Wal-Mart's 401k Pays High Retail Prices - Summary: Wal-Mart is famous for squeezing suppliers and passing on the savings. But in a telling sign of what's wrong with many 401k plans, it took a lawsuit to make it equally exacting about price with its employees' retirement savings. Source: Forbes, December 2009. Click on headline to read full article.

Making Sure You Don't Outlive Savings - Summary: Legislation has been filed that would require 401k plan sponsors to inform participants of the projected monthly income they can expect in retirement based on their account balance. The goal is to make sure Americans don't outlive their retirement savings. Source: TheStreet.com, December 2009. Click on headline to read full article.

Common 401k Mistakes - Summary: Some of the most common mistakes companies and their consultants make in administering 401k plans are errors in determining which employees are eligible and what income is eligible for the plan. Source: Pittsburgh Post Gazette, December 2009. Click on headline to read full article.

Annual Compliance and Review Requirements for Investment Advisers - Summary: Investment advisers are subject to certain annual updating and review obligations, many of which apply regardless of whether an adviser is registered with the SEC. This article summarizes certain of these regulatory and compliance requirements. Source: Paul, Hastings, Janofsky & Walker LLP , December 2009. Click on headline to read full article.

The Fiduciary Role of Investment Advisors - Summary: Because of the disjointed regulatory structure and lack of uniform advanced education requirements, even the advisors who are fiduciaries often have a limited understanding of the fiduciary code of conduct. Clearing up this confusion and enhancing consumer protections are among the goals of financial regulatory reform that is currently being debated by Congress. Source: fi360 Blog, December 2009. Click on headline to read full article.

The 403(b) Prohibited Transaction - Summary: There are some technical differences between 401k plans and 403(b) plans. One of the more striking differences is that of the prohibited transactions. Source: Business of Benefits Blog, December 2009. Click on headline to read full article.

Analysis Suggests Participants Don't Understand Value of Annuities - Summary: An analysis of retiring participants from one public pension plan suggests they do not understand the value of life annuity payments. Source: Plansponsor.com (free registration may be required), December 2009. Click on headline to read full article.

Are 401ks Finally Recovering? - Summary: Two recent studies indicate that most defined-contribution-plan participants have the same or higher balances in their accounts now, than before the stock market began to tank. Such reports should be taken with a grain of salt, however, say experts, who also advise HR leaders to continue educating employees on the importance of prudence and diversification -- in good times and bad. Source: Human Resource Executive Online, December 2009. Click on headline to read full article.

Making Promises You Can Keep – Building Pensions for the Future - Summary: The financial and economic crisis has had a profound and ongoing impact on pension plans around the world. Neither Defined Benefit (DB) nor Defined Contribution (DC) plans have been able to escape unscathed – and the crisis has served to expose and magnify the differences between these two pension systems. Now that the dust seems to be settling, it is time to see what lessons can be drawn. Source: AEGON Global Pensions , December 2009. Click on headline to read full article.

10 Tips for Building Better Retirement Plans - Summary: While many companies have turned to DC plans as an effective way to mitigate risk, improvements need to be made to the plans if they are to provide adequate retirement income to workers. Source: Employee Benefit News (free registration may be required), December 2009. Click on headline to read full article.

Earlier 401k Plan Eligibility Takes Hold - Summary: More employers prefer making their defined contribution plan immediately available to new hires instead of requiring them to wait three months before enrolling in the plan, reports the Profit Sharing/401k Council of America. Source: Employee Benefit News (free registration may be required), December 2009. Click on headline to read full article.

New Research Zeros in on Target-Date Funds - Summary: Despite being fairly new to the 401k plan menu, target-date funds continue to move the needle on saving for retirement, but some investors need to get a better grasp on how the funds work. Source: Employee Benefit News (free registration may be required), December 2009. Click on headline to read full article.

The Regulatory Systems for Employee Benefits - Summary: Employee Benefits Law is complex and often misunderstood. This article explains the regulatory systems developed by Congress over nearly a century and how all of the pieces fit together. Source: Social Science Electronic Publishing, December 2009. Click on headline for full article.

401k Fee Litigation December 2009 Update - Summary: Over the past several years, more than two dozen lawsuits have been filed relating to 401k plan fees and, more specifically, "revenue sharing" arrangements with plan service providers. In addition to the lawsuits against plan sponsors, lawsuits have been brought against 401k plan service providers. These cases typically are based on allegations that the service providers are "functional fiduciaries" under ERISA. Source: Groom Law Group, December 2009. Click on headline for full article.

Coming Soon: Broader Definition of Fiduciary Under ERISA - Summary: The Labor Department is planning to expand its definition of fiduciary under ERISA — a move that would have implications for all financial advisers that work on retirement plans. Source: Investmentnews.com (free registration may be required), December 2009. Click on headline to read full article.

