BPP401k.com Newsletter Benefit Plans Plus

BPP401k.com Newsletter
September 24, 2008

News Highlights

When Do Gen X and Gen Y Americans Expect To Retire? A recent survey asked Americans ages 19–39 -- members of so-called Generation X and Generation Y -- a series of questions to gage their understanding of finances and the resources they are most likely to use to obtain financial information. One question also asked survey participants to give their best estimate of when they will retire.

Operational Non-Compliance in ERISA Qualified Plans Can Cause Problems for Employers Most employers who sponsor a qualified retirement plan are aware of the requirement that the plan must have a written plan document.

Tough Times Have Employers Looking to Improve Retirement Benefits It may be difficult to see the silver lining of a recession, but the truth is that bad economic times provide many opportunities for employee benefit advisers.

ICI Statement on Money Market Mutual Funds Investment Company Institute President and Chief Executive Officer Paul Schott Stevens issued this statement about the fundamental structure and safety of money market funds.

The Cost of Knowledge Fred Reish responds to a question from a reader about one of his articles concerning disclosure of expenses to participants. Taken together, the question and answer provide a good overview of some of the most important issues about fee disclosures to participants.

Single Women are in Peril of Achieving a Financially Secure Retirement - Summary: Many single women are ill-prepared and unlikely to achieve a financially secure retirement if they don't take action now, according to the findings of the Ninth Annual Transamerica Retirement Survey. Located at: Transamerica Center for Retirement Studies (PDF File). Click on headline for full article.

Dramatic Drop in Housing Values Could Delay Retirement for Homeowners - Summary: For those approaching retirement age, the value of their homes accounts for a majority of total net worth. A new research paper from Principal Funds geared for financial professionals explores how the dramatic and historic decrease in housing values has significantly altered the retirement plans of many Americans. Located at: 401khelpcenter.com. Click on headline for full article.

Deferred Annuities and Strategic Asset Allocation - Summary: Deferred annuities offer a hedge against mortality risk and provide similar benefits as Social Security. This study indicates that a considerable fraction of wealth should be annuitized to skim the return enhancing mortality credit. Located at: Michigan Retirement Research Center (PDF File). Click on headline for full article.

Tough Times Have Employers Looking to Improve Retirement Benefits - Summary: It may be difficult to see the silver lining of a recession, but the truth is that bad economic times provide many opportunities for employee benefit advisers. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.

When Do Gen X and Gen Y Americans Expect To Retire? - Summary: A recent survey asked Americans ages 19–39 -- members of so-called Generation X and Generation Y -- a series of questions to gage their understanding of finances and the resources they are most likely to use to obtain financial information. One question also asked survey participants to give their best estimate of when they will retire. Located at: Employee Benefit Research Institute (PDF File). Click on headline for full article.

ICI Statement on Money Market Mutual Funds - Summary: Investment Company Institute President and Chief Executive Officer Paul Schott Stevens issued this statement about the fundamental structure and safety of money market funds. Located at: Investment Company Institute. Click on headline for full article.

Is Retirement Different for Women? - Summary: Some strides have been made toward gender equality since women won the right to vote in 1920. But men and women aren't exactly equal when it comes to retirement. Located at: Fox Business. Click on headline for full article.

A Reality Check on Criticisms of Debit Card Loan Programs - Summary: Debit card loan programs recently have been the focus of criticism in Washington. A number of common misconceptions about 401k loan products, and criticisms that rely on these misconceptions need a reality check. Located at: Investmentnews.com (free registration may be required). Click on headline for full article.

Determining Whether 401k Plan Fees are Reasonable - Summary: According to this report, "Fuller disclosure of 401k plan fees will not guarantee that all plan participants are informed, but it is undoubtedly a necessary condition for that to occur. With better information on fees, participants should be able to make a more informed choice among plans, increase the size of their retirement nest egg, and enhance their welfare." Located at: AARP (PDF File). Click on headline for full article.

Saxon on the Timing of Fee Disclosure - Summary: The DOL is working on three significant regulatory projects regarding 401k fees which involve extraordinarily complex issues. However, the biggest issue plan sponsors and service providers are facing is time (or the lack thereof). Located at: Plansponsor.com (free registration may be required). Click on headline for full article.

The Cost of Knowledge - Summary: Fred Reish responds to a question from a reader about one of his articles concerning disclosure of expenses to participants. Taken together, the question and answer provide a good overview of some of the most important issues about fee disclosures to participants. Located at: Plansponsor.com (free registration may be required). Click on headline for full article.

Hewitt Federal Legislation Quick Guide - Summary: Hewitt's Federal Legislation Quick Guide provides short updates on federal legislation that is currently under active consideration by Congress or has recently been enacted into law, regarding health and welfare benefit plans, retirement plans, and human resources and employment law. Located at: Hewitt Associates LLC (PDF File). Click on headline for full article.

Updated - 401k Fee Litigation - Summary: Over the past several years, more than two dozen lawsuits have been filed relating to 401k plan fees and, more specifically, revenue sharing arrangements with plan service providers. This is a September 15, 2008, update on these lawsuits. Located at: Groom Law Group. Click on headline for full article.

IRS Eases Pre-Approved Plans Letter Procedure - Summary: The Internal Revenue Service announced it had decided to relax previously announced restrictions on how the agency would issue opinion and advisory letters for pre-approved plans. Located at: Planadviser.com. Click on headline for full article.

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