Survey Finds Majority Would Not Be Saving for Retirement Without a 401k - Summary: Fidelity Investments announced survey results that reveal more than half (55 percent) of current workplace savings plan participants say they would not be saving for retirement if not for their 401k plan. The research also found nearly one in five respondents (19 percent) currently enrolled in workplace plans report they have no retirement savings at all outside this key retirement benefit. Source: 401khelpcenter.com, July 2011.

What Employers Lose in the Shift From DB to DC Plans and How to Get it Back - Summary: The four objectives of this white paper are to: 1) Highlight the plan design features that have been lost in the shift from DB to DC plans. 2) Identify the workforce management challenges posed by the shift from DB to DC plans. 3) Describe how incorporating income solutions into DC plans can help address these challenges. 4) Provide a case study that demonstrates the benefits of incorporating income solutions into DC plans for employers and employees. Source: Prudential , July 2011.

What CIGNA v. Amara Means for You - Summary: In a move that might open the door to more lawsuits, the U.S. Supreme Court decided on May 16 in CIGNA Corp. et al. v. Amara et al. that a summary plan description is not the plan document and therefore not legally binding. This article provides a summary of the case and highlights some key issues the courts raised. Source: ERISAdiagnostics.com , July 2011.

Effective Due Diligence for Guaranteed Lifetime Income Options - Summary: This article highlights some of the critical issues and questions that companies must consider as they evaluate GLIOs for their own retirement plans and conduct due diligence about specific products. Our viewpoint reflects conversations we have had with large insurers on their offerings to their own client base and plan sponsors as they explore whether these benefits should be included in their retirement plans. Source: Institutional Retirement Income Council , July 2011.

IRS Compliance Project Targets 403(b) Plans of Universities - Summary: The Compliance Unit under the Employee Plans division of the Internal Revenue Service has begun a project to gather information from institutions of higher learning concerning compliance with the universal availability requirement for 403(b) plans. Questionnaires will be sent to a random national sample of 300 large, medium and small public and private higher education organizations sponsoring 403(b) plans. Source: PricewaterhouseCoopers LLP , July 2011.

DOL Changes Applicability Dates on Final Regulations for Fee Disclosure to Plan Fiduciaries and Participants - Summary: 408(b)(2) Regulation: The effective date for the interim final fiduciary-level fee disclosure rule is extended from July 16, 2011 to April 1, 2012. Participant-Level Fee Disclosure Regulation: The transitional rule in paragraph (j)(3)(i) of the final participant-level disclosure regulation is amended to require that initial disclosures be furnished no later than the later of 60 days after a first day of the first plan year beginning on or after November 1, 2011, or 60 days after the effective date of the fiduciary-level fee disclosure rule. The amendments made by this document are effective as of July 15, 2011. Source: U.S. Department of Labor , July 2011.

Americans Focus on New Approach to Post-Recession Retirement - Summary: Americans have emerged from the economic recession with a new set of expectations around the purpose, timing and funding of retirement, according to a new study sponsored by SunAmerica Financial Group in collaboration with Age Wave. Source: 401khelpcenter.com, July 2011.

SunAmerica Retirement Re-Set Study - Summary: This study reveals how retirement has changed in the past decade. Emerging from the recession, Americans are beginning to define retirement differently than previous generations of retirees. They now see it as a time for new priorities, new opportunities, and new solutions to today's challenges. This 24 page report provides a summary of findings. Source: SunAmerica , July 2011.

Retirement Timelines Fade Amid Uncertainty as More Americans Stay on the Job - Summary: Shifting and uncertain target dates for retirement are becoming the norm in the American workforce, making it harder for employees to establish meaningful financial plans, recent MetLife research indicates. Source: 401khelpcenter.com, July 2011.

Rising Employer Confidence is Translating Into a Renewed Commitment to Retirement Benefits - Summary: A new report released today reveals an encouraging sign that employer confidence is rising and that it appears to be translating into a renewed commitment to retirement benefits for the first time since the recession began. Source: 401khelpcenter.com, July 2011.

12th Annual Transamerica Retirement Survey - Summary: The 12th Annual Transamerica Retirement Survey found that for the first time since the recession began, rising employer confidence is accompanied by an increase in enhancements to retirement benefits as well as reinstatement of benefits that had been suspended. Source: Transamerica Center for Retirement Studies , July 2011.

Why Most People Pick the Wrong Funds for Their 401k - Summary: With a growing number of options to choose from and all the volatility in the market over the past few years, it's no wonder that people are more confused than ever. So how did you decide what funds to pick in your 401k? Source: Forbes, July 2011.

Strategic Benefits of a 401k Plan for Smaller Businesses - Summary: Many owners have a misperception that offering a 401k is too expensive, yet a 401k is generally has the lowest operating costs and offers some of the biggest benefits. This paper reviews the strategic advantages a 401k plan offers small businesses and employees. Source: Paychex.com , July 2011.

