BPP401k.com Newsletter
October 8, 2008

Who Gets Retirement Plans and Why - Summary: This takes a detailed look at the demographic and workforce factors that help determine whether an employer is likely to offer, and workers are likely to seek, deferred compensation in the form of retirement benefits to replace some cash compensation. Located at: Investment Company Institute (PDF File). Click on headline for full article.

Tapping the 401k Nest Eggs - Summary: 401k hardship withdrawals and borrowing rise, leading to worries that workers will have even less funds for retirement. Located at: Treasury & Risk. Click on headline for full article.

Economy Fears Affect Small Business Owners' Retirement Savings - Summary: A growing number of small businesses are feeling the stress of the tough economy, leading many to cut back on retirement savings or raid their accounts, according to a survey by ING DIRECT's ShareBuilder 401k. Located at: Planadviser.com. Click on headline for full article.

Six Ways to Quash 401k Anxieties Over the Financial Crisis - Summary: Lynn Unsworth, regional manager of Capital Associated Industries, offers a few tips to help employers ease workers' concerns about their 401k balances in light of the recent mood swings of the stock market. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.

Five Facts When Investing in Turbulent Markets - Summary: In the wake of recent market and firm failures, CFA Institute issued five facts investors should know when making investment decisions. Located at: CFA Institute. Click on headline for full article.

Benefits of Delaying Your Retirement - Summary: Though you may start receiving Social Security benefits as early as age 62, you have to wait until full retirement age to receive full benefits. This chart lets you find out how much your benefits will increase if you work beyond that age. Located at: Wiserwomen.org (PDF File). Click on headline for full article.

Will the 401k Allow for Retirement? - Summary: The trend away from defined-benefit plans toward defined-contribution plans makes it harder for workers to have adequate retirement income. And even with default enrollment and other provisions in the pension-reform act, it's likely that many workers will not be able to stop working. Located at: HREonline.com. Click on headline for full article.

Younger Workers Hurt When Boomers Can't Afford to Retire - Summary: Employers may wish that they hadn't listened to the consultants who advised them to dump defined benefit pension plans for 401k plans, because now they are stuck with a costly workforce that can't afford to retire at age 65. Located at: Employee Benefit News (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.

Puerto Rico's New Pre-Tax Contribution Limits and Spinoff Rules - Summary: The Puerto Rican legislature recently passed a new law increasing limits on pre-tax contributions to Puerto Rican qualified plans. This change affects both dual-qualified and solely qualified plans, and it increases the limit over the next five years. In addition, a recent IRS ruling issued has changed the U.S. tax treatment of dual-qualified plans that spin off assets into solely qualified plans. Located at: Vanguard (PDF File). Click on headline for full article.

Caterpillar Fee Suit Survives First Legal Hurdle - Summary: A federal judge cleared the way for participants in Caterpillar's 401k plan to pursue their fiduciary breach claims, but only on issues other than allegations of inadequate revenue-sharing disclosures. Located at: Planadviser.com. Click on headline for full article.

Boeing 401k Fee Case Sanctioned as Class Action - Summary: A federal judge in Illinois has sanctioned an excessive 401k fee lawsuit against Boeing Co. as a class action. Located at: Plansponsor.com (free registration may be required). Click on headline for full article.

IRS Employee Plans News - Fall 2008 Edition - Summary: Topics include: Weathering the Storm: Advising Clients about Loans and Hardship Withdrawals from Retirement Plans; Employee Plans' FY 2009 Work Plan; Web Spins; Update on Pre-Approved Plan Program for 403(b) Plans; Take Our Survey: Help Us Expand and Improve Our Self-Correction Program!; Relief for Hurricane Victims, and more. Located at: IRS (PDF File). Click on headline for full article.

DOL Proposes New Disclosure Requirements for 401k Fees and Expenses - Summary: The DOL has proposed new disclosure rules, which are intended to help 401k plan participants make informed retirement savings decisions. Under the proposal, companies offering 401k and other participant-directed individual account plans would have to disclose summary information, including fee and expense information, for all investment options under the plan. Located at: Watson Wyatt. Click on headline for full article.

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