Digest
More Employees Borrowing Against 401k Plans - Summary: Retirement plan participants are taking out loans on their investments at an accelerated rate jeopardizing their future assets, a leading Boston College researcher says.
Located at: Workforce.com (free registration may be required). Click on headline for full article.
Raiding Retirement Funds to Stave Off Foreclosure - Summary: Many homeowners facing financial difficulties used to look to home equity as a resource to cover shortfalls. But with that option off the table for many, increasing numbers of people are considering tapping into a second large asset — retirement savings.
Located at: Naplesnews.com. Click on headline for full article.
IBM Raises the Bar With New 401k Plan - Summary: On Jan. 1, the company finally flipped the switch on its new and improved plan — a retirement vehicle for 125,000 workers that many believe could set the standard for a new generation of corporate 401k plans.
Located at: PIonline.com. Click on headline for full article.
Disclosing Fees Does Not Mean They Are Understood - Summary: While many employers say fee disclosure in the 401k market has improved, they remain uneasy about what they don't know about their defined contribution plans. Outwardly, employers are comfortable with transparency levels, but many plan sponsors feel they just don't understand plan fees.
Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
Retirement Plan Sponsors Focus in 2008 - Summary: Continued changes to the retirement plan landscape—including recent legislation, tighter reporting and funding rules, and the gradual shift of risk from employers to employees—are prompting companies to more actively manage their retirement plans.
Located at: CCH. Click on headline for full article.
PPA Check-Up 2008 - Summary: Drinker Biddle and Watson Wyatt Worldwide presented a webinar on how plan sponsors will comply with the Pension Protection Act of 2006 (PPA), and how they will face the monumental task of implementing the PPA requirements in 2008. Link provided to view the presentation as well as hear the audio portion of this webinar.
Located at: Drinker Biddle & Reath LLP. Click on headline for full article.
Court and Legislative Items
House Passes PPA Technical Corrections Bill - Summary: The House-passed bill differs slightly from a PPA technical corrections bill (S. 1974) the Senate approved in December 2007. That means the House and Senate bills will need to be reconciled, a process expected to begin in April.
Located at: Benefitslink.com. Click on headline for full article.
Research
ING Releases Finding from New Retirement Study - Summary: The survey, conducted with Ipsos Public Affairs in January 2008, polled more than 1,000 U.S. adults to learn what numbers are most important in their life. Participants also responded to a series of questions to see how -- if at all -- they consider their retirement number.
Located at: 401khelpcenter.com. Click on headline for full article.
DOL and IRS Items
New Federal Regulations on 401k Plans - Summary: Federal regulators have released several pieces of guidance that should be of help to defined contribution plan fiduciaries and administrators. This article summarizes them.
Located at: Milliman (PDF File). Click on headline for full article.
IRS Announces Date for Issuing Letters on Pre-Approved Plans - Summary: The IRS has announced that it will begin issuing opinion and advisory letters on pre-approved defined contribution plan documents (i.e., master and prototype and volume submitter plans) on or soon after March 31, 2008.
Located at: Employee Benefits Institute of America. Click on headline for full article.
Employee Plans News - Spring 2008 Edition - Summary: This edition includes articles such as Recent Guidance that May Require Interim or Discretionary Amendments; Determination Letters Coming Your Way; Steve Miller Discusses Governmental Plans Roundtable; New PPA Guidance; Exam's Risk Modeling Project; Economic Stimulus Payments; Written Plan Requirement for 403(b) Plans; "Interesting" Pension Guidance Issued; and AFTAP Certifications.
Located at: IRS (PDF File). Click on headline for full article.
