Move Over, Mutual Funds, Here Comes Commingled - Summary: Commingled funds will replace mutual funds in the largest defined contribution plans within the next few years, money managers predict. Located at: Pensions & Investments Online, October 2007. Click on headline for full article.

Participation Rate Not The Only Plan Success Metric - Summary: A new survey has found many plan sponsors concentrating not just on snagging 401k participants, but helping them to save enough for retirement. Located at: Planadviser.com, October 2007. Click on headline for full article.

Citigroup Hit with 401k Suit over ERISA Violations - Summary: Citigroup has been hit with a lawsuit alleging the financial services giant committed a variety of fiduciary breaches in improperly having its 401k plan do business with its affiliates and subsidiaries. Located at: Plansponsor.com (free registration may be required), October 2007. Click on headline for full article.

Comments on the PPA Technical Corrections Bills - Summary: The American Benefits Council notes a number of critical technical corrections they feel should be included in the PPA Technical Corrections Bills. Located at: American Benefits Council , October 2007. Click on headline for full article.

Cracks Showing in Target-date Funds - Summary: Target-date funds got a huge boost from the Department of Labor's final regulation on qualified default options for automatic enrollment in corporate defined contribution plans, but industry observers increasingly are saying the investment structure of these funds is deeply flawed by their high exposure to stocks. Located at: Pensions & Investments Online, October 2007. Click on headline for full article.

DOL Releases Final Regulations on DC Plan Default Investment Vehicles - Summary: New DOL regulations effective December 24, 2007 provide a safe harbor for qualified plan fiduciaries offering default investment alternatives. Located at: Littler Mendelson P.C., October 2007. Click on headline for full article.

Hearing on the Appropriateness of Retirement Plan Fees - Summary: Complete list of witnesses and transcripts of testimony for this October 30, 2007, hearing before the U.S. House Committee on Ways and Means. Located at: U.S. House Committee on Ways and Means, October 2007. Click on headline for full article.

Groups Urges Congress to Wait for DOL Before Moving Fee Disclosure Legislation - Summary: Lew Minsky, Senior Attorney for the Florida Power and Light Company, appeared October 30th before the House of Representatives Ways and Means Committee on behalf of ERIC, PSCA, NAM, and U.S. Chamber of Commerce. Minsky's testimony emphasized that major employers support efficient and effective fee disclosure, but strongly believe that Congress should allow the DOL to complete its work on fee disclosure before determining whether legislation is needed. Located at: ERISA Industry Committee, October 2007. Click on headline for full article.

ASPPA and CIKR Support Uniform Fee Disclosure Requirements - Summary: Tommy Thomasson appeared October 30th before the House of Representatives Ways and Means Committee on behalf of ASPPA and CIKR. He testified on the need for uniform fee disclosure to plan fiduciaries of 401k plans, regardless of the business model of the service provider. Located at: 401khelpcenter.com, October 2007. Click on headline for full article.

Employers' Goal: A Transparent 401k System - Summary: Testimony of Allison Klausner, Honeywell Assistant General Counsel - Benefits, before the House of Representatives Ways and Means Committee. At the October 30th hearing on the appropriateness of retirement plan fees, Klausner offered the perspective of large plan sponsors that voluntarily provide defined contribution plans such as 401k plans. Located at: American Benefits Council , October 2007. Click on headline for full article.

The Appropriateness of Retirement Plan Fees - Summary: This is the written statement of Matthew D. Hutcheson, Independent Pension Fiduciary, on "The Appropriateness of Retirement Plan Fees" presented to the Committee on Ways and Means, U.S. House of Representatives, on October 30, 2007. Located at: 401khelpcenter.com , October 2007. Click on headline for full article.

Strategic Initiatives In Retirement Plans - Summary: The survey analysis includes information on defined contribution and defined benefit plans. The survey was conducted entirely online from early April through the final week of May 2007. Data were collected from employers from organizations of all types and sizes and from all regions of the U.S. Located at: Wells Fargo & Company , October 2007. Click on headline for full article.

Hewitt Study Shows Employers Continuing to Automate 401k Plans - Summary: Despite employers' increased adoption of automated 401k plan features like automatic enrollment, employees continue to struggle with proactively saving and investing for retirement, according to a new survey by Hewitt Associates. Located at: 401khelpcenter.com, October 2007. Click on headline for full article.

A Primer on Plan Fees - Summary: As Congress examines retirement plan fees, it is critically important that policy makers have accurate information regarding such fees. This three page "primer" contains data from surveys conducted by various organizations that monitor and analyze plan fees. Located at: Profit Sharing/401k Council of America , October 2007. Click on headline for full article.

