COMMENTARY: Five Concerns About Target-Date Funds - Summary: Over the past several months, target-date mutual funds have been increasingly scrutinized for their losses, raising questions about the transparency and suitability of these ostensibly safe investments. Morningstar's vice president of research John Rekenthaler testified Wednesday before the Senate Special Committee on Aging about this issue. The text of his testimony. Located at: Morningstar.com, October 2009. Click on headline for full article.

Target-Date Fund Liquidations Double From Full-Year-2008 Levels - Summary: There have already been more than double the number of target date fund liquidations so far this year than there were in all of 2008. Moreover, experts predict that trend to increase as smaller fund managers are finding it nearly impossible to gain traction in the market. Located at: Investmentnews.com (free registration may be required), October 2009. Click on headline for full article.

SEC Will Begin Scrutinize Risks Related to Retirement Products - Summary: Responsibility for identifying potential risks related to investing in retirement investment products will fall primarily on the SEC's newly formed division of risk, strategy and financial innovation. That unit, which was formed last month, combined the agency's office of economic analysis and its risk assessment division. Located at: Workforce.com (free registration may be required), October 2009. Click on headline for full article.

Defined Benefit 401ks Set to Make Their Debut - Summary: Why haven't you heard more about the DB/401k? The authority for this new plan, which becomes available on Jan. 1, 2010, was buried deep within the massive Pension Protection Act of 2006. But interest in DB/401ks is expected to heat up during the coming year. Located at: Accountingweb.com, October 2009. Click on headline for full article.

Four 401k Options to Consider When Job Changes - Summary: If you're facing a job change or you've lost your job and are wondering what to do with the money in your 401k account, there are generally four options. Located at: New York Times, October 2009. Click on headline for full article.

COMMENTARY: The 401k: Don't Believe the Hype - Summary: The author writes, "If someone made me America's personal-finance dictator, I'd scrap the 401k. These workplace retirement plans are inequitable, as some companies offer good ones, some bad ones and others none at all. Fees are often too high. And even the better plans often don't provide enough investment options." Located at: Nightly Business Report Blog, October 2009. Click on headline for full article.

Senate Aging Committee on Target-Date Funds - Summary: Video and written testimony of the Senate Special Committee on Aging's October 28, 2009, hearing on the use of target-date funds. Located at: Aging.Senate.gov, October 2009. Click on headline for full article.

NAIRPA Comments to Senate Aging Committee on Target-Date Funds - Summary: The National Association of Independent Retirement Plan Advisors submitted these comments for the record to the Senate Special Committee on Aging's hearing entitled, "Default Nation: Are 401k Target-Date Funds Missing the Mark?" Located at: ASPPA , October 2009. Click on headline for full article.

DOL Official Testifies Before Senate Aging Committee on Target-Date Funds - Summary: Overview of testimony by Phyllis C. Borzi, assistant secretary of labor for the DOLs Employee Benefits Security Administration, before the Senate Special Committee on Aging on the use of target-date funds as investment options for 401k-type plans. Located at: US Department of Labor, October 2009. Click on headline for full article.

Increasing Litigation Against Advisers - Summary: There are straightforward steps that can substantially reduce an adviser's exposure to liability. This article covers some basic steps as a good starting point. Located at: Reish & Reicher, October 2009. Click on headline for full article.

Fiduciary Liability Insurance vs. ERISA Fidelity Bonds – What's the Difference? - Summary: This article addresses an issue that every plan sponsor should consider whether they have ever been sued or not. Specifically, the author talks about the issue of insurance, and more particularly, the distinction between fidelity bonds and fiduciary liability insurance. Located at: Reish & Reicher, October 2009. Click on headline for full article.

Increasing Number of Employers Plan to Reverse Reductions of 401k Match - Summary: Watson Wyatt reported that a recent survey found that an increasing number of employers are planning to reverse reductions to 401k match contributions. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

Effects of the 401k Fair Disclosure and Pension Security Act - Summary: This article from the New York Law Journal discusses how employers providing 401k plans to their employees will be affected by the 401k Fair Disclosure and Pension Security Act of 2009 in the realm of fee disclosure. Located at: Patterson Belknap Webb & Tyler LLP , October 2009. Click on headline for full article.

