BPP401k.com Newsletter Benefit Plans Plus

BPP401k.com Newsletter
September 10, 2008

News Highlights

Want to improve qualified plan operations? Check out "The 401k Plan Sponsor's Fiduciary Toolkit" If you are responsible for your company's retirement plan or work with plan fiduciaries, the Toolkit is a must have resource.

It's Not a Good Idea to Let Company Stock Dominate 401k Recent company reversals of fortune offer a cautionary lesson for employees who are allowed to invest in their company's stock through their 401k plan.

Fixing Your 403(b) Plan: Adopting a Best Practices Approach The IRS has issued final 403(b) regulations, the first comprehensive guidance in 43 years. These new regulations offer an opportunity to create a better retirement plan for all by adopting a best practices approach.

Gen X and Y Worry About Money, but Not Retirement Generation X and Y, or Americans ages 19-39, will represent 60% of the U.S. workforce by 2010. That's a large chunk of the population that isn't giving retirement savings much thought.

Do Your Benefit Plans Comply With the HEART Act? The recently enacted Heroes Earnings Assistance and Relief Tax Act of 2008 (the HEART Act) provides tax relief and protections to members of the armed forces. This Act impacts a number of employee benefit plan provisions, and some provisions of the HEART Act will require employers to amend their benefit plan documents.

Proposed Regulations on Participant Fee Disclosure The DOL has proposed regulations that, upon adoption, would require plan fiduciaries to disclose certain plan and investment-related information, including fee and expense information, to participants and beneficiaries under participant-directed individual account plans subject to ERISA.

401k Fee Cases Pending as of September 2, 2008 At last count, there were at least 29 separate actions pending in federal district and appellate courts attacking various methods of assessing administrative fees to defined contribution plans.

Fiduciaries Overlook Returns of Terminated Asset Managers - Summary: A study of terminated managers' returns would yield important insights about the selection and/or termination process. This data could highlight weaknesses in a committee's process and enable it to preserve assets, which is important when questions of liability come into play. Located at: Financial Advisor Magazine. Click on headline for full article.

401k Full Disclosure - Summary: New rules requiring companies to let employees know about fees, expenses and plan performance could be a boon, or not. Located at: Treasury & Risk. Click on headline for full article.

Defined Contribution Plans: Version 2.0 - Summary: Retirement plan pioneers overhaul their 401k plans to net employees more money for retirement. Located at: Treasury & Risk. Click on headline for full article.

Gen X and Y Worry About Money, but Not Retirement - Summary: Generation X and Y, or Americans ages 19-39, will represent 60% of the U.S. workforce by 2010. That's a large chunk of the population that isn't giving retirement savings much thought. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.

It's Not a Good Idea to Let Company Stock Dominate 401k - Summary: Recent company reversals of fortune offer a cautionary lesson for employees who are allowed to invest in their company's stock through their 401k plan. Located at: USA Today. Click on headline for full article.

Important 401k Fee Rulings on the Horizon - Summary: Many of the lawsuits that challenge 401k plan fee practices are nearing critical decision points. After languishing for months in what were often heated procedural battles, several of these cases are fast approaching discovery cutoffs and summary judgment deadlines. Located at: Spencer Fane Britt & Browne LLP. Click on headline for full article.

401k Fee Cases Pending as of September 2, 2008 - Summary: At last count, there were at least 29 separate actions pending in federal district and appellate courts attacking various methods of assessing administrative fees to defined contribution plans. This is a summary of these cases. Located at: Spencer Fane Britt & Browne LLP (PDF File). Click on headline for full article.

Do Your Benefit Plans Comply With the HEART Act? - Summary: The recently enacted Heroes Earnings Assistance and Relief Tax Act of 2008 (the HEART Act) provides tax relief and protections to members of the armed forces. This Act impacts a number of employee benefit plan provisions, and some provisions of the HEART Act will require employers to amend their benefit plan documents. Located at: Poyner & Spruill LLP. Click on headline for full article.

403(b) Regulations: Understanding the Changes - Summary: This resource provides the 403(b) plan sponsor with a review of the new IRS regulations, answers to commonly asked questions and concerns, and a game plan for streamlining your compliance process. Located at: The Standard (PDF File). Click on headline for full article.

Fixing Your 403(b) Plan: Adopting a Best Practices Approach - Summary: The IRS has issued final 403(b) regulations, the first comprehensive guidance in 43 years. These new regulations offer an opportunity to create a better retirement plan for all by adopting a best practices approach. Located at: The Standard (PDF File). Click on headline for full article.

403(b): Non-Discrimination Rules and Universal Availability - Summary: Yes, Virginia, the Internal Revenue Code does have non-discrimination rules for 403(b) plans. And the rules have been expanded in the Treasury Regulations that go into effect at the beginning of 2009 - found in section 403(b)(12). Located at: Plansponsor.com (free registration may be required). Click on headline for full article.

Final 403(b) Regulations -- How They Affect Plan Sponsors - Summary: Sponsors of 403(b) plans—typically school districts, higher education institutions, health care providers, and charitable organizations—will soon have increased responsibilities for overseeing investments, transfers, documentation, administration, and participants' disclosures. Located at: Vanguard. Click on headline for full article.

Proposed Regulations on Participant Fee Disclosure - Summary: The DOL has proposed regulations that, upon adoption, would require plan fiduciaries to disclose certain plan and investment-related information, including fee and expense information, to participants and beneficiaries under participant-directed individual account plans subject to ERISA. This is an overview of the proposed regulations. Located at: Transamerica Center for Retirement Studies (PDF File). Click on headline for full article.

PSCA Comments on Proposed Rule for Fee Disclosure - Summary: Comment letter submitted by the PSCA to the Department of Labor on the proposed rule for fee disclosure in participant-directed individual account plans. Located at: Profit Sharing/401k Council of America (PDF File). Click on headline for full article.

DOL Issues Proposed Regulations Regarding Disclosures To Participants Of 401k Plans - Summary: Department of Labor issued proposed regulations that, if adopted, will require fiduciaries of 401k plans and other participant-directed defined contribution plans to make new disclosures to participants regarding plan-related fees, investment-related fees and investment performance data. Located at: Metropolitan Corporate Counsel. Click on headline for full article.

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