BPP401k.com Newsletter Benefit Plans Plus 6_17

BPP401k.com Newsletter
June 17, 2009

News Highlights

Advisers Will Have Trouble Dabbling in Retirement Increasingly complex market trends will make it impossible for financial professionals to dabble in the retirement space, a new report says.

Bill Would Allow Independent Advisers to Counsel Plan Participants A key Congressional committee is expected to vote on a proposal - as early as next week -that could potentially bar thousands of brokers from providing invest. advice to 401k participants, according to sources.

U.S. Retirement Market Data for 2008 ICI published its annual report on the U.S. retirement market, which shows that Americans held $14.0 trillion in retirement assets at year-end 2008, down 22 percent from year-end 2007.

Complying with ERISA's Fidelity Bonding Requirements Answers to common questions about ERISA's fidelity bonding requirements.

Summary of The Defined Contribution Plan Fee Transparency Act of 2009 This is the official summary of a bill (H.R. 2779) that would add new Section 4980H to the Internal Revenue Code requiring notice to plan participants and taxes for failure to comply.

Advisers Will Have Trouble Dabbling in Retirement Increasingly complex market trends will make it impossible for financial professionals to dabble in the retirement space, a new report says.

Complying with ERISA's Fidelity Bonding Requirements - Summary: This article answers common questions about ERISA's fidelity bonding requirements. Located at: Sidson Consulting (PDF File). Click on headline for full article.

Many Americans Are Not Financially or Emotionally Prepared for Retirement - Summary: Almost four in 10 Americans are not currently saving for retirement and, despite market losses, six in 10 Americans have not adjusted their thinking about what age they will retire, according to a survey by Charles Schwab. Located at: 401khelpcenter.com. Click on headline for full article.

Economy Not Putting Pressure on Small Biz Ability to Offer 401k - Summary: According to a Nationwide Financial Services survey released today, most small businesses don't think the economy will impact their ability to offer a 401k retirement plan. Located at: 401khelpcenter.com. Click on headline for full article.

Schwab Releases Data on Employer and Worker 401k Behavior - Summary: Charles Schwab released new 401k plan data indicating that while the economic downturn has impacted some aspects of employer and worker behavior in plans, both groups have largely stayed the course and remained committed to their plans. Located at: 401khelpcenter.com. Click on headline for full article.

Employers Are Divided Over Adequacy of 401ks - Summary: Employers are evenly split between those who say their 401k plans can provide adequate retirement savings for employees and those who say they can't or are unsure, according to a Mercer survey. Located at: Workforce.com (free registration may be required). Click on headline for full article.

Study Shows 401k Participants' Continued Resilience During Volatile First Quarter of 2009 - Summary: In the face of the U.S. stock market's 44% drop over the 15 months ended March 31, 2009, the 3 million participants in defined contribution plans administered by Vanguard experienced a median decline in their account balance of less than half of that for the period, according to new research from Vanguard. Located at: 401khelpcenter.com. Click on headline for full article.

More 401k Plan Sponsors Considering Collective Trusts - Summary: Move over mutual funds. The number of collective investment trusts available to institutional investors is exploding, and the trusts are offering many 401k plan sponsors a less expensive way to provide competitive investment options to employees. Located at: Workforce.com (free registration may be required). Click on headline for full article.

Fidelity Released the Results of Its Second Couples Retirement Study - Summary: The results show that despite two years of unprecedented economic and financial instability, which has severely impacted most American households, husbands and wives have done little to improve their communication, planning and management of retirement finances. Located at: Fidelity Investments. Click on headline for full article.

Borrowing From 401ks - Summary: A new government report breaks from conventional wisdom and casts doubt on some long-held beliefs about the negative effects of borrowing from a 401k fund. Shifting expensive consumer debt to defined-contribution plans may make sense for some workers. Located at: Human Resource Executive Online. Click on headline for full article.

Default, Framing and Spillover Effects: The Case of Lifecycle Funds in 401k Plans - Summary: Important behavioral factors such as default and framing effects are increasingly being employed to optimize decision-making in a variety of settings, including individually-directed retirement plans. Yet such approaches may have unintended "spillover" effects, as this paper shows with regard to the introduction of lifecycle funds in U.S. 401k plans. Located at: Pension Research Council at The Wharton School (free registration may be required). Click on headline for full article.

U.S. Retirement Market Data for 2008 - Summary: ICI published its annual report on the U.S. retirement market, which shows that Americans held $14.0 trillion in retirement assets at year-end 2008, down 22 percent from year-end 2007. Located at: Investment Company Institute (PDF File). Click on headline for full article.

Monthly Regulatory Round-Up - Summary: This monthly regulatory round-up produced by Towers Perrin is a high-level summary of legal and regulatory developments that occurred during May 2009 that may be relevant to large plan sponsors. Located at: Towers Perrin (PDF File). Click on headline for full article.

Administration Explores 'R Bond' As Option for Retirement Accounts - Summary: Officials in the Obama administration are moving quickly to develop the investment infrastructure behind the president's proposal for mandatory automatic enrollment in individual retirement accounts, which could be supported by the creation of Treasury-issued retirement bonds. Located at: Investment News (free registration may be required). Click on headline for full article.

Bill Would Allow Independent Advisers to Counsel Plan Participants - Summary: A key Congressional committee is expected to vote on a proposal - as early as next week -that could potentially bar thousands of brokers from providing invest. advice to 401k participants, according to sources. Located at: Investment News (free registration may be required). Click on headline for full article.

Summary of The Defined Contribution Plan Fee Transparency Act of 2009 - Summary: This is the official summary of a bill (H.R. 2779) that would add new Section 4980H to the Internal Revenue Code requiring notice to plan participants and taxes for failure to comply. Located at: American Benefits Council (PDF File). Click on headline for full article.

ABC's Proposed Modifications to H.R. 1984 - Summary: Paper from the American Benefits Council with suggested modifications to H.R. 1984, The 401k Fair Disclosure for Retirement Security Act Of 2009. Located at: American Benefits Council (PDF File). Click on headline for full article.

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