Nearly Half of Employees Cash Out Their 401k Accounts When Leaving Their Jobs - Summary: Increased efforts to caution Americans about the negative financial consequences of cashing out their 401k plans have had little impact in changing their behavior over the past few years, according to a new study by Hewitt Associates. In fact, the number of workers who took a cash distribution from their 401k plan when they left their job was alarmingly high-46 percent-and has remained virtually unchanged since 2005. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

What Sponsors and Advisors Should Know About Retirement Plans - Summary: According to a 2007 U.S. Labor Dept. survey, 68% of small business owners feel unprepared for retirement and just 42% maintain a retirement plan. Here are four frequently overlooked tips about retirement plans for plan sponsors and their advisors. Located at: Businessweek.com, October 2009. Click on headline for full article.

EBSA Webcast to Address Form 5500 Issues - Summary: Plan sponsors (and "plan professionals," including advisers) looking to bone up on the new Form 5500 will have another chance to do so online. Located at: Planadviser.com, October 2009. Click on headline for full article.

More Americans Plan to Delay Retirement - Summary: More Americans plan to delay retirement following steep drops in the value of their savings accounts, data from several new surveys show. Located at: Reuters, October 2009. Click on headline for full article.

National Retirement Risk Index: 51 Percent Now "At Risk" for Retirement - Summary: The updated National Retirement Risk Index includes assumptions accounting for the economic turmoil. It finds that 51 percent of Americans are not prepared to retire at age 65 compared to 44 percent in 2007. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

The National Retirement Risk Index: After the Crash - Summary: A new update of the National Retirement Risk Index quantifies the impact of the recession of 2008 and 2009 on retirement readiness for households across the United States. The Center for Retirement Research at Boston College released this update of the NRRI that shows a seven percentage-point drop in the share of households that are positioned to maintain their current standard of living in retirement. Located at: Center for Retirement Research at Boston College , October 2009. Click on headline for full article.

Interpretive Issue under Notice 2009-68 – Partial Rollovers - Summary: The American Benefits Council is writing to urge the Internal Revenue Service to clarify the treatment of a partial rollover to an IRA of a distribution from a tax-preferred employer plan that includes after-tax contributions. Located at: American Benefits Council , October 2009. Click on headline for full article.

New Data Reveals Increase in 401k Plan Participation - Summary: Charles Schwab released new data showing the number of workers participating in 401k plans increased even as the stock market declined and the economy weakened. In addition, most 401k plan participants continued to receive matching contributions from their employer. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

MassMutual's Plan Data Shows Participants 'Highly Engaged' - Summary: MassMutual's Retirement Services Division released data indicating that participants in retirement plans administered by MassMutual are highly engaged in planning and saving for retirement. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

Automatic Enrollment Shows Promise for Some Workers; Other Workers Could Face Challenges - Summary: Because of questions about the extent of retirement savings and prospects for a sound retirement for all Americans, GAO was asked to determine (1) what is known about the effect of automatic enrollment policies among the nation's 401k plans, and the extent of and future prospect for such policies; and (2) the potential benefits and limitations of automatic IRA proposals and state-assisted retirement savings proposals. To answer these questions, GAO reviewed available reports and data, and interviewed plan sponsors, industry groups, investment professionals, and relevant federal agencies. Located at: GAO , October 2009. Click on headline for full article.

Survey Reveals Healthcare Retirement Plans Are Being Redesigned in a Dynamic Market - Summary: Market volatility and regulatory requirements were the driving forces behind healthcare retirement plan sponsors' actions in 2009. According to a just-released survey of healthcare employers, more than one-third (37%) said that implementing a new fiduciary process associated with the new 403(b) regulations that went into effect earlier this year was their primary challenge. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

Senate to Address Conflicts in Proprietary Target Funds - Summary: Insiders say that the Senate Special Committee on Aging hearings Wednesday will focus on the potential for conflict of interest within proprietary target date funds. Located at: Investmentnews.com (free registration may be required), October 2009. Click on headline for full article.

