Retirement Participation by Gender - Summary: Male wage and salary workers have a higher level of retirement plan participation than women. Yet, when accounting for work status, women have higher participation levels, according to a new analysis from the nonpartisan Employee Benefit Research Institute. Source: Employee Benefit Research Institute , November 2011.

FAQ on Form 8955-SSA for 403(b) Plans - Summary: The IRS has provided this frequently asked questions and answers information regarding form 8955-SSA. Source: IRS, November 2011.

401k and Profit Sharing Plan Response to Current Conditions - Summary: In October 2011, Plan Sponsor Council of America conducted a snapshot survey of 401k and profit sharing plan sponsors to determine how they are responding to multiple changes in today's economic and regulatory environment. PSCA received responses from 523 plan sponsors from across the country. This is a summary of the results. Source: Plan Sponsor Council of America , November 2011.

2011 Plan Year: Year-End Compliance Reminders - Summary: Every year, plan sponsors must make sure their plans meet certain compliance requirements, including those listed in the article. Identifies the materials you need to review and will help you prepare for year-end. Source: Prudential , November 2011.

Stable-Value Strategies Becoming Riskier - Summary: The changing economic climate and greater regulatory uncertainty -- combined with diminishing wrap capacity and consistently lower yields -- have reduced the stability and value that investors can expect from stable value investment strategies, according to global professional services company Towers Watson. Source: 401khelpcenter.com, November 2011.

Assessing Stable-Value Strategies: What Plan Sponsors Should Consider - Summary: Stable value funds have performed relatively well, and investors have appreciated the benefits offered through them. However, a changing economic climate with greater regulatory uncertainty, diminishing wrap capacity and consistently lower yields has seemingly reduced the stability and value that investors have come to expect from stable value. Source: Towers Watson , November 2011.

Relief for 403(b) Plan Compliance Failures - Summary: The IRS confirmed that an update and expansion of EPCRS is expected in the "near future" so as to extend all correction opportunities, including remediation of document failures, to 403(b) plan sponsors. Source: Fox Rothschild LLP, November 2011.

Applying the QDROtic Equation in Qualified Plans - Summary: The recently decided Fifth Circuit decision, Brown v. Continental Airlines, Inc., demonstrates how nine airline pilots and their spouses creatively used qualified domestic relations orders (QDROs) and state domestic relations law to circumvent the early distribution rules in their retirement plan. Source: Fox Rothschild LLP, November 2011.

Study: Number of Workers Financially Unprepared for Retirement at Crisis Level - Summary: A new small business survey by Nationwide Financial finds that 75 percent of small business owners agree that so many Americans are financially unprepared for retirement that it has reached crisis levels. However, only one in five (19 percent) of these businesses offer their employees a 401k or other employee self-funded retirement plan. Source: 401khelpcenter.com, November 2011.

2012 Regulatory Limits Poster and Compliance Calendar - Summary: This poster is a convenient way to remind you of important regulatory limits and dates for retirement plans. Also there is a calendar that lists recurring compliance and notice requirements for qualified defined contribution plans. Source: Vanguard, November 2011.

Five Trends for Plan Advisors in 2012 - Summary: Transamerica has identified the top five trends facing plan advisors of small and mid-sized company-sponsored retirement plans. Source: Benefitspro.com, November 2011.

The Five Big Lies of Retirement Planning - Summary: When it comes to retirement planning, there's no shortage of conventional wisdom, even if there is a shortage of actual savings. But often what passes for wisdom amounts to little more than wishful thinking. Source: Charles Schwab, November 2011.

White Paper Discusses Risk in Alternative Investments - Summary: The Greenwich Roundtable released a white paper discussing how investors can manage complexity of alternative investments to improve their returns. Source: Planadviser.com, November 2011.

IRS Gives Update on 401k Questionnaire Project - Summary: Over 95% of the 1,200 plan sponsors contacted by the Internal Revenue Service Employee Plans Compliance Unit voluntarily completed the online 401k Compliance Check Questionnaire. Source: Plansponsor.com, November 2011.

IRS's Retirement News for Employers -- Fall 2011 - Summary: The Retirement News for Employers is a periodic newsletter with retirement plan information for employers and business owners - and their tax advisors. Some of the items covered in this issue are: Paying Retirement Plan Benefits; Maximize your Retirement Savings in 2012; SIMPLE IRA plans can't be amended or terminated during the plan year; and, SEP and SIMPLE IRA plans don't have the same contributions limits as IRAs. Source: IRS, November 2011.

DOL Issues Final Rule on Investment Advice . . . Again - Summary: After a long and winding journey, the DOL has issued a new final regulation implementing the statutory exemption from the prohibited transaction provisions of ERISA for investment advice to participants. If the investment advice arrangements contemplated by the Final Rule are widely made available, the Final Rule should facilitate Congress' goal of ensuring that plan participants can obtain investment advice. But the requirements of the Final Rule also reflect some tension. Source: K&L Gates LLP, November 2011.

A New Flavor of Target Date Funds That Provides Income for Life - Summary: If you have a 401k, there's a good chance you have been exposed to target date funds - mutual funds that grow more conservative as you approach retirement. But while these types of investment products can be a good vehicle for accumulating and growing your assets, they don't provide a guarantee that your nest egg will last. A new flavor of target date funds does just that. Source: NY Daily News, November 2011.