The Duty to Remove Investments - Summary: It is commonly accepted that fiduciaries of participant-directed plans have a duty to select, monitor, and remove investments prudently. The threshold question is whether a fiduciary's duty to remove investments applies to individual investments or whether the decisions are judged on the basis of the investments in the aggregate. Source: Plansponsor.com (free registration may be required), December 2009. Click on headline to read full article.

As Fund Menus Tighten, Interest in Self-Directed Accounts Grow - Summary: When the market takes a nosedive participants grow grumpy and start complaining about investment performance and the options available on their retirement plan menus. That is why now might be a good time for plan sponsors to at least consider the idea of offering their employees a self-directed brokerage account window. Source: Plansponsor.com (free registration may be required), December 2009. Click on headline to read full article.

Addressing Fiduciary Concerns in the Purchase of 401k Distributed Annuities -- Part 1 - Summary: In this article the author focuses on the fiduciary risk of "irrevocably" (the 30 year risk) or how one gets comfortable with the inherent risk of an insurance company failing over an annuitant's lifetime. Source: Business of Benefits Blog, December 2009. Click on headline to read full article.

Addressing Fiduciary Concerns in the Purchase of 401k Distributed Annuities -- Part 2 - Summary: Inflexibility and Inaccessibility are closely related, as they really point out the nature of annuity products purchased from plan assets which make them plan investments. As plan assets, the inclusion of an annuity in a DC plan becomes a fiduciary decision, not a settlor function. Source: Business of Benefits Blog, December 2009. Click on headline to read full article.

The Trouble With 403(b) Cash; the 403(b) SAR; and Other 403(b) Stocking Stuffers - Summary: 403(b) devotees often speak of the continuing and significant number of technical differences between 403(b) and 401k plans. This article lists a few of the differences not given a lot of attention. Source: Business of Benefits Blog, December 2009. Click on headline to read full article.

NAPFA Applauds SEC Effort to Rethink 12b-1 Fees - Summary: Advisors who cultivate relationships with retirement plan sponsors benefit from significantly larger books of business than their peers. Source: 401khelpcenter.com, December 2009. Click on headline to read full article.

House Democrats Introduce Bill Amending Qualified Plan Nondiscrimination Rules - Summary: Representative Lloyd Doggett (D-TX) recently introduced H.R. 4126, the "Retirement Fairness Act of 2009," which would significantly strengthen the qualified plan nondiscrimination rules and potentially jeopardize the qualified status of many plans. Source: JP Morgan, December 2009. Click on headline to read full article.

Principal Faces a Excessive Fee Suit - Summary: The attorneys at Seattle-based Keller Rohrback unveiled a lawsuit (filed October 28) over the Principal SAM Balanced Portfolio, claiming that Principal "improperly charged shareholders excessive investment management and distribution fees." Source: Mutualfundwire.com, December 2009. Click on headline to read full article.

Court Moves Forward Kraft Foods Excessive Fee Suit - Summary: A federal judge has moved forward claims by Kraft Foods Global employees that retirement plan fiduciaries breached their duties by offering investment options that under performed and charged excessive fees. Source: Planadviser.com, December 2009. Click on headline to read full article.

The Side Effects of 401k Auto-Enroll - Summary: While automatically enrolling employees into 401k plans increases participation, it also may have some unintended side effects. Source: Wall Street Journal Blog, December 2009. Click on headline to read full article.

DOL Issues Ruling on Target-Date and Lifecycle Mutual Funds - Summary: Although the DOL affirmed the current state of the law in its recent advisory opinion, regulatory and legislative initiatives affecting target-date funds and their use in retirement plans remain under discussion, and have been the subject of additional Congressional hearings. In addition, guidance for benefit plan fiduciaries on the selection and use of target-date funds is expected to be published by the DOL. Source: Dechert LLP , December 2009. Click on headline to read full article.

Evaluating Retirement Plan Advisors -- Part A - Summary: This is the first installment of a guide produced by the Center for Due Diligence to help plan sponsors fulfill their fiduciary duty and avoid liability. Source: Center for Due Diligence , December 2009. Click on headline to read full article.

DOL Approves Use of Summary Prospectus to Satisfy ERISA 404(c) - Summary: In September 2009, the DOL issued Field Assistance Bulletin 2009-03, permitting the use of summary prospectuses to satisfy the prospectus requirement of ERISA Section 404(c). Source: Prudential , December 2009. Click on headline to read full article.

Retirement Plan Participation: Race/Ethnicity Differences - Summary: How do race and ethnicity affect the likelihood of participating in a retirement plan? How do the size of employers and the birthplace of workers affect these levels? Here are some of the key findings concerning race/ethnicity differences in employment-based retirement plan participation. Source: Employee Benefit Research Institute , December 2009. Click on headline to read full article.

