BPP401k.com Newsletter
December 10, 2008
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Items of Interest to Advisers
Managing Accountability - Summary: Investment advisors to sponsors of qualified retirement plans such as 401k plans might wish to adapt some of the material in this column for use when marketing to other plan sponsors. Located at: Prudent Investor Advisors 
. Click on headline for full article.
Advisers Embracing ERISA Fiduciary Status - Summary: Advisers increasingly are embracing ERISA plan fiduciary status. Why they're doing it, and how to prevent problems. Located at: Planadviser.com. Click on headline for full article.
'Plain Vanilla' Funds Attract Fearful Investors - Summary: As the turbulent economy continues to roil, investors likely will gravitate toward index-based, middle-of-the-road mutual funds, opening the door for opportunists to sweep up bargains, industry experts say. And the safer, the better. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
Fund Fees Expected to Drop - Summary: The bear market will lead to a proportional decrease in regular fund fees and severe cuts in performance-based fees, according to Boston Consulting Group. Located at: Planadviser.com. Click on headline for full article.
More News
Plans Still Need to Step up Plan Governance to Address Liability Concerns While a majority of board of directors or board-level committees retain responsibility for appointing fiduciaries for qualified plans, an increasing number are choosing to delegate that responsibility to company executives and internal plan committees amid rising liability concerns, according to Towers Perrin’s 2008 Survey on Qualified Retirement Plan Governance.
Retirement Experts Urge Plan Sponsors to Shift Focus - Summary: Generating secure lifetime retirement income should become an urgent priority for plan sponsors and participants, according to the Institutional Retirement Income Research Council. Located at: 401khelpcenter.com. Click on headline for full article.
Participants Calmer Than You'd Think Amid Market Turmoil - Summary: The Vanguard Center for Retirement Research (CRR) examined recent transactions and other activities in plans "recordkept" by Vanguard for nearly 3.5 million active and deferred participants in approximately 2,200 defined contribution plans. The findings show a different picture of participant behavior than recent media reports do, in three key areas. Located at: Vanguard. Click on headline for full article.
2008 Year-End Compliance Reminders - Summary: Every year, defined contribution plan sponsors should make sure their plans meet certain compliance requirements, including those listed below. This publication identifies the materials you need to review and will help you prepare for year-end. Located at: Prudential (PDF File). Click on headline for full article.
The Economics of Providing 401k Plans - Summary: 401k plans are now the most common private-sector employer-sponsored retirement plan in the United States. Employers choose whether to offer these plans to employees as part of their total compensation packages; employees choose whether or not to participate. The creation and maintenance of a 401k plan involve a variety of services, and the costs of these services are generally shared by the plan sponsor and the plan participants. This is a 24 page report on 401k plan services, fees, and expenses. Located at: Investment Company Institute (PDF File). Click on headline for full article.
Premature Distributions from 401k Plans - Summary: The desire to get control over retirement funds may directly conflict with the tax penalties imposed on distributions prior to age 59 1/2. Located at: Morningstar.com. Click on headline for full article.
Touching Retirement Savings - Summary: Nine in 10 U.S. workers in their employer retirement plan have not tapped into their nest egg despite the economic downturn, and 11% are actually upping their deferral amount. Located at: Planadviser.com. Click on headline for full article.
Riding the Retirement Rollercoaster - Summary: Retirement planning is complex enough, but add in the extra tax considerations that executives must consider and the recent wild swings in the stock market, and execs nearing retirement may be ready to throw up their hands. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
401k vs. IRA - Summary: Many investors are on automatic pilot when it comes to contributing to their 401k plans. So as they approach retirement, some are confronting a choice they hadn't given much thought to before: Should they leave their nest egg where it is or roll it over into an Individual Retirement Account? Located at: Wall Street Journal Online. Click on headline for full article.
Plan Now to Get Full Benefit of Saver's Credit - Summary: Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2008 and the years ahead, according to the Internal Revenue Service. Located at: 401khelpcenter.com. Click on headline for full article.
Litigation Heightens Awareness of Fiduciary Responsibility - Summary: While a majority of board of directors or board-level committees retain responsibility for appointing fiduciaries for qualified plans, an increasing number are choosing to delegate that responsibility to company executives and internal plan committees amid rising liability concerns, according to a survey conducted by Towers Perrin. Located at: 401khelpcenter.com. Click on headline for full article.
Experts Wary of Plan to Ease Withdrawals - Summary: President-elect Barack Obama's proposal to temporarily ease rules on hardship withdrawals from 401k and other retirement plans elicits cautious and even negative reactions from local and national experts. Located at: HispanicBusiness.com. Click on headline for full article.
DOL Issues Field Guidance on ERISA Bonding Requirement - Summary: The guidance, in the form of 42 Q-and-A’s, reflects DOL’s existing regulations, its responses to field and other inquiries, and its position on changes enacted in the Pension Protection Act of 2006. Located at: Sutherland Asbill & Brennan LLP (PDF File). Click on headline for full article.
DOL Publishes Final Rules on Annuity Selection for DC Plans - Summary: The DOL published final regulations regarding the selection of annuity providers and annuity contracts for defined contribution plans. The final regulations establish a safe harbor in selecting an annuity provider for benefit distributions. Located at: Prudential (PDF File). Click on headline for full article.
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