Most 401k Investors Don't Read Investment Information - Summary: Two-thirds of 401k participants don't read investment information provided by their plan executives -- a surprising finding given the calls by some legislators for DC plan executives and money managers to provide participants with more fee disclosure and financial information. Located at: Investmentnews.com (free registration may be required), October 2009. Click on headline for full article.

Industry Rails Against Claims the 401k Should be Retired - Summary: Providers of 401k plans have lambasted a critical article published October 9 in Time magazine denouncing the 401k system. Located at: Investmentnews.com (free registration may be required), October 2009. Click on headline for full article.

Supplemental FAQs About the 2009 Schedule C - Summary: The U.S. Department of Labor released this additional guidance to help plan administrators and service providers comply with the expanded requirements for reporting service provider fee and compensation information on the Form 5500 Annual Returns/Reports. Located at: Department of Labor, October 2009. Click on headline for full article.

Target Date Funds a "Particular Focus" for SEC - Summary: The Securities and Exchange Commission is taking a hard look at retirement products, including the positioning of target date funds. Located at: Planadviser.com, October 2009. Click on headline for full article.

COMMENTARY: 401k Performance: The Numbers Add Up - Summary: Even with little more than a single year's time in between us and the beginning of the financial crisis, the author can't see what supports the notion that balanced investing "doesn't work" or that the 401k system is dangerously broken. Located at: Vanguard Blog, October 2009. Click on headline for full article.

403(b) Plans and EFAST2 - Summary: This article focuses on how EFAST2 will affect the Form 5500 filing requirements for 403(b) plans. In addition, the article discusses the DOL's changes to the Form 5500 filing requirements for 403(b) plans. Located at: Sungard/Relius, October 2009. Click on headline for full article.

Should You Use Your 401k to Buy an Annuity? - Summary: If a plan offers any of the three guaranteed-income solutions -– the option to annuitize at retirement, the ability to purchase annuity shares with each paycheck or invest in a mutual fund with an income guarantee -– you should make sure it's the right solution for you. Article covers three important questions to ask. Located at: Smartmoney.com, October 2009. Click on headline for full article.

Companies Plan to Reinstate 401k Matches - Summary: Many businesses are quietly restoring plans to match a portion of their employees' 401k contributions. Located at: Wall Street Journal, October 2009. Click on headline for full article.

Employer Commitment to Workers' Retirement Plans Has Declined Over Last Decade - Summary: Corporate America's commitment to workers' retirement plans, measured by benefit values as a percentage of pay, has dropped consistently over the last decade, according to research by Watson Wyatt. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

One Year Later, Investors Remain Committed to Their Workplace Retirement Plans - Summary: A survey conducted by the ING Institute for Retirement Research found that, despite the uncertain market conditions and negative headlines during the past year, most Americans who participate in employer-sponsored defined contribution plans value these plans greatly and have continued to support them. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

Plugging the DC Plan Dike - Summary: There were some positive numbers on employee retirement investments. Although U.S. workers who held 401k accounts from 2003 through 2008 suffered a 24.3% average drop in their account balance during 2008's bear market, their accounts still grew at an average annual rate of 7.2%. Located at: Employee Benefit Adviser (free registration may be required), October 2009. Click on headline for full article.

How the Retirement Plan System Has Changed Over Time - Summary: How has the distribution of assets in private-sector retirement plans changed over recent years? Located at: Employee Benefit Research Institute , October 2009. Click on headline for full article.

Adviser Group Urges Congress to Keep 'Authentic' Fiduciary Standard - Summary: The Committee for the Fiduciary Standard, a group of 600 investment professionals, sent a letter to House Financial Services Committee Chairman Barney Frank, D-Mass., and others, voicing concern about proposals to adopt a new fiduciary code of conduct for brokers and advisers. Located at: Investmentnews.com (free registration may be required), October 2009. Click on headline for full article.

Restoring Americans' Retirement Security a Shared Responsibility - Summary: Even before the financial crisis that began in the fall of 2008, Americans were woefully unprepared for retirement. While the subsequent drop in the stock market exacerbated the problem, it also heightened anxiety and awareness about the issue of retirement security among individuals, employers and government leaders. This could prove to be the silver lining in the crisis: an end to complacency and the willingness to change attitudes, behaviors and policies to restore Americans' retirement security. Located at: McKinsey & Co. , October 2009. Click on headline for full article.