Comparing 401k Fees in the Age of Disclosure - Summary: It is a good idea for plan sponsors to get a handle on their total plan fees and how those fees compare to the fees paid by other plans. If their plan's fees are skewing higher than most, CFOs and plan fiduciaries to find ways to bring those fees in line or justify why their fees are higher than the median. Source: Business Finance, November 2011.

COMMENTARY: Brian Graff is Ignoring Actuarial Math When Contending 401k Plans are Working - Summary: Author writes, "As an advocate for 401k participants who co-authored a 2008 article on the 401k crisis for the ASPPA Journal with actuary James Turpin I am appalled at ASPPA Executive Director Brian Graff's claim that most Americans who only have 401k plans are on track for a secure retirement." Source: Retirement Solutions, November 2011.

Retirement Income Study - Summary: A new Charles Schwab survey reveals that one-third of those who say they are just five years away from retirement have not even calculated how much income they will need in retirement and results suggest nearly half are flummoxed about how to invest their hard-earned money to help maximize retirement income. Source: Charles Schwab , November 2011.

Transamerica Reveals Five Top Trends Facing Retirement Plan Advisors - Summary: Transamerica Retirement Services announced the results of a national listening tour with retirement plan advisors. As a result of feedback received from advisors, Transamerica identified these five top trends facing plan advisors of small and mid-sized company-sponsored retirement plans. Source: 401khelpcenter.com, November 2011.

Revamped TIAA-CREF Retirement Program Increased 401k Employee Participation to 95% - Summary: The TIAA-CREF Institute released a case study on the redesign of the TIAA-CREF family of companies' retirement program and the dramatic impact the new design has had on employee participation in the 401k plan. Source: 401khelpcenter.com, November 2011.

How Do the ERISA Recapture Accounts Affect the Fee Disclosure Regulations? - Summary: Payments from an ERISA recapture account affect reporting and disclosure under both the service provider fee disclosure and the participant fee disclosure regulations. In this article will discuss that impact. Source: Sungard/Relius, November 2011.

Seven Areas of Relief for Advisors in DOL's Reproposed Fiduciary Rule - Summary: Fred Reish, well-known among advisors as the ERISA guru, recently predicted areas of "relief" that the Department of Labor's Employee Benefits Security Administration will provide when it reproposes its rule amending the definition of fiduciary early next year. Source: Benefitspro.com, November 2011.

IRS Issues Guidance on User Fee Exemption for Small Plans - Summary: In an attempt to encourage the establishment of qualified plans by small employers, EGTRRA contained a provision that requires the IRS to waive the user fee for requesting a determination letter in the case of new small plans. The IRS recently issued Notice 2011-86 which provides guidance for exemption from the requirement to pay a user fee for requesting a determination letter. Source: Prudential , November 2011.

New Puerto Rico Tax Code Impacts Retirement Plans - Summary: The 2011 PRIRC contains provisions affecting Puerto Rico qualified plans. These new provisions also affect "dual-qualified" plans that are tax-qualified under both the United States Internal Revenue Code and the PRIRC. Some of the qualified plan changes became effective on January 1, 2011, and others are effective January 1, 2012. Source: Prudential , November 2011.

Action Item for DC Plans: New Disclosures to Participants Required in 2012 - Summary: Plan administrators of impacted retirement plans and their service providers need to take prompt action to prepare for implementation of these new fee disclosure requirements, as they are tedious and detailed and will potentially require significant changes to current procedures and practices. Source: Patterson Belknap Webb & Tyler LLP , November 2011.

401k Loans at Less Than 'Prime Plus 2%' Pose Audit Risk - Summary: While conceding this general guideline isn't "etched in stone," officials cautioned that plans using a lower rate must be able to prove to an agent that individual participants could obtain an open-market loan bearing the lower rate. Below-market loans could trigger an IRS assessment of prohibited transaction excise taxes and violate the Code's anti-assignment rules, jeopardizing a plan's tax-qualified status. Source: Mercer, November 2011.

ERISA Accounts Payments - Summary: Though "tying back" the ERISA Account payment to the participant account which generates them will generally be considered prudent, and can be a good "market differentiator" for a vendor, it is a mistake to claim that this is the result demanded by ERISA. Source: Businessofbenefits.com, November 2011.

LRMs for Section 401k Plans - Summary: The IRS has released the updated Listing of Required Modifications for pre-approved 401k plans. This information package contains samples of plan provisions that satisfy certain specific requirements of the Internal Revenue Code, as amended through the Small Business Jobs Act of 2010. Source: Benefitsforward.com, November 2011.

Transcript of IRS Loan Phone Forum - Summary: The IRS has released the transcript of its Employee Plan Phone Forum on Participant Loans. You can find it here. The transcript has been edited for technical accuracy and may differ slightly from the audio recording. Source: Benefitsforward.com, November 2011.

