BPP401k.com Newsletter Benefit Plans Plus 5_13

BPP401k.com Newsletter
May 13, 2009

News Highlights

Vast Regulatory Reform Bill Will Be Law By Yearend Systemic-risk regulator would have sweeping powers to regulate financial activity

When Will Retirement Savings Rebound? Depends on who you ask, but nearly four out of 10 Americans — or 39 percent—said they expect it'll take at least three years to recover the value of their retirement savings that were lost in the downturn.

How a 'Universal' Fiduciary Standard Would Change How Financial Advisers Do Business How will things be different if a robust fiduciary standard, grounded in the Employee Retirement Income Security Act, is adopted for all advice givers?

What Effect Does a Retirement Plan Adviser Have On a Plan? Though the data are not staggering, it appears that plans with an adviser are more diligent about monitoring the plan provider and investments than plans without an adviser.

Does America Need a New Retirement System? Some say 401ks are being criticized unfairly in this unprecedented economic crisis, while others say the downturn proves that 401ks were never meant to be anyone's primary source of retirement savings. Should we be rethinking our retirement savings system?

Vast Regulatory Reform Bill Will Be Law By Yearend Systemic-risk regulator would have sweeping powers to regulate financial activity. Investment News

When Will Retirement Savings Rebound? - Summary: Depends on who you ask, but nearly four out of 10 Americans—or 39 percent—said they expect it'll take at least three years to recover the value of their retirement savings that were lost in the downturn. Located at: Workforce.com (free registration may be required). Click on headline for full article.

More People Tap Retirement Accounts - Summary: The number of companies reporting early withdrawals for hardship from 401k and 403(b) plans rose to 44% last month from 15% in October 2008, according to a recent Watson Wyatt study that polled executives at 141 U.S.-based companies using an online questionnaire. Located at: Wall Street Journal. Click on headline for full article.

Women Need a Three-Legged Stool to Break the Retirement Glass Ceiling - Summary: Women remain at a higher risk for retirement insecurity as compared to men, according to a new research brief issued today by the National Institute on Retirement Security. That risk can be reduced by ensuring women have the combination of a traditional pension, supplemental 401k-type individual savings, and Social Security. Located at: 401khelpcenter.com. Click on headline for full article.

Increasing Low-Income Employee Participation in 401k Plans - Summary: Suppose you're a plan sponsor that wants to increase 401k participation among your low income employees, what do you do? Located at: Retirement Plan Blog. Click on headline for full article.

401ks Hit by Withdrawal Freezes - Summary: Some investors in 401k retirement funds who are moving to grab their money are finding they can't. Investors cry foul as some funds close exits. Located at: Wall Street Journal. Click on headline for full article.

Does America Need a New Retirement System? - Summary: Some says 401ks are being criticized unfairly in this unprecedented economic crisis, while others say the downturn proves that 401ks were never meant to be anyone's primary source of retirement savings. Should we be rethinking our retirement savings system? Located at: MSN.com. Click on headline for full article.

Putnam CEO Calls for Sweeping Retirement Reform Agenda - Summary: Recognizing the declining role of traditional pension plans and Social Security, Reynolds calls for dramatic expansion and strengthening of 401ks and other defined-contribution savings plans to reliably deliver lifelong income to workers, including improvements in regulatory oversight, plan design and tax incentives. Located at: 401khelpcenter.com. Click on headline for full article.

Insurance to Protect 401ks: The Trick Is to Figure Out How - Summary: If ever there were a product whose time has come, this would seem to be it: a guarantee that you won't lose the money you've amassed in your 401k as you near retirement, whatever happens with the market. And you can convert that money into a stream of paychecks that will last your entire life. Located at: Wall Street Journal. Click on headline for full article.

Retirement at the Tipping Point: The Year That Changed Everything - Summary: To learn precisely how this past year has altered Americans' retirement hopes, worries, and plans, Age Wave and Harris Interactive have surveyed thousands of Americans. The results uncovered mounting fears and shifting plans, but also a renewed focus on what's important and an optimistic outlook about the possibilities for retirees' new role in American life. Located at: Age Wave (PDF File). Click on headline for full article.

Making the Case for Employer-Sponsored Retirement Plans: Coverage, Participation and Retirement Security - Summary: This white paper is the second installment in a series developed by The SPARK Institute to demonstrate that employer-sponsored retirement plans, particularly 401k plans, are the most effective, secure and viable way for American workers to save and invest to reach their retirement goals. Located at: The Spark Institute (PDF File). Click on headline for full article.

Delegation for Plan Sponsors (Part 2) - Summary: Plan sponsors that choose to delegate their responsibilities and liabilities to a professional named fiduciary can, in effect, get out of the retirement plan business and be free to concentrate fully on their business so they can stay in business during these troubled times instead of worrying about fiduciary risks they are neither prepared nor trained to manage. Located at: Morningstar.com. Click on headline for full article.

What Effect Does a Retirement Plan Adviser Have On a Plan? - Summary: Though the data are not staggering, it appears that plans with an adviser are more diligent about monitoring the plan provider and investments than plans without an adviser. Located at: Plan Adviser Magazine. Click on headline for full article.

How a 'Universal' Fiduciary Standard Would Change How Financial Advisers Do Business - Summary: How will things be different if a robust fiduciary standard, grounded in the Employee Retirement Income Security Act, is adopted for all advice givers? The high-level answer is that the advice would be uniformly recognized and regulated as a professional service. The era of regulating brokers under a commercial standard that treats advice as a byproduct dispensed without fiduciary accountability would end. Located at: Investment News (free registration may be required). Click on headline for full article.

Changes Coming for the 401k Plan - Summary: Policy makers and some industry representatives say major changes to retirement investing and 401k plans are becoming increasingly likely under the Democratic Party's control of Congress. Located at: Wall Street Journal. Click on headline for full article.

401k Reform on the Horizon? Q&A with Rep. Miller - Summary: For the second year in a row, Rep. Miller is trying to get legislation through Congress to force 401k providers to reveal their fees in plain English. In this recent interview with The Associated Press, Miller explains his view on fee disclosure and the prospects of getting legislation passed this year. Located at: The Post-Standard. Click on headline for full article.

Conflicted Invest. Advice Prohibition Act of 2009 - Summary: Text of bill introduced by Congressman Rob Andrews to update the invest. advice regulations to the Pension Protection Act to allow for independent invest. advice. Located at: Plansponsor.com (PDF File). Click on headline for full article.

Rep. Rob Andrews Introduces Invest. Advice Bill - Summary: Legislation introduced by Rep. Robert Andrews, D-New Jersey, would dramatically revamp the ground rules for offering invest. advice to participants in defined-contribution pension plans. Located at: Workforce.com (free registration may be required). Click on headline for full article.

Final Guidance on Automatic Enrollment Plan Designs - Summary: The IRS published final regulations and addressed some of the concerns raised regarding the proposed rules. Plan sponsors that have adopted or are interested in adopting these designs should review the information provided in this publication. Located at: Prudential (PDF File). Click on headline for full article.

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