Average American Family Faces a 37% Shortfall in Retirement Income - Summary: The average American working household will have only 63 percent of what it will need for a dignified retirement, leaving millions of Americans to face very difficult choices about housing, food, and health care upon retirement, according to new report by McKinsey & Co. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

Thinking Differently About 401k Matching Contributions - Summary: The danger in cutting matching contributions is that employers may be sending a message to employees that helps rationalize cutting workers' own deferrals into the plan. Further, there are other questions for employers to consider. Located at: Employee Benefit News (free registration may be required), October 2009. Click on headline for full article.

Strange Bedfellows: Benefits, Finance Collaborate on 401ks - Summary: While benefits executives report they are, in general, working well with their counterparts in finance, research points to patterns of divergent perceptions of 401k participants' goals and needs, as well as different operational priorities for the plan itself, that could hinder its ultimate success. Located at: Employee Benefit News (free registration may be required), October 2009. Click on headline for full article.

AUDIO: Stable Value Funds in Today's Environment - Summary: In recent testimony in Washington, Susan Graef, the head of Vanguard's Stable Value Management Group, opposed adopting stable value funds as standalone QDIAs and urged greater risk disclosure. In this podcast, Ms. Graef discusses considerations around adding a stable value fund to a plan lineup, the silver lining in the current low-yield environment, and where she expects the testimony may lead. Located at: Vanguard Center for Retirement Research, October 2009. Click on headline for full article.

Attitudes in the Wake of the 2008–2009 Market Decline - Summary: A survey conducted by Vanguard Center for Retirement Research in May–June 2009 examines investor attitudes toward equity investing following the market turmoil of 2008–2009. Although the study found that expectations for investment returns were relatively modest and worry about market risks remained high, it also found an ongoing commitment to holding equities for retirement and other long-term goals. Located at: Vanguard Center for Retirement Research , October 2009. Click on headline for full article.

Employee-Benefit Cost Pressures Plague CFOs - Summary: Of all the pricing pressures that senior finance executives are most worried about, employee benefits tops the list by far, according to the results of a Grant Thornton survey. Located at: CFO.com, October 2009. Click on headline for full article.

COMMENTARY: Alternative to 401ks is a Tax Trap in Disguise - Summary: "Barbarians are at the gate. Time magazine last week had a cover article called 'Retire the 401k' wherein they cite that 'the average balance is $45,519.' How stupid do they think we are? This misinformation would be laughable if it wasn't part of a growing insurgency seriously bent on doing away with the favorable tax treatment for 401k plans." Located at: Mercury News, October 2009. Click on headline for full article.

COMMENTARY: TIAA-CREF CEO Calls for a Holistic Retirement System - Summary: In a keynote speech to the American Council of Life Insurers today, Roger W. Ferguson, Jr., President and CEO of TIAA-CREF, offered a five-point prescription to help provide all Americans with lifetime financial security. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

Redefining DC Plans to Enhance Retirement Security - Summary: This paper describes how and why DC plans became so important in ensuring retirement security, reviews the benefits that today's DC plans offer, proposes specific enhancements to DC plans, and discusses the benefits of such enhancements. Located at: Prudential Retirement , October 2009. Click on headline for full article.

Sponsors of DC Plans Must Determine Minimum Distribution Policies by Nov. 30, 2009 - Summary: The IRS provided new guidance on the minimum distribution rules governing retirement plans. As described in IRS Notice 2009-82, employers that sponsor defined contribution plans have until Nov. 30, 2009, to make certain key decisions, although any actual plan amendment may be delayed until the last day of the 2011 plan year. Located at: Davis Wright Tremaine LLP, October 2009. Click on headline for full article.

Four in Five Investors Misusing Target-Date Funds - Summary: Target-date fund investors may be happy with their plans — but they don't seem to be using them properly, according to a new study by AllianceBernstein. Located at: Investmentnews.com (free registration may be required), October 2009. Click on headline for full article.