2011 Year-End Disclosure Reminders for Qualified Defined Contribution Plan Sponsors - Summary: As the end of 2011 approaches, sponsors of qualified defined contribution plans, such as 401k plans and profit sharing plans, should make sure they have provided any year-end disclosures that are required for their plans. For calendar year plans, the notices listed here must be provided no later than December 1, 2011. Source: McKenna Long & Aldridge LLP, November 2011.

The Role of IRAs in U.S. Households' Saving for Retirement - Summary: With $4.9 trillion in assets at the end of the second quarter of 2011, IRAs represented more than one-quarter of U.S. total retirement market assets, compared with 17 percent two decades ago. IRAs also have risen in importance on household balance sheets. In June 2011, IRA assets were 10 percent of all household financial assets, up from 5 percent of assets two decades ago. Source: Investment Company Institute , November 2011.

How to Select an Investment Advisor: An Essential Guide - Summary: PowerPoint from a presentation by David Hudak of Portfolio Evaluations. The presentation has the following objectives: 1. Understand the Types of Investment Advisors; 2. Learn How to Do an Advisor Check; and, 3. Determine Your Advisor's Structure. Source: Portfolio Evaluations , November 2011.

Tax-Qualified Retirement Plans: Amendments and Other Year-End Action Items - Summary: It is important that plan sponsors review whether any qualified plan action items must be addressed prior to year-end. This article describes potential year-end notices and plan amendments that may be required for tax-qualified retirement and savings plans. This list is not exhaustive, but it is intended to serve as a reminder of items that plan sponsors should review and consider before the end of the year. Source: Morgan, Lewis & Bockius LLP, November 2011.

Be Thankful: You Still Have Time to Meet These Benefit Deadlines - Summary: As we wind down this year and prepare for a new one, it is important that you be reminded about these deadlines. Source: Baker & Daniels LLP, November 2011.

The Small Business 401k is the Holiday Gift That Keeps on Giving - Summary: While the idea of handing out cash to employees may seem far-fetched and costly these days, it's actually very doable and affordable when packaged and gift-wrapped as a 401k. First and foremost, you are helping you and your employees prepare for retirement. Secondly, any matching contributions or profit sharing contributions from the employer to employees are tax deductible for the business. But that's really just the start. Source: Forbes, November 2011.

Do 401k Assets Require All Fiduciary Care All the Time? - Summary: The fiduciary questions surrounding 401k plans are complex and hard to follow. Textbooks and street-style explanations are both of limited help. This is a "debate" on the issue between Steve Winks, a fiduciary expert, and Mike DiCenso, whose company oversees $82 billion of assets. Source: RIAbiz.com, November 2011.

Plaintiffs With Variable Claims in ERISA Lawsuit Denied Class Certification - Summary: On November 15, 2011, the U.S. District Court for the North District of Illinois issued an opinion denying class certification to certain employees of Motorola, Inc. in the ERISA lawsuit captioned Joe M. Groussman, et al. v. Motorola, Inc., et al., No. 10 C 911 (N.D. Ill.). This advisory outlines the plaintiffs' allegations and details the Court's findings. Source: Troutman Sanders LLP, November 2011.

Inside the Structure of Defined Contribution/401k Plan Fees - Summary: The Investment Company Institute and Deloitte Consulting have prepared the second edition of the Defined Contribution/401k Fee Study that was first conducted and published in the 2009 study. Specifically, this report addresses and updates: The mechanics of defined contribution plan fee structures; Components of plan fees; and, Primary and secondary factors that impact fees ("fee drivers"). Source: Investment Company Institute , November 2011.

Avoiding Decision Paralysis: How to Create the Ideal 401k Plan Option Menu - Summary: Author suggests a "novel" way to construct a 401k plan option menu that may satisfy both the finance professors and the financial professionals. Source: Fiduciarynews.com, November 2011.

401ks: Watch Out for Speed Bumps - Summary: Fast-growing companies are particularly prone to having their 401k plans get off track in one way or another. The combination of fluctuating asset levels, executive overload, and Internal Revenue Service rules that are structured in a way to almost ensure closely held companies will violate them means that CFOs at those companies need to keep an especially close watch on them, at least at a high level. Source: CFO.com, November 2011.

Year-End Compliance Issues for Single-Employer Retirement Plans - Summary: By year-end 2011, sponsors of calendar-year single-employer retirement plans must act on necessary and discretionary amendments and perform a range of administrative procedures to ensure compliance with statutory and regulatory requirements. In addition, there are year-end issues that employers sponsoring nonqualified deferred compensation plans (NDCPs) should consider. This Client Action Bulletin looks at key areas such employers and sponsors of defined benefit or defined contribution plans should address by Dec. 31, 2011. Source: Milliman , November 2011.

401k Retirement Plans Myths – Debunked - Summary: Common myths about retirement plans are leading law makers to propose changes that have the potential to mar the face of the retirement industry and the primary way Americans save for retirement. Source: ASPPA, November 2011.

PLANSPONSOR 2011 DC Survey Sheds Light on 401k Fees and Other Key Issues - Summary: The 2011 PLANSPONSOR Defined Contribution Survey provides insight into trends related to fee transparency, automatic enrollment, participant savings rates and other important issues facing 401k and other retirement plans. The survey also provides a candid assessment of retirement plan providers based on a wide range of measures. Source: 401khelpcenter.com, November 2011.

