COMMENTARY: Did You Retire This Year? Better Get Back to Work - Summary: Author writes, "The scariest thing about retiring in this stagnant economy is that if you do realize you're running out of money, it will be tough to find a job that pays as well as the one you had -- much less find one at all. Here's why most retiring Boomers in the private sector will likely run out of money in five years or less." Source: Huffingtonpost.com, October 2011.

COMMENTARY: Misguided Presumption in Citigroup, McGraw Hill Rulings - Summary: The cases underscore a conflict between a plan sponsor's fiduciary duty under the Employee Retirement Income Security Act to protect participants' retirement savings, and a company's goal of encouraging employee ownership of company stock. Source: Pensions & Investments (free registration may be required), October 2011.

Recent Developments in Employee Benefits and Executive Compensation - Summary: This newsletter briefly discusses a recent development in employee benefits and executive compensation including several recent court decisions. Source: Blank Rome LLP, October 2011.

Keep 401k Clients Calm in Turbulent Times - Summary: The markets have been on a wild ride over the past few months, and the frenzied intraday whipsawing has made even seasoned investors queasy. Anticipating questions - and having the answers - will keep them on a steady course. Source: Investmentnews.com (free registration may be required), October 2011.

Workers Remain Committed to 401k Saving - Summary: A new Investment Company Institute study of participant activity in 401k plans shows that individuals are still committed to saving for their retirement, despite market volatility. Source: Benefitspro.com, October 2011.

COMMENTARY: The Slam on Annuities in Retirement Plans is Uninformed and Way Off Base - Summary: The author writes, "Some annuities are bad. Therefore all annuities are bad. That's the deeply flawed logic of a recent Huffington Post article, calling annuities "the biggest financial rip-off on the planet." The article clearly illustrates a lack of understanding of the annuity marketplace and the challenges of generating lifetime retirement income. And it does a major disservice to the public by labeling annuities "toxic" and believing that there's an "annuity scam" being put in place by Congress." Source: CBS Moneywatch, October 2011*.

Is Your Ex Going to Inherit Your 401k Plan Account? Are You Sure? - Summary: There have been tragic stories about people forgetting to update their retirement plan or life insurance beneficiaries after a life-changing event. It is not uncommon for retirement plan assets to go to the ex-spouse instead of the current spouse. There are a few simple steps that retirement plan participants can take to make sure they aren't part of this story. Source: 401khelpcenter.com, October 2011.

Labor Department, SEC Coordinate on Participant 401k Fee Disclosures - Summary: The Labor Department and the SEC have agreed that if fee disclosures to employees on their retirement plan investment options meet the DOL's requirements, then they also satisfy the SEC's advertising rules. Agreement eases service providers' worries on complying with two separate rules. Source: Investmentnews.com (free registration may be required), October 2011.

Retirement Planning Options Abound for the Self-Employed Businessperson - Summary: More than 9 million self-employed people are not covered by a retirement plan, according to the U.S. Small Business Administration. Many of those people are business owners who may be hoping to retire on the profit they expect to make from selling their companies in the future. They could be in for disappointment if their plans don't pan out as expected. This article reviews a few of the retirement savings options for the self-employed. Source: Insurancenewsnet.com, October 2011.

Problem Employees and the Hazards of Disregarding ERISA Information Requests - Summary: A recent case from the 5th Circuit Court of Appeals, Kujanek v. Houston Poly Bag I Ltd., highlights a number of important ERISA rules that may come up in the context of contentious employee terminations. The take-away from this case is that employers must be diligent in responding to an employee's ERISA document and information requests, even if the employee has not satisfied the technical plan rules for making the request. Source: Hawley Troxell Ennis & Hawley LLP, October 2011.

