BPP401k.com Newsletter Benefit Plans Plus 3_25

BPP401k.com Newsletter
March 25, 2009

News Highlights

Three Out of Five Employers Maintain 401k Match Despite Economic Crisis A new survey of employers released by WorldatWork and the American Benefits Council, "Trends in 401k Plans," finds that the financial crisis has not significantly discouraged 401k contributions or participation.

Principles for a New Retirement System This working paper, according to the proponents, documents the need for a new retirement system in the US, details principles that should guide the development of a new system, and provides examples of plans and proposals that incorporate these principles.

Getting Ready for EFAST2 Beginning with the 2009 plan year, the Department of Labor will require retirement and welfare plans to file their annual reports (Form 5500) electronically. To ease the transition, preparers need to familiarize themselves with the new electronic filing system.

Communicating Benefits During Layoffs Can Be Tricky With tens of thousands of layoffs being conducted every month, managers are trying to figure out the best way to communicate important information during an emotion-laden time.

Average Worker Contribution Rates to 401k-Type Plans How much do workers contribute on average to 401k-type plans? Here are the numbers as reported by the nonpartisan Employee Benefit Research Institute.

Communicating Benefits During Layoffs Can Be Tricky - Summary: With tens of thousands of layoffs being conducted every month, managers are trying to figure out the best way to communicate important information during an emotion-laden time. Located at: Workforce.com (free registration may be required). Click on headline for full article.

Three Out of Five Employers Maintain 401k Match Despite Economic Crisis - Summary: A new survey of employers released by WorldatWork and the American Benefits Council, "Trends in 401k Plans," finds that the financial crisis has not significantly discouraged 401k contributions or participation. Located at: 401khelpcenter.com. Click on headline for full article.

Average Worker Contribution Rates to 401k-Type Plans - Summary: How much do workers contribute on average to 401k-type plans? Here are the numbers as reported by the nonpartisan Employee Benefit Research Institute. Located at: 401khelpcenter.com. Click on headline for full article.

Mutual Fund Leaders Endorse Reforms to Money Market Funds - Summary: The Investment Company Institute announced that its Board of Governors has received a report from the Money Market Working Group and has unanimously endorsed the Group's recommendations concerning new regulatory and oversight standards for money market funds. Located at: Investment Company Institute. Click on headline for full article.

After the "Crash" of '08, Maybe It's Time to Leave the Driving to the Professionals - Summary: The numbers are in for 2008 and – no surprise here – they're not pretty. Retirement plan accounts took a beating. Sure, the economy was the culprit. But what did we learn? One lesson could be that rather than having employees steer their own investments, it might be smarter to leave the driving to a professional. Located at: Chang, Ruthenberg & Long PC. Click on headline for full article.

Meeting Your Fiduciary Responsibilities - Summary: ERISA's fiduciary requirements are some of the highest under law, making it all the more critical for sponsors to be able to demonstrate how they make decisions and operate their plans in accordance with the law and plan documents. Located at: Grant Thornton LLP (PDF File). Click on headline for full article.

Survey Finds Many Sponsors Lacking Fiduciary Details - Summary: A new survey finds less than a third of retirement plan fiduciaries report a clear chain of authority for their plan’s governance committee. Located at: Planadviser.com. Click on headline for full article.

Research Shows Plan Sponsor Governance Dips - Summary: Plan sponsors are less likely to maintain meeting minutes, use an independent party to analyze fees, or establish a clear chain of authority for their plan’s governance committee, according to a new survey. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.

Summary of Pending Legislation April 2009 - Summary: Some topics likely to get Congressional attention in 2009 include the ability of the current 401k system to provide sufficient retirement security, the development of 401k fee disclosure legislation, invest. advice and the appropriateness of pension plan investments. At least two items outlined in the Obama Administration’s 2010 budget proposal (mandatory payroll deduction IRAs and an expansion of the saver’s credit) may also result in legislative initiatives. Located at: Center for Due Diligence (PDF File). Click on headline for full article.

Court: No Affirmative Duty to Disclose Revenue Sharing - Summary: The Court of Appeals upheld a lower court ruling that ERISA's fiduciary standards do not require disclosure of revenue sharing arrangements among the service providers. Located at: Benefitslink.com. Click on headline for full article.

Supreme Court Agrees to Hear Mutual Fund Case - Summary: The US Supreme Court announced that it would hear the case of Jones v. Harris Associates which is an appeal of the Seventh Circuit Court of Appeals' decision in May 2008 that generally disregarded long-standing principles for reviews of investment management contracts and, in particular, fees paid to investment advisers of investment companies. Located at: Kilpatrick Stockton LLP. Click on headline for full article.

Principles for a New Retirement System - Summary: This working paper, according to the proponents, documents the need for a new retirement system in the US, details principles that should guide the development of a new system, and provides examples of plans and proposals that incorporate these principles. Located at: Retirement-usa.com (PDF File). Click on headline for full article.

Fed and FTC Regulation of Retirement Plan Loans to Participants - Summary: Retirement plans have long been subject to certain consumer credit rules primarily intended for very different credit arrangements. Just as plans are being relieved of compliance with one such set of rules, however, a new set of requirements may possibly become applicable. Located at: Sutherland.com (PDF File). Click on headline for full article.

Final Regulations on Automatic Contribution Arrangements - Summary: IRS published final regulations relating to automatic contribution arrangements, i.e., a default election to contribute the automatic deferral percentage set by the plan. Located at: Transamerica Center for Retirement Studies (PDF File). Click on headline for full article.

Getting Ready for EFAST2 - Summary: Beginning with the 2009 plan year, the Department of Labor will require retirement and welfare plans to file their annual reports (Form 5500) electronically. To ease the transition, preparers need to familiarize themselves with the new electronic filing system. Located at: Sungard/Relius. Click on headline for full article.

Invest. Advice Rule Implementation Delayed - Summary: The U.S. Department of Labor has delayed the effective date of its final rules about providing retirement plan participant invest. advice. Located at: Planadviser.com. Click on headline for full article.

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