Improved IRS Selection Process Is Finding More Noncompliant Plans - Summary: The Treasury Inspector General for Tax Administration has released a report in which it concludes that the IRS's Employee Plans function has improved its examination selection methods, as evidenced by an increase in the percentage of examinations finding noncompliant retirement plans. Source: Thomson Reuters/EBIA, July 2011.

Analysis: Capping Tax-Preferred 401k Contributions Will Hurt All Workers - Summary: A new analysis from the nonpartisan Employee Benefit Research Institute finds that the National Commission on Fiscal Responsibility and Reform proposed tax reform for 401k-type retirement plans would cause the greatest reduction in retirement savings for both the highest- and lowest-income workers. Source: 401khelpcenter.com, July 2011.

COMMENTARY: Get Rid of the Workplace Retirement Plan - Summary: The author writes, "About once a year I like to reintroduce my plan to better educate and service investors of the trillions of dollars in employee workplace savings plans. It's a simple solution that would boost account balances, decrease employers expenses, and stop the insurance lobby and government committees from telling us how we should invest for our retirements. What is my plan to solve all of these ills in their tracks? Get rid of the workplace retirement plan." Source: Forbes, July 2011.

Seeking Investment Flexibility in a 401k - Summary: Most of us get a menu of mutual funds in our 401k that our employer has chosen for us. Many of the people who decide what goes into their colleagues' plan do a great job. Others, however well-meaning they may be, end up selecting expensive, mediocre investments. There is a simple way to improve a plan, one that puts within reach the fantasy of choosing nearly any investment you desire. Source: New York Times (free registration may be required), July 2011.

Seven Signs of a Good 401k Plan - Summary: A good 401k plan with generous employer contributions can help propel you toward a secure retirement. But high fees and poor investment choices make some 401k plans a bad deal, even after accounting for the tax breaks. Here are a few ways to tell if your company is providing a competitive 401k plan. Source: U.S. News & World Report, July 2011.

The Pros and Cons of Automatic 401k Enrollment - Summary: A 2006 law designed to increase retirement savings allowed companies to auto-enroll employees in 401k plans. The debate on whether this is good or bad continues. Here's a practical list of five pros and five cons of 401k auto-enrollment. Source: DailyFinance, July 2011.

Auto Enrollment in DC Plans Has Unanticipated Side Effect - Summary: Recent research shows that as auto enrollment goes up, the average deferral rates drift down over time. Other research shows that participants who contribute to their DC plans on their own do so at higher rates than those who are automatically enrolled. Source: Pensions & Investments (free registration may be required), July 2011.

COMMENTARY: Automatic Enrollment -- Not The End, A Great Beginning - Summary: The July 7 Wall Street Journal article suggesting that the decline in the average 401k participant savings rate is the result of companies recently implementing automatic enrollment (AE) misses the bigger picture. It may be a minor contributing factor, but the principal reason for that decline has been the economy. Source: Profit Sharing/401k Council of America, July 2011.

COMMENTARY: Fiduciary Debate Evades, and is Finally Caught, in Partisan Crossfire - Summary: The good news, as we all know, is the fiduciary issue is no longer in the policy closet gathering dust. The bad news is that it has become a partisan football where reasoned discussion over its merits is an unwanted stranger. Certainly studies filling an information void should be welcomed by policymakers, and a cost-benefits analysis is certainly lacking in the fiduciary debate. But prematurely assuming the worst -- that a fiduciary standard will displace clients, reduce the number of advisors, and increase cost of services -- is wildly speculative. Source: Fi360.com, July 2011.

COMMENTARY: EBRI Comments on Wall Street Journal Article on 401k Auto-Enrollment - Summary: The nonpartisan Employee Benefit Research Institute issued a statement today clarifying its research on 401k automatic enrollment as a comment on the July 7, 2011, Wall Street Journal article "401k Law Suppresses Saving for Retirement." Source: Employee Benefit Research Institute , July 2011.

COMMENTARY: Numbers Show the Success of Automatic Enrollment - Summary: A July 7 story in the Wall Street Journal makes the assertion that a recently enacted 401k law "suppresses" retirement savings. The assertion rests on faulty data interpretation. Look at the proper numbers, and the truth becomes clear -- the 401k system in fact promotes and increases retirement saving. Source: Investment Company Institute, July 2011.

Amending a Form 5500 (or filing a late Form 5500): Which Forms Do I Use? - Summary: There has been much confusion as to which forms a preparer should use in amending a Form 5500 filing or in filing a late Form 5500. Much of the uncertainty stems from conflicting statements made in the wake of the transition to electronic filing. In a recent Form 5500 software developer's conference, the DOL addressed the issues and provided the following answers. Source: Sungard/Relius, July 2011.