Plan Sponsors: The (Year) End Is Near! - Summary: It's time for plan sponsor's to be getting ready for year-end issues. This is a Morgan Lewis presentation on a number of issues that sponsors need to review, including: Annual Notices for Qualified Plans; New Fee Disclosure Notices; New IRS Form 8955-SSA; Year-End Amendments; IRS Determination Letter Filings; New Plan Limits for 2012; and, Puerto Rico Considerations. Source: Morgan, Lewis & Bockius LLP , October 2011.

DOL Releases Final PPA Participant Advice Regulation - Summary: This final regulation brings to a conclusion an almost five-year process to implement the PPA exemptions permitting "level fee" and "computer model" advice for retirement plan participants and IRA beneficiaries. In broad scope, the final regulation retains the general structure and terms of the Obama Administration's March 2, 2010 proposal, with several refinements and clarifications. The regulation is effective as of December 27, 2011. Source: Sutherland Asbill & Brennan LLP , October 2011.

How Do the ERISA Recapture Accounts Affect the Fee Disclosure Regulations? - Summary: Payments from an ERISA recapture account affect reporting and disclosure under both the service provider fee disclosure and the participant fee disclosure regulations. In this article discusses the impact. Source: Sungard/Relius, October 2011.

SEC Addresses Concerns About Participant-Level Fee Disclosure - Summary: The U.S. Department of Labor's Employee Benefits Security Administration has released a Securities and Exchange Commission letter regarding EBSA's participant-level fee disclosure regulation. The letter's intent is to resolve concerns about potential differences between the department's participant disclosure requirements and the SEC rules on advertising that may apply to plan investment options. Source: Planadviser.com, October 2011.

Defined Contribution Plan Participants' Activities, First Half 2011 - Summary: To measure participant-directed changes in DC plans, ICI has been tracking participant activity through recordkeeper surveys since 2008. This report updates results from ICI's survey of a cross section of recordkeeping firms representing a broad range of DC plans and covering nearly 24 million employer-based DC retirement plan participant accounts as of June 2011. The broad scope of the recordkeeper survey provides valuable inferences about recent withdrawal, contribution, asset allocation, and loan decisions of participants in these plans. Source: Investment Company Institute , October 2011.

Participant Fee Disclosure in 401k Plans: Part III - Summary: Part I and II of this series discusses how the new participant fee disclosure regulations under §404a-5 will cause increased confusion among participants without necessarily improving the participants' investment decision making process. Part III suggests one of many creative strategies to effectively manage the participant disclosure requirements. Source: Asset Strategy Consultants, October 2011.

DOL Issues Final Regulations Regarding Investment Advice to Participants - Summary: On October 25, 2011, the U.S. Department of Labor, through its Employee Benefits Security Administration, issued final regulations regarding the provision of investment advice to participants and beneficiaries under individual account plans, such as 401k plans and individual retirement arrangements. The Final Regulations become effective on December 27, 2011. Source: Ice Miller LLP, October 2011.

Retirement Beneficiary Designations: Getting the Right Assets to the Right People - Summary: As more and more people put significant amounts of money into retirement accounts such as 401ks and individual retirement accounts (IRAs), making sure that the assets in those accounts are distributed to the right people is even more important. Therefore, it is essential that you complete the proper beneficiary designations and keeping them up to date after life changes. Source: 401khelpcenter.com, October 2011.

Second Circuit Joins Five Other Circuits in Ruling Company Stock Investments in 401k Plans Are Presumptively Prudent - Summary: Given the Second Circuit's embrace of the presumption of prudence standard, it is incumbent on all 401k plan fiduciaries to again review their 401k plan's company stock investment language. Properly drafted company stock language may help ensure the presumption of prudence is applied in the event the price of company stock rapidly declines. Source: Winston & Strawn LLP , October 2011.

IRS Postpones Effective Date of Hybrid Plan Regulations and Extends PPA Amendment Adoption Deadline - Summary: On October 12, 2011, in Notice 2011-85, the IRS postpones the effective date for final hybrid plan regulations, extends the deadline set in PPA for adopting interim and discretionary hybrid plan amendments, and formalizes the 204(h) notice special timing rule in IRS Announcement 2009-82. Source: Buck Consultants , October 2011.