COMMENTARY: Nevin Adams on the Final QDIA Regulations - Summary: Adams' writes, "There was...at least one significant victory for capital preservation vehicles: the DOLs final regulation extends the same QDIA status protections to defaulted contributions made to those vehicles prior to December 24, 2007, the effective date of the new regulations. To some, that decision smacked of a "sellout" by the DOL.... Frankly, while the decision initially surprised me as well, the longer I consider it, the better I like it." Located at: Plansponsor Institute Blog, October 2007. Click on headline for full article.

Leber v. Citigroup Complaint - Summary: Rosen Preminger & Bloom has brought a suit against Citigroup in the SDNY. The complaint alleges that self-dealing by Citigroup caused Citigroup 401k Plan participants to pay excessive fees and suffer inferior returns. Located at: ERISA Class Action Watch, October 2007. Click on headline for full article.

Black Investors Lag in Retirement, Advisers Can Help - Summary: African-Americans are falling short of Caucasians in saving for retirement. While black investors are compensated less than white investors, on average, the discrepancy between the groups retirement savings practices is more significant, according to a new Great West Retirement Services survey of data from July 1, 2006 through June 30, 2007. Located at: Employee Benefit News (free registration may be required), October 2007. Click on headline for full article.

Midsize Firms Adopting 401k Automatic Features - Summary: As the use of auto-enrollment continues to grow, a fresh rationale for adopting auto-enrollment has emerged among midsize employers. Located at: Employee Benefit News (free registration may be required), October 2007. Click on headline for full article.

Fiduciary Warranty Protection Doesn't Cover Fee-related Issues - Summary: Although two insurance giants now offer fiduciary liability protection to help protect retirement plan sponsors in the event of a legal judgment resulting in monetary damages, employers fearing the uptick in 401k-related lawsuits shouldn't go out buying the warranties just yet, experts say. Located at: Employee Benefit News (free registration may be required), October 2007. Click on headline for full article.

Senate Hearing on 401k Fees - Summary: Hearing titled "Hidden: 401k Fees: How Disclosure Can Increase Retirement Security." Page includes links to testimonies. Located at: U.S. Senate Special Committee on Aging, October 2007. Click on headline for full article.

Council Talking Points on 401k Plan Fees - Summary: Defined contribution plan fee disclosure rules must follow key principles to reduce costs, confusion. Changes must not overly burden voluntary retirement plan system. Located at: American Benefits Council , October 2007. Click on headline for full article.

DOL Moves Toward 401k Fee Disclosure Rules - Summary: Normally, industries resist federal government oversight. But when it comes to making defined-contribution retirement plan fees more transparent, the business community is embracing a regulatory process under way at the Department of Labor. Located at: Workforce.com (free registration may be required), October 2007. Click on headline for full article.

DOL Issues Final Default Investment Regulations - Summary: This is an overview of the final DOL regulations that provide ERISA relief to fiduciaries of participant-directed defined contribution plans that invest participant accounts in certain types of default investment alternatives in the absence of participant investment directions. Located at: Sutherland Asbill & Brennan LLP , October 2007. Click on headline for full article.

Ways and Means Committee to Hear Testimony on DC Plan Fees - Summary: The U.S. House Ways and Means Committee will hold an October 30th hearing to discuss the fees charged to participants enrolled in defined contribution plans. Located at: Planadviser.com, October 2007. Click on headline for full article.

New and Better 401k Plans Are Being Offered - Summary: Trends include automatic enrollment to help more workers become participants, Roth accounts in 401ks, and some types of annuities to ensure that participants won't outlive their savings. Located at: TheLedger.com, October 2007. Click on headline for full article.

Senator to Introduce Bill on 401k Fee Disclosure - Summary: U.S. Senate Special Committee on Aging Chairman Herb Kohl (D-Wis.) held a hearing on the effect hidden 401k fees can have on retirement savings and the need for simple and clear disclosure; plans to introduce bill. Located at: Milwaukee Small Business Times, October 2007. Click on headline for full article.

Many Employees Face New Decisions on 401k Choices - Summary: One of the most important decisions in decades has just been made by the Labor Department. The government this week eased the way for employers to place workers in retirement savings programs when employees fail to take this vital step on their own. Located at: Chicago Tribune, October 2007. Click on headline for full article.

The Spark Institute Commends DOL on Clarified QDIA Rules - Summary: SPARK is particularly pleased that the DOL provided exceptions to the 30-day advance notice requirement and provides an overview of other items addressed in the regulations. Located at: 401khelpcenter.com, October 2007. Click on headline for full article.

Proposed Legislation Allows Retirement Account Withdrawals for Mortgage Payments - Summary: Minnesota Senator Norm Coleman has proposed legislation that would allow individuals who are 60 days late on their mortgage payments to dip into their 401k or individual retirement accounts (IRA) without paying a penalty. Located at: Planadviser.com, October 2007. Click on headline for full article.