Points of Plan Design Differentiation Emerge in PLANSPONSOR's Annual DC Survey - Summary: Whatever your current method(s) of assessment and evaluation, plan sponsors have long appreciated the reality that, while every program may have its own unique set of circumstances and constraints, there is value in being able to compare your retirement plan designs with a valid set of comparables, if only to ensure that your design remains competitive. Source: Plansponsor.com, November 2011.

What Fee Disclosure Rules Really Mean for Plan Sponsors - Summary: The DOL rules will impact plan sponsors equally, if not more, than their service providers and will require an overhaul of the plan sponsor's approach to many formerly rote fiduciary activities. Source: Society for Human Resource Management, November 2011.

80 Is the New 65 for Americans When It Comes to Retirement - Summary: The concept of a "retirement age" is going the way of the typewriter, another 20th-century relic that has been made irrelevant by changing circumstances. Middle class Americans now expect to work until they have saved enough to afford to retire, according to results from the seventh annual Retirement Survey from Wells Fargo & Company. Source: 401khelpcenter.com, November 2011.

Survey Reveals Plan Sponsors May Have a False Sense of Security With Target-Date Funds - Summary: A just-released survey by Janus found that DC plan sponsors are professing a higher level of confidence in their target-date fund knowledge and offerings compared to a year ago. In contrast to that sentiment, however, the data also revealed contradictory responses and the existence of a significant percentage of sponsors seemingly unaware or unconcerned about areas that could present real fiduciary risk. Source: 401khelpcenter.com, November 2011.

DOL Provides Guidance on Electronic Disclosures of Required Fee and Administrative Information - Summary: Starting May 31, 2012, the Department of Labor will require employers to give participants and beneficiaries of 401k and similar plans disclosures regarding participant fees, expenses, and plan administrative costs. Plans may provide this information through a secure continuous access Internet site or via email. Article lists information defined as plan-related information. Source: Faegre & Benson LLP, November 2011.

BrightScope Reveals the Top 20 Stable Value Funds Held in America's 401k Plans - Summary: BrightScope published this list of the Top 20 Stable Value Funds by total distribution for the 401k and defined contribution industry. This list is part of a series of rankings BrightScope will regularly publish. Source: 401khelpcenter.com, November 2011.

How Co-Workers Influence 401k Choices - Summary: You may not realize it, but the choices you make when investing assets in your 401k plan may be influenced by the selections your co-workers are making. Source: U.S. News & World Report, November 2011.

DOL Finalizes Investment Advice Guidance - Summary: In adopting the final rule, the DOL was balancing several considerations. For example, the DOL did not want to adopt a rule which might allow advice to be provided by an adviser who could have a conflict of interest. On the other hand, because retirement plan savings are expected to account for such a large portion of Americans' retirement income, the DOL wanted to ensure that participants have access to quality investment advice so that, among other things, they might be more likely to pay lower fees, engage in less excessive or poorly timed trading, and more adequately diversify their portfolios. Source: Katten Muchin Rosenman LLP, November 2011.

COMMENTARY: It's Time for Plan Sponsors to Get Serious About Their Fiduciary Obligations - Summary: Author writes, "Long experience indicates that plan sponsors can't rely on the payroll service/insurance company/brokerage house/or fund company to overcome their deeply embedded conflicts of interest to fix their plans. Those sales entities have little interest and strong disincentives to fiduciary behavior." Source: Morningstar.com, November 2011.

ASPPA Urges IRS to Clarify Circular 230 Requirements - Summary: ASPPA supports the IRS Commissioner's efforts to promote competency and professionalism in the preparation of tax returns--however, but requests clarification on whether these rules apply to the preparation of Form 5500 which is largely an informational return versus the standard income tax return, Form 1040. Source: ASPPA, November 2011.

Now's the Time for Plan Sponsors to Prepare for Implementation of New DOL Fee Disclosure Regulations - Summary: With the extended deadlines just around the corner, plan sponsors should begin now working with plan service providers and advisors to prepare for the considerable amount of information required to be provided in the disclosures. Here are some steps they should be taking. Source: Poyner Spruill LLP, November 2011.

Engaging Under-35 Workers a Challenge for DC Plans - Summary: While most plan sponsors expressed confidence in their plan's ability to prepare younger workers for retirement, nearly 40 percent of plan sponsors and a majority of consultants interviewed were neutral or less than confident on that question. The study indicates that plan sponsors could take a number of steps in the near, medium and longer term to better engage these younger workers. Source: 401khelpcenter.com, November 2011.

The Path Forward: Engaging the Younger Employee in DC Plan Participation - Summary: U.S. companies must act now to engage younger workers in employer-sponsored defined contribution plans if up-and-coming generations are to have a realistic chance of achieving a financially secure retirement, according to this new study from Northern Trust. Source: Northern Trust , November 2011.

Approaching Deadline for Defined Contribution Plans - Summary: Employers who sponsor 401k or other defined contribution qualified retirement plans and who chose to take advantage of the opportunity to suspend required minimum distributions during 2009 must amend their plans to reflect the suspension before the last day of the plan year beginning on or after January 1, 2011. This means that calendar year plans must be amended by December 31, 2011. Source: McKenna Long & Aldridge LLP, November 2011.