A Reasonable Approach to Fee Reasonableness - Summary: The question of fee reasonableness has gained added importance because of a series of class-action lawsuits in which plan participants have accused plan sponsors of failing to ward off excessive plan fees. The courts have said on numerous occasions that fiduciaries are not required to pick the lowest-cost service provider or to pick the lowest-cost investment funds . The requirement is to act prudently and to pay reasonable fees. Source: Vanguard.com, October 2011.

401k Retirement Plan "Leakage" - Summary: Wharton Professor Olivia Mitchell is a leading authority on pension plans. Dr. Mitchell has authored or co-authored many papers on 401k plans. One of her chief concerns is "leakage" from 401k's. In this Q&A, she helps us understand this problem and what can be done to plug the leaks. Source: Promanageplan.com, October 2011.

Application of the Service Provider Fee Disclosure Regulations to TPAs - Summary: TPAs are struggling to determine if and how the new service provider fee disclosure regulations will affect their practices. Many TPAs have determined that they are not subject to the disclosure requirements because they receive their compensation directly from the employer or from the plan. TPAs that have made such determinations may, nevertheless, have concerns because they may receive unanticipated indirect payments from financial institutions to which they refer business. In this article discusses how a TPA deals with unanticipated indirect compensation. Source: Sungard/Relius, October 2011.

DOL Probing Improper BD, IA Compensation From ERISA Plans - Summary: The Department of Labor is investigating broker-dealer and registered investment advisors' services to ERISA retirement plans. The CAP initiative is a national enforcement project designed to focus on the receipt of improper or undisclosed compensation by employee benefit plan consultants and investment advisers. Source: Benefitspro.com, October 2011.

EBSA Issues Final Rule on Statutory Exemption for Fiduciary Advisors Offering Eligible Investment Advice Arrangements - Summary: On October 25, 2011, the Department of Labor's (DOL), Employee Benefits Security Administration (EBSA) issued final regulations exempting fiduciary advisors, giving participants and beneficiaries investment advice under an eligible investment advice arrangement, from certain of the prohibited transaction provisions of the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code of 1986. Source: Practical Law Publishing, October 2011.

Spotlight on 401k Fees May Help Many Saving for Retirement - Summary: Fee arrangements are complex, and up to now they've been opaque even to employers. Investment firms tout "free" 401k choices that are, in fact, very costly, with fees hidden inside mutual funds' expense ratios. The disclosure rule may cause sticker shock for employees. Source: STLtoday.com, October 2011.

More 401k Plans, IRAs May Offer Investing Advice - Summary: More retirement savers may get personalized investment advice through their 401k plan or IRA, thanks to a new rule announced by the U.S. Labor Department. The rule allows 401k and IRA investment advisers to give advice to the people investing in the plan -- even if those advisers receive fees from the companies providing the investments -- as long as one of two conditions is met to avoid a conflict of interest. Source: Wall Street Journal, October 2011.

Workers Come Out Winners Even After 401k Lawsuits Are Losers - Summary: Litigation is having ancillary effects. Experts say the cases are prompting employers and regulators to reshape 401k plans to provide more investment choices and better disclosure about fees. Source: Wall Street Journal, October 2011.

Retirement Plan Providers Can Now Offer Own Advice - Summary: Some big retirement plans offer investors the chance to hire an independent adviser that can help them choose their investments. But your plan provider will soon be able to offer the advice itself, as long as it meets rules issued recently by the Department of Labor. Source: New York Times, October 2011.

Rule Lets 401k Plan Advisers Take More Fees - Summary: Regulation announced by the Department of Labor on Monday will allow investment advisers to retirement plans now receive fees from third parties, such as mutual funds, a change that may help those advisers expand their business with retirement plans. Source: Reuters, October 2011.

