Digest
Improving Returns on 401k Plans - Summary: Is your 401k plan as effective as it can be in helping employees save for their retirement? Does it have auto-enrollment and other useful features that are available today from providers? These features can enhance the appeal of your employee savings programs and increase usage, making them even more effective.
Located at: Towers Perrin. Click on headline for full article.
Annuities in 401k Plans Gaining Momentum - Summary: The use of annuities as an investment alternative within 401k plans will gain momentum as those approaching retirement seek to create guaranteed retirement income streams, according to a report by the Financial Research Corporation.
Located at: CCH. Click on headline for full article.
On Participant Education - Summary: With the automated-plan concept taking hold, 401k participant education is emphasizing investment-related topics less. People need to hear less about asset allocations and more about how to put together a budget.
Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
On Collective Trusts - Summary: Collective investment trusts, sometimes referred to as collective, or commingled, funds, are hardly a new idea. They are, however, in an environment increasingly concerned about retirement plan costs, enjoying a resurgence in interest.
Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
On Roth 401ks - Summary: Plans are adding the Roth 401k as a feature very aggressively, but not many employees have gone for it. Why Not?
Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
On Managed Accounts - Summary: The rise of "automatic" asset-allocation solutions like target-date funds has not eliminated the need for personalized advice among 401k participants.
Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
Plan Sponsors Focus on Investment Monitoring and Decision Making - Summary: The Pension Protection Act has changed patterns in savings and reporting, reports Grant Thornton LLP in its 2008 Plan Sponsor Retirement study.
Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
Employees See Sizable Shrinkage in Their 401ks in Q1 - Summary: When 401k participants open up their latest quarterly statements, many will be greeted by declines they haven't seen in more than five years.
Located at: Financialweek.com (free registration may be required). Click on headline for full article.
One in Four Drain Retirement Dollars - Summary: Employees continue to borrow from their retirement savings and they may not even plan to repay the loan. One-fourth of Americans have prematurely dipped into their retirement dollars according to a Wall Street Journal Online/Harris Interactive Personal Finance Poll.
Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
Saving for Retirement: Men and Women Compared - Summary: Are men and women equally likely to save for retirement? Are there differences between men and women in contributing to a work-place retirement savings plan or having an individual retirement account?
Located at: Employee Benefit Research Institute (PDF File). Click on headline for full article.
Court and Legislative Items
Prison Sentences Upheld Over Unpaid Plan Contributions - Summary: The company in this case was in extreme financial difficulty at the time the executives took their actions. Their convictions illustrate the importance of recognizing that amounts can be ERISA assets even if not held in trust and misuse of plan assets can have extreme consequences.
Located at: Employee Benefits Institute of America. Click on headline for full article.
Research
Hispanic Americans on the Road to Retirement - Summary: The purpose of the study is to better understand Hispanic Americans’ retirement attitudes and behaviors.
Located at: Prudential Financial (PDF File). Click on headline for full article.
Financial Experience & Behaviors Among Women - Summary: Prudential Financial's study on the Financial Experience & Behaviors Among Women polled 1,033 American women about their financial knowledge, goals, actions taken, and confidence in attaining financial goals. The survey was administered from October 17 to 25, 2007.
Located at: Prudential Financial (PDF File). Click on headline for full article.
401k Fee Items
SEC Staff Push for Splitting 12(b)-1 Fees - Summary: Staff members at the SEC will recommend that 12(b)-1 fees be broken into at least two parts.
Located at: Investmentnews.com (free registration may be required). Click on headline for full article.
401k Fee Litigation - Summary: The plaintiffs claim that, in negotiating for and receiving revenue sharing, the service providers breached fiduciary duties and engaged in "prohibited transactions" under ERISA. Some of the lawsuits similarly challenge the use of actively managed mutual funds as investment options. This article contains an overview of the issues and a chart of the cases now pending.
Located at: Groom Law Group. Click on headline for full article.
DOL and IRS Items
Report of the Working Group on Financial Literacy of Plan Participants and the Role of the Employer - Summary: The 2007 ERISA Advisory Council formed a Working Group on Financial Literacy of Plan Participants to study numerous issues in increasing the financial decision-making skills of plan participants. This is there report.
Located at: U.S. Department of Labor. Click on headline for full article.
Report of the Working Group on Fiduciary Responsibilities and Revenue Sharing Practices - Summary: The 2007 ERISA Advisory Council formed the Working Group on Fiduciary Responsibilities and Revenue Sharing Practices to study numerous issues relative to the practice of revenue sharing. This is there report.
Located at: U.S. Department of Labor. Click on headline for full article.
DOL Clarifies QDIA Notice Requirements - Summary: More than four months after the Department of Labor's qualified default investment alternative regulations became effective, the Department has issued much needed guidance clarifying the rule's application in a number of contexts.
Located at: Benefits Biz Blog. Click on headline for full article.
