Drastic 401k Reform Unlikely, Expert Says Within the past year or so, a major overhaul of the 401k system has seemed quite possible. But such calls have not won over the bulk of Democratic lawmakers or President Obama, a legal expert says. Source: Workforce.com

Cat Settles 401k Fee Lawsuit for $16.5 Million Caterpillar and the law firm of Schlichter, Bogard & Denton today announced they have reached a tentative settlement of Martin, et al. v. Caterpillar Inc. The case involves a dispute over the administration of four 401k plans for Caterpillar employees and retirees. Source: Caterpillar Inc.

Employers Strike Out Supporting Employee's Needs on 401k Plans One in five employees indicate they are dissatisfied with the current support they receive from their employer on 401k plan, according to a new national study released this week. Source: 401khelpcenter.com

Future Taxes Make 401k Less Advantageous The expectation of higher taxes is taking some of the shine off 401k plans, and has savers looking for more post-tax options. Source: Wall Street Journal

Target-Date Funds Survey This is the published results of a recent survey conducted be PSCA on target-date funds. PSCA received 397 responses from plan sponsors. 54.8 percent of responding companies have more than 1,000 participants. Source: Profit Sharing/401k Council of America

403(b) Prototype Likely to Allow for Vesting Schedules The Internal Revenue Service is reportedly working on a final revenue procedure for Section 403(b) prototype plans that takes into account comments received including allowing for vesting of employer contributions. Source: Planadviser.com

Towers Perrin Retirement and Executive Compensation Legislative Tracking Chart 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 to retirement and executive compensation. Source: Towers Perrin

Financial Services Committee Approves Investor Protection Act The House Financial Services Committee passed H.R. 3817, the Investor Protection Act, by a vote of 41-28. The legislation is part of a broader effort to modernize America's financial regulatory system. Source: House Financial Services Committee

Fiduciary Debate Lands at Supreme Court The debate over investment advisors' fiduciary duty has made it all the way to the Supreme Court. On Monday, November 2, Supreme Court Justices heard oral arguments from lawyers for three investors who claimed that Harris Associates of Chicago, the investment advisor for the Oakmark family of mutual funds, charged them higher fees for similar services than it did to independent institutional investors such as pension funds. Source: Investmentadvisor.com

Retirement Plan Participation Showed Small Declines in 2008 Participation in employment-based retirement plans decreased by small amounts for most categories of workers in 2008, but those with the strongest connection to the work force experienced the smallest decline: 0.5 percentage point, according to a study released today by the nonpartisan Employee Benefit Research Institute. Source: Employee Benefit Research Institute

401k Asset Allocation and Participant Age in 2008 The latest update of the EBRI/ICI 401k database shows that at year-end 2008, as in previous years, participants' asset allocation varied considerably with age. Source: Employee Benefit Research Institute

Automation, Low-Cost Investment Options and Invest. Advice Becoming Standard Features in 401k Plans A new survey by Hewitt Associates shows employers continue to design their 401k plans in a way that encourages positive saving and investing behaviors and helps employees meet their increasing retirement income needs. Source: 401khelpcenter.com

IRS Retirement and Savings Initiatives In a recent flurry of activity, the Internal Revenue Service has issued a series of notices and revenue rulings designed to promote retirement savings and address technical issues related to certain plan distributions. Source: Dechert LLP