BPP401k.com Newsletter
August 20, 2008

Fulfilling Fiduciary Obligations Can Present Challenges for 401k Plan Sponsors - Summary: When acting as fiduciaries, they must act prudently and solely in the interest of plan participants and beneficiaries. The GAO administered a survey asking sponsors how they select plan features and oversee operations, reviewed industry research, conducted interviews, and reviewed related documents. Located at: Government Accountability Office (PDF File). Click on headline for full article.

Corporate America Playing Larger Role in Employee Retirement Readiness - Summary: Charles Schwab, in collaboration with CFO Research Services, released the details of a new study, "A Shared Benefit: Employer Views on the Value of 401k Plans," revealing that the majority of senior finance executives view 401k plans as a significant tool for strengthening both their workforces and their companies. Located at: 401khelpcenter.com. Click on headline for full article.

Americans Continue to Fund Workplace Savings Plans in 2008 - Summary: Fidelity Investments announced findings from the first half of 2008 that showed American workers are continuing to contribute to their workplace savings plans despite current market volatility. Located at: 401khelpcenter.com. Click on headline for full article.

Replacement Ratio Study Shows the Impact on Workers - Summary: The 2008 Replacement Ratio Study, conducted by Aon Consulting and Georgia State University, details the percentage of one's final annual salary that needs to be replaced for a person to keep the same standard of living after retirement. Located at: 401khelpcenter.com. Click on headline for full article.

What Small Business Owners Need to Know About 401ks - Summary: Running a small business can be a life-consuming process, so sometimes small-business owners miss the forest for the trees. Maybe that's why only about 16 percent of businesses with fewer than 50 employees in the United States have 401k plans. Located at: U.S. News & World Report. Click on headline for full article.

Roth 401k: A Tool for a Broad Spectrum of Employees - Summary: While many advocates of Roth plans consider them particularly attractive to individuals whose tax rates rise in the future, they may offer a compelling alternative even when tax rates remain the same. Located at: Aon Consulting (PDF File). Click on headline for full article.

Auto-Annuity Could Stretch 401k Savings - Summary: A Washington-based think tank published a paper proposing a way that companies could automatically enroll a portion of retiring employees' 401k assets into a lifetime income option that would provide them with monthly payments. Located at: Workforce.com (free registration may be required). Click on headline for full article.

Employer Mistakes Could Cost 401k Participants - Summary: Among all the retirement savings concerns out there, how a company is handling its 401k accounts should be the least of employees' worries. But it's potentially a real problem, experts say. Located at: Chicago Tribune. Click on headline for full article.

Can Women Bridge the Retirement Savings Gap? - Summary: Studies keep showing that men save more than women, but there are ways to narrow the difference. This article shows how. Located at: Businessweek.com. Click on headline for full article.

401k Enrollment Not 'Automatic' for Most Employers - Summary: Less than half of employers that offer 401k plans use automatic enrollment, according to the results of a recent HR.BLR.com/Compensation.BLR.com poll. Located at: hr.blr.com. Click on headline for full article.

Employers Boost 401ks to Meet Workers' Demand - Summary: Corporate America may have turned its back on traditional pensions but it appears to be embracing 401ks more than ever. Located at: Google News. Click on headline for full article.

Employer Views on the Value of 401k Plans - Summary: Who really benefits from a 401k plan? It isn't hard to see the benefits to employees. But there is another, more surprising, answer to this question. The majority of CFOs and other senior finance executives surveyed for this research report believe that their company's retirement plan enhances its corporate reputation and contributes to the long-term financial success of the business, while also helping employees save for retirement. Located at: Charles Schwab (PDF File). Click on headline for full article.

Do Households Have a Good Sense of Their Retirement Preparedness? - Summary: This brief examines whether households have a good sense of their own retirement preparedness — do their retirement expectations match the reality that they face? Do people 'at risk' know that they are 'at risk?' Located at: Center for Retirement Research at Boston College. Click on headline for full article.

Asset Allocation Patterns in DB and DC Plans - Summary: Retirement plans encompass traditional pension plans, also called defined benefit plans, where assets are invested and managed on a group basis, and defined contribution plans, where individuals typically direct investments on their own. This article examines how these plans invest their assets and how these investments have changed over time. Located at: National Institute on Retirement Security (PDF File). Click on headline for full article.

Determining If Your Plan Has Suffered A Partial Termination - Summary: Although there are technically two types of partial terminations, horizontal partial and vertical partial, this article focuses on the vertical partial termination – that is, a situation in which an employer-initiated action results in a significant decrease in the employees covered under a retirement plan. Located at: Chang, Ruthenberg & Long PC. Click on headline for full article.

Timing of Plan Contributions - Safe Harbor Myths and Truths - Summary: The timely remittance of employee-withheld contributions to retirement plans is a top enforcement priority for the Department of Labor (DOL), yet many plan sponsors do not understand when those contributions are due. Located at: Poyner & Spruill LLP. Click on headline for full article.

Towers Perrin Legislative Tracking Chart -- Retirement - Summary: The chart summarizes selected federal legislation that would affect employee benefit programs. The bills included on the chart are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors. Located at: Towers Perrin (PDF File). Click on headline for full article.

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