Participating in a Retirement Plan: Gender Differences - Summary: How does gender affect the likelihood of participating in a retirement plan? Here are some of the key findings on gender in employment-based retirement plan participation. Source: Employee Benefit Research Institute , December 2009. Click on headline to read full article.

Emerging Retirement Model Study: A Survey of Plan Sponsors - Summary: MetLife conducted this survey of 240 plan sponsors at companies with at least 1,000 employees to examine employer attitudes and behaviors towards the aging workforce in the midst of a deep economic crisis, and recent regulation addressing the retirement security provided by pension and retirement plans. Source: MetLife , December 2009. Click on headline to read full article.

Defined Benefit vs. 401k Investment Returns - Summary: Watson Wyatt has been comparing investment rates of return in defined benefit and defined contribution plans for more than 10 years, and DB plans have been the long-term victor. This analysis updates our prior studies with investment returns for 2006 and 2007 for a large set of plans, as well as a snapshot of year-end returns for 2008 based on a small set of plan sponsors. Source: Watson Wyatt, December 2009. Click on headline to read full article.

401k and Profit Sharing Plan Eligibility Survey 2009 - Summary: This is the 12th year that PSCA has collected defined contribution plan eligibility data. The changes over time have been significant. In 1998, only 24 percent of plans allowed employees to begin contributing to their 401k plans immediately upon employment. This percentage has more than doubled since. Source: Profit Sharing/401k Council of America , December 2009. Click on headline to read full article.

Wal-Mart Decision Reinvigorates 401k Plan Fee Challenges - Summary: A recent decision by the Court of Appeals for the Eighth Circuit has overturned the dismissal of challenges to fees paid by the Wal-Mart 401k Plan, one of the largest in the U.S. Coming after a recent agreement by Caterpillar Inc. to settle similar claims against it, the Wal-Mart decision is sending shock waves through the U.S. investment and fiduciary communities. Source: Pensions & Benefits Law Blog, December 2009. Click on headline to read full article.

New Report Reveals That Advisors Who Sell DC Plans are 40% More Successful - Summary: Advisors who cultivate relationships with retirement plan sponsors benefit from significantly larger books of business than their peers. Source: 401khelpcenter.com, December 2009. Click on headline to read full article.

Employee Plans News - Winter 2010 Edition - Summary: This edition includes articles such as 2010 Rules for Roth IRAs; Roth IRA Distributions; Notice Requirements for Pension Plans That Reduce Benefit Accruals; 2009-2010 EP Guidance Plan; Priorities for the Upcoming Year; Deadline for Certain Required Plan Amendments is Extended; The EPCU Insider; and PBGC Insights. Source: IRS , December 2009. Click on headline to read full article.

2009 ETF and Indexing Report - Summary: This publication discusses the key trends and strategies that affect exchange traded funds and open-ended mutual funds. Source: Euromoney Institutional Investor , December 2009. Click on headline to read full article.

IRS Announces Future Guidance on Procedures for 403(b) Plan Qualification - Summary: The IRS has announced that it will issue revenue procedures in the next few months for obtaining opinion letters for prototype 403(b) plans and for obtaining determination letters for individual 403(b) plans. An employer that adopts a pre-approved plan with a favorable opinion letter or that applies for an individual determination letter under these revenue procedures will be able to retroactively correct any defects in its 403(b) plan. Source: Buck Consultants , December 2009. Click on headline to read full article.

Brokers As Fiduciaries: The Reality and the Issues - Summary: This article describes a possible -- and perhaps likely -- outcome of the current initiative concerning fiduciary status for broker-dealers and financial advisers who provide advice to investors. Those changes will materially affect current practices of broker-dealers. Because of the likelihood that this, or similar, legislation will be adopted, broker-dealers are well advised to begin examining the consequences. Source: Reish & Reicher, December 2009. Click on headline to read full article.

More Employers Considering Annuities in 401k Plans - Summary: The number of employers planning to offer annuities to participants in their 401k plans is expected to grow as companies look for ways to provide workers with a steady distribution of benefits during retirement, according to a survey by Watson Wyatt. Source: 401khelpcenter.com, December 2009. Click on headline to read full article.

Senator Kohl Announces Intent to Strengthen Fiduciary Oversight of Target Date Funds - Summary: U.S. Senator Herb Kohl, chairman of the Senate Special Committee on Aging, announced his intent to introduce legislation that will require target date fund managers to take on a fiduciary responsibility in order for such funds to be eligible for the designation of QDIA. Source: 401khelpcenter.com, December 2009. Click on headline to read full article.