New Regulation Expected to Raise 401k Participation - Summary: One aspect of the regulation will also give companies a green light to automatically enroll existing employees. Many employers have been unsure about whether they faced legal liability if they automatically enrolled existing, rather than just new, workers. Located at: USA Today, October 2007. Click on headline for full article.

Final Regulations on 401k Defaults Mostly Exclude Stable-Value Funds - Summary: The three investments that are considered qualified default investments for the long run are the same three that the department listed in the first version of the regulations it released last fall: balanced funds, lifecycle funds and managed accounts. Located at: Workforce.com (free registration may be required), October 2007. Click on headline for full article.

More Momentum for 401ks on Auto Pilot - Summary: Every day, it seems, more companies that are shifting to automatic enrollment, automatic defaults, and automatic increases in their retirement plans. What's the reason for all this automation? Located at: BusinessWeek Blog, October 2007. Click on headline for full article.

CASE STUDY: Attract Top-Notch Employees With a 401k Plan - Summary: Having both worked for mid size to large companies before founding their own branding design agency, brothers David and Philippe Becker already knew that great benefits attract top talent. But the basic, no-frills 401k they'd chosen wasn't terribly exciting to employees. Located at: Entrepreneur Magazine, October 2007. Click on headline for full article.

Rollovers from Retirement Plans to Roth IRAs - Summary: Thanks to the Pension Protection Act (PPA) of 2006, assets of certain eligible retirement plans (ERPs), including plans under Internal Revenue Code (IRC) Sections 401(a), 403(a) and (b), and 457(b), will be eligible for rollover to a Roth IRA. This provision is effective January 1, 2008. Located at: Wolters Kluwer Financial Services, October 2007. Click on headline for full article.

Retirement Assets Hit High-Water Mark - Summary: Individual retirement accounts and defined-contribution plans factored into the retirement-savings growth, with first-quarter IRAs growing from $4.2 trillion to $4.4 trillion in the first quarter. Located at: Workforce.com (free registration may be required), October 2007. Click on headline for full article.

For Women, Greater Obstacles to Retirement - Summary: More women are analyzing their finances, for good reason. They can't afford to retire. Whether they have a traditional pension or a 401k plan, women consistently enter retirement with about half as much money as men do. Located at: New York Times (free registration may be required), October 2007. Click on headline for full article.

401k Fees Receive Legislative Attention - Summary: In early October, Congress continued to focus on 401k fees. On October 4, the House Education and Labor Committee held a hearing on the 401k Fair Disclosure for Retirement Security Act (H.R.3185), which committee Chair George Miller (D-California) introduced in July. Located at: Watson Wyatt Worldwide, October 2007. Click on headline for full article.

Are 401k Saving Rates Changing? - Summary: This research examines the determinants of eligibility and participation in 401k plans using two cross-sections of data from the Health and Retirement Study. Sample consists of workers ages 51-56 representing two cohorts: the original HRS cohort born 1931-41, first interviewed in 1992, and the Early Baby Boomer (EBB) cohort born 1948-53, interviewed in 2004. Participation in 401k pensions in the EBB cohort is nearly 50 percent greater than that of the earlier cohort. Located at: Michigan Retirement Research Center , October 2007. Click on headline for full article.

Asset Allocation and Default Investments in 401k Plans - Summary: This information sheet on the Department of Labor's final ruling on default investments in 401k plans provides data on assets held in stable-value, GICs (guaranteed investment contracts, an insurance product), or money-market funds (excluded from the rule) and balanced funds (included in the rule). Located at: Employee Benefit Research Institute , October 2007. Click on headline for full article.

DOL Releases Advance Copies of Form 5500 - Summary: The U.S. Department of Labor recently issued advance copies of the 2007 Form 5500 Annual Return/Report of Employee Benefit Plan and related guidelines. Key revisions to the forms allow plan sponsors with fewer than 25 participants to streamline their reporting options pursuant to the Pension Protection Act. Located at: Employee Benefit News (free registration may be required), October 2007. Click on headline for full article.

DOL Announces Final Rule on Default Investment Alternatives for Participant-Directed Plans - Summary: U.S. Secretary of Labor Elaine L. Chao unveiled a final rule establishing qualified default investment alternatives, making it easier for employers to automatically enroll workers in their 401k and other defined-contribution plans. Located at: U.S. Department of Labor, October 2007. Click on headline for full article.

Labor Department Nixes 401k Default - Summary: The U.S. Department of Labor announced that stable value accounts will not be allowed as qualified default investment alternatives in 401k plans, despite heavy lobbying efforts from the insurance industry. Located at: Investmentnews.com (free registration may be required), October 2007. Click on headline for full article.