Automatic Enrollment: Is It Right for Your Plan? - Summary: The DOL and EBSA have a program for encouraging automatic enrollment plans for small businesses. Some people would argue that automatic enrollment helps plans with discrimination testing because all eligible employees are in unless they opt out. Others argue that automatic enrollment does not guarantee deferrals and real participation, plus it comes with the risks associated with default elections. Source: Fox Rothschild LLP, November 2011.

DOL Issues Final Rule on Providing Investment Advice to Participants - Summary: The rules for providing investment advice to participants in section 401k plans and individual retirement accounts and annuities (IRAs) have been clarified, and what was once prohibited under ERISA will now be permitted – subject to a number of conditions. Source: Drinker Biddle & Reath LLP, November 2011.

Employees Can Now Receive Quality Investment Advice - Summary: The DOL hopes that the new rules will help participants receive higher quality investment advice. The Department also predicts a reduction in "investment mistakes," from an annual cost of anywhere between seven to 18 billion dollars to a cost between two to five billion. Source: Human Resources Journal, November 2011.

Americans Continue to Lose Confidence About Retirement - Summary: Less than half of the Baby Boomer generation (Americans born between 1946 and 1964) say they feel confident they will be able to afford a comfortable retirement, down from 55% in March. Source: Planadviser.com, November 2011.

Partial Plan Termination . . . What's That? - Summary: If you have had a substantial reduction in your workforce and sponsor a retirement plan, you need to learn what a partial plan termination is right now. The IRS is actively pursuing employers whose retirement plans may have experienced a partial termination event. Source: Warner Norcross & Judd LLP, November 2011.

Ten Common Plan Compensation Mistakes - Summary: Calculating compensation doesn't seem like something that should trouble retirement plan administrators and sponsors. Yet, it is one of the most common errors made in administering retirement plans. This is a list of ten common mistakes made when calculating plan compensation for defined contributions plans. Source: Warner Norcross & Judd LLP, November 2011.

Don't Breach Your 401k Plan Fiduciary Duty - Summary: Because late employee contributions and loan repayments adversely affect employee retirement objectives, the DOL has made these two common fiduciary breaches part of an ongoing nationwide enforcement initiative. What should you do if you learn that your employees' retirement plan contributions and/or loan repayments have not been contributed to your plan? Source: Masuda Funai, November 2011.

The Duty to Collect Contributions - Summary: In addition to the obvious problems that arise when plan contributions are not timely deposited, the DOL has found that some plan documents expressly absolve plan trustees from the responsibility of monitoring and collecting delinquent contributions. Based on its findings, the DOL issued Field Assistance Bulletin 2008-1 (FAB 2008-01) to provide guidance regarding delinquent deposits into qualified plans, such as 401ks. The FAB addresses two questions. Source: Kravitz , November 2011.

Blog War Breaks Out Between an RIA and ASPPA Members - Summary: An RIA has been sparring with defenders of the American Society for Pension Professionals and Actuaries about the fiduciary debate surrounding non-profit retirement plans, and the online battle has taken a nasty turn. The tension starts with differing opinions about what represents fiduciary care of 403(b) investors Source: RIAbiz.com, November 2011.

New Report Pegs Average Retirement Age at 65.5 - Summary: The average retirement age is higher than traditional measures suggest, according to a new Economic Policy Institute briefing paper. "The myth of early retirement" explains why existing measures of average retirement age are misleading and suggests a new, more accurate measure. Source: Benefitspro.com, November 2011.

IRS Releases 2010 Form 8955-SSA and Instructions - Summary: The IRS has released the 2010 Form 8955-SSA (Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits) and Instructions. Form 8955-SSA is a stand-alone form that replaced Schedule SSA for plan years beginning on or after January 1, 2009 and is filed with the IRS. Source: Thomson Reuters/EBIA, November 2011.

IRS Releases Anticipated Proposed Regulations Defining Governmental Plan, Indian Tribal Governmental Plan - Summary: The IRS has released two advance notices describing separate regulations that it is considering proposing on governmental plans and Indian tribal governmental plans. Each notice includes a draft of proposed regulations and a request for comments to be submitted by February 6, 2012. Here are highlights. Source: Thomson Reuters/EBIA, November 2011.

Your Employer's Stock: How Much Is Too Much? - Summary: Towers Watson research shows that 78 percent of Fortune 100 employers who allow employees to hold their own shares don't limit their holdings. Yet volatile financial and employment markets point strongly to the need for retirement investors to protect themselves -- no matter how attractive an employer's stock may look. Source: Reuters, November 2011.

Employer Stock Issues In Qualified Plans - Summary: This article discusses the special characteristics and requirements that distinguish employee stock ownership plans (ESOPs) from other defined contribution plans. Source: Katten Muchin Rosenman LLP , November 2011.

YRC Worldwide Settles 401k Plan Lawsuits for $6.5 Million - Summary: YRC Worldwide Inc. has agreed to pay $6.5 million to settle lawsuits brought by its employees over losses the company's stock inflicted on their retirement accounts. Source: Kansascity.com, November 2011.

