COMMENTARY: Will the 401k Allow for Retirement? - Summary: The trend away from defined-benefit plans toward defined-contribution plans makes it harder for workers to have adequate retirement income. And even with default enrollment and other provisions in the pension-reform act, it's likely that many workers will not be able to stop working. Located at: HREonline.com, September 2008. Click on headline for full article.

Caterpillar Fee Suit Survives First Legal Hurdle - Summary: A federal judge cleared the way for participants in Caterpillar's 401k plan to pursue their fiduciary breach claims, but only on issues other than allegations of inadequate revenue-sharing disclosures. Located at: Planadviser.com, September 2008. Click on headline for full article.

COMMENTARY: Why 401k Retirement Plans Really Don't Work - Summary: How do we make the 401k plan provide more retirement security? That's not so difficult according to the author. Simply dictate that all plans require participants to invest at least 60% of their assets in individual (plain vanilla) income securities that can be withdrawn "in kind" at retirement. Located at: Inside Tucson Business, September 2008. Click on headline for full article.

How New DOL Fee Disclosure Rules Could Affect You - Summary: Over the past year the DOL has proposed a series of fee-related regulations designed to enhance disclosure to the government, to plan fiduciaries, and to plan participants. In this article, the Vanguard Plan Consulting Group focuses on proposed participant disclosure rules that could take effect at the beginning of 2009. Located at: Vanguard Plan Consulting Group , September 2008. Click on headline for full article.

PSCA Releases Annual Survey of 401k Plans - Summary: Provides the most up-to-date information available on current practices and trends in profit sharing and 401k plans. Included here is a review of some of the trends and data. Located at: 401khelpcenter.com, September 2008. Click on headline for full article.

Participant Gets Go-Ahead in Company Stock Drop Case - Summary: A federal judge in Massachusetts cleared the way for a participant invested in a company stock fund to pursue a fiduciary breach suit. Located at: Planadviser.com, September 2008. Click on headline for full article.

Market Turbulence Has Implications for ERISA Fiduciaries - Summary: The recent turmoil in the financial markets, while troubling for individual investors, also has potentially significant implications for ERISA fiduciaries. Individuals and committees who have investment authority over plan assets should reevaluate their portfolios in light of these developments. Located at: Spencer Fane Britt & Browne LLP, September 2008. Click on headline for full article.

Financial Markets Impact ERISA Retirement Plans and Plan Fiduciaries - Summary: Events related to the financial markets impact retirement plans governed by the Employee Retirement Income Security Act and their sponsors, as well as other plan fiduciaries. What actions should they be taking? Located at: Mintz Levin, September 2008. Click on headline for full article.

Side-by-Side Comparison of Rescue Legislation - Summary: This is a side-by-side comparison of Treasury Secretary Henry Paulson's original Wall Street bailout proposal with the final compromise agreed to over the weekend by congressional and Treasury negotiators. Located at: DC Examiner, September 2008. Click on headline for full article.

DC Plans, Distributed Annuities, Spousal Consent and QJSA - Summary: One of the most nagging issues related to distributing annuities from defined contribution plans is how and when to apply the spousal consent and qualified joint and survivor annuity ("QJSA") rules to distributions. Here are some of the basics. Located at: Benefits Biz Blog, September 2008. Click on headline for full article.

IRS Gives Plan Sponsors More Time to Self-Correct Errors - Summary: The IRS has updated the Employee Plans Compliance Resolution System (EPCRS), giving sponsors of defined benefit and defined contribution plans more time to self-correct operational errors. Located at: Watson Wyatt, September 2008. Click on headline for full article.

DOLs Proposed Regulations on Investment Advice and Proposed Class Exemption - Summary: Good overview of the Department Of Labor's proposed regulations on investment advice and proposed class exemption from the ERISA prohibited transaction rules. Located at: Transamerica Center for Retirement Studies , September 2008. Click on headline for full article.

IRS Relaxes Rules on New Pre-Approved Plan Submissions - Summary: The IRS issued guidance (Revenue Procedure 2008-56) which changes the rules regarding the submission of pre-approved plans. Located at: Sungard/Relius, September 2008. Click on headline for full article.

