BPP401k.com Newsletter
May 6, 2009
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The Challenge of Communicating 401k Cuts - Summary: A growing number of employers are struggling with the best way to inform the work force of such cuts. Employers want to make sure they convey to employees accurate legal information about the change, but they also want to address workers with compassion—and a clear message that sets the context for the decision. Located at: Workforce.com (free registration may be required). Click on headline for full article.
Amending Your Plan to Reduce or Eliminate Employer Contributions - Summary: Many plan sponsors are asking about their ability to reduce or terminate matching and profit sharing contributions to their 401k retirement plans. This article provides some guidelines if you are faced with these decisions. Located at: M&I Institutional Trust Services (PDF File). Click on headline for full article.
Pros and Cons of 401k Loans and Early Distributions - Summary: Retirement plans are intended to help employees save for retirement. Although fundamental, this concept has been eroded in the context of 401k plans because many employees believe that loans, hardship distributions and in-service distributions should be automatically permitted, particularly with regard to employee contributions. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
401k Plans Eye Annuities With Caution - Summary: Given the stock market's volatility, a number of 401k plan sponsors are seriously discussing adding an annuity option to their 401k plans, but have concerns ranging from fees to fiduciary issues. Located at: Workforce.com (free registration may be required). Click on headline for full article.
10 Myths About 401ks -- And the Facts - Summary: In recent months, several myths about 401ks have gained currency. This document has the top 10 myths about 401ks--and provides the facts. Located at: Investment Company Institute (PDF File). Click on headline for full article.
Hot Topics in Retirement 2009 - Summary: Hewitt Associates surveyed employers to learn their likely areas of focus and action in 2009 regarding the design, management, and delivery of their defined contribution, defined benefit, and retiree medical plans for their active, salaried U.S. employees. Located at: Hewitt. Click on headline for full article.
Form 1099-R Legal Authority - Summary: An answer to the question, "What is the legal authority for the requirement to file a Form 1099-R?" Located at: Benefitslink.com. Click on headline for full article.
Thoughts on Properly Delegating Fiduciary Duties - Summary: Recognizing the high anxiety of today's ERISA fiduciaries, some plan service providers are offering to "share the fiduciary load" by stating in their service agreements that they are co-fiduciaries. But what does that really mean? This article explains that co-fiduciary status is, at best, a half measure. Located at: Jones Day (PDF File). Click on headline for full article.
Wal-Mart Fee Case and Fighting Fiduciaries - Summary: The court battle continues over the class-action lawsuit against Wal-Mart, alleging excessive fees and conflicts of interest by 401k plan fiduciaries. Heavy hitters are lining up on opposing sides: The DOL on behalf of the employees and three large business organizations on the other. Located at: HREonline.com. Click on headline for full article.
"Red Flags Rule" Raises Questions for Some 401k Plan Sponsors - Summary: Plan sponsors that are considered financial institutions or creditors may be subject to the Red Flags Rule on and after May 1, 2009, with respect to employee benefit plans that offer plan loans or feature individual accounts. This Q&As explain the Red Flags Rule, provide guidance on determining whether the Rule applies to an entity, and outlines the Rule's requirements. Located at: Pillsbury Winthrop Shaw Pittman LLP (PDF File). Click on headline for full article.
Audio Interview with Fred Reish - Summary: As the retirement industry faces new regulations, what will it mean for retirement plan advisers? Located at: Plansponsor.com. Click on headline for full article.
403(b) Communication Takes on New Role - Summary: Retirement plan advisers have an opportunity to help 403(b) plan sponsors reach out to participants in a variety of ways. Located at: Planadviser.com. Click on headline for full article.
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.
Andrews 401k Legislation Raises Questions - Summary: Although it is too early to tell what will become of the proposed advice legislation, it raises practical application questions. Located at: Planadviser.com. Click on headline for full article.
More 403(b) Guidance on the Way, IRS Official Says - Summary: The IRS's Employee Plans unit will issue more guidance on how to satisfy the requirements for 403(b) plans, EP Tax Law Specialist Robert Architect stated on April 16, 2009 in an IRS phone forum. Located at: CCH. Click on headline for full article.
Prototype 403(b) Plans - Summary: As expected, the IRS recently announced that it will be establishing a prototype program for 403(b) plans (IRS Announcement 2009-34). The Announcement also includes a draft Revenue Procedure setting forth the parameters of the 403(b) prototype program. Located at: Sungard/Relius. Click on headline for full article.
Determining the Best Investment Choices for 403(b) Plans - Summary: While compliance efforts have led some 403(b) plan sponsors to adjust their investment menu, others have moved forward with existing offerings. There are a number of things plan sponsors should consider when deciding what to do about investments. Located at: Plansponsor.com (free registration may be required). Click on headline for full article.
2009 Investment Company Fact Book - Summary: ICI's annual compilation report and review of trends and activity in the mutual fund industry. Located at: Investment Company Institute (PDF File). Click on headline for full article.
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