Digest
GenXs Put Retirement at End of Financial Priorities - Summary: Though concerns about their retirement exist, members of Generation X say those concerns are on the backburner while they deal with current financial priorities, according to a recent survey.
Located at: Planadviser.com. Click on headline for full article.
State Laws Permitting Same-Sex Marriages Have no Effect on Retirement Benefits - Summary: The legalization of same-sex marriages in some states, such as occurred in Massachusetts in 2004, will not enable same-sex partners to receive spousal retirement benefits under private pension plans, Federal employee pension plans or Social Security, according to a study by the Congressional Research Service.
Located at: CCH. Click on headline for full article.
When a Distribution Upon Termination Must be Halted - Summary: An employee, who had recently been laid off and requested a distribution from the plan, was rehired in another department of the same company. How do you determine whether the employee can receive the distribution despite the fact that she had been rehired?
Located at: Reish Luftman Reicher & Cohen. Click on headline for full article.
Qualified Default Investment Alternatives - Summary: Three questions answered concerning Qualified Default Investment Alternatives.
Located at: Reish Luftman Reicher & Cohen. Click on headline for full article.
Design Issues for Automatically Enrolled Plans - Summary: This article discusses three real client cases. The first is for a company that had a high level of turnover; the second is for a company that had low deferral rates for currently participating employees; and the third is for a company that was worried about the cost of matching contributions.
Located at: Reish Luftman Reicher & Cohen. Click on headline for full article.
To Roth or Not? -- That Is the Question - Summary: Do regular 401k and IRA accounts offer greater tax benefits than Roth 401ks and Roth IRAs? It is a tough question, but this paper attempts to study the relative merits of regular and Roth retirement accounts.
Located at: Boston University (PDF File). Click on headline for full article.
Target Date Funds Are Here to Stay - Summary: As a result of the Pension Protection Act of 2006, target date funds will likely become the auto-enrollment default option in tax-deferred retirement plans. The potential growth in assets committed to target date funds over the next five to ten years is astounding.
Located at: Financial Advisor. Click on headline for full article.
Three Ways to Protect Your 401k in a New Job - Summary: Job changes can be complicated. If you're not careful, your 401k and medical benefits can suffer some damage in the transition.
Located at: TheStreet.com. Click on headline for full article.
Aggressive Retirement Savers are Worried - Summary: Individuals who save more, and are more active in managing their retirement savings, are less confident in their retirement security compared to individuals with lower savings rates.
Located at: Bizjournals.com. Click on headline for full article.
Comments on Automatic Contribution Arrangement in 401k Plans - Summary: Comments prepared by the ASPPA 401k Subcommittee of the Government Affairs Committee and submitted to the IRS on the proposed regulations released for Automatic Contribution Arrangements under 26 CFR Part 1.
Located at: ASPPA (PDF File). Click on headline for full article.
Comment Letter to IRS Regarding Proposed Automatic Enrollment Regulations - Summary: This letter outlines some concerns including qualified automatic contribution arrangements (QACAs), eligible automatic contribution arrangements (EACAs), and permissive withdrawal issues.
Located at: American Benefits Council (PDF File). Click on headline for full article.
Fiduciary Items
What Makes Me a Fiduciary? - Summary: Lately, the word on the street has been that retirement plan fiduciaries are being put under a high degree of scrutiny for their actions or, more importantly, their inactions. This article will help you determine if you are a fiduciary and what to do if you are.
Located at: Milliman (PDF File). Click on headline for full article.
Final DOL Regs on QDIA Offer Some Fiduciary Protection - Summary: Final rules from the Department of Labor specify how contributions may be directed to qualified default investment alternatives. Using a QDIA gives trustees a little extra fiduciary protection.
Located at: Employee Benefit News. Click on headline for full article.
DOL Releases Guidance on Fiduciary Responsibilities Delinquent Contributions - Summary: Employers that sponsor plans subject to ERISA’s trust requirement should scrutinize plan and trust documents, as well as actual plan and trust operations, to ensure that authority over plan assets (including claims for delinquent contributions) has been properly assigned, and that the trustee or investment manager to whom such authority has been assigned is carrying out its assigned duties.
Located at: Employee Benefits Institute of America. Click on headline for full article.
Court Items
Company Stock Price Not Only Factor in ERISA Prudent Standard - Summary: The U.S. District Court for the District of Massachusetts recently held that employer W.R. Grace and Co. and State Street Bank and Trust Co. did not breach their fiduciary duties when making the decision to divest Grace’s 401k plan of the Grace Stock Fund.
Located at: Planadviser.com. Click on headline for full article.
Commentary
Investing for 401k Accumulation not the Same as Investing for Lifetime Income - Summary: While most investors these days are focusing on risk in terms of the market and its effect on their account balances, they should pay attention to a larger risk -- longevity risk.
Located at: Retirement Plan Blog. Click on headline for full article.
Where is the Outrage Over Retirement? - Summary: The authro writes, "For all of the passion that employers, lawmakers, media outlets, presidential candidates and consumers infuse into the national debate on health care - and rightfully so - I still can't help but wonder why there isn't a similar hue and cry about Americans' lack of retirement readiness."
Located at: Employee Benefit News. Click on headline for full article.
DOL and IRS Items
Labor Department Seeks Contempt Order Against Hewitt - Summary: The U.S. Department of Labor announced that it has asked a federal district court in Houston, Texas, to hold Hewitt Associates LLC in civil contempt for failing to comply with an allocation formula approved by the court when it disbursed court-supervised settlement funds to Enron employees at the end of 2006.
Located at: U.S. Department of Labor. Click on headline for full article.
