BPP401k.com Newsletter Benefit Plans Plus 12 17 08

BPP401k.com Newsletter
January 7, 2009

News Highlights

Employees Choosing Safer 401k Investments Employees are reacting to the recent declines in the stock market by moving 401k plan assets into less risky investment funds, according to a recent analysis by Hewitt Associates.

The Worker, Retiree and Employer Recovery Act of 2008 The Act includes Technical Corrections related to the PPA and pension recovery provisions to provide relief from the economic downturn.

Disclosure to Help Meet Fiduciary Responsibilities This white paper explores the disclosure efforts by the federal government over the last decade, reviews some of the currently pending proposals, and offers some insights for the future.

403(b) Action Plan Workbook To assist plan sponsors and financial advisers Benefit Plans Plus offers complementary 403(b) Action Plan Workbook to serve as in initial reference guide and information source to work toward IRS compliance.

Towers Perrin Legislative Tracking Chart -- Retirement The chart summarizes selected federal legislation that would affect employee benefit programs. The bills included on the chart are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors.

Why Are Advisors Going Independent? This white paper explains why many successful advisors are starting or joining independent firms.

Item of Interest to Advisors
Why Are Advisors Going Independent? - Summary: A 2007 white paper that explains why many successful advisors are starting or joining independent firms. Located at: Schwab Institutional (PDF File). Click on headline for full article.

News
403(b) Action Plan Workbook - Summary: To assist plan sponsors and financial advisers Benefit Plans Plus offers complementary 403(b) Action Plan Workbook to serve as in initial reference guide and information source to work toward IRS compliance. Located at: Benefits Plans Plus (PDF File). Click on headline for full article.

Employees Choosing Safer 401k Investments - Summary: Employees are reacting to the recent declines in the stock market by moving 401k plan assets into less risky investment funds, according to a recent analysis by Hewitt Associates. Located at: CCH. Click on headline for full article.

Owning Mutual Funds Through Retirement Plans Still on the Rise - Summary: More households own mutual funds inside tax-deferred accounts—such as defined contribution (DC) plans, individual retirement accounts (IRAs), and variable annuities—than outside these accounts, according to the Investment Company Institute. Located at: Plan Sponsor Institute Blog. Click on headline for full article.

Retirees Eye Other Assets to Boost Returns - Summary: Forty-two percent of retirees surveyed by MetLife are considering reallocating their assets to investments that might provide a higher rate of return, but 47 percent of them aren't sure how they'll do it. Located at: Workforce.com (free registration may be required). Click on headline for full article.

Determining the Individual's Taxable Year for 402(g) Limit - Summary: An answer to this question, "I understand that Code Section 402(g) limits elective deferrals based on the taxable year which for most individuals is the calendar year. Can you provide a cite?" Located at: Benefitslink.com. Click on headline for full article.

IRS to Open Pre-Approved Program for 403(b)s - Summary: The IRS's Employee Plans unit intends to open a pre-approved program for vendors of prototype 403(b) plans, EP Tax Law Specialist Robert Architect announced on December 4, 2008, in an IRS phone forum. Located at: CCH. Click on headline for full article.

Gearing Up for the New 403(b) Landscape - Summary: Starting in 2009, 403(b) plan sponsors will have to comply with new regulations that are intended to improve the governance of those plans. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.

Joint Life Expectancy and the Retirement Distribution Period - Summary: This paper will explore the implications of using joint life expectancy versus a fixed period (30 years) when determining the appropriate initial sustainable real withdrawal rate. A simple methodology to determine an appropriate distribution period, based on target end date, will also be introduced. Located at: Journal of Financial Planning. Click on headline for full article.

Fiduciary Compliance Reviews for DC Plans - Summary: A fiduciary compliance review is not the same as an annual ERISA audit. This white paper explores some of the aspects of the review and some areas it should focus on. Located at: Milliman (PDF File). Click on headline for full article.

Disclosure to Help Meet Fiduciary Responsibilities - Summary: This white paper explores the disclosure efforts by the federal government over the last decade, reviews some of the currently pending proposals, and offers some insights for the future. Located at: Milliman (PDF File). Click on headline for full article.

The Worker, Retiree, and Employer Recovery Act of 2008 - Summary: The Act includes Technical Corrections related to the PPA and pension recovery provisions designed to provide relief for individuals and plan sponsors to help them deal with the economic downturn. This summary focuses on the defined contribution-related provisions of the Act and includes a brief explanation of the new provisions and the corresponding effective dates. Located at: Transamerica Center for Retirement Studies (PDF File). Click on headline for full article.

Towers Perrin Legislative Tracking Chart -- Retirement - Summary: The chart summarizes selected federal legislation that would affect employee benefit programs. The bills included on the chart are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors. Located at: Towers Perrin (PDF File). Click on headline for full article.

SEC Adopts New Disclosure Rules for Mutual Funds - Summary: The SEC approved new rules that apply to mutual fund prospectuses that will (1) require key information to appear in plain English in a standardized order at the front of the prospectus, and (2) permit a fund to satisfy its prospectus delivery obligations using a short form summary prospectus, as long as the full prospectus is available on the Internet and in paper upon request. Located at: Kilpatrick Stockton LLP. Click on headline for full article.

DOL Finalizes Civil Penalty Rules Under the PPA - Summary: DOL announced a final regulation implementing the department's authority to assess civil penalties against plan administrators who fail to disclose certain documents to participants, beneficiaries and others as required by PPA. Located at: 401khelpcenter.com. Click on headline for full article.

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