COMMENTARY: Pay Close Attention to Retirement Plan Fees - Summary: Many financial planners and investment advisers have helped small companies establish 401k retirement plans for their employees. But if those financial planners and investment advisers want to continue earning their fees for advising those plans, they should examine all fees being charged to those plans, including their own. Located at: Investmentnews.com (free registration may be required), October 2007. Click on headline for full article.

SIMPLE Notice Deadline Fast Approaching - Summary: There's an important deadline on the horizon if an employer has a SIMPLE in 2007 but would like a 401k in 2008. It's November 1. Located at: Retirement Plan Blog, October 2007. Click on headline for full article.

Door Opens for Registered Adviser Entry into Small Plan Market - Summary: Registered investment advisers are becoming a powerful force in the small plan 401k plan market says a new study by Boston-based Financial Research Corporation. The study shows that RIAs are the fastest growing distribution channel for small business 401k plans. Located at: Employee Benefit News (free registration may be required), October 2007. Click on headline for full article.

401k Participants in Lifestyle Funds Reap Better Returns - Summary: 401k participants investing in lifestyle funds had better year-end returns than those who picked their own mix of investments, according to a new study from financial services provider John Hancock. Located at: Employee Benefit News (free registration may be required), October 2007. Click on headline for full article.

U.S. Retirement Assets Hit $16.6 Trillion - Summary: Americans' assets for retirement rose to a record $16.6 trillion as of March 30, 2007, according to a new statistical series launched today by the Investment Company Institute, the national association of U.S. mutual funds and other investment companies. Located at: Investment Company Institute , October 2007. Click on headline for full article.

Retirement Savings Accounts: Fees, Expenses, and Account Balances - Summary: An earlier Congressional Research Service (CRS) report described the effects of the number of years of saving, the amount contributed to the plan, and the rate of return on investment on workers' potential account balances at retirement. This CRS report presents estimates of the effect of fees and other expenses paid by participants in retirement plans on their account balances at retirement. Located at: 401khelpcenter.com , October 2007. Click on headline for full article.

COMMENTARY: Participants and 401k Expenses - Summary: In the past a dialog about the cost of a 401k plan was not one of the higher priorities. However, now it is. This is the time for plan sponsors to address this issue, in an open and complete manner, with their employees. Located at: Reish Luftman Reicher & Cohen, October 2007. Click on headline for full article.

A Tip for Plan Sponsors - Summary: Here's something that might help you out. Pull out a copy of your most recent 5500 Form and look at item 8a. Is "2F" one of the codes listed next to 8a? If not, you may have a problem. If it is, you may also have a problem. Read more about it in this article. Located at: Reish Luftman Reicher & Cohen, October 2007. Click on headline for full article.

Agreements with Service Providers: Participant Investment Advice - Summary: In guidance issued earlier this year, the DOL said that to prudently select an adviser, the plan sponsor must take into account the adviser's experience and qualifications, its registration under the securities laws and the extent to which the advice to be furnished will be based on generally accepted investment theories. How does this impact service agreements? Located at: Reish Luftman Reicher & Cohen, October 2007. Click on headline for full article.

401k Risk Management - Summary: Fred Reish talks about how to design a plan, from the ground up, to minimize risk. Located at: Reish Luftman Reicher & Cohen, October 2007. Click on headline for full article.

IRS Announces Pension Plan Limitations for 2008 - Summary: The Internal Revenue Service today announced cost of living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2008. Located at: 401khelpcenter.com, October 2007. Click on headline for full article.

African-American Investors Remain Behind in Retirement Savings - Summary: Black investors maintain a conservative approach to investing resulting in current retirees wishing they had saved more. Located at: Financial-planning.com, October 2007. Click on headline for full article.

Miller May Drop Requirement for Index Fund From 401k Bill - Summary: House Education and Labor Committee Chairman George Miller, D-CA, is expected to remove a controversial requirement from his 401k bill that a low-cost index fund be included in all such plans, said an industry official. Located at: Investmentnews.com (free registration may be required), October 2007. Click on headline for full article.

Public Catches on to Roth 401k - Summary: Roth 401k plans are starting to catch on since they were introduced in January 2006 But they still have a long way to go before they reach the critical mass of traditional 401k plans, which have been around since 1979. Located at: Contra Costa Times, October 2007. Click on headline for full article.

Cross-Testing in EGTRRA Prototype and Volume Submitter Plans - Summary: This Sungard/Relius Technical Update addresses cross-testing and not traditional age-based designs as the LRM does not place any special limitations on such age-based plans. Located at: Sungard/Relius, October 2007. Click on headline for full article.

COMMENTARY: The Real Retirement Crisis - Summary: According to the commentator, the real retirement crisis in America is that the majority of American workers who lack even the opportunity to participate in a workplace retirement plan. Located at: Plansponsor Institute Blog, October 2007. Click on headline for full article.