Caution: 401k Auto Enrollment Could Be Bad for Your Retirement - Summary: According to a new research paper released by the Center for Retirement Research at Boston College firms that adopt an auto enrollment feature for their 401k end up making lower company matches than firms that haven't switched to auto enrollment. Source: CBS MoneyWatch, December 2009. Click on headline to read full article.

Target-Date Retirement Funds Use Junk Bonds for Yield - Summary: Target-date funds may present greater risks than consumers have been aware of. John Hancock's Lifecycle 2010 mutual fund is marketed as an investment that becomes more conservative for people approaching retirement age, but 35% of the fund's debt holdings in September were junk bonds. Source: Bloomberg, December 2009. Click on headline to read full article.

Towers Perrin Retirement Legislative Tracking Chart - Summary: Thousands of bills are introduced in Congress but only a select few are summarized on this chart. This selection represents Towers Perrin's best judgment on the likelihood of enactment and the relevance of the issue for employers. Source: Towers Perrin , December 2009. Click on headline to read full article.

Misinterpreting the IRS' New PPA Amendment Deadline Could be Costly - Summary: Plan sponsors who have not yet adopted the PPA and WRERA amendments for which the deadline has not been extended still need to do so, generally before the end of this year. If they do not do so, they will be exposed to penalties under the IRS correction programs or on plan audit. Source: Pensions Benefits Law Blog, December 2009. Click on headline to read full article.

Retirement Plan Participation Showed Small Decline in 2008 - Summary: Participation in employment-based retirement plans decreased by small amounts for most categories of workers in 2008, but those with the strongest connection to the work force experienced the smallest decline, according to a study released by the Employee Benefit Research Institute. Source: CCH, December 2009. Click on headline to read full article.

DOL Confirms That Assets in Registered Fund of Funds Are Not Subject to ERISA - Summary: In Advisory Opinion 2009-04A, the U.S. Department of Labor opined that assets in a fund of funds registered under the Investment Company Act of 1940 are not plan assets subject to regulation under ERISA. A money manager requested the opinion, out of a policy concern about the practice of target-date or life cycle funds investing in affiliated mutual funds. Source: Sutherland Asbill & Brennan LLP , December 2009. Click on headline to read full article.

Look Before Rolling Over a Business Startup - Summary: Promoters have been marketing on the Internet the use of 401k funds to purchase franchises or startup businesses, which normally require up-front material sums of monies to launch. However, those seriously contemplating pursuing such a financing maneuver to fund a new business should tread carefully. Source: webCPA.com, December 2009. Click on headline to read full article.

No Extension of PPA Amendment Deadline - Summary: Contrary to rumors currently circulating, IRS Notice 2009-97 does not provide for a general extension of the deadline to adopt a good-faith PPA amendment. The amendment only delays the deadline for three specific PPA provisions. Source: Sungard/Relius, December 2009. Click on headline to read full article.

Diversified Investment Advisors Releases White Paper on 403(b) Retirement Plan ERISA Compliance - Summary: Diversified Investment Advisors has released a white paper on 403(b) plan compliance with ERISA statutes. Diversified partnered with Groom Law Group to prepare the paper in light of the urgency surrounding compliance with the final 403(b) regulations and the pressing concern regarding the application of proper fiduciary practices. Source: 401khelpcenter.com, December 2009. Click on headline to read full article.

The Independent Fiduciary Experience - Summary: Sponsors who want to do right by their employees, reduce their own legal exposure, and simplify their daily lives should consider hiring an independent fiduciary. Source: The Float Blog, December 2009. Click on headline to read full article.

Latinos: The New 401k Market Opportunity? - Summary: With Latinos being the fastest-growing segment of the United States workforce, it would seem that capturing the Latino 401k market would be big business for plan providers. Yet the Latino population has remained elusive, choosing not to take part as often as Whites or Asians when employer-sponsored retirement plans are offered, and dipping into their 401k for loans, significantly reducing their retirement savings. Source: Bankinvestmentconsultant.com, December 2009. Click on headline to read full article.

Static vs. Dynamic Investment Policy Statements - Summary: This article outlines several asset management approaches and discusses the importance of aligning the approach with investor risk preferences. If the investment policy ignores this critical “calibration,” there is little hope that the investor will be able to maintain the policy during recessionary periods. Source: Schultz Collins Lawson Chambers , December 2009. Click on headline to read full article.

Conventional Wisdom, Fiduciary Duty and 401ks - Summary: 401k fiduciaries are in uncharted territory and pay heed to the advice of Robert Khuzami, director of the Securities and Exchange Commission's Division of Enforcement, that "it's better to be in the prevention business than the cleanup business." This article discusses steps fiduciaries should take to minimize the likelihood of successful lawsuits against them. Source: Investment Horizons , December 2009. Click on headline to read full article.