Is Your 401k Plan Protected - Summary: With the turmoil in the financial services sector, you might be concerned about the safety of all that money you've allowed to be deducted from your paycheck and invested in a 401k or other retirement account. Located at: Netscape.com, September 2008. Click on headline for full article.

DOL Publishes Participant Contribution Timing Rules - Summary: DOL publishes participant contribution timing rules for small plans and clarifies trustee role for late transmittal of contributions. Located at: Prudential , September 2008. Click on headline for full article.

DOL Announces New Online Tools for Workers and Plan Administrators - Summary: The DOLs EBSA announced new online tools to give workers access to financial information and an improved calculator that makes it easier for employers and plan administrators to pay online civil penalties for delinquent filings of annual reports. Located at: 401khelpcenter.com, September 2008. Click on headline for full article.

403(b) Rollovers vs. 403(b) Exchanges - Summary: A tricky 403(b) questions that seems easy enough on its face, but when you work through the details, it may actually be unanswerable. It epitomizes the problems many are face in trying to implement the new 403(b) regs. Located at: Benefits Biz Blog, September 2008. Click on headline for full article.

Group Letter to DOL Regarding Effective Date of 408(b)(2) Regulations - Summary: According to this comment letter, the proposed regulations raise numerous critical issues that are very important to the members of the signing organizations in implementing the comprehensive disclosure regime mandated by the regulations, including liability protection and electronic communication. Located at: American Benefits Council , September 2008. Click on headline for full article.

Workers Shift Retirement Savings into Fixed-Income - Summary: Droves of participants moved their retirement assets around as the volatile equity markets became too much for many to stomach. Located at: Financial Week (free registration may be required), September 2008. Click on headline for full article.

Reasonable Contract or Arrangement Under Section 408(b)(2) - Fee Disclosure - Summary: This item discusses information which must be provided by a service provider to a responsible plan fiduciary especially where fees will be paid from plan assets, referred to as the "Reasonable Contract or Arrangement Under Section 408(b)(2) - Fee Disclosure." Touches on some very important basics of fiduciary responsibility. Located at: ERISAdiagnostics, September 2008. Click on headline for full article.

Fixing Your 403(b) Plan: Adopting a Best Practices Approach - Summary: New 403(b) regulations will bring increased scrutiny to the operation, fee structure, and practices prevalent in these retirement plans. This gives plan sponsors a new opportunity to make significant contributions toward a best-practices approach to sponsoring a 403(b) plan. Located at: The Standard , September 2008. Click on headline for full article.

Vanguard Participant Fee Disclosure Comment Letter - Summary: In response to participant fee disclosure regulations proposed by the DOL in July, Vanguard has submitted this comment letter to the DOL in support of fee transparency. Located at: Vanguard , September 2008. Click on headline for full article.

AIG Letter to Retirement Plan Participants - Summary: Letter from AIG Retirement that responds to questions they have been receiving from retirement plans and participants regarding their parent company. Located at: 403bwise.com , September 2008. Click on headline for full article.

Study Reveals Attitudes Play a Key Role in Participants' Deferral Rate Choices - Summary: A recent study by the Spectrem Group revealed some very interesting points about participant decision-making on deferral rates. Here are some of the highlights. Located at: TRI-AD, September 2008. Click on headline for full article.

Single Women are in Peril of Achieving a Financially Secure Retirement - Summary: Many single women are ill-prepared and unlikely to achieve a financially secure retirement if they don't take action now, according to the findings of the Ninth Annual Transamerica Retirement Survey. Located at: Transamerica Center for Retirement Studies , September 2008. Click on headline for full article.

Dramatic Drop in Housing Values Could Delay Retirement for Homeowners - Summary: For those approaching retirement age, the value of their homes accounts for a majority of total net worth. A new research paper from Principal Funds geared for financial professionals explores how the dramatic and historic decrease in housing values has significantly altered the retirement plans of many Americans. Located at: 401khelpcenter.com, September 2008. Click on headline for full article.

