COLLECTED WISDOM™ On 401k Case Studies

Crafting a Successful VCP Application - Summary: This case is important for two reasons. First, it emphasizes that establishing that retroactive amendment will not violate the non-discrimination rules is not the only IRS prerequisite for granting reformation. Second, this case demonstrates how to establish - by clear and convincing circumstantial evidence — the intent of the plan sponsor, even when the entity responsible for the drafting error is less than cooperative. Located at: Reish Luftman Reicher & Cohen, May 2007. Click on headline for full article.

PlymouthTube Reinvigorates Its 401k - Summary: The suburban Chicago manufacturer of specialty tubing products has executed a successful plan turnaround that not only has more employees participating, but also has them downright excited about doing it. Located at: Plansponsor.com (free registration required), June 2006. Click on headline for full article.

Law Firm Looks at Automatic Defaults - Summary: Research conducted told this plan sponsor that most employers still tend to offer a balanced fund or a money market fund to 401k enrollees who make no investment election on their own. Their financial adviser offered another solution instead -- using an age-based "lifestyle" or "lifecycle" fund as the plan default. By using this solution, the plan sponsor hoped to avoid the retirement planning nightmare of a 60-year-old and a 25-year-old defaulting into the same investment scheme. Located at: Financial-planning.com, December 2004. Click on headline for full article.

London Fog Sidesteps Retirement Giants and Saves a Bundle - Summary: London Fog was not wasting any time. In April 2001, the well-known outerwear manufacturer London Fog Industries emerged from Chapter 11. That August, LFI began a search process that led it to jettison an array of service providers for its defined benefit and 401k plans. In their place, LFI settled on a bank to handle just about everything for the plan sponsor’s 401k and defined benefit plans. Located on: Plansponsor.com (free registrations required). Click on headline for full article.

Participant Communication - Summary: Bob Corrigan has been following the revolution in benefits-information delivery to employees for more than a decade, since New York Life Insurance Company asked him to head up a team handling its human resources department’s employee communications. “I never would have foreseen what we are doing today,” says Corrigan. Located on: Plansponsor.com (free registrations required). Click on headline for full article.

How One 401k Vendor Improved Their Ability to Calculate, Track, Optimize and Reconcile Fees and Commissions - Summary: TPA's and other 401k plan vendors need to improve their ability to track, calculate, optimize and reconcile fees/commissions and optimize payable to distribution partners. In the end, this is the bottom line and a firm's ability to maximize profitability is potentially at stake. Located on: 401khelpcenter.com. Click on headline for full article.

Three Ways to Deliver Investment Education - Summary: Some companies offer programs out of the goodness of their heart, or as part of their commitment to work/life programs, Arnone says. Others do it to avoid litigation by employees who find that they don't have enough money to retire because of bad investment decisions. Still others view investment programs as a way to get the most bang for their benefits buck. "Employers invest a lot of money in benefits programs," Arnone says. "Financial-education services help employees understand and appreciate the value of those programs, while helping them make better investment decisions." Located on: Workforce via IFEBP. Click on headline for full article.

Streamlining 401k's - Summary: Investing in 401k's just keeps getting more complicated, as investors have to puzzle over an ever-growing number of fund choices. Fortunately, a small handful of employers have sought to help workers navigate through the noise. This article profiles two companies seeking to help workers invest better. Located on: TheStreet.com. Click on headline for full article.

Small Design Shop Scores Savings - Summary: When Ewing Cole Cherry Brott, a Philadelphia design firm, began shopping for a new 401k provider last year, its wish list included a wider selection of investment choices and a better deal on fees. On the second point, its chances seemed slim. Located on: PlanSponsor.com (free registration required). Click on headline for full article.

Sewing Up The Participation "Gap" - Summary: Until last July, Gap Inc., the large specialty retailer with more than 160,000 employees, had a participation level of about 40% in its 401k, which covers nearly 40,000 benefits-eligible employees in the US and Puerto Rico and has more than $300 million in assets. That is, until it announced a new automatic enrollment feature. Located on: PlanSponsor.com (free registration required). Click on headline for full article.

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