401k Fee Cases Against Service Providers - Summary: Although the appellate rulings in the 401k fee cases against Wal-Mart and United Technologies have received the most attention in recent weeks, there also has been a series of important developments in the fee cases that plan trustees filed against service providers. Source: Groom Law Group , December 2009. Click on headline to read full article.

IRS Offers Initial Remedial Amendment Period Guidance for 403(b) Plans - Summary: Signaling what will be coming down the pike soon for 403(b) plans, the IRS has issued Announcement 2009-89 to provide some information in advance of the anticipated 403(b) "pre-approved" or prototype program, which it says will be out "in a few months", and will be followed by an individual determination letter program. Source: Groom Law Group , December 2009. Click on headline to read full article.

Bond Choices Too Narrow for 401k Investors - Summary: Despite the market rebound, investors are continuing to pour money into bond funds, causing a number of asset managers and financial advisers to make sure that their clients are diversifying their fixed-income holdings. This is of particular concern in the retirement business, where 57% of 401k plans offer just one bond fund. Source: Investmentnews.com (free registration may be required), December 2009. Click on headline to read full article.

Remedial Amendment Period and Reliance for Section 403(b) Plans - Summary: This announcement 2009-89 provides for a remedial amendment period and reliance for employers that, pursuant to the upcoming revenue procedures, either adopt a pre-approved plan with a favorable opinion letter or apply for an individual determination letter when available. Source: IRS , December 2009. Click on headline to read full article.

401k Plan Fiduciaries Face Claims Over Mutual Fund Fees - Summary: Sponsors and fiduciaries of 401k plans now must assess the impact of recent decisions rendered by Circuit Courts in class actions that challenged the plans' fee structures and disclosures Source: Pillsbury Winthrop Shaw Pittman LLP, December 2009. Click on headline to read full article.

AUDIO: Interview with Marcia Wagner - Summary: Fee litigation at 401k plans, such as the recent proposed $16.5-million settlement at Caterpillar Inc., are often in the news. Marcia Wagner, managing partner at The Wagner Law Group, discusses current trends in fee litigation and evolving best practices for plan sponsors. Source: Plansponsor.com (free registration may be required), December 2009. Click on headline to read full article.

Labor Department Still Considering Target-Date Regulations - Summary: The Labor Department is still considering regulating target-date funds, according to Phyllis C. Borzi, assistant secretary of labor for the Employee Benefits Security Administration. Source: Workforce.com (free registration may be required), December 2009. Click on headline to read full article.

QDIAs and Other Options Under ERISA Section 404(c) - Summary: Find out how ERISA provisions can help you deal with "undirected funds" in a participant directed retirement savings plan. It's all outlined in the white paper written by third party expert Groom Law Group. Source: Principal Financial Group , December 2009. Click on headline to read full article.

Advisers to Funds Within Target-Dates Not Plan Fiduciaries - Summary: In an advisory opinion, the U.S. Department of Labor addressed whether investment advisers to the mutual funds underlying target-date funds used in a retirement plan are plan fiduciaries. Source: Plansponsor.com (free registration may be required), December 2009. Click on headline to read full article.

403(b) Plans Show Confidence in Compliance - Summary: New research sponsored by AUL Retirement Services finds 403(b) plan sponsors are confident they understand their responsibilities and are not worried about IRS audits. Source: Planadviser.com, December 2009. Click on headline to read full article.

Nearly Half of Suspended 401k Matches Now Restored - Summary: Of the companies that have suspended matching contributions to their 401k plan, nearly half, 46.7%, have either already reinstated the match or plan to do so in the first quarter of 2010. Among large companies, 52.7% have restored the match or plan to do so. Source: Financial-Planning.com, December 2009. Click on headline to read full article.

Washington Goes into 401k Withdrawal - Summary: Both the Treasury Department and the Labor Department have signaled their 2010 agendas will include taking a look at how to reform the 401k withdrawal process to keep us from blowing through our savings too fast. Source: CBS MoneyWatch, December 2009. Click on headline to read full article.

Women and Retirement: Facing Challenges in a Recession - Summary: While the recession has impacted most workers' outlook for retirement, women's outlook has fared worse. The survey data highlights some areas of concern, but also reveals opportunities to help women and all workers get back on track with their retirement savings. Source: Transamerica Center for Retirement Studies , December 2009. Click on headline to read full article.

ERISA Section 404(c) and Summary Prospectus - Summary: DOL Field Assistance Bulletin 2009-3 describes the circumstances in which a participant-directed individual account plan may satisfy the prospectus delivery requirements of Section 404(c) by providing a Summary Prospectus. Source: McKay Hochman, December 2009. Click on headline to read full article.