IRS Eases Pre-Approved Plans Letter Procedure - Summary: The Internal Revenue Service announced it had decided to relax previously announced restrictions on how the agency would issue opinion and advisory letters for pre-approved plans. Located at: Planadviser.com, September 2008. Click on headline for full article.

Deferred Annuities and Strategic Asset Allocation - Summary: Deferred annuities offer a hedge against mortality risk and provide similar benefits as Social Security. This study indicates that a considerable fraction of wealth should be annuitized to skim the return enhancing mortality credit. Located at: Michigan Retirement Research Center , September 2008. Click on headline for full article.

Updated - 401k Fee Litigation - Summary: Over the past several years, more than two dozen lawsuits have been filed relating to 401k plan fees and, more specifically, revenue sharing arrangements with plan service providers. This is a September 15, 2008, update on these lawsuits. Located at: Groom Law Group, September 2008. Click on headline for full article.

Tough Times Have Employers Looking to Improve Retirement Benefits - Summary: It may be difficult to see the silver lining of a recession, but the truth is that bad economic times provide many opportunities for employee benefit advisers. Located at: Employee Benefit News (free registration may be required), September 2008. Click on headline for full article.

When Do Gen X and Gen Y Americans Expect To Retire? - Summary: A recent survey asked Americans ages 19–39 -- members of so-called Generation X and Generation Y -- a series of questions to gage their understanding of finances and the resources they are most likely to use to obtain financial information. One question also asked survey participants to give their best estimate of when they will retire. Located at: Employee Benefit Research Institute , September 2008. Click on headline for full article.

DOL Official Testifies Before Senate Committee on Fee Disclosures - Summary: Bradford P. Campbell testified before the Senate Committee on Health, Education, Labor and Pensions on initiatives to expand disclosure of fees and expenses in 401k-type plans. Located at: 401khelpcenter.com, September 2008. Click on headline for full article.

ASPPA Comments to Senate on 401k Fee Disclosure - Summary: On September 17, 2008, ASPPA and CIKR submitted these comments for the record to the Senate HELP Committee's hearing entitled "401k Fee Disclosure: Helping Workers Save for Retirement." Located at: ASPPA , September 2008. Click on headline for full article.

ASPPA Comments to DOL on Participant Disclosures - Summary: On September 15, 2008, ASPPA and CIKR submitted these supplemental comments to the DOL on the participant fee disclosure proposed regulation, suggesting a disclosure alternative to the proposed quarterly statement requirement. Located at: ASPPA , September 2008. Click on headline for full article.

ICI Statement on Money Market Mutual Funds - Summary: Investment Company Institute President and Chief Executive Officer Paul Schott Stevens issued this statement about the fundamental structure and safety of money market funds. Located at: Investment Company Institute, September 2008. Click on headline for full article.

Large Money Market Fund Breaks the Buck - Summary: One of the country's oldest and largest money market funds, The Reserve Primary Money Market Fund, broke the buck. Rather than keeping its net asset value stable, at $1.00, its NAV dropped to $0.97. Located at: Morningstar.com, September 2008. Click on headline for full article.

Is Retirement Different for Women? - Summary: Some strides have been made toward gender equality since women won the right to vote in 1920. But men and women aren't exactly equal when it comes to retirement. Located at: Fox Business, September 2008. Click on headline for full article.

Determining Whether 401k Plan Fees are Reasonable - Summary: According to this report, "Fuller disclosure of 401k plan fees will not guarantee that all plan participants are informed, but it is undoubtedly a necessary condition for that to occur. With better information on fees, participants should be able to make a more informed choice among plans, increase the size of their retirement nest egg, and enhance their welfare." Located at: AARP , September 2008. Click on headline for full article.

What Plan Fiduciaries Should Be Doing - Summary: While there are no new standards or guidelines to reveal, this paper offers a collection of best practices to consider in the formation (or formalization) of an investment committee, the drafting of investment policy statements or the review (and improvement) of procedures. Located at: Investmentnews.com (free registration may be required), September 2008. Click on headline for full article.