DOL Opines on Scope of PTE 86-128 - Summary: In Advisory Opinion 2011-08A (June 21, 2011), the DOL concluded that ERISA "investment advice" fiduciaries are within the scope of Prohibited Transaction Exemption 86-128, thus confirming the availability of conditional relief for such a fiduciary (or an affiliate) to effect securities transactions or cross trades for a fee as an agent for an ERISA plan. Source: Sutherland Asbill & Brennan LLP , July 2011.

Pay to Play in 401k? Pimco, Dodge & Cox, American Funds Eyed - Summary: A brief look at the estimated $3.5 billion a year paid by mutual funds to packagers of 401k and related defined contribution plans. Source: Barrons, July 2011.

Managers Shift Thinking on Target-Date Fund Management Approach - Summary: In Callan's 2011 Target-Date Fund Survey: The Evolving Target-Date Fund, it is clear that target-date funds continue to evolve as managers evaluate their glidepaths and the use of underlying funds. In March 2011, Callan surveyed 26 target-date fund managers representing $375 billion and 35 unique target-date series to get their take on management approaches, glidepath design and anticipated changes. Source: 401khelpcenter.com, July 2011.

Target-Date Investing Trends and Opportunities - Summary: With their emphasis on one-stop diversification and active asset allocation, target-date funds are taking center stage in DC offerings. The defined contribution world, however, faces a fundamental dilemma. While everyone from plan sponsors and recordkeepers to investment managers and advisers is trying to increase the certainty of participants' retirement income, the participants themselves still determine how much to save, where to invest and when to withdraw from the plan. Building a successful target-date approach requires an understanding of the interactions among participants' inputs into the DC dilemma. Source: J.P. Morgan , July 2011.

Vanguard Issues New Profile of Participant Trends in 401k Plans of Eight Industries - Summary: For the first time, supplemental industry reports to How America Saves analyze the behavior of plan participants in eight industries, including the ambulatory health care; finance and insurance; information services; legal services; manufacturing; mining, oil and gas extraction; technology; and utility industries. Plan sponsors in these industries can use a new benchmarking tool to compare their plan data with others in their industry and Vanguard plans overall. Source: 401khelpcenter.com, July 2011.

VIDEO: Best Practices in Retirement Plan Communications - Summary: Robert Benish, COO of the Profit Sharing/401k Council of America, speaks to how plan sponsors can create effective retirement plan communications. Four minutes. Source: Employee Benefit News, July 2011.

Study: Too Many Choices Impair 401k Decisions - Summary: When individuals are faced with too many options they become paralyzed and don't make the best decisions -- even when it comes to 401k options, according to a new study co-authored by Columbia Business School and University of Chicago Booth School of Business. Source: Employee Benefit News, July 2011.

Web Page Created on Proposed Definition of Fiduciary Regulation - Summary: The DOL has created this web page containing comments and interviews by Assistant Secretary Phyllis C. Borzi on the proposed regulation on the definition of a fiduciary, public hearing written testimony, and all public comments submitted on the proposed rule. Source: U.S. Department of Labor, July 2011.

Fiduciary Roles Played by Plan Sponsors and Outside Advisors - Summary: David Levine of Groom Law Group discusses how plan sponsors and fiduciaries attempt to manage their litigation risk by using process and documentation, as well as by outsourcing fiduciary oversight if needed. He talks about the importance of evaluating fees, including understanding what your plan is receiving for those fees. He shares his views on selecting investments, whether active, passive, or a qualified default investment alternative. David wraps up by underscoring the necessity to document plan decisions and process. Source: PIMCO , July 2011.

Missteps in Benefits Communications - Summary: Communications that are infrequent and indecipherable are common mistakes HR leaders make when transmitting information about benefits packages to employees. Using more of a "selling" approach while adopting multiple channels and targeted messages will help, experts say. Source: HREonline.com, July 2011.

Options for Filing 2010 Form 8955-SSA - Summary: The IRS has released the 2009 Form 8955-SSA but has yet to release the 2010 Form. However, the clock, though much delayed, has started to run for the deadline to file the 2010 Form. Practitioners have several options in reporting individuals who should be reported on the 2010 Form. This article discusses the 2010 Form and the options relating to it. Source: Sungard/Relius, July 2011.

Regulations and Costs Shaping Future of 401k Plans According to FRC Study - Summary: Continued scrutiny by regulators and legislators on the fees and outcomes of defined contribution (DC) plans is pressuring revenues at organizations that provide the products and services to these plans, and will shape the future of the DC retirement plan market, according to a new study, Trends in Retirement/401k Plans and Administration, published by Financial Research Corporation. Source: 401khelpcenter.com, July 2011.