Employers Begin Driving Your 401k - Summary: Businesses are taking more control of workers' 401ks, retreating from the 30-year experiment with employees running their own accounts. Located at: Wall Street Journal, October 2009. Click on headline for full article.

Moving 401k After-Tax Contributions to a Roth - Summary: A financial newsletter has reported that the IRS has issued a private ruling that after-tax contributions to a 401k plan can be pulled out in a lump sum and rolled over to a Roth IRA without triggering income tax. Located at: Wall Street Journal, October 2009. Click on headline for full article.

COMMENTARY: Time Magazine Got the Problem Wrong - Summary: The problem with 401k plans isn't the slumping stock market, it's the puny employer matching contribution--at best equal to 3% of pay, compared to 9% of pay in Australia's version of our 401k plan--the reason why many Australians nearing retirement are looking at nest eggs of between $500,000 and $700,000 versus $65,000 for the typical American worker. Located at: Retirement Solutions, October 2009. Click on headline for full article.

IRS Announces Pension Plan Limitations for 2010 - Summary: The Internal Revenue Service announced on October 15, 2009, the cost-of-living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2010. The limitations that are adjusted by reference to Section 415(d) will remain unchanged for 2010. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

Reporting 12b-1 Fees - Summary: The current government activity on service provider compensation includes a Form 5500 reporting requirement. The reporting requirement is imposed on plan sponsors, but disclosure of that information by advisers is necessary for plan sponsors to complete the Form. Located at: Reish & Reicher, October 2009. Click on headline for full article.

Fiduciary Advice: New Perspectives - Summary: The White House has called for a fiduciary standard under the securities laws for investment advice given by broker-dealers and their representatives. If that proposal is adopted, what will it mean for investment advice for 401k plans and participants? In theory, it would be meaningless. However, in practice, the change would probably be significant. Located at: Reish & Reicher, October 2009. Click on headline for full article.

Benchmarking as a Part of a Prudent Process - Summary: It is commonly accepted that 401k fiduciaries must prudently select and monitor both investments and service providers. It is also understood that, in order to fulfill their selection and monitoring responsibilities, 401k fiduciaries must engage in a prudent process. However, many plan fiduciaries and advisers do not understand the specific requirements for a prudent process. This article focuses on those requirements. Located at: Reish & Reicher, October 2009. Click on headline for full article.

Survey Reveals Behaviors of 401k Participants after Market Volatility - Summary: J.P. Morgan Retirement Plan Services released the findings of a nationwide Harris Interactive survey of 1,077 employees participating in 401k plans. The survey was conducted online April 24-May 1, 2009 and captured participants' thoughts on retirement readiness, the economic impact on their retirement plan and what investment decisions they made as a result of the market downturn. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

In Target-Date Funds, Hidden Homework - Summary: How could an investment specifically aimed at someone retiring in just a few years be so heavily into stocks? Shouldn't the money be tucked in less risky options, like bonds and money market instruments? Congress, the Labor Department and the Securities and Exchange Commission all held hearings looking into the funds' marketing and investment strategies. Located at: New York Times, October 2009. Click on headline for full article.

Hispanics and Retirement: Challenges and Opportunities - Summary: This paper, prepared by the Hispanic Institute think-tank and the Americans for Secure Retirement coalition, finds that the unique challenges include a general lack of retirement preparation, less access to employer-sponsored retirement plans, lower levels of personal savings and inadequate financial literacy. Located at: The Hispanic Institute , October 2009. Click on headline for full article.

Majority of DC Plans Should Choose Passive Management - Summary: The majority of Defined Contribution (DC) pension plans would benefit from the significant use of passive management because of its cost effectiveness and alignment with the governance capability of most plan fiduciaries, according to Watson Wyatt. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

Investors Believe Target-Date Funds Performed Better Than a 'Do-It-Yourself' Approach - Summary: With target-date funds under close scrutiny this year as a result of the recent market crisis, new research from AllianceBernstein reveals that 76% of defined contribution plan participants using target-date funds think that these funds provide better performance than a mix of investments they selected on their own would. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

Employee Retirement Income Security Act (ERISA) Litigation - Summary: Recent decisions handed down by US courts, although sometimes favourable to defendants, are unlikely to stem the flow of ERISA-related disputes. As a result, companies need to be aware of the latest developments and prepare themselves for the threat of potential litigation. Located at: Financier Worldwide, October 2009. Click on headline for full article.