A Reality Check on Criticisms of Debit Card Loan Programs - Summary: Debit card loan programs recently have been the focus of criticism in Washington. A number of common misconceptions about 401k loan products, and criticisms that rely on these misconceptions need a reality check. Located at: Investmentnews.com (free registration may be required), September 2008. Click on headline for full article.

What's in a Fee? - Summary: Spectrem Group took a look at the understanding plan sponsors have about the fees they pay providers and advisers and consultants. It turns out plan sponsors are more knowledgeable about the fees they pay than they were in 2005, but the study also suggests that many sponsors have hesitations about what they pay their adviser or consultant. Located at: Planadviser.com, September 2008. Click on headline for full article.

ABA Comments on Participant Fee Disclosure - Summary: The American Bankers Association (ABA) provided these comments to the Department of Labor on proposed regulations regarding participant-directed account plans. Located at: Benefitslink.com , September 2008. Click on headline for full article.

Justifying 401k Fees: A Challenge for Fiduciaries - Summary: Underlying the current spate of lawsuits over 401k fiduciary misconduct (particularly fee levels, revenue sharing, self-dealing, and active versus passive management) is a simple question: Are participants getting their money's worth for the fees they pay? That seemingly simple question gives rise to a multitude of other questions which are anything but simple. Located at: Investment Horizons , September 2008. Click on headline for full article.

DOL's 401k Rule Would Give Workers Key Information - Summary: The Department of Labor's proposed rules for 401k plan disclosure will significantly improve the quality of the information that workers are provided to make crucial decisions about retirement savings, and has the strong support of the fund industry, according to the Investment Company Institute. Located at: Investment Company Institute, September 2008. Click on headline for full article.

Fiduciary Investment Selection - Horses to Courses - Summary: This horse-racing expression means a horse should be judged by its suitability for the track on which it will run. Similarly an investment fund should be chosen by a fiduciary based on the context in which it will be used. Located at: Fiduciary Investor, September 2008. Click on headline for full article.

Comparison of 401k Participants' Understanding of Model Fee Disclosure Forms - Summary: Regulations recently proposed by the DOL require the disclosure of certain plan and investment-related information, including fee and expense information, to participants and beneficiaries and contain a model disclosure form. AARP developed an alternative disclosure form through consultations with experts and revised it through extensive interviews with 401k participants. Located at: AARP , September 2008. Click on headline for full article.

AUDIO: ERISA Fiduciaries: Ways to Avoid Costly Litigation - Summary: David Levin with Gallagher Benefit Services hosted this webinar that focused on litigation under ERISA brought against employee benefit plan sponsors, administrators and fiduciaries and how it is more important than ever for plan fiduciaries to formulate and adopt strategies to avoid benefit plan litigation. Located at: Drinker Biddle & Reath LLP, September 2008. Click on headline for full article.

Enhanced Fee Disclosure by ERISA Plan Sponsors Required - Summary: Under several pending and final regulations, the Department of Labor will require more and enhanced disclosure of the fees that service providers receive in connection with the services that they render to certain employee benefit plans subject to the ERISA or to the prohibited transaction provisions of the Internal Revenue Code of 1986. This article examines these regulations as well as the impact they may have on ERISA plan sponsors. Located at: Dechert LLP , September 2008. Click on headline for full article.

IRS Provides 2007 Form 5500 Filing Tips - Summary: The IRS has provided some 2007 Form 5500 series filing tips for small and one-participant pension plans and welfare plans that are non-calendar year plans or have filed for an extension. Located at: CCH, September 2008. Click on headline for full article.

DOL's New Math: Form 5500 + 408(b)(2) = Fireworks - Summary: "Were there any nonexempt transactions with any party in interest?" Plan administrators have been answering that question (or versions of it) on Form 5500 for years, but the world is about to change. Located at: Benefits Biz Blog, September 2008. Click on headline for full article.

SPARK Comments on Participant Fee Disclosure - Summary: This comment letter summarizes The SPARK Institute's issues and concerns regarding the DOLs proposed rule for fee disclosure in participant-directed individual account plans. Located at: The SPARK Institute , September 2008. Click on headline for full article.