2010 Sample Compliance Calendar - Summary: This sample 2010 compliance calendar provides general key retirement plan compliance requirements common to most calendar year plans. Source: ERISAdiagnostics, December 2009. Click on headline to read full article.

DOL Advisory Opinion 2009-04A - Summary: Issue: Whether target-date or lifecycle mutual funds constitute "plan assets" of investing employee benefit plans or whether the investment advisers to such mutual funds are fiduciaries to the investing plans under ERISA. Source: U.S. Department of Labor, December 2009. Click on headline to read full article.

Using the Third Condition of DOL's FAB 2009-2 to Manage 403(b) Audit Expense - Summary: The real key to making the FAB work for the employer in keeping auditing costs down is in the sensible application of the FAB's 3rd condition. The author suggests that applying it consists of two parts. First, use a reasonable effort to determine and find contracts that were related to the plan at some time in the past and, secondly, making a reasonable effort to determine whether or not the rights under those contracts are legally enforceable by the individual. Source: Business of Benefits Blog, December 2009. Click on headline to read full article.

Will Automatic Enrollment Reduce Employer Contributions to 401k Plans? - Summary: This paper examines the relationship between employer matching behavior and automatic enrollment. Using a sample of large 401k plans, the study found that match rates are about 7 percentage points lower among firms with automatic enrollment than among those without automatic enrollment, even controlling for firm characteristics. Source: Center for Retirement Research at Boston College , December 2009. Click on headline to read full article.

Lifetime Income Disclosure Act -- S. 2832 - Summary: This is the text of Senate bill S. 2832 which would amend the Employee Retirement Income Security Act of 1974 to require a lifetime income disclosure to plan participants. Source: American Benefits Council , December 2009. Click on headline to read full article.

Companies and Participants Remain Committed to DC Plans - Summary: Despite challenging economic times and heavy criticism of the defined contribution system, companies and participants remained committed to their retirement plans in 2008 and 2009. Plan sponsors maintained company contributions, stepped up employee education efforts, and reevaluated plan design features to make plan participation more beneficial for employees. Source: 401khelpcenter.com, December 2009. Click on headline to read full article.

Compliance Update for Tax-Qualified Retirement Plans - Summary: This article describes upcoming key deadlines and actions that must be taken by plan sponsors of tax-qualified retirement plans by the end of 2009 or beginning of 2010. In particular, many plan sponsors that maintain qualified plans must adopt certain amendments to comply with the Pension Protection Act by December 31, 2009. Source: Paul, Hastings, Janofsky & Walker LLP , December 2009. Click on headline to read full article.

Study Finds Shift in Generation Y Attitudes Toward Finances, Employment And Benefits - Summary: Fidelity Investments announced the results of a new study of young working Americans which reveals a shift toward more conservative behavior in financial matters and employment decisions. Yet one in four can't imagine ever being free of credit card debt. Source: 401khelpcenter.com, December 2009. Click on headline to read full article.

DOL's Statement of Regulatory and Deregulatory Priorities for 2010 - Summary: This Fall 2009 "Statement of Regulatory and Deregulatory Priorities" identifies regulatory priorities and contains information about the most significant regulatory actions that the DOL expect to undertake in the coming year. Source: U.S. Department of Labor , December 2009. Click on headline to read full article.

DOL Discusses Lifetime Annuity Income Project - Summary: In a written summary of planned regulations, the DOL suggested the lifetime retirement income stream might ultimately become a consideration in judging the behavior of fiduciaries under the Employee Retirement Income Security Act. Source: Planadviser.com, December 2009. Click on headline to read full article.

AUDIO: Interview with Bradford Campbell - Summary: Bradford Campbell, the former assistant secretary of labor for Employee Benefits and now of counsel at Schiff Hardin, discusses the investment advice regulations recently thrown out by the Department of Labor. Source: Plansponsor.com (free registration may be required), December 2009. Click on headline to read full article.

Recent Developments on 401k Fee Cases - Summary: In the last few weeks, two appellate decisions were issued in the 401k fee cases and another company settled their 401k fee lawsuit. This article discusses each in greater detail. Source: Groom Law Group , December 2009. Click on headline to read full article.

SEC to Make Recommendations on 12b-1 Fees, Target-Date Funds - Summary: Advisers could be looking at some changes on target-date funds next year, and maybe a change in certain mutual fund fees. Source: Planadviser.com, December 2009. Click on headline to read full article.

Plan Sponsors May Face New Fiduciary Responsibilities - Summary: Plan sponsors need to increase their educational efforts and may find it prudent to engage an outside investment advisory firm as well as competent legal counsel so as to assume and delegate fiduciary responsibility for the advice provided on behalf of the plan, as well as plan participants and beneficiaries, ensuring that suitable guidance is provided with respect to guidelines pursuant to ERISA law. Source: Gerson Lehrman Group, December 2009. Click on headline to read full article.