Independent Investment Advisers See Strong Asset Growth - Summary: Registered investment advisers are in the money and are expected to continue seeing green as asset growth for the industry continues. What opportunities can other advisers capitalize on in order to see the same success? Located at: Employee Benefit News (free registration may be required), October 2007. Click on headline for full article.

DFVCP Penalty Calculator Made Available - Summary: EBSA is providing the Delinquent Filer Voluntary Compliance Program (DFVCP) penalty calculator to aid in the filing process and to reduce the number of over and under payments made to the DFVCP. While the use of the calculator is not required, its use is highly recommended to ensure compliance with the program's requirements. Located at: U.S. Department of Labor, October 2007. Click on headline for full article.

OPINION: A Nation on the Precipice: Our Failed Retirement System - Summary: The author states, "A full-page insurance company advertisement in a financial newspaper today read, 'Bald, helpless and broke is how to start life. Not finish it.' The ad went on to warn that many people have a rosy view of their retirement savings believing they will be able to live off their pension, home equity and Social Security. The solution proposed is to invest more of your retirement savings in annuities and other insurance company investment products. We can't conceive of plan more likely to result in investors ending up "bald, broke and helpless" than pouring retirement savings into high cost, poor performing insurance company variable and fixed annuities and mutual funds." Located at: Benchmark Financial Services, October 2007. Click on headline for full article.

DOL Announces Extended Deadline for Benefit Statements - Summary: In Field Assistance Bulletin No. 2007-03, the DOL announced that annual benefit statements for trustee-directed DC plans would not have to be given to participants until the Form 5500 for the plan is filed. Located at: U.S. Department of Labor, October 2007. Click on headline for full article.

Cash-strapped Americans Raiding Their 401ks - Summary: Despite potential tax and investment problems, more investors have been borrowing from their 401k plans or taking hardship withdrawals in recent months, some retirement plan providers say. Located at: Chicago Tribune, October 2007. Click on headline for full article.

Literacy, Trust, and 401k Savings Behavior - Summary: By studying three large firms offering 401k plans, the paper assess the impact of financial literacy and trust on 401k savings behavior in voluntary and automatic-enrollment 401k plans. Located at: Vanguard Center for Retirement Research , October 2007. Click on headline for full article.

COMMENTARY: The Devil in the Details - Summary: Nevin Adams notes, "The testimony presented at last week's hearing by the House Education and Labor Committee on the issue of 401k fees...was remarkably consistent, IMHO, certainly compared with the last time the Committee took up the issue.... At a minimum, we seem to have moved past the question of whether more fee disclosure is needed to what kind of disclosures are needed, and how we can make them." Located at: Plansponsor Institute Blog, October 2007. Click on headline for full article.

Revisiting the Definition of Spouse - Summary: ERISA provides certain basic protections for plan participants' spouses. Therefore, a retirement plan document must define "spouse" for these purposes. What happens when a state law permitting same-sex marriages conflicts with the Federal Defense of Marriage Act? Located at: McKay Hochman, October 2007. Click on headline for full article.

Nonspouse Beneficiary Rollover Document Change - Summary: The IRS has changed its guidance on the nonspouse beneficiary rollover being a plan sponsor optional plan provision to a required plan document provision, similar to how the eligible rollover distribution provisions of 401(a)(31) are required plan provisions. Located at: McKay Hochman, October 2007. Click on headline for full article.

Determination Letter Program Temporarily Closed - Summary: Announcement 2007-90 states that on December 18, 2007, the IRS will temporarily stop accepting applications for determination letters for defined contribution plans that are filed on Form 5307, Application for Determination for Adopters (Employers) of Master or Prototype or Volume Submitter Plans. Located at: McKay Hochman, October 2007. Click on headline for full article.

Advisers Need to Help Clients With Form 5500 - Summary: Advisers are being called on to flex their compliance muscles and assist clients who are reconsidering their form 5500 filings. Located at: Employee Benefit News (free registration may be required), October 2007. Click on headline for full article.

Employees Want Advice Customized by Life Stage - Summary: Employees are interested in receiving information regarding which kinds of benefits to select during open enrollment if the information is geared toward their life stage, according to a new survey from MetLife. Located at: Employee Benefit News (free registration may be required), October 2007. Click on headline for full article.

Labor Department Launches ERISA Fiduciary Advisor Website - Summary: The U.S. Department of Labor's Employee Benefits Security Administration announced a new interactive Web tool to serve as a resource for employers in complying with federal retirement laws. Located at: U.S. Department of Labor, October 2007. Click on headline for full article.

A New Model for Retirement Education and Counseling - Summary: This paper provides information about the current state of retirement readiness and why workers perceptions about their retirement futures are generally not matching their actions. The purpose of this is to demonstrate the changes that are needed to the current approach to retirement education and counseling/guidance services that are part of the employee benefit structure. Located at: ANC Foundation , October 2007. Click on headline for full article.