Deadline Looms for Section 403(b) Plan Sponsors - Summary: Section 403(b) tax-sheltered annuity plans became subject to an updated and revised set of regulations effective Jan. 1, 2009. One of the requirements of the new regulations is that the plan sponsor must maintain a written plan document that satisfies the regulations' various rules and conditions. Located at: McGuire Woods LLP, October 2009. Click on headline for full article.

COMMENTARY: Time Magazine 401k Article: Advocacy Dressed Up in Journalism - Summary: David Wray writes "Rather then [sic] admit they are wrong, those who dislike the 401k system continue to resort to misrepresentation and distortions like those reported in the October 9 Time article 'Why it's time to retire the 401k.'" Located at: Profit Sharing/401k Council of America Blog, October 2009. Click on headline for full article.

Should 401k Plans Be Scrapped? - Summary: Some have bemoaned the failure of 401k plans to provide for our retirement. Proposals have been made to Congress and in the media concerning a revamp or even a complete abandonment of the system. Located at: webCPA.com, October 2009. Click on headline for full article.

IRS Creates Retirement Plan Tool for Small Business - Summary: The Internal Revenue Service has created a new Web-based tool to help small-business owners determine which tax-favored pension plan best suits their needs and how to keep their plans in compliance. Located at: webCPA.com, October 2009. Click on headline for full article.

IRS Model 402(f) Notice - Summary: The IRS released Notice 2009-68, providing a long-awaited updated model 402(f) notice. The updated model notice reflects recent changes in the law and attempts to simplify this lengthy notice by using a Q&A format. Located at: McKay Hochman Co., October 2009. Click on headline for full article.

Is It Important for 401k Fees to Be Equitable? - Summary: Who should pay, and how? This is a debate Americans are having on many fronts—from health care to taxes. It is also a question that more and more 401k plan sponsors are asking about plan fees. Located at: Workforce.com (free registration may be required), October 2009. Click on headline for full article.

Significance of November 30th in New RMD Waiver Rules - Summary: In Notice 2009-82, the IRS provides transition relief and other guidance relating to the WRERA waiver of required minimum distributions under Code §401(a)(9). November 30, 2009 figures prominently in the Notice, however, there is substantial confusion about the significance of that date. This article discusses what distribution recipients and retirement plan sponsors must do by that date. Located at: Sungard/Relius, October 2009. Click on headline for full article.

Why Are Advisors Going Independent? - Summary: This Schwab white paper explains why many successful advisors are starting or joining independent firms. Located at: Schwab Institutional , October 2009. Click on headline for full article.

DOL Provides Reporting Relief for 403(b) Plans - Summary: FAB 2009-02 acknowledges that administrators of ERISA 403(b) plans face challenges in complying with the new Form 5500 filing requirements. To address these concerns, the DOL has provided relief for sponsors of 403(b) plans that make good faith efforts to follow the Form 5500 filing requirements. Located at: Prudential , October 2009. Click on headline for full article.

Impact of the Pension Protection Act on Financial Advice - Summary: A challenge that emerged in the wake of the Pension Protection Act of 2006 is how to deliver advice without compromising plan sponsors' fiduciary responsibilities, and without relying on participants to indirectly fund the cost of advice programs through their purchase of ancillary financial products. Located at: Pension Research Council (free registration may be required), October 2009. Click on headline for full article.

A One-Page Estimator of Retirement Income and 401k Contributions - Summary: How much will I need in my 401k to buy the future lifestyle I want? No one can tell you exactly, but here is a one-page estimator that should help. Located at: DennisAckley.com , October 2009. Click on headline for full article.

A Post-Mortem on Your 401ks in 2008 - Summary: Maybe the best that can be said about the effect of last year's market crash on average 401k balances is: It could have been worse. Located at: Wall Street Journal, October 2009. Click on headline for full article.

