BPP401k.com Newsletter
August 13, 2008
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Automatic Enrollment and Employer Match - Summary: With automatic enrollment an increasingly prevalent tool for boosting participation in 401k plans, some retirement savings experts are asking whether plans should consider eliminating their employer match. Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
Some Sponsors Aren't Fee Sure - Summary: Nearly one-fourth of plan sponsors surveyed by Mercer express a lack of confidence that fees associated with their 401k plans have been properly disclosed. Located at: Planadviser.com. Click on headline for full article.
One-Fourth of Sponsors Lack IPS - Summary: In a recent survey by Cowden Associates, 25% of defined contribution plan sponsors reported not having an investment policy statement (IPS). Located at: Planadviser.com. Click on headline for full article.
401k Plan with a Safe Harbor Election - Summary: Owner's Myth: "We can't have a 401k plan because our employees won't contribute enough, and that prevents us, our family and key employees from making significant contributions. It‘s not worth it to have a plan." While it's true that many plans severely limit contributions by owners and key employees, there are solutions to this problem. Located at: MandMarblestone Group (PDF File). Click on headline for full article.
How Much Have Americans Ages 19–39 Saved? - Summary: As might be expected, younger Americans reported only modest savings: 57 percent said they had less than $10,000 and two-thirds (67 percent) said they had less than $20,000. Located at: Employee Benefit Research Institute (PDF File). Click on headline for full article.
Retirement Automation Continues to Spread - Summary: New research from Deloitte shows that more and more employers are getting on the automation bandwagon. The number of companies with automatic enrollment has doubled in just the last few years, according to the consultancy. Automatic deferral increases are also gaining popularity. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
Overview of Recent DOL ERISA Service Provider Fee Disclosure Initiatives - Summary: 401k and other plan fiduciaries are under intense scrutiny with respect to the transparency and appropriateness of service provider compensation paid by plans and their participants. This has largely resulted from a wave of lawsuits against both employers and financial institutions relating to revenue sharing and other fee arrangements and the adequacy of fee-related disclosures. Located at: Paul, Hastings, Janofsky & Walker LLP (PDF File). Click on headline for full article.
Proposed 408(b)(2) Regulation: Impact on Independent Recordkeepers - Summary: This article discusses the impact on independent recordkeepers, that is, plan recordkeepers that do not offer proprietary investment products either directly or through an affiliate. For purposes of this discussion, the authors have also excluded recordkeepers that may provide invest. advice through an affiliated entity. Located at: Reish Luftman Reicher & Cohen. Click on headline for full article.
DOLs Proposed 408(b)(2) Regulations Amendment - Summary: The DOL has posted all public comments, testimony, transcripts and supplemental materials related to their proposes 408(b)(2) regulations to increase disclosure of fees and conflict of interests affecting 401k plans. Located at: U.S. Department of Labor. Click on headline for full article.
Fee Disclosure Timetable Met With Some Skepticism - Summary: The DOLs announcement that it is planning to implement new fee-disclosure regulations for participant-directed defined contribution plans beginning on or after Jan. 1, 2009, was met with skepticism. Lobbyists say date of new rules leaves little time for orderly implementation. Located at: PIonline.com (free registration may be required). Click on headline for full article.
401k Plan Loan Myths - Summary: Steve Saxon writes, "Without embarking on a debate about the possible benefits or drawbacks of [401k debit card loan] programs, there appear to be a number of common misconceptions or myths about 401k loan products that could use some clarification." Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
The Heroes Earnings and Assistance Relief Tax (HEART) Act - Summary: This Vanguard Regulatory Brief summarizes the key retirement plan provisions included in the Act, along with the relevant decision points for plan sponsors. Located at: Vanguard (PDF File). Click on headline for full article.
Hewitt Federal Legislation Quick Guide Update - Summary: This Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law regarding retirement plans. Located at: Hewitt (PDF File). Click on headline for full article.
401k Plan Debit Card Bill - H.R. 6708 - Summary: To amend the Internal Revenue Code of 1986 to provide that no loan may be made from a qualified employer plan using revolving credit arrangements and to limit the number of loans that may be made from a qualified employer plan to a participant or beneficiary. Located at: American Benefits Council (PDF File). Click on headline for full article.
Court to 401k Participants at Home Depot: You Can Sue - Summary: A lawsuit that 401k participants filed against Home Depot and former executives has been given new life. The suit, which was dismissed in district court, has now been revived by an appeals court ruling that asserted participants may sue the company to recover losses. Located at: Financial Week (free registration may be required). Click on headline for full article.
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