The Four Stages of An Annual Review - Summary: As the year draws to a close, fiduciaries should be turning their attention to one of their most important responsibilities: the annual portfolio review. This is a prime event conducted in the process of fulfilling the continuing fiduciary duty to monitor. It is the time when the fiduciary undertakes a comprehensive assessment of whether the investment objectives of the investors they serve are being met. Source: Investmentnews.com (free registration may be required), December 2009. Click on headline to read full article.

Required Minimum Distribution Rules Change After This Year - Summary: The 2008 tax legislation gave senior citizens a reprieve from the requirement to take 2009 required minimum distributions from employer-sponsored tax-qualified retirement plans and IRAs. However, there may be sound tax reasons to either take or stop taking RMDs before 2009 ends. Source: 401khelpcenter.com, December 2009. Click on headline to read full article.

Bill Calls for 401k Income Estimates - Summary: Legislation introduced in the Senate this week would mandate that 401ks and other defined contribution plans provide data on how much income a participant's account balance would generate each month at retirement. Source: National Underwriter Life and Health Insurance News, December 2009. Click on headline to read full article.

Appeal of United Technologies 401k Ruling Fails - Summary: A U.S. appeals court has affirmed a lower court ruling that determined United Technologies Corp. did not breach its fiduciary duties concerning its 401k plan expenses and investments. Source: Businessinsurance.com, December 2009. Click on headline to read full article.

Survey Finds Fiduciary Standard Widely Supported and Understood Among Advisors - Summary: This survey was conducted with the goal of determining the level of support and understanding of the fiduciary standard among financial advisors and brokers. While this issue is still in discussion in the industry and among legislators, the fiduciary standard entails a relationship of trust requiring due care, loyalty and utmost good faith. Source: SEI , December 2009. Click on headline to read full article.

2009 Plan Year: Year-End Compliance Reminders - Summary: Every year, plan sponsors must make sure their plans meet certain compliance requirements, including those listed in this article. This publication identifies the materials you need to review and will help you prepare for year-end. Source: Prudential , December 2009. Click on headline to read full article.

Year-end Review of New 403(b) Regulations - Summary: As we approach the end of 2009, 403(b) plan sponsors should review their plans and the way in which they operate. This chart highlights the major provisions of the new 403(b) rules and provides useful references for plan sponsors. Source: Prudential , December 2009. Click on headline to read full article.

The Different Flavors of ERISA Fiduciaries - Summary: Discusses the significant added protection afforded a plan sponsor when it utilizes the services of an advisor serving as a fiduciary under section 3(38) of the Employee Retirement Income Security Act of 1974 as opposed to an advisor serving as an ERISA section 3(21) fiduciary. Source: Morningstar, December 2009. Click on headline to read full article.

A House Divided: Americans Have Two Distinct Views of Retirement - Summary: New research from The Hartford shows spike in consumers' concerns about making ends meet in retirement. But findings show those who plan for retirement are decidedly more optimistic, more financially ready and more likely on target. Source: 401khelpcenter.com, December 2009. Click on headline to read full article.

Bill Introduced in Congress Would Prohibit Cross Testing - Summary: A bill, HR 4126, has been introduced in the House of Representatives which, among other things, would prohibit cross testing. Source: Benefitsforward.com, December 2009. Click on headline to read full article.

Target-Date Fund Users Apparently Don't Understand Their Purpose - Summary: Some investors in target-date funds apparently do not understand the purpose of the funds and could end up with a potentially inferior portfolio in terms of risk/return tradeoff, according to a study published today by the nonpartisan Employee Benefit Research Institute. Source: 401khelpcenter.com, December 2009. Click on headline to read full article.

New World RFPs - Summary: Many plan sponsors use the RFP (request for proposal) process to select plan providers and, particularly, recordkeepers. Generally speaking, the RFP process is the most effective method for determining the proper pricing for the particular plan, as well as the services and features that are available from the provider. However, the author explains why almost all RFPs are fundamentally flawed. Source: Reish & Reicher, PC, December 2009. Click on headline to read full article.

Addressing 403(b) Plan Issues - Summary: This is the first of a two part article addressing issues that private sector 403(b) sponsors need to be concerned about, with some recommendations on how to deal with them. Source: Reish & Reicher, PC, December 2009. Click on headline to read full article.

'Tis the Season for Annual Notices! - Summary: Every year, around this time, many plan sponsors have just distributed various notices to employees eligible to participate in the plan, plan participants and beneficiaries. This article focuses on the annual QDIA notices and auto-enrollment notices that should have already been handed out. Source: Reish & Reicher, PC, December 2009. Click on headline to read full article.

