BPP401k.com Newsletter Benefit Plans Plus 4_8

BPP401k.com Newsletter
April 8, 2009

News Highlights

Retirement Plans for Small Businesses Implementing a retirement plan for your company accomplishes two goals: It sends a message to current and prospective employees that you're concerned about their standard of living in retirement, which helps attract and retain employees. In addition, the plan can also offer the employer tax savings and a way to secure their own retirement along with that of their employees.

401(k)risis: Brace for Repercussions The stock-market meltdown has dealt a crushing blow to retirement plans. But far more profound may be the impacts still to come: lawsuits, new regulations, and the specter of an aging workforce that, like a bad party guest, shows no inclination to leave.

ERISA Delegation for Plan Sponsors There is a widespread misconception even among many otherwise well-informed employee benefits attorneys that sponsors of qualified retirement plans such as 401k plans cannot delegate their day-to-day administrative and investment fiduciary responsibilities and liabilities to others.

PIMCO Release Study on DC Consulting Trends Amid the ongoing turmoil in financial markets, investment consultants say that defined contribution retirement plans, such as 401ks, are most concerned with capital preservation, diversification and inflation protection, according to the "2009 Defined Contribution Consulting Support and Trends Survey" released by PIMCO.

Fiduciary Standard an Issue in Unifying Advisory Regulations A consensus appears to be developing in Washington under which FINRA could gain regulatory control over investment advisers in return for requiring all of them, including brokers, to come under fiduciary standards.

Towers Perrin Legislative Tracking Chart - Summary: This chart tracks bills related to retirement and executive compensation. Thousands of bills are introduced in Congress but only a select few are summarized on this chart. This selection represents Towers Perrin's best judgment on the likelihood of enactment and the relevance of the issue for employers. Located at: Towers Perrin (PDF File). Click on headline for full article.

Retirement Plans for Small Businesses - Summary: Implementing a retirement plan for your company accomplishes two goals: It sends a message to current and prospective employees that you're concerned about their standard of living in retirement, which helps attract and retain employees. In addition, the plan can also offer the employer tax savings and a way to secure their own retirement along with that of their employees. Located at: CNBC. Click on headline for full article.

401(k)risis: Brace for Repercussions - Summary: The stock-market meltdown has dealt a crushing blow to retirement plans. But far more profound may be the impacts still to come: lawsuits, new regulations, and the specter of an aging workforce that, like a bad party guest, shows no inclination to leave. Located at: CFO.com. Click on headline for full article.

Survey Sees Increased Savings, Steady 401k Contributions - Summary: Compared to MMI's June 2008 survey, 50 percent more Americans are increasing their savings. Gen Ys are leading the nation at 44 percent. And only 15 percent of consumers surveyed say they are cutting back or eliminating contributions to 401k plans. Located at: 401khelpcenter.com. Click on headline for full article.

Feeling the Pinch from Shortfalls in Retirement Funding - Summary: The ripple effect of shrinking retirement accounts and under-funded pensions threatens to undermine the broader economy as older Americans delay retirement, local governments raise taxes, and companies challenged with withering pension balances lay off workers in response to the shortfall. Located at: Wharton School. Click on headline for full article.

ERISA Delegation for Plan Sponsors - Summary: There is a widespread misconception even among many otherwise well-informed employee benefits attorneys that sponsors of qualified retirement plans such as 401k plans cannot delegate their day-to-day administrative and investment fiduciary responsibilities and liabilities to others. Located at: Morningstar.com. Click on headline for full article.

How Much Information Is Enough to Decide a Breach of Fiduciary Duty Lawsuit? - Summary: Is a motion to dismiss a good tool for disposing of major breach of fiduciary duty lawsuits? In essence, should it be treated as a mini-summary judgment proceeding, that tests the sufficiency of the case's theories against, not the detailed facts of a specific case, but instead against the world as a whole as understood by the court? Located at: Boston ERISA Law Blog. Click on headline for full article.

Merck Loses Challenge to Company Stock Fiduciary Claims - Summary: The U.S. District Court for the District of New Jersey has refused to issue summary judgment for Merck & Co. on claims the drug maker breached its fiduciary duties by continuing to offer company stock as an investment option in its retirement plans. Located at: Planadviser.com. Click on headline for full article.

PIMCO Release Study on DC Consulting Trends - Summary: Amid the ongoing turmoil in financial markets, investment consultants say that defined contribution retirement plans, such as 401ks, are most concerned with capital preservation, diversification and inflation protection, according to the "2009 Defined Contribution Consulting Support and Trends Survey" released by PIMCO. Located at: 401khelpcenter.com. Click on headline for full article.

Fiduciary Standard an Issue in Unifying Advisory Regulations - Summary: A consensus appears to be developing in Washington under which FINRA could gain regulatory control over investment advisers in return for requiring all of them, including brokers, to come under fiduciary standards. Located at: Investment News (free registration may be required). Click on headline for full article.

IRA Proposal Irks Some Independents - Summary: A congressman's suggestion that only independent advisers be permitted to give advice to participants in the small-company individual retirement accounts proposed by President Obama may not go far enough, according to some financial advisers. Located at: Investment News (free registration may be required). Click on headline for full article.

AARP Bulletin Survey on Retirement Savings - Summary: The AARP Bulletin commissioned a nationwide survey in February 2009 to find out if and how Americans are changing their general savings and retirement savings behaviors. This is the executive summary. Located at: AARP (PDF File). Click on headline for full article.

Workers' Primary Retirement Plan Type - Summary: What is the primary type of retirement plan among workers who participate in a such a plan? Located at: Employee Benefit Research Institute (PDF File). Click on headline for full article.

DOL & SEC to Probe Target Date Funds - Summary: The Department of Labor is set to begin an “immediate review” of target date funds — one that could lead to new regulations placed on the all-in-one investment strategies. Located at: Investment News (free registration may be required). Click on headline for full article

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