BPP401k.com Newsletter
June 18, 2008
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Digest
Will Income Plans Wrapped Around 401ks Thrive? - Summary: Industry leaders are divided on whether income options in 401k plans will succeed and become a popular product in the next decade. Issues of portability, cost and complexity are still hurdles these products must overcome. Located at: Investmentnews.com (free registration may be required). Click on headline for full article.
Lifecycle Funds: The QDIA of Choice? - Summary: Nearly eight in 10 (78%) employers surveyed by Fidelity Investments already offer a QDIA, with most (63%) holding lifecycle funds as the QDIA. Located at: Planadviser.com. Click on headline for full article.
Public Sector Looks to DC Plans for Cost Relief - Summary: It looks like the cost of retirement is even becoming too much for the government. Total assets in defined contribution plans for public sector employers increased almost 10% over 2006. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
Expected Age of Retirement and Working in Retirement - Summary: What is the age at which American workers are planning to retire? Is that age changing? Why do some workers continue working in retirement? Located at: Employee Benefit Research Institute (PDF File). Click on headline for full article.
The Role of Employer-Provided Benefits in Americans' Confidence About Retirement - Summary: To get a better understanding of the value and effects of employer-sponsored retirement benefits and how current retirees are faring, Watson Wyatt Worldwide asked a national panel of older workers and recent retirees about their benefits, retirement planning, expectations in retirement and related issues. Located at: Watson Wyatt. Click on headline for full article.
Green 401k Plans - Summary: Even though socially responsible investing has been around for decades, only recently have some companies begun to offer their employees greener options for 401k retirement investment accounts. Located at: Healthnewsdigest.com. Click on headline for full article.
The Next Wrinkle in Your 401k - Summary: Exchange-traded funds, often lauded for their low fees and easy diversification, are angling for your retirement money. But this budding class of investments can't seem to gain a foothold in the mutual fund-dominated 401k business. Located at: US News and World Report. Click on headline for full article.
Plan Administration Items
Correction of Elective Deferral Contribution by Ineligible Employee - Summary: There is little formal guidance for this type of correction. The formal guidance that exists is in EPCRS, but this process may not always be desired by the employer. Therefore, many plan documents now provide a procedure that IRS has approved to be followed. This article lists the most commonly used correction procedures. Located at: McKay Hochman. Click on headline for full article.
Off-calendar-year Plans - Summary: Handling off-calendar-year plans presents some unusual challenges. If you have an off-calendar year plan, for example a plan with a plan year that runs from July 1 to June 30, what are the limitations that apply? Located at: McKay Hochman. Click on headline for full article.
Fiduciary Items
Navigating the QDIA Notice Requirements - Summary: This is the third in a series of bulletins about the DOLs final regulation on QDIAs and the fiduciary protections they afford. This bulletin discusses the notice and information requirements and the practical application of those rules. Located at: Reish Luftman Reicher & Cohen (PDF File). Click on headline for full article.
A Warning Light for Fiduciaries - Summary: Reviews seven precepts drawn from ERISA and other major legislation governing fiduciary conduct which must be observed. Located at: Investmentnews.com (free registration may be required). Click on headline for full article.
Stock Drop Cases and Proper Plan Language - Summary: Two recent cases emphasized the importance of proper plan language to help protect fiduciaries from liability in employer stock drop cases. Located at: Bnatax.com. Click on headline for full article.
ERISA § 404(c) Checklist - Summary: This is an update of the comprehensive 404(c) checklist prepared by the law firm of Snell & Willmer, LLP. This checklist summarizes the requirements that a plan must satisfy in order to comply with the provisions of Section 404(c) of ERISA. The requirements of ERISA Section 404(c) are summarized and listed. The checklist addresses virtually all of the requirements of the Section 404(c) regulations issued by the DOL. Located at: Snell & Willmer, LLP (PDF File). Click on headline for full article.
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