DOL's Final Regulations on Investment Advice - Summary: This document contains a final rule relating to the provision of investment advice to participants and beneficiaries in individual account plans, such as 401k plans, and beneficiaries of individual retirement accounts. The final rule affects sponsors, fiduciaries, participants and beneficiaries of participant-directed individual account plans, as well as providers of investment and investment advice related services to such plans. Source: U.S. Department of Labor , October 2011.

DOL Investigations: Broker-Dealers and RIAs as Targets - Summary: In recent months, we have heard of at least eight, and been involved in three, Department of Labor investigations of broker-dealers related to their services to ERISA retirement plans. These investigations appear to be part of the DOL's ongoing Consultant/Adviser Project (CAP). This article discusses the background that led to the creation of CAP, the issues that financial advisers need to focus on and steps they may wish to take now to avoid liability exposure under ERISA. Source: Drinker Biddle & Reath LLP, October 2011.

Despite Complaints, DOL Nixes Additional Fees for 401k Advisers - Summary: The Labor Department has finalized a rule that will deter advisers from receiving additional compensation based on the funds they choose for retirement plans. The rule, which covers investment advice for participants and their beneficiaries, will apply to employees in 401k plans as well as clients in individual retirement accounts. Source: Investmentnews.com (free registration may be required), October 2011.

Best Retirement Plans for the Self-Employed - Summary: If you're self-employed or have a sideline business, your best retirement-savings options are a Simplified Employee Pension (SEP) or a solo 401k plan. In both cases, your contributions are tax-deductible and grow tax-deferred until you withdraw the money in retirement. Source: Kiplinger.com, October 2011.

Target-Date Funds: Plan Sponsor Considerations - Summary: Some of the issues addressed in the article: 1) Growth in TDFs, especially in retirement plans, can in part be attributed to the qualified default investment alternatives (QDIAs) regulations released in 2006 and 2007; 2) More on the "To versus Through" difference between funds; and, 3) Some considerations for sponsors as they include TDFs in their plans: required disclosures, communications, and ongoing benchmarking. Source: Milliman , October 2011*.

Reclaiming Fiduciary Duty Balance - Summary: Reclaiming fiduciary duty balance between prudence, loyalty and impartiality is critical to sustaining pension promises. It would encourage better alignment of pension service providers' supply chain interests, adoption of fit-for-purpose pension fund governance practices, and implementation of precautionary risk management policies. Source: Reinhart Boerner Van Deuren , October 2011.

How Do You Handle U.S. Plan Document Requests? Fifth Circuit Finds Broad Fiduciary Responsibility - Summary: If you are like most 401k or pension plan administrators, you have procedures for participants to request plan documents and forms. They may be as simple as requiring document requests to be sent in writing to a designated employee. Section 104(b)(4) of ERISA requires that certain plan documents, including summary plan descriptions and 5500's, be provided to participants upon request. Failing to comply could result in a $110 per day penalty if a participant does not receive a requested document within 30 days and the plan administrator has no reasonable cause for the delay. But a recent case indicates that your exposure could be even broader. Source: Pensions & Benefits Law, October 2011.

The Current State of Retirement Document Drafting - Summary: This article surveys the current state of document drafting, including an overview of IRS-recognized document types and recommendations for improvement to the IRS determination letter program. Suggestions include allowing new types of plans into the pre-approval program and modifying the required interim amendment procedures. Also discusses when to request a determination letter and provides general drafting tips. Source: FTwilliam.com , October 2011.

IRS Announces Plan Limits for 2012 - Summary: On October 20, 2011, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2012. In general, many of the pension plan limitations will change for 2012 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged. Source: 401khelpcenter.com, October 2011.

IRS Changes and Clarifies Rules for Pre-approved Plans - Summary: The IRS released Rev. Proc. 2011-49, which updates its guidance for pre-approved (prototype and volume submitter) documents. This replaces Rev. Proc. 2005-16. The update is crucial since the deadline for submission of the next generation of preapproved defined contribution plans is January 31, 2012. Source: Sungard/Relius, October 2011.

