More Employers Considering Annuities in 401k Plans The number of employers planning to offer annuities to participants in their 401k plans is expected to grow as companies look for ways to provide workers with a steady distribution of benefits during retirement, according to a survey by Watson Wyatt. Source: 401khelpcenter.com

Retirement Plan Participation Showed Small Decline 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, according to a study released by the Employee Benefit Research Institute. Source: CCH

Look Before Rolling Over a Business Startup Promoters have been marketing on the Internet the use of 401k funds to purchase franchises or startup businesses, which normally require up-front material sums of monies to launch. However, those seriously contemplating pursuing such a financing maneuver to fund a new business should tread carefully. Source: webCPA.com

The Independent Fiduciary Experience Sponsors who want to do right by their employees, reduce their own legal exposure, and simplify their daily lives should consider hiring an independent fiduciary. Source: The Float Blog

Conventional Wisdom, Fiduciary Duty and 401ks 401k fiduciaries are in uncharted territory and pay heed to the advice of Robert Khuzami, director of the Securities and Exchange Commission's Division of Enforcement, that "it's better to be in the prevention business than the cleanup business." This article discusses steps fiduciaries should take to minimize the likelihood of successful lawsuits against them. Source: Investment Horizons

Towers Perrin Retirement 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 of the issue for employers. Source: Towers Perrin

Senator Kohl Announces Intent to Strengthen Fiduciary Oversight of Target Date Funds U.S. Senator Herb Kohl, chairman of the Senate Special Committee on Aging, announced his intent to introduce legislation that will require target date fund managers to take on a fiduciary responsibility in order for such funds to be eligible for the designation of QDIA. Source: 401khelpcenter.com

Advisor Releases White Paper on 403(b) Retirement Plan ERISA Compliance Diversified Investment Advisors has released a white paper on 403(b) plan compliance with ERISA statutes. Diversified partnered with Groom Law Group to prepare the paper in light of the urgency surrounding compliance with the final 403(b) regulations and the pressing concern regarding the application of proper fiduciary practices. Source: 401khelpcenter.com

IRS Offers Initial Remedial Amendment Period Guidance for 403(b) Plans Signaling what will be coming down the pike soon for 403(b) plans, the IRS has issued Announcement 2009-89 to provide some information in advance of the anticipated 403(b) "pre-approved" or prototype program, which it says will be out "in a few months", and will be followed by an individual determination letter program. Source: Groom Law Group

IRS Announces Future Guidance on Procedures for 403(b) Plan Qualification The IRS has announced that it will issue revenue procedures in the next few months for obtaining opinion letters for prototype 403(b) plans and for obtaining determination letters for individual 403(b) plans. An employer that adopts a pre-approved plan with a favorable opinion letter or that applies for an individual determination letter under these revenue procedures will be able to retroactively correct any defects in its 403(b) plan. Source: Buck Consultants

DOL Confirms That Assets in Registered Fund of Funds Are Not Subject to ERISA In Advisory Opinion 2009-04A, the U.S. Department of Labor opined that assets in a fund of funds registered under the Investment Company Act of 1940 are not plan assets subject to regulation under ERISA. A money manager requested the opinion, out of a policy concern about the practice of target-date or life cycle funds investing in affiliated mutual funds. Source: Sutherland Asbill & Brennan LLP

Employee Plans News - Winter 2010 Edition This edition includes articles such as 2010 Rules for Roth IRAs; Roth IRA Distributions; Notice Requirements for Pension Plans That Reduce Benefit Accruals; 2009-2010 EP Guidance Plan; Priorities for the Upcoming Year; Deadline for Certain Required Plan Amendments is Extended; The EPCU Insider; and PBGC Insights. Source: IRS

Misinterpreting the IRS' New PPA Amendment Deadline Could be Costly Plan sponsors who have not yet adopted the PPA and WRERA amendments for which the deadline has not been extended still need to do so, generally before the end of this year. If they do not do so, they will be exposed to penalties under the IRS correction programs or on plan audit. Source: Pensions Benefits Law Blog

No Extension of PPA Amendment Deadline Contrary to rumors currently circulating, IRS Notice 2009-97 does not provide for a general extension of the deadline to adopt a good-faith PPA amendment. The amendment only delays the deadline for three specific PPA provisions. Source: Sungard/Relius