What's a More Typical 401k Balance: $12k or $86k? - Summary: Some are asking how is it possible that the typical U.S. worker had an average balance of $86,513 in their 401k account at the end of 2008, based on data this week published by the Employee Benefits Research Institute and the Investment Company Institute. Located at: Businessweek.com Blog, October 2009. Click on headline for full article.

Hardship Requirement in Proposed Safe Harbor 401k Regs Too Harsh - Summary: Witnesses at an IRS hearing on September 23, 2009 urged the IRS to remove the requirement in proposed regulations that employers maintaining safe harbor 401k plans prove "substantial business hardship" before reducing or suspending required nonelective 401k plan contributions. Located at: CCH, October 2009. Click on headline for full article.

COMMENTARY: Why It's Time to Retire the 401k - Summary: The author states, "The ugly truth...is that the 401k is a lousy idea, a financial flop, a rotten repository for our retirement reserves. In the past two years, that has become all too clear." Located at: Time, October 2009. Click on headline for full article.

Debt Levels Increase for Those In or Near Retirement - Summary: Debt levels of those in or near retirement age are heading up: Among elderly families -- and especially among the lower -- income elderly-housing debt in particular is rising, according to a study published by the nonpartisan Employee Benefit Research Institute. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

Seven Qualitative Due Diligence Factors - Summary: A sound due diligence process is the first step in investment selection. A good due diligence process begins by measuring investments using quantitative factors against set benchmarks and in relation to peers. This article covers seven qualitative factors that a fiduciary should consider when implementing their due diligence process. Located at: Investmentnews.com (free registration may be required), October 2009. Click on headline for full article.

Market Meltdown Costs 401k Participants One-Third of Their Retirement Savings - Summary: The average 401k participant lost nearly one-third of his or her retirement account assets in 2008 because of the market downturn, according to a report released by the Investment Company Institute and the Employee Benefit Research Institute. Located at: Workforce.com (free registration may be required), October 2009. Click on headline for full article.

Conventional Wisdom and the Law of Unexpected Consequences - Summary: This paper on 401k fiduciary responsibility deals with proactive steps that fiduciaries should take to minimize successful breach of fiduciary lawsuits against them and the sponsor. Located at: InvestmentHorizons.com , October 2009. Click on headline for full article.

IRS Issues Guidance and Model Amendments for Suspending 2009 Minimum Required Distributions - Summary: The IRS has released Notice 2009-82, which provides much-needed guidance for employers regarding the waiver of required minimum distributions (RMDs) from IRAs and defined contribution plans for 2009, including two model amendments that employers may use to update their plans. Located at: Drinker Biddle & Reath LLP, October 2009. Click on headline for full article.

An Interview with ASPPA CEO Brian Graff - Summary: Brian H. Graff is the Executive Director/Chief Executive Officer of the American Society of Pension Professionals & Actuaries (ASPPA). In this capacity, Graff oversees ASPPA's operations, is a member of ASPPA's Executive Committee, and working with ASPPA's Board of Directors helps to set the strategic direction for the organization. Located at: Brightscope, October 2009. Click on headline for full article.

New Sample Plan Amendments and Added Guidance on Automatic 401k Contributions - Summary: The Obama administration has issued several Internal Revenue Service Notices and Revenue Rulings aimed to provide additional guidance and sample plan amendments for automatic contribution arrangements in 401k and other eligible plans. This is a review. Located at: Pillsbury Winthrop Shaw Pittman LLP, October 2009. Click on headline for full article.

Guidance on Department of Labor Enforcement Priorities for Employee Benefits - Summary: Article examines the new enforcement priorities of the US Labor Department's Employee Benefits Security Administration, which include an initiative to pursue criminal charges against serious violators of ERISA. Located at: Arent Fox LLP, October 2009. Click on headline for full article.

401k Plan Asset Allocation, Account Balances, and Loan Activity in 2008 - Summary: Because 401k balances can fluctuate with market returns from year to year, meaningful analysis of 401k plans must examine how participants' accounts have performed over the long term. This study looks at consistent participants in the EBRI/ICI 401k database over the five-year period from 2003 to 2008 and reports on the findings. Located at: Investment Company Institute , October 2009. Click on headline for full article.