Labor Department Releases Advance Copies of 2007 Form 5500 - Summary: The U.S. Department of Labor's Employee Benefits Security Administration, the IRS and the Pension Benefit Guaranty Corporation released advance informational copies of the 2007 Form 5500 Annual Return/Report of Employee Benefit Plan and related instructions. Located at: 401khelpcenter.com, October 2007. Click on headline for full article.

ETFs in 401k Plans: The Technology Is Here - Summary: This is an interview with Darwin Abrahamson, the CEO of Invest n Retire. They asked him about why ETFs should be in 401k plans and what his firm is doing to make it happen. Located at: ETFTrends.com, October 2007. Click on headline for full article.

401k-Type Plans Show Continued Growth, but at Slower Rate - Summary: Individual account retirement plans, such as 401k plans and individual retirement accounts (IRAs), have continued to increase their share of retirement assets, yet DC plans and the number of participants in those plans begins to level off. Located at: Employee Benefit Research Institute , October 2007. Click on headline for full article.

Target-Date Funds: Not Foreign Enough? - Summary: Stocks outside the U.S. are widely seen as strong in long-term growth potential, but one group of popular mutual funds may be keeping investors too close to home. Some researchers suggest target-date funds allocate a greater share to international stocks. Located at: Wall Street Journal Online, October 2007. Click on headline for full article.

Annuities for 401ks Meeting Resistance - Summary: Financial advisers are resisting using annuities designed for 401k plans, which are created by insurance firms, saying that the products are confusing, lack portability and are expensive. Located at: Investmentnews.com (free registration may be required), October 2007. Click on headline for full article.

Defined Contribution Plan Fee Transparency Act of 2007 - Summary: Text of new Bill introduced by Rep. Neal of Massachusetts which would amend the Internal Revenue Code of 1986 to provide transparency with respect to fees and expenses charged to participant-directed defined contribution plans. Located at: American Benefits Council , October 2007. Click on headline for full article.

Nationwide Wins One, Loses One In Fee Litigation - Summary: After nearly 18 months of inactivity, the court in Haddock v. Nationwide (September 25, 2007), one of the most closely watched lawsuits challenging 401k fee practices, has rejected another attempt to derail the plaintiffs' claims. Even more importantly, this most recent ruling leaves standing a controversial earlier decision that so-called “revenue sharing” payments may constitute ERISA plan assets. Located at: Spencer Fane Britt & Browne LLP, October 2007. Click on headline for full article.

Fee Disclosure Proposal Draws Industry Criticism - Summary: Retirement industry groups told the U.S. House Education and Labor Committee last week that a legislative proposal calling for greater disclosure of 401k fees would be too overwhelming for everyone involved, including participants. Located at: Planadviser.com, October 2007. Click on headline for full article.

As the Mortgage Industry Tumbles, Employers Begin to Feel the Effects - Summary: In the wake of the subprime mortgage market's collapse, employers in various industries experience the fallout in the form of 401k loan upticks, relocation wrinkles and increasing employee stress. Layoffs, lawsuits and the specter of a recession are also part of an increasingly gloomy picture. Located at: Workforce.com (free registration may be required), October 2007. Click on headline for full article.

The Impact of "Auto-Escalation" of Contribution Rates - Summary: A significant positive impact on 401k accumulations is likely, especially for low-income workers, in plans featuring automatic 401k escalation provisions, according to a study conducted by the Employee Benefit Research Institute. Located at: CCH, October 2007. Click on headline for full article.

401k Slammed at ABP Conference - Summary: The US 401k pension provision system has been heavily criticized at an ABP conference in the Netherlands. Speaking at its Pension Diversity and Solidarity in Europe conference, Roderick Munster, chief investment officer at ABP, slammed the system, saying: "The US pension system is a mess." Located at: Global Pensions, October 2007. Click on headline for full article.

A Conversation with a Fiduciary (Part 2) - Summary: Earlier this year, Matthew Hutcheson's "A Conversation with a Fiduciary" created a stir. He is back with another column where he envisions a conversation between an attorney and a fiduciary. The attorney is following up on the fiduciaries conversation with the CEO, Bob, from the first column in an attempt to understand what the fiduciary was trying to explain to the CEO. Located at: Morningstar, October 2007. Click on headline for full article.

ASPPA and CIKR Support Uniform Fee Disclosure Requirements - Summary: ASPPA and CIKR offered the support for the equitable application of the plan fiduciary disclosure rules proposed in H.R. 3185. Located at: 401khelpcenter.com, October 2007. Click on headline for full article.

Plan Sponsors Add Income Replacement Funds - Summary: It's a daunting task to manage a 401k portfolio of mutual funds while withdrawing money, based on government-mandated minimum distribution rules. A few plan sponsors already have begun adding income replacement funds to solve this problem. Located at: Financial Advisor Magazine, October 2007. Click on headline for full article.

