BPP401k.com Newsletter Benefit Plans Plus 1_21

BPP401k.com Newsletter
January 21, 2009

News Highlights

Advisers Could Give 401k Counsel Under New Rule The Office of Management and Budget has cleared a Department of Labor rule that will allow financial advisers affiliated with mutual funds and brokerage firms to provide direct invest. advice to 401k plan participants.

Five Ways to Protect Your 401k if You're Laid Off Unexpected job loss can derail retirement plans in an instant. The good news is that if you do get laid off, you can still keep your retirement plan intact. Here's how to handle your 401k if you lose your job or your company goes under.

Calendar Plan Year Requirements Looking for a fast reference for the 2009 calendar plan year deadlines? (PDF File).

Automatic Enrollment for Small Businesses The DOL and IRS released a new publication to provide small employers with an overview of automatic enrollment in 401k plans offered to employees. (PDF File)

Podcast With Mike Alfred of BrightScope Alfred has his sights set on making the world of 401k plan comparisons easy -- easy on the worker, the employer and even the broker. Listen in as he talks about how he's going to do it and why it needs to be done, now more than ever.

Update on Service Provider Disclosure Under 408(b)(2) At this point, the final regulation may be released any day, or it may not be released until after the inauguration of President Obama, or it may not be released at all, at least in its present form. And, even if it is published in final form, we anticipate that Congressman George Miller will introduce legislation that imposes even greater disclosure requirements. (PDF File)

Calendar Plan Year Requirements - Summary: Looking for a fast reference for the 2009 calendar plan year deadlines? Here is one prepared by Benefit Plans Plus out of St. Louis. Located at: Benefit Plans Plus (PDF File). Click on headline for full article.

Automatic Enrollment for Small Businesses - The DOL and IRS released this new publication to provide small employers with an overview of automatic enrollment in 401k plans offered to employees. (PDF File)

Podcast With Mike Alfred of BrightScope - Summary: Alfred has his sights set on making the world of 401k plan comparisons easy -- easy on the worker, the employer and even the broker. Listen in as he talks about how he's going to do it and why it needs to be done, now more than ever. Located at: Employee Benefit Adviser. Click on headline for full article.

Advisers Could Give 401k Counsel Under New Rule - Summary: The Office of Management and Budget has cleared a Department of Labor rule that will allow financial advisers affiliated with mutual funds and brokerage firms to provide direct invest. advice to 401k plan participants. Located at: InvestmentNews.com (free registration may be required). Click on headline for full article.

Mercer Sees "Worrying Increase" in Retirement Plan Withdrawals - Summary: There's even more evidence that investors are curbing retirement plan contributions. Consulting Mercer giant says more retirement plan participants are requesting withdrawals compared to last year—requests rose 59% in November and December of 2008. Located at: BusinessWeek Blog. Click on headline for full article.

More Workers Are Preserving Retirement Assets - Summary: ASPPA released data that shows most tax breaks for 401k and similar defined contribution plans go to middle-income wage earners. The ASPPA data refutes the misconception that mostly wealthy Americans benefit from 401k plans. Located at: 401khelpcenter.com. Click on headline for full article.

How Education Affects Retirement Plan Participation - Summary: When controlling for earnings, the most highly educated workers still had the highest levels of participation in a retirement plan, but the differences with the less educated workers were much smaller, particularly as earnings decreased. Located at: 401khelpcenter.com. Click on headline for full article.

Hidden Worry for a 401k Pillar of Safety - Summary: For most investors, the market crash shattered the notion of "safe" investments. Bond funds lost money, the government stepped in to bail out money funds, banks failed. Now millions of workers who invest through their 401k plans are finding that one of the last pillars of safety – so-called stable value funds – may be riskier than they assumed. Located at: Smart Money. Click on headline for full article.

2008 a Year of Records for Hewitt 401k Index - Summary: As a reaction to the plunging stock market, the overall transfer activity in the Hewitt 401k Index was significantly higher in 2008 than in previous years. Located at: Planadviser.com. Click on headline for full article.

Five Ways to Protect Your 401k if You're Laid Off - Summary: Unexpected job loss can derail retirement plans in an instant. The good news is that if you do get laid off, you can still keep your retirement plan intact. Here's how to handle your 401k if you lose your job or your company goes under. Located at: USnews.com. Click on headline for full article.

401k Plan Termination Tips Offered - Summary: Employers who terminate 401k plans due to economic reasons such as business closures or mergers and acquisitions, run the risk of violating regulations and jeopardizing their employees' future retirement readiness by mismanaging the complex process of shutting down a plan. Located at: 401khelpcenter.com. Click on headline for full article.

Bear Mauls 'Safe' Target Funds, Too - Summary: Last year's massive declines in stocks, as well as hefty losses in some parts of the bond market, led to big differences in returns among the offerings from different fund companies with similar target dates. Located at: Wall Street Journal Online. Click on headline for full article.

Q&A: 2009 Required Minimum Distribution Rule Changes - Summary: The purpose of this Q&A is to explain the effect of the law change to the required minimum distribution rules, passed as part of the Worker, Retiree, and Employer Recovery Act of 2008. In particular, this Q&A discusses issues employers will face in administering plans that are making RMDs. Located at: Sungard/Relius. Click on headline for full article.

Update on Service Provider Disclosure Under 408(b)(2) - Summary: At this point, the final regulation may be released any day, or it may not be released until after the inauguration of President Obama, or it may not be released at all, at least in its present form. And, even if it is published in final form, we anticipate that Congressman George Miller will introduce legislation that imposes even greater disclosure requirements. Located at: Reish Luftman Reicher & Cohen (PDF File). Click on headline for full article.

DOL Finalizes Invest. Advice Rule - Summary: A soon-to-be published rule from the Department of Labor adds an exemption for invest. advice to the Pension Protection Act. Located at: Planadviser.com. Click on headline for full article.

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