IRS Updates List of Required Modifications for 401k and Other DC Plans - Summary: The IRS has released a revised list of required modifications (LRM) for 401k plans reflecting Code requirements as amended through the Small Business Jobs Act of 2010. The sample plan provisions include new text on eligible automatic contribution arrangements, in-plan Roth conversions and "gap period" earnings, among other items. A separate LRM covers all types of defined contribution plans and takes into account current qualification requirements as reflected in the IRS's 2010 cumulative list of changes. The LRMs are intended as a guide for drafters of preapproved plans. Source: Mercer, October 2011.

A Look at Defined Contribution Match Reinstatements - Summary: During the recent financial crisis, many employers took cost-cutting measures to preserve their cash. These included layoffs, hiring freezes, furloughs, salary freezes and, in a few cases, salary reductions. Some employers also scaled back retirement benefits, although the cutbacks were often temporary. This analysis looks at 260 companies that either reduced or suspended their 401k plan matching contribution after 2008 to see what happened next. Source: Towers Watson, October 2011.

Retirement Confidence Drops Nearly 20% in 2011 - Summary: American workers' trust in their future retirement has reached a four-year low, according to today's U.S. release of the Unretirement Index, a poll of nearly 1,500 working Americans by Sun Life Financial. After remaining stable for three years, retirement confidence dropped nearly 20% this September compared to a year earlier, according to the survey. Source: 401khelpcenter.com, October 2011.

Citigroup Wins in Workers' 401k Stock Drop Appeal - Summary: A federal appeals court said Citigroup Inc is not liable to thousands of workers who said it should not have offered bank stock in its retirement plans because it knew its subprime mortgage exposure made that stock a bad investment. Source: Reuters, October 2011.

401k Fee Litigation Update -- October 2011 - Summary: Over the past several years, more than two dozen lawsuits have been filed relating to 401k plan fees and, more specifically, "revenue sharing" arrangements with plan service providers. The focus of these lawsuits against the plan sponsors has evolved over time to include broader challenges to, among other things, the plan sponsors' selection of actively managed mutual funds as plan investment options. Source: Groom Law Group, October 2011.

Retirement Plan Providers Trying New 401k Ideas to Help Boost Balances - Summary: Several 401k providers are rolling out new bells and whistles. Some of the changes are driven by the realization that many workers haven't saved enough to get them through retirement. In addition, this summer's market volatility amid concerns of a global economic crisis has reduced their balances yet again, prompting many to pull their money out of the market. Source: TheRepublic.com, October 2011.

Fiduciary Duty Main Reason Clients Choose to Work With RIAs - Summary: Fiduciary duty tops the reasons why clients choose to work with independent registered investment advisors, according to a recent advisor sentiment survey released by TD Ameritrade Institutional. Twenty-nine percent of those surveyed said they chose to work with an RIA because they offer advice that is in the best interest of their clients. Source: Benefitspro.com, October 2011.

How Many Investment Options Should 401k Plan Sponsors Offer? - Summary: Far too many 401k plan sponsors don't know how to answer this important question. Of greater concern for 401k investors, far too many 401k plan sponsors fail to even ask the question. Instead, they opt to trust the guidance of their service providers, who may have a pecuniary interest in maximizing the number of offerings. Source: Fiduciarynews.com, October 2011.

Forty Percent of Americans Save Nothing Towards Retirement - Summary: The eNation survey, conducted on behalf of LIMRA, also found that 19 percent of adults not yet retired typically save less than $100 a month, while more than a quarter (27%) of consumers save $100 to $499 a month. Even those with household incomes of $50,000 or more, a sizeable proportion (42%) are either saving $100 or less, or nothing, each month. Source: 401khelpcenter.com, October 2011.

Why Leave Money on the Table -- Make the Most of Your Employer's 401k Match - Summary: Would you turn down free money? Many employers match an employee's 401k contributions up to a certain percent of salary. If you contribute less than your employer is willing to match, you may be passing up free money and doing so makes no sense. Source: FINRA, October 2011.