Bill Seeks to Shed Light on 401ks - Summary: Consumer advocates say better disclosure of fees for 401k plans would lead to bigger retirement nest eggs for millions of Americans. But business groups Thursday made clear they would fight legislation that would mandate a comprehensive listing of all such expenses. Located at: Los Angeles Times (free registration may be required), October 2007. Click on headline for full article.

Prudential Retirement Sues Fiduciary for Investing in Subprime Mortgages - Summary: Prudential Retirement Insurance and Annuity Co. recently sued State Street Global Advisors, an investment firm, claiming that the company breached its fiduciary duties under ERISA by making “deceptive and imprudent” investments. Located at: Employee Benefit News (free registration may be required), October 2007. Click on headline for full article.

Congressional Testimony on H.R. 3185 (Video) - Summary: A hearing on H.R. 3185, the "401k Fair Disclosure for Retirement Security Act of 2007" was held on October 4, 2007. You will find the video of the testimony of the witnesses here. Located at: 401khelpcenter.com, October 2007. Click on headline for full article.

Qualified Default Investment Rules May Spark Legal Action - Summary: U.S. workers will have legal recourse against Plan Sponsors when, at retirement, they are left with insufficient balances in their 401ks because their Plans were defaulted into Formulaic Asset Allocation (FAA) funds, (Lifecycle, Target Date, Managed Accounts), according to the Chicago-based research organization, Compass Institute. Located at: 401khelpcenter.com, October 2007. Click on headline for full article.

401k Plan Potential Mistakes - Summary: This 43 page document was prepared by the IRS and tells you what potential plan mistake there are, how to identify the them, how to correct the mistake and how to avoid the problem. Lots of good information. Located at: IRS , October 2007. Click on headline for full article.

Proposals to Reform Fees, Investment Strategies Spark Debate - Summary: As Congress considers mandating greater fee disclosure for 401k and other retirement plans, groups representing plan sponsors and others interested in shaping the debate are girding for a tough fight. Located at: Marketwatch.com, October 2007. Click on headline for full article.

A Primer on Plan Fees and Analysis of H.R. 3185 - Summary: The trust of this paper is that the authors support the DOL's efforts to improvement fee disclosure and transparency. They believe that this is the best approach to enhance fee transparency in a measured and balanced manner and therefore urge Congress to delay taking legislative action until the Department of Labor has completed its work. Located at: Profit Sharing/401k Council of America , October 2007. Click on headline for full article.

The Dynamics of Lifecycle Investing in 401k Plans - Summary: This paper concludes that recent pension legislation sanctioning target maturity funds as the default fund will modify participant 401k investment patterns. The speed with which behavior changes will depend both on employer plan menu decisions as well as voluntary choice by new entrants and low-literacy employees. Located at: Pension Research Council, October 2007. Click on headline for full article.

The Computer-Driven Advice Model - Summary: Although the DOL and, in turn, the industry are free to define the details of how computer-driven advice models should operate, the PPA provides a good outline of the models' major components. This article outlines those components. Located at: Investmentnews.com (free registration may be required), October 2007. Click on headline for full article.

Reconsidering Fiduciary Liability Insurance Coverage - Summary: In reaction to the rise of the company-stock fiduciary breach case as well as the rumblings of yet another seam of wide-spread fiduciary malfeasance (i.e. excessive fees) may cause some advisers to reconsider their liability coverages -- fiduciary liability and errors and omissions insurance among them. Located at: Employee Benefit Advisor (free registration may be required), October 2007. Click on headline for full article.

Financial Literacy: Could This be the Barrier? - Summary: This article explains that financial illiteracy might be a contributing factor to Americans' shorter life expectancy. The stress of trying to keep up with the Joneses is killing us. Located at: Producersweb.com, October 2007. Click on headline for full article.

Altered 401k Landscape Seen for Advisers - Summary: More wirehouses and broker-dealer firms have realized that they need to allow their advisers to take on fiduciary services or risk losing them. Located at: Investmentnews.com (free registration may be required), October 2007. Click on headline for full article.

Managed Accounts Not Understood - Summary: Financial services providers and advisors may be losing some managed account business because participants in defined-contribution plans do not have a particularly good understanding of how these investments actually work. Located at: Spectrem Group, October 2007. Click on headline for full article.

Principal Revenue Sharing Suit Focusing on Class Action Issue - Summary: A federal court lawsuit over the Principal Financial Group's 401k revenue sharing arrangements likely will not be heard in an Iowa courtroom until mid-to-late 2008 at the earliest, according to the latest case schedule. Located at: Plansponsor.com (free registration may be required), October 2007. Click on headline for full article.

