BPP401k.com Newsletter
September 3, 2008
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How Small Businesses Can Improve Their Retirement Plans - Summary: While some of these issues are the unavoidable result of economies of scale and the challenges service providers face in turning a profit on smaller plans, there are things you can do to keep up with the larger retirement plans. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
DB Plans Can Provide Retirement Income at Considerably Lower Cost Than DC Plans - Summary: A defined benefit pension plan can deliver the same level of retirement income to employees at a 46% lower cost than an individual defined contribution plan account, according to findings in a new report issued by the National Institute on Retirement Security. Located at: CCH. Click on headline for full article.
New Study Finds Pension Protection Act Boosts Auto Features in 401k Plans - Summary: More employees were put on the path to retirement security in 2007 by employers adopting automatic savings and investment solutions in their retirement plans, according to a report on defined contribution retirement plans released by Vanguard. Located at: 401khelpcenter.com. Click on headline for full article.
Stuck Between a 401k Rock and a 409A Hard Place - Summary: The interplay between the 401k plan rules regarding hardship distributions and the Code Section 409A rules regarding unforeseeable emergencies can work to prevent one who participates in both plans from being able to receive a 401k hardship distribution or cease elective 409A plan deferrals to access cash for authorized hardship events. This possibility will be explained in this article. This article will also summarize the 401k plan financial hardship rules, as well as the Section 409A unforeseeable emergency rules, and demonstrate how these rules can conspire to put the executive in a Catch-22. Located at: Chang Ruthenberg & Long PC. Click on headline for full article.
Fees Are Now Top Reason Retirement Plan Sponsors Switch Providers - Summary: Nearly one-third (30%) of plan sponsors cited cost/fees as the primary factor precipitating a change in plan providers according to a new report from Spectrem Group, "DC Market Needs." Located at: 401khelpcenter.com. Click on headline for full article.
401ks Tapped for Loans Less Than Last Year - Summary: Despite reports this year that more people were borrowing from their 401k plans to cover daily expenses, the latest data from several plan providers show that the number of loans have fallen in some cases. Located at: Investmentnews.com (free registration may be required). Click on headline for full article.
On Target, Or Not - Summary: Think you can plunk down a client's money on any target date fund as a low-risk way to accumulate retirement savings? Think again. Located at: Financial Advisor Magazine. Click on headline for full article.
Designated Roth Accounts - Summary: Designated Roth was created by the EGTRRA first available for Plan Years that begin on or after January 1, 2006. This is an overview including benefits and attributes. Located at: McKay Hochman. Click on headline for full article.
Motion for Class Certification Denied in 401k Fee Case Against Plan Service Provider - Summary: On August 27, the United States District Court for the Southern District of Iowa issued the first of several anticipated rulings on these motions, denying the plaintiff's motion for class certification. Located at: Groom Law Group. Click on headline for full article.
Plans Sue to Recover Subprime Investment Losses - Summary: After the scope of the subprime mortgage crisis became clear in 2007, a number of pension and 401k plans with assets invested in subprime mortgage obligations filed lawsuits in federal district court to recover their losses. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
How America Saves 2008: A Report on Vanguard 2007 DC Plan Data - Summary: Illustrated with numerous charts and tables, this valuable reference tool provides an analysis of savings, investing, and account activity trends in Vanguard defined contribution plans. You'll also find useful insights on a variety of contemporary issues, including automatic or default plan features, target-date funds, and company stock. Located at: Vanguard Center for Retirement Research (PDF File). Click on headline for full article.
The Efficiency of Pension Plan Investment Menus: Investment Choices in DC Plans - Summary: This paper assesses the efficiency and performance of 401k investment options offered by a large group of US employers. It shows that most plans are efficient compared to market benchmark indexes. Located at: Center for Retirement Research at Boston College (PDF File). Click on headline for full article.
DOL Issues Proposals Under PPA Invest. Advice Provisions - Summary: The DOL published proposals to implement the "eligible invest. advice arrangement" exemption enacted in section 601 of the Pension Protection Act of 2006. This is an excellent overview of the proposed regulations. Located at: Sutherland Asbill & Brennan LLP (PDF File). Click on headline for full article.
IRS Updates Qualified Plan Correction Program - Summary: The new EPCRS program, effective January 1, 2009, supersedes the 2006 version of the program and makes key changes. Located at: McDermott Will & Emery. Click on headline for full article.
DOL Proposes New Fee Disclosure Rules for 401k Plans - Summary: The latest proposed regulation establishes uniform fiduciary disclosure requirements for all participant-directed individual account plans, which must be provided on or before the date the participant becomes eligible to participate in the plan and thereafter on a periodic, ongoing basis. The information required falls into two categories: plan-related information and investment-related information. Located at: Seyfarth Shaw LLP. Click on headline for full article.
Timeline of DOLs Proposed Rule on Plan Fee Disclosure Too Aggressive - Summary: Hailed as a step in the right direction, industry officials say the rule's proposed effective date -- the comment period expires September 8 and the effective date is January 2009 -- is unrealistic, and will be costly to implement in such a short period of time. Located at: Investment Advisor Magazine. Click on headline for full article.
This eNewsletter is published as a service to our clients. BSW Benefit Plans Plus, L.L.C. is not the author of the material unless specifically noted. We review each article to ensure that it is related to the interests of our clients, but BSW Benefit Plans Plus, L.L.C. does not endorse and disclaims any and all responsibility or liability for the accuracy, content, completeness, legality, or reliability of the material. All articles are copyrighted to their publishers.
This eNewsletter is prepared in partnership with 401khelpcenter.com, LLC. and is copyright (c) 2008 by 401khelpcenter.com, LLC. All rights reserved. No reproduction without prior authorization.
THIS ENEWSLETTER IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED AS LEGAL, TAX OR INVESTMENT ADVICE.