DC Plan Providers Advisors Have an Opportunity to Retain More Assets of Participants Who Retire - Summary: According to the Third Annual 2011 DC Participant Experience Study, defined contribution plan providers and advisors have a real opportunity to retain. This opportunity has been created by a confluence of at least three factors. Source: 401khelpcenter.com, November 2011.

A Different Perspective on the New DOL Fee Disclosure Regulations - Summary: In order to provide perspective on how the new DOL fee disclosure rules will affect plan sponsors in 2012 and beyond, Roland|Criss has published this white paper (part one of a three-part series) that aims to clarify, equip, and empower plan administrators as they navigate through the sea change in their fiduciary roles. Source: Roland|Criss , November 2011.

Tax Reform Proposals Likely to Reduce 401k Account Balances - Summary: Two recent proposals to change the existing tax treatment of 401k retirement plans, if enacted, are likely to result in lower account balances for many 401k participants, according to a new analysis by the nonpartisan Employee Benefit Research Institute. Source: 401khelpcenter.com, November 2011.

NAPFA Comments on DOL Fiduciary Debate; Offers Five Key Points - Summary: The National Association of Personal Financial Advisors urges Phyllis Borzi, the head of the Department of Labor's Employee Benefit Security Administration, to stand her ground on moving forward with a strong re-proposed fiduciary rule, regardless of heavy lobbying from brokers and the insurance industry to tailor a rule to their liking. Source: 401khelpcenter.com, November 2011.

SEC Will Treat New ERISA Disclosures as Compliant - Summary: The Securities and Exchange Commission issued a No Action Letter regarding the new disclosures required to be provided under ERISA § 404(a) about the plan's investment options. Under the letter the SEC agrees to treat the disclosures as satisfying the requirements of Rule 482, which imposes standards and restrictions on the disclosure of investment performance information for certain funds that are registered under the Investment Company Act of 1940. Source: Benefitslink.com, November 2011.

November ERISA Litigation Newsletter - Summary: Reviews the Department of Labor's decision to re-propose a controversial regulation expanding the definition of an ERISA fiduciary. In response to public criticism and Congressional intervention, the DOL announced it will re-propose the regulation originally published one year ago, citing the need for further public comment and economic analysis. Source: Proskauer Rose LLP, November 2011.

Why So Many Unwisely Turn Down Free 401k Advice - Summary: Here's another sign of how much ordinary people distrust Wall Street: workers routinely decline the free investment advice that comes with participation in their company's 401k plan. The attitude seems to be that free investment advice is worth what you pay for it. Source: Time, November 2011.

Does Your Qualified Retirement Plan Need to Be Amended This Year? - Summary: This article is to remind plan sponsors of deadlines for amending qualified retirement plans. Some amendments must be completed by December 31, 2011 (for calendar year plans). Others must be completed by January 31, 2012. Still others must be completed by the deadline for filing the plan sponsor's 2011 tax return. This advisory identifies those plans that must be amended now or in the near future. Source: Alston & Bird LLP , November 2011.

Ten Questions the DOL Wants 401k Plan Sponsors to Ask Their Investment Consultant - Summary: A number of years ago, the DOL put together a list of 10 questions to help the plan fiduciary determine if a conflict-of-interest may exist. This article reviews these questions and adds additional insight that might have changed the nature and importance in the years since the DOL first published them. Source: Fiduciarynews.com, November 2011.

DC Survey Finds Most Investors Understand Target-Date Funds - Summary: AllianceBernstein announced new research that shows that overall understanding of target-date funds is high-including what the "date" in a target-date fund's name means and how the asset-allocation strategy for a target-date fund becomes more conservative over time. The firm's seventh annual survey also found that investors are very satisfied with these funds. Source: 401khelpcenter.com, November 2011.

Financial Advisers Prepare for New 401k Reporting Rules - Summary: New regulations scheduled to take effect next year will require financial institutions that offer 401k plans to report fees associated with the plans in greater detail. Some financial advisers expect that making fee disclosures more readily accessible to plan participants could cause an uproar from people who have 401k's and the businesses that sponsor them. Source: Worcester Business Journal, November 2011.

Thanks but No Thanks on 401k Advice - Summary: An increasing number of 401k plans offer outside investment help, typically for a fee. So far, most participants aren't buying in. Source: Wall Street Journal, November 2011.

New Rules Will Have Fiduciary Impact - Summary: Next year, new federal rules requiring fee disclosures from 401k plan providers make it imperative for companies sponsoring plans to ensure that fees are reasonable. Employers that start preparing now for the new disclosure regime will be ahead of the game. Source: HREonline.com, November 2011.

Sizing Up Trustee- vs. Participant-Directed Retirement Plans - Summary: Two kinds of qualified retirement plans provided for under ERISA are "participant-directed" plans and "trustee-directed" plans. Are a plan sponsor and its advisor better off for choosing to stay with a trustee-directed plan instead of a participant-directed plan? Source: Morningstar.com, November 2011.

How Financial Advisors Can Use the New 401k Advice Rules to Their Competitive Advantage - Summary: Regardless of the approach a financial advisor takes (offer advice themselves or engage the services of a third party), it would smart for them to seize the opportunity that this new advice regulation gives them in letting them stand out among the competition. Source: Rosenbaum Law Firm PC, November 2011.