Use Unused Vacation to Fund 401k - Summary: One rarely used way to increase retirement savings is to allow employers to defer the equivalent of unused vacation days and use it as a 401k contribution instead. A more complicated option allows employers to contribute the pay themselves, but it requires some complex testing to make it viable. Located at: HREonline.com (free registration may be required), October 2007. Click on headline for full article.

Two-thirds of Americans Don't Save Enough - Summary: Americans face immediate financial concerns on a day-to-day basis, and these take priority over long-term retirement goals. In Bankrate's retirement savings poll, taken in mid-September, seven in 10 Americans (68 percent) said they are not able to reach their monthly retirement savings goal because of other financial responsibilities. Located at: Bankrate.com, October 2007. Click on headline for full article.

Insurance Firms Locking Up More of 401k Market - Summary: Reaping the rewards of their success in meeting plan sponsors' expectations about installation and ongoing service support, insurance companies have captured a larger share of the small to mid-size, adviser-driven 401k market. Located at: Planadviser.com, October 2007. Click on headline for full article.

How Balances of Consistent 401k Account Holders Have Changed - Summary: How have the account balances of consistent 401k account holders changed over time? How have the account balances in this group changed for different age groups? This EBRI Issue Brief provides answers to these and many other questions. Located at: Employee Benefit Research Institute , October 2007. Click on headline for full article.

Opportunities and Challenges for Institutional Asset Managers Post PPA - Summary: Cross-selling into the DC space by institutional asset managers has been lacking. Two-thirds of the managers surveyed indicate that the consultants they target are the same for both DB and DC, but despite this overlap, the overwhelming majority of managers do not leverage these opportunities. Located at: Chatham Partners , October 2007. Click on headline for full article.

New 401k Law Should Help More Workers Save - Summary: With the Pension Protection Act of 2006, Congress sought to counteract one of Americans' biggest flaws: the tendency toward inertia. People have a hard enough time settling on a flavor of yogurt, much less deciding how much income to defer to a 401k plan. Hence the nation's inadequate retirement savings. Located at: SmartMoney, October 2007. Click on headline for full article.

An Annuity Option in DC Plans - Summary: When Smithfield Foods decided to start offering an annuity option in 2006 for the 15,000 participants in its three defined contribution plans, Corporate Benefits Manager Mary Fisher worried about employees' reaction. Located at: Plansponsor.com (free registration may be required), October 2007. Click on headline for full article.

Court Affirms Dismissal of 401k "Stock-Drop" Case - Summary: The United States Court of Appeals for the Third Circuit has affirmed the dismissal of a case against Avaya Inc., in which plaintiff alleged defendants breached their fiduciary duty by (1) imprudently offering employer stock as an investment option to 401k plan participants and (2) failing to disclose material information to those plan participants. Located at: Alston & Bird LLP , October 2007. Click on headline for full article.

401k Participants Hold Lower-Cost Funds - Summary: Employers and workers in 401k retirement savings plans tend to select lower-cost mutual funds with below-average turnover, according to research released today by the Investment Company Institute. Located at: Investment Company Institute, October 2007. Click on headline for full article.

Financial Finesse DOL Panel Testimony - Summary: Testimony of Liz Davidson, Founder and CEO of Financial Finesse, before the Department of Labor's ERISA Advisory Council Working Group, hearing on "Financial Literacy and the Role of the Employer." Located at: Financial Finesse , October 2007. Click on headline for full article.

To TPA or not to TPA? - Summary: Good plan service means advisers must review the calculus for working with or spurning their friendly neighborhood TPA. Located at: Employee Benefit News (free registration may be required), October 2007. Click on headline for full article.

Free Ebook Helps Women Prepare for Retirement - Summary: The Heinz Foundation and WISER are offering a free ebook, What Women Need to Understand About Retirement, which gives women a critical view into their retirement planning needs. Located at: Employee Benefit News (free registration may be required), October 2007. Click on headline for full article.

Cost, Communication Hinder Use of Automatic 401k Features - Summary: Despite growth in the number of employers adopting automatic 401k features, some employers shy away from adopting automatic features because of the uncertainty over costs and doubt about whether participants can afford retirement savings, given their personal expenses. Located at: Employee Benefit News (free registration may be required), October 2007. Click on headline for full article.

Pooling Retirement Resources - Summary: As fiduciaries begin looking more carefully at the cost of retail mutual funds - and as banks and trusts have widened their assortment of offerings and tapped into technology to erase concerns about operational efficiency and information access - CITs are enjoying renewed interest. Located at: Employee Benefit News (free registration may be required), October 2007. Click on headline for full article.

Due Diligence on Pension Consultants - Summary: An enforcement initiative launched by the DOL provides questions that retirement plan fiduciaries should ask their consultants and service providers to determine what potential conflicts of interest may exist. Located at: Employee Benefit News (free registration may be required), October 2007. Click on headline for full article.

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