Target Date Funds Under Scrutiny - Summary: While it appears that target date funds will continue to enjoy the status of a qualified default investment alternative and, as a practical matter, will continue to be structured in much the same way, there will be a much greater focus on those funds. Source: Reish & Reicher, PC, December 2009. Click on headline to read full article.

The Plan Sponsor's Ability to Evaluate Conflicts of Interest - Summary: When making decisions about their retirement plans, plan sponsors have a duty to understand and evaluate conflicts of interest that could impact the plan. In some cases, plan sponsors are prohibited from entering into transactions that involve conflicts of interest. Those conflicts fall into two broad categories discussed here. Source: Reish & Reicher, PC, December 2009. Click on headline to read full article.

2009 Global Defined Contribution Survey - Summary: The Mercer 2009 Global DC Survey reflects the responses from companies in 33 countries across Continental Europe, Asia-Pacific, Latin America, the US, Canada and the UK. The survey confirms the increased global prevalence of defined contribution plans and focuses on current issues and future trends. Source: Mercer, December 2009. Click on headline to read full article.

Vanguard Study Finds Recovery in 401k Plan Balances - Summary: The typical 401k participant now has greater 401k retirement wealth than before the severe market downturn, according to a new Vanguard report. Vanguard's research also indicates that investors holding solely target-date funds had even more positive outcomes relative to other participants. Source: 401khelpcenter.com, December 2009. Click on headline to read full article.

New Invest. Advice Rule Expected in 2010 - Summary: Many industry observers were left scratching their heads after the Department of Labor first delayed and then canceled just a few days later the invest. advice rule that it finalized at the beginning of the year. However, DOL has every intention of releasing a new proposed rule for a short comment period in December or January. Source: fi360 Blog, December 2009. Click on headline to read full article.

2009 End-Of-Year FAQ - Summary: The end of 2009 will prove to be a busy (and hectic) time for those responsible for maintaining benefit plan documents. This FAQ provides answers to some of the more common questions that the folks at Relius have received. Source: Sungard/Relius, December 2009. Click on headline to read full article.

Impact of Economic Conditions on 403(b) Plans - Summary: PSCA's "Impact of Economic Conditions on 403(b) Plans" reflects responses from 609 not-for-profit organizations that currently sponsor a 403(b) plan. Data in this survey is often categorized by plan size. Plan size is determined by the number of active participants in the organization's plan. Source: Profit Sharing/401k Council of America , December 2009. Click on headline to read full article.

COMMENTARY: Auto-Pilot Retirement - Ready for Takeoff? - Summary: The Government Accountability Office released a report on auto-pilot retirement practices and proposals. The report is particularly timely since new auto-pilot proposals are now being readied for introduction on Capitol Hill as soon as healthcare reform is passed. But before these proposals take off, policymakers may want to take a hard look at some of the assumptions on which they are based – and their long-term implications. Source: Pension and Benefits Blog, December 2009. Click on headline to read full article.

Schwab Study Reveals Sudden Shift in Retirement Expectations - Summary: Americans are becoming more realistic about retirement, with nearly half of those currently eligible for Social Security now planning to work in their "golden years." But there is one thing all generations refuse to change: 95 percent say they would not be willing to spend less in retirement. Source: 401khelpcenter.com, December 2009. Click on headline to read full article.

Much-Maligned 401k Plan is Being Beefed Up - Summary: Thanks to a raft of innovative new products, plan-design changes, and regulatory safe harbors, it is easier than ever to build a low-cost, high-performing 401k plan that gives your employees a fighting chance of achieving financial security in retirement. Source: CFO.com, December 2009. Click on headline to read full article.

Controversial 401k Fee Suit Gets New Life - Summary: Almost a year after a court dismissed a complaint against Wal-Mart over its 401k plan fees, an appeals court has brought the case back into play -- an indication that judges may be siding with individual investors over excessive mutual fund fees in retirement plans. Source: Investmentnews.com (free registration may be required), December 2009. Click on headline to read full article.

DOL to Retirement Plan Sponsors: Criminal Sanctions Will Increase for Certain Non-Compliance - Summary: While the DOL has penalized employers in the past for being slow to remit elective deferral contributions to its 401k plan trusts, Assistant Secretary of Labor Phyllis Borzi, the new head of EBSA, intends to get even tougher. Source: Baker, Donelson, Bearman, Caldwell & Berkowitz, PC, December 2009. Click on headline to read full article.

The Inattentive Participant: Portfolio Trading Behavior in 401k Plans - Summary: This 2006 Pension Research Council study used a dataset on 1.2 million workers in over 1,500 plans and found that most 401k plan participants are characterized by profound inertia. Most participants (80%) initiate no trades, and an additional 11% makes only a single trade, in a two-year period. Source: Reish & Reicher, PC , December 2009. Click on headline to read full article.

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