Can Brokers Be Fiduciaries? - Summary: Judging by newly proposed regulations on investment advice, it looks as if the Department of Labor is trying hard to engineer a sharp turn from the course established by Congress. Located at: Investmentnews.com (free registration may be required), September 2008. Click on headline for full article.

GAO: 401k Service Providers Should Disclose Compensation - Summary: The Government Accountability Office, following an examination of common 401k plan features and the fiduciary obligations they entail under ERISA, recommends an expansion of service provider disclosure and liability obligations. Located at: CCH, September 2008. Click on headline for full article.

'Two' Works for 403(b) Plans - Summary: At long last, a DOL official has spoken publicly about what constitutes a reasonable choice under its 403(b) safe harbor. Located at: Benefits Biz Blog, September 2008. Click on headline for full article.

401k Retirees, Take an Annuity for a Test-Drive - Summary: For a number of reasons including trust, annuities as a distribution option have not taken hold. To increase understanding and ramp up the level of trust, participants have to become more familiar with this form of payment. Located at: 401khelpcenter.com, September 2008. Click on headline for full article.

Proposed Regulations on Participant Fee Disclosure - Summary: The DOL has proposed regulations that, upon adoption, would require plan fiduciaries to disclose certain plan and investment-related information, including fee and expense information, to participants and beneficiaries under participant-directed individual account plans subject to ERISA. This is an overview of the proposed regulations. Located at: Transamerica Center for Retirement Studies , September 2008. Click on headline for full article.

COMMENTARY: The 'Anti-Participant Rule' - Summary: Scott Simon writes, "...the bleating by plan service providers about the 'added' costs they would incur by having to make cost disclosures to plan participants is pure baloney. In fact, plan recordkeepers have this data readily available because it has already been compiled." Located at: Prudent Investor Advisors , September 2008. Click on headline for full article.

PSCA Comments on Proposed Rule for Fee Disclosure - Summary: Comment letter submitted by the PSCA to the Department of Labor on the proposed rule for fee disclosure in participant-directed individual account plans. Located at: Profit Sharing/401k Council of America , September 2008. Click on headline for full article.

Final 403(b) Regulations -- How They Affect Plan Sponsors - Summary: Sponsors of 403(b) plans—typically school districts, higher education institutions, health care providers, and charitable organizations—will soon have increased responsibilities for overseeing investments, transfers, documentation, administration, and participants' disclosures. Located at: Vanguard, September 2008. Click on headline for full article.

401k Full Disclosure - Summary: New rules requiring companies to let employees know about fees, expenses and plan performance could be a boon, or not. Located at: Treasury & Risk, September 2008. Click on headline for full article.

Defined Contribution Plans: Version 2.0 - Summary: Retirement plan pioneers overhaul their 401k plans to net employees more money for retirement. Located at: Treasury & Risk, September 2008. Click on headline for full article.

403(b) Regulations: Understanding the Changes - Summary: This resource provides the 403(b) plan sponsor with a review of the new IRS regulations, answers to commonly asked questions and concerns, and a game plan for streamlining your compliance process. Located at: The Standard , September 2008. Click on headline for full article.

Fixing Your 403(b) Plan: Adopting a Best Practices Approach - Summary: The IRS has issued final 403(b) regulations, the first comprehensive guidance in 43 years. These new regulations offer an opportunity to create a better retirement plan for all by adopting a best practices approach. Located at: The Standard , September 2008. Click on headline for full article.

Important 401k Fee Rulings on the Horizon - Summary: Many of the lawsuits that challenge 401k plan fee practices are nearing critical decision points. After languishing for months in what were often heated procedural battles, several of these cases are fast approaching discovery cutoffs and summary judgment deadlines. Located at: Spencer Fane Britt & Browne LLP, September 2008. Click on headline for full article.