Bill Would Permit Penalty-Free Withdrawals to Make Mortgage Payments - Summary: Legislation introduced in the Senate (S. 1656) by Sen. Johnny Isakson (R-GA) would allow taxpayers under certain conditions to make penalty-free withdrawals from their retirement accounts to pay mortgage payments with respect to their principal residence. In addition, the bill would also make conforming modifications to the rules governing hardship distributions. A companion measure was introduced in the House by Rep. Tom Graves (R-GA). Source: CCH, November 2011.

The IRS 2011–2012 Priority Guidance Plan: A Long List for Employee Benefits - Summary: Each year, the Department of the Treasury, the IRS and the Chief Counsel at the IRS jointly issue a list of their guidance priorities for the year. The 2011–2012 Plan contains 66 projects in the context of Employee Benefits with 37 projects specifically focused on Retirement Benefits. This article reviews a number of significant Retirement Benefits items from the 2011–2012 Plan and attempt to review where these pieces of guidance may be heading. Source: Groom Law Group, November 2011.

Employer Stock Litigation Update: Second Circuit Adopts "Moench" Presumption - Summary: Companies that sponsor 401k, ESOPs and other forms of eligible individual account plans ("EIAPs") that hold company stock often are subjected to class action lawsuits under ERISA when there is a substantial decline in the stock price. One of the key bases for dismissal of these cases at the pre-trial stage is the so-called "Moench" presumption of prudence. Source: Groom Law Group, November 2011.

Two Classes of Annuity Providers Do Not Violate § 403(b) Universal Availability Requirement - Summary: In Private Letter Ruling 201142033 (July 25, 2011), the IRS ruled that the IRC § 403(b) universal availability requirement was not violated merely because (i) a university system made available two classes of annuity providers and (ii) some employees could access both classes of providers, and other employees could access only one class. Source: Sutherland Asbill & Brennan LLP , November 2011.

ERISA Participant Disclosure Will Not Violate SEC Advertising Rules - Summary: In response to a request from the DOL, the staff of the SEC on October 26, 2011, issued a no-action letter concluding that disclosure provided by a retirement plan administrator to plan participants that is required by and complies with DOL's new disclosure regulation for participant-directed retirement plans will be treated "as if it were a communication that satisfies the requirements of Rule 482 under the Securities Act." Source: Sutherland Asbill & Brennan LLP , November 2011.

New Rules Could Improve 401k Advice - Summary: For years, employers have been replacing traditional pensions with worker-directed, 401k-like plans, placing the cost and responsibility of retirement saving firmly in our hands. Yet many shied away from offering workers advice on how to invest their money, partly out of fear of being sued if participants were unhappy with the outcomes. Late last month, federal regulators finalized steps aimed at getting rid of those excuses. Source: The Oregonian, November 2011.

Growth in Hardship Withdrawals Slows - Summary: Among plan participants who took some type of savings action during Q3 2011, 72% took a positive action (started or increased contributions), Bank of America Merrill Lynch reported. Source: Planadviser.com, November 2011.

Who Are Your Fiduciaries? - Summary: Fiduciaries are important in the world of investing and retirement plans because their decisions affect every plan participant. As a participant in a retirement plan, you should know your fiduciaries and their monitoring responsibilities. As informed investors, you should be able to make better decisions for your future. Source: U.S. News & World Report, November 2011.

How 401k Profit Sharing Helps Small-Business Owners Maximize Their Savings - Summary: When the IRS recently announced new initiatives that will increase 401k contribution limits, the one that drew the greatest attention was the increase in employee contribution limits from $16,500 to $17,000. However, there's another change that's just as important for small-business owners looking to maximize their savings while minimizing next year's taxes: it's the annual tax-deferral limit. Source: Forbes, November 2011.

Advisors Are Turning to Specialized Firms to Get Previously Undisclosed Data on Retirement Plans - Summary: Retirement planning is no simple task - but it just got a little easier. A growing number of specialized firms have started digging deep into retirement plan documents to unearth competitive details about how the plans work. This new due diligence is developing ahead of Labor Department regulations, which are scheduled to take effect early next year, that will require more detailed disclosures of underlying plan expenses. Source: Financial-planning.com, November 2011.

Five Ways to Improve the U.S. Retirement System - Summary: Mercer and ACFS measured the overall pension benefits that are being provided to the citizens of 16 countries, the likelihood that those systems will be able to provide benefits in the future, and the integrity of private retirement plans. One year ago, the U.S. had the 10th best retirement-income system in the world. One year later, that hasn't changed. Source: Marketwatch.com, November 2011.

403(b) Plan Documents: Planning to Amend - Summary: Choice is good and choosing the design features that best fit your plan's needs is important. But just as important is not losing sight that if you decide to revisit those choices, you will also need to make sure that you fold those changes into the 403(b) plan document to remain compliant with IRS and ERISA rules. Source: Businessofbenefits.com, November 2011.

A 401k With an Annuity Built in - Summary: Since the stock market meltdown of 2008, older employees have been clamoring for ways to protect their retirement savings. Now, products with guarantees are starting to make their way into 401k retirement plans. Source: Smartmoney.com, November 2011.