Better Information and Sponsor Guidance Could Improve Oversight and Reduce Fees for Participants - Summary: September report from the Government Accountability Office to the Chairman, Committee on Ways and Means, House of Representatives on the oversight of 401k plans and the fees charged to 401k plan participants. Located at: GAO , October 2009. Click on headline for full article.

More Oversight Could Lower Fees for Participants - Summary: A U.S. Government Accountability Office (GAO) report suggests that if federal regulators gather more information from certain types of retirement savings plans and issue more guidance about plan sponsor involvement, it could result in participants paying lower fees. Located at: Planadviser.com, October 2009. Click on headline for full article.

A Master Financial Plan for Retirement Savings - Summary: Many companies are going well beyond basic education programs for retirement savings, and instead are providing a variety of services and tools to help employees plot their entire financial future. Located at: Workforce.com (free registration may be required), October 2009. Click on headline for full article.

Independent Registered Investment Advisors Upbeat About Career and Economy - Summary: A new survey of independent registered investment advisors (RIAs), released by TD AMERITRADE Institutional, shows advisors are upbeat about their jobs and the outlook on the U.S economy. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

'Automatic' Features in DC Plans Gaining Worldwide Acceptance - Summary: A new 33-country survey by Mercer of organizations that sponsor defined contribution retirement plans reveals widespread adoption of automatic enrollment and other relatively new 'automatic' features designed to boost employee enrollment and limit the number of decisions employees need to make. The plans surveyed represent more than $440 billion in plan assets. Located at: Mercer, October 2009. Click on headline for full article.

An Introduction to Independent Fiduciaries - Summary: Matthew Hutcheson is a congressional expert, and is recognized around the globe as a dedicated advocate of investor and plan participant rights. In this interview he shares his expertise on working with independent fiduciaries and retirement planning. Located at: Suite101.com, October 2009. Click on headline for full article.

Answers to 401k Questions That Matter Most - Summary: The information that HR provides to employees about their defined contribution savings plan typically focuses on basic plan facts. That leaves unanswered questions about how to use the plan. This article deals with some of the answers employees need to begin using their 401k to have the financial future they want. Located at: Society for Human Resource Management, October 2009. Click on headline for full article.

Independent Retirement Advisors Want Legal Clarity - Summary: A representative for the National Association of Independent Retirement Plan Advisors told Congress that it should provide clear rules prohibiting conflicted investment advice in workplace retirement plans. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

Alternatives to the Traditional 401k Match - Summary: White paper. Companies looking ahead to how they will restructure their reward programs in a recovering economy will no doubt be asking some tough questions about their 401k plans. Located at: Towers Perrin , October 2009. Click on headline for full article.

Mandatory Electronic Filing of 5500s to Begin in 2010 - Summary: The Department of Labor has taken another step toward requiring electronic filing and disclosure of all Form 5500 annual reports by announcing that paper filing will no longer be accepted for filings for the 2009 plan year. Located at: Seyfarth Shaw LLP, October 2009. Click on headline for full article.

Americans Put Retirement Plans on Autopilot - Summary: Automatic enrollment in 401k plans, touted by President Barack Obama as a way to increase retirement savings, is gaining in popularity, even as the stock-market crash wiped out more than $1 trillion in retirement accounts, two studies show. Located at: Thestreet.com, October 2009. Click on headline for full article.

Putnam CEO Reynolds Calls for a "New Generation" of Workplace Savings Plans - Summary: Drawing what he described as "the right lessons" from last year's market extremes, Putnam Investments President and Chief Executive Officer Robert L. Reynolds today called for a new generation of workplace savings plans that do more to lower volatility and create more dependable sources of lifetime income. Located at: 401khelpcenter.com, October 2009. Click on headline for full article.

IRS Release Package to Promote Workplace Retirement Savings - Summary: The Internal Revenue Service released a package of guidance generally intended to promote workplace retirement savings. The guidance consists of three revenue rulings and four notices. Located at: Ropes & Gray LLP , October 2009. Click on headline for full article.

Fiduciary Q&A: Use of Alternative Investments in DC Plans - Summary: What is fi360's position on the usage of alternative asset classes in Defined Contribution plans? Located at: Investmentnews.com (free registration may be required), October 2009. Click on headline for full article.

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