401k Fee Cases Pending as of September 2, 2008 - Summary: At last count, there were at least 29 separate actions pending in federal district and appellate courts attacking various methods of assessing administrative fees to defined contribution plans. This is a summary of these cases. Located at: Spencer Fane Britt & Browne LLP , September 2008. Click on headline for full article.

Do Your Benefit Plans Comply With the HEART Act? - Summary: The recently enacted Heroes Earnings Assistance and Relief Tax Act of 2008 (the HEART Act) provides tax relief and protections to members of the armed forces. This Act impacts a number of employee benefit plan provisions, and some provisions of the HEART Act will require employers to amend their benefit plan documents. Located at: Poyner & Spruill LLP, September 2008. Click on headline for full article.

Advisers Crucial to QDIA Selection - Summary: Financial intermediaries are continuing to adapt their business to meet the evolving needs of sponsors when it comes to qualified default investment alternatives (QDIAs). Located at: Planadviser.com, September 2008. Click on headline for full article.

Fiduciaries Overlook Returns of Terminated Asset Managers - Summary: A study of terminated managers' returns would yield important insights about the selection and/or termination process. This data could highlight weaknesses in a committee's process and enable it to preserve assets, which is important when questions of liability come into play. Located at: Financial Advisor Magazine, September 2008. Click on headline for full article.

Gen X and Y Worry About Money, but Not Retirement - Summary: Generation X and Y, or Americans ages 19-39, will represent 60% of the U.S. workforce by 2010. That's a large chunk of the population that isn't giving retirement savings much thought. Located at: Employee Benefit News (free registration may be required), September 2008. Click on headline for full article.

The Race to Gather QDIA Assets - Summary: There is a rush to capture QDIA assets. For those seeking to manage these assets, traditional means of gaining market share may no longer apply. Thus, it is critical for investment managers and recordkeepers to fully understand the decisions plan sponsors are making regarding the QDIA for their DC programs, how those decisions are made, what factors influence those decisions, and what role they can play in the decision making process. Located at: 401khelpcenter.com, September 2008. Click on headline for full article.

It's Not a Good Idea to Let Company Stock Dominate 401k - Summary: Recent company reversals of fortune offer a cautionary lesson for employees who are allowed to invest in their company's stock through their 401k plan. Located at: USA Today, September 2008. Click on headline for full article.

DOL Issues Proposed Regulations Regarding Disclosures to Participants of 401k Plans - Summary: Department of Labor issued proposed regulations that, if adopted, will require fiduciaries of 401k plans and other participant-directed defined contribution plans to make new disclosures to participants regarding plan-related fees, investment-related fees and investment performance data. Located at: Metropolitan Corporate Counsel, September 2008. Click on headline for full article.

Watch out Mutual Funds! - Summary: They've been slow to catch on in 401k plans, but a new report says that exchange-traded funds, or ETFs, are a potential threat to mutual funds in investor portfolios. Located at: Planadviser.com, September 2008. Click on headline for full article.

401ks Tapped for Loans Less Than Last Year - Summary: Despite reports this year that more people were borrowing from their 401k plans to cover daily expenses, the latest data from several plan providers show that the number of loans have fallen in some cases. Located at: Investmentnews.com (free registration may be required), September 2008. Click on headline for full article.

Motion for Class Certification Denied in 401k Fee Case Against Plan Service Provider - Summary: On August 27, the United States District Court for the Southern District of Iowa issued the first of several anticipated rulings on these motions, denying the plaintiff's motion for class certification. Located at: Groom Law Group, September 2008. Click on headline for full article.

Plans Sue to Recover Subprime Investment Losses - Summary: After the scope of the subprime mortgage crisis became clear in 2007, a number of pension and 401k plans with assets invested in subprime mortgage obligations filed lawsuits in federal district court to recover their losses. Located at: Employee Benefit News (free registration may be required), September 2008. Click on headline for full article.

How Small Businesses Can Improve Their Retirement Plans - Summary: While some of these issues are the unavoidable result of economies of scale and the challenges service providers face in turning a profit on smaller plans, there are things you can do to keep up with the larger retirement plans. Located at: Employee Benefit News (free registration may be required), September 2008. Click on headline for full article.

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