Digest
2008 Compliance Calendar Checklist for DB/DC/403(b) Plans - Summary: Certain provisions of the Pension Protection Act of 2006 will require plan amendments. Plan amendments should be effective retroactively and will not violate anti-cutback rules if made on or before the last day of the plan year beginning on or after January 1, 2009 (or 2011 for governmental plans). Here is a checklist.
Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
Just Put It on My 401k Debit Card - Summary: A growing number of companies now offer employees the option of being issued a debit card that taps a 401k loan. The card, called ReservePlus, allows workers to withdraw funds from their 401ks. The immediate concern for consumers is that impulse spending desires could trump their long-term savings needs.
Located at: TheStreet.com. Click on headline for full article.
Conducting a DC Plan Assessment - Summary: It is clearer than ever that DC plan sponsors can no longer afford to take a laissez-faire approach toward plan management. The plan fiduciaries must ensure they are doing everything they can to act exclusively in the interest of the plan's participants.
Located at: Sibson Consulting. Click on headline for full article.
Four Ways to Recession-Proof a 401k - Summary: The bears are lurking. These four strategies -- from the safe to the aggressive -- can help you protect or even grow your nest egg in this downturn.
Located at: MSN.com. Click on headline for full article.
401k Participants More Active in 2007 Than Years Prior - Summary: On a year-end basis, participants moved a modest 0.04% of their 401k assets daily but had more above-normal transfer days during 2007 than any of the past four years, according to the latest Hewitt 401k Index data.
Located at: Planadviser.com. Click on headline for full article.
Building a Better Plan Default Alternative - Summary: The new qualified default investment alternative (QDIA) regulations, which went into effect last month, answered many questions—but, as is often the case, "These regulations are like an artichoke; you keep peeling off layers and there's more underneath. Some of the layers have stickers on them as well," says Fred Reish.
Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
Litigation and Court Items
Going Solo: LaRue v. DeWolff - Summary: Individual 401k participants will finally have the right to sue plan administrators for fiduciary breaches if the plaintiff in a lawsuit currently pending before the Supreme Court of the United States prevails.
Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
GM Settles Class-Action 401k Suit - Summary: General Motors Corp. avoided further litigation when it agreed Tuesday, January 15, to settle for $37.5 million a class-action lawsuit filed by 401k plan participants who suffered huge losses after GM shares fell sharply.
Located at: Workforce Management (free registration may be required). Click on headline for full article.
Commentary
Thorough Knowledge of 401k's but a Dream - Summary: Humberto Cruz, columnist for Tribune Media Services, shares a few of his dreams for 2008.
Located at: Chicago Tribune. Click on headline for full article.
On New Schedule C Required Disclosure of Fees - Summary: Recently, the Department of Labor released two regulatory initiatives, the final Form 5500 regulations and the proposed section 408(b)(2) regulations, that will have an enormous impact on both plan sponsors and plan service providers.
Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
Truth is a Risk Management Tool - Summary: Fred Reish says, "Truth is a risk management tool -- in the sense that, if the truth is fully explained to people, both up front and along the way, there is almost never litigation or other claims of wrongdoing. In fact, lawsuits and government enforcement are much more likely to occur where the truth is left unspoken or where facts are concealed."
Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
DOL and IRS Items
Winter 2008 Employee Plans News - Summary: This edition includes articles such as EP Connections: Interview with Michael Julianelle; Interim Amendment List Has Been Updated; Critical Priorities...By Monika Templeman; Highlights of Retirement News for Employers; Get Your EIN Online; Benefits Conferences Coming to a Site Near You; PBGC Insights; DOL Corner; We're Glad You Asked!; and Calendar of EP Benefits Conferences.
Located at: IRS (PDF File). Click on headline for full article.
DOL Advances Fee Disclosure Initiatives for ERISA Plan Service Providers - Summary: Concerns over the lack of fee-related disclosures by ERISA plan service providers have been reflected in recent regulatory action by the Department of Labor.
Located at: Littler Mendelson. Click on headline for full article.
Headline News
DOL Reaches agreement with Business to Recover 401k Contributions