How Plan Sponsors Can Help 401k Investors Avoid Overdiversification - Summary: There is a point at which diversification can move away from being a prudent action and become a limiting factor to further success. Over diversification is one of those factors ERISA plan sponsors seeking to reduce fiduciary liability must consider. Plan sponsors have two options to help 401k investors avoid this sin. The first remains wholly within their control. The second relies on the employee. Source: Fiduciarynews.com, November 2011.

How Much to Save for a Secure Retirement - Summary: This article uses a simple model to estimate what percent of earnings an individual must save to ensure a financially secure retirement depending on when he starts saving, when he retires, and how he invests his retirement savings. Source: Center for Retirement Research at Boston College , November 2011.

Who Gets Retirement Plans and Why - Summary: This updated study finds that most workers who are likely to have the ability to save and to be focused primarily on saving for retirement have access to an employer-provided retirement plan. ICI uses the most recent data on pension coverage to update its analysis of the employee characteristics that make some employers more likely to offer, and some workers more likely to seek, compensation packages that include retirement benefits. Source: Investment Company Institute , November 2011.

Employers Transition Back to Matching 401k Funds - Summary: The good news: Most employers are reinstating 401k matches, after suspending or reducing them following the economic collapse in late 2008. The bad news: Not all employers have reinstated yet, and some that have are doing so at a lower percentage, Towers Watson announced yesterday. Source: Employee Benefit News, November 2011.

New Concerns for Retirement Plan Providers - Summary: For providers of financial services to ERISA plans, fees are a double-edged sword. They are an important source of profit, but the more aggressively they are applied, the greater the regulatory and litigation risk they entail. Being subject to an investigation is very bad news for the service provider and potentially for its ERISA plan clients, as well. Source: Investmentnews.com (free registration may be required), November 2011.

Chart of Annual Notice Requirements to Plan Participants - Summary: Plan sponsors of defined contribution qualified plans may need to issue one or more annual notices to participants before the end of each plan year. Failure to issue a required annual notice can have significant consequences. This advisory serves as a reminder of the multiple yearend notices that defined contribution plans must issue to participants. These notices must be distributed within a reasonable period of time, typically 30 days, prior to the start of the plan year. Source: Alston & Bird LLP , November 2011.

Is 5% the Right Return Target for Institutional Investors? - Summary: For years, institutional investors have accepted a 5% real return as an acceptable rule of thumb. Yet a review of asset returns and traditional spending rules shows how difficult it has been to achieve that target. The authors of a new Vanguard research paper suggest what investors can do to improve their prospects of success. Source: Vanguard , November 2011.

Variety of Motives Cited Why Participants Are Reluctant to Trade - Summary: It may appear to defined contribution plan sponsors that--given the seeming reluctance of a majority of plan participants to trade in their accounts during volatile markets--participants take a relatively patient, long-term view. But there are likely a number of reasons that prevent participants from trying to time the market. Source: Vanguard, November 2011.

DOL Updates ERISA PTE Procedures - Summary: On October 27, 2011, the Department of Labor published updated procedures for filing and processing ERISA prohibited transaction exemption (PTE) applications, applicable to all applications filed on or after December 27, 2011. Source: Sutherland Asbill & Brennan LLP , November 2011.

Keeping the End in Sight: Creating a Retirement Income Culture - Summary: With the shift from DB to DC plans, Americans are now increasingly responsible for funding and managing the majority of their retirement. Plan sponsors can help employees consider their defined contribution plans as "retirement income plans" rather than focusing only on savings. Source: International Society of Certified Employee Benefit Specialists , November 2011.

Making a "Perfect Match" Takes a Great RFP - Summary: A well-done request for proposal (RFP) is called for whether fiduciaries of an employee benefit plan are looking for a new service provider or taking a fresh look at what services are available. Source: International Society of Certified Employee Benefit Specialists , November 2011.

Boosting Profitability in the Small Retirement Plan Market - Summary: This white paper will help readers understand: Why financial professionals should pursue the small business retirement plan market; How the current environment amplifies the opportunity; and, How to work efficiently by employing the best practices of successful professionals in the field. Source: Principal , November 2011.

Why Over Diversification Matters to the ERISA Fiduciary - Summary: The complexities of over diversification – and how it harms 401k investors – represent just one area of investments 401k plan sponsors must education themselves about. Source: Fiduciarynews.com, November 2011.

DOL Publishes Final Rule on ERISA Transaction Exemptions - Summary: The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) announced the publication of a final rule updating the procedures for filing and processing applications for prohibited transaction exemptions under the Employee Retirement Income Security Act (ERISA). Source: Plansponsor.com, November 2011.

Who Needs to Carry Fiduciary Liability Insurance? - Summary: Should the employer purchase fiduciary liability insurance, or is an employee benefits liability coverage endorsement on the CGL policy sufficient? The generic difference is that the employee benefits liability endorsement covers only administrative mistakes. It specifically excludes inadequate performance of investments and damages for which any insured is liable as a fiduciary as defined by ERISA. Source: Propertycasualty360.com, November 2011.

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