ERISA Litigation Newsletter - July - Summary: This month provides an update on the developing law regarding the "fiduciary exception" to attorney-client privilege and the work product doctrine. This "exception" often confounds in-house and outside counsel alike, and the article concludes with some best practices suggestions. Also highlighted is a U.S. Supreme Court decision from this term, AT&T Mobility v. Concepcion, which held that the Federal Arbitration Act preempts a state law prohibiting waivers of class arbitration. The article discusses the decision's potential implications for employee benefits practitioners. Source: Proskauer Rose LLP, July 2011.

The Workings of the "Open" Multiple Employer 401k Plan - Summary: A "Multiple Employer" 401k plan ("MEP"), where a single 401k plan is jointly sponsored by a number of unrelated employers, can often provide a cost effective way for some employers to manage their risks related to sponsoring a 401k plan, while enjoying advantageous pricing on investments and administrative services to which they may not otherwise have access. This white paper addresses the issues giving rise to some of this confusion related to these Open MEPs. Source: Benefitslink.com , July 2011.

Survey Finds Vast Majority of Retirement Plan Advisors Currently Performing Fiduciary Functions - Summary: Eighty-five percent of retirement plan advisors are currently performing services traditionally performed by plan fiduciaries, although most are not declared plan fiduciaries, according to a national industry survey of external retirement plan advisors conducted for John Hancock Financial Network by Pulse Logic. Source: 401khelpcenter.com, July 2011.

COMMENTARY: Why Retirement Plans Need a Financial Advisor - Summary: Picking investment options under a retirement plan is only a small part of what a financial advisor brings to the table, it's their expertise and background in monitoring investments and investment education that are their most important roles in serving plan sponsors and trustees for their retirement plan needs. In addition, some of these financial advisors offer themselves as independent ERISA §3(21) and §3(38) fiduciaries which can greatly mitigate a plan sponsor's and trustee's fiduciary liability. Source: The Rosenbaum Law Firm, July 2011.

IRS Gets Better at Catching Illegal Retirement Plans - Summary: The Treasury Inspector General for Tax Administration found that the IRS has improved its process for selecting potentially noncompliant retirement plans for examination. This has resulted in an increase in the percentage of examinations where the IRS detects noncompliance with the Tax Code. Source: Accountingtoday.com, July 2011.

Ensuring Income Throughout Retirement Requires Difficult Choices - Summary: GAO was asked to review (1) strategies that experts recommend retirees employ to ensure income throughout retirement, (2) choices retirees have made for managing their pension and financial assets for generating income, and (3) policy options available to ensure income throughout retirement and their advantages and disadvantages. Source: Government Accountability Office , July 2011.

Fixing 403(b) Plan Mistakes - Summary: Sponsors seem to be having problems with implementing plan features unique to 403(b) plans. The IRS is also seeing excess contributions for Internal Revenue Code 415 Annual Contribution Limitations. Source: Plansponsor.com, July 2011.

Average 401k Expense Ratio Declines - Summary: According to an annual report by the Investment Company Institute, 401k plan participants invested in stock mutual funds on average paid lower expense ratios in 2010. Source: Planadviser.com, July 2011.

Defined Contribution 401k Fee Study - Summary: The Investment Company Institute engaged Deloitte to conduct a survey of DC plan sponsors to shed light on how fee structures work within the DC plan market. Specifically, the research addressed: the mechanics of plan fee structures; components of plan fees; and primary and secondary factors that impact fees ("fee drivers"). This is the 33 page report on the research. Source: Investment Company Institute , July 2011.

Economics of Providing 401k Plans: Services, Fees, and Expenses - Summary: As part of an ongoing comprehensive research program, the Investment Company Institute conducts research to shed light on the services, fees, and expenses within 401k plans. Among ICI's findings reported here, the asset-weighted average expense ratio paid by 401k investors on their stock funds dropped 3 basis points to 0.71 percent. The asset-weighted average expense ratio paid on their bond funds remained unchanged at 0.56 percent. Source: Investment Company Institute , July 2011.

Report on Total U.S. Retirement Assets - Summary: Total U.S. retirement assets were $18.1 trillion as of March 31, 2011, up 3.0 percent from year-end 2010 and just below the all-time high reached at the end of the third quarter of 2007. Retirement savings accounted for 37 percent of all household financial assets in the United States at the end of the first quarter of 2011. Source: Investment Company Institute, July 2011.

Trends in Mutual Fund Investing - Summary: The combined assets of the nation's mutual funds decreased by $70.7 billion, or 0.6 percent, to $12.403 trillion in May, according to the Investment Company Institute's official survey of the mutual fund industry. In the survey, mutual fund companies report actual assets, sales, and redemptions to ICI. Source: Investment Company Institute, July 2011.

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