Study: What Are Plan Sponsors Focused on and Concerned About Today? - Summary: 'Report on Retirement Plans - 2011' portrays a complex retirement plan environment in which plan sponsors are balancing the need to encourage employees to better prepare for their retirement, while managing expenses in a dynamic market. Source: 401khelpcenter.com, October 2011.

Ownership of Individual Retirement Accounts and 401k-Type Plans - Summary: The percentage of workers ages 21-64 with an individual account plan (IRA or 401k-type plan) grew significantly in the late 1990s into the early 2000s. By 2009, 33.0 percent of workers owned a 401k-type plan and 20.8 percent owned an IRA. Source: Employee Benefit Research Institute, October 2011.

Model Participant-Directed Defined Contribution Plan Investment/Expense Disclosure Package - Summary: The DOL's new disclosure regulation does not provide a comprehensive model disclosure package, although it does include a form of comparative chart that would satisfy some of the new requirements. This is a copyrighted model package, which incorporates a slightly modified version of the Department of Labor chart. The model package here is intended to be a starting point from which plan administrators can develop customized disclosures that will satisfy all of the new requirements. Source: Paul Hastings LLP , October 2011.

Interpreting Ambiguous Plan Language - Summary: So half the parties interpreting a possibly ambiguous plan term that is subject to discretionary review come out one way in reading the term, and the other two the other way. Who wins? Source: Boston ERISA Law Blog, October 2011.

More 401k Plans Get 'Socially Responsible' - Summary: A growing number of 401k plans are adding to their investment menus so-called socially responsible funds -- mutual funds that invest in or avoid certain companies, based on pre-stated ethical guidelines. But do they fit? Source: Smartmoney.com, October 2011.

Lifetime Retirement Income: Annuities and Beyond - Summary: Planning for retirement can be complicated, fraught with emotions, and overwhelming for participants. This white paper reviews annuities, guaranteed minimum withdrawal benefit options, managed accounts, annuity shopping services, and out-of-plan options, and what to consider when selecting among these choices. Source: Arnerich Massena , October 2011.

COMMENTARY: ASPPA 403(b) Research Falls Flat - Summary: Author writes, "On October 5th, ASPPA/NTSAA released their long touted research paper titled 'Protecting Participation: The Impact of Reduced Choice on Participation by School District Employees in 403(b) Plans' along with a special website www.savemy403b.com. This research appears to be the work of their super not-so-secret group Project Albatross (NTSAA Sponsors). What did this long awaited 'study' reveal? Reducing vendor choices - bad; lots of vendor choices - good. What was far more interesting (and quite frankly, odd) was the lack of any actual study or research to back up the conclusions." Source: The Meridian Blog, October 2011.

Listings of Required Modifications Are Updated to Reflect Changes in 2010 Cumulative List - Summary: The IRS updated its Listings of Required Modifications (LRMs) for defined contribution plans and cash-or-deferred arrangements to reflect many of the changes identified under the 2010 Cumulative List for plans that will be submitted for determination in the current cycle. Source: Benefitslink.com, October 2011.

Forfeitures in Safe Harbor Plans - Summary: The IRS has recently put the use of forfeitures in a safe harbor 401k plan into doubt. This article provides background on the issue, discusses the latest IRS position, and explores options for plan sponsors. Source: Sungard/Relius, October 2011.

How Did the Recession of 2007-2009 Affect the Wealth and Retirement of the Near Retirement Age Population - Summary: This white paper uses asset and labor market data from the Health and Retirement Study (HRS) to investigate how the recent "Great Recession" has affected the wealth and retirement of those in the population who were just approaching retirement age at the beginning of the recession, a potentially vulnerable segment of the working age population. Source: Michigan Retirement Research Center , October 2011.

The Fiduciary Safe Harbor for Investment Managers - Summary: There appears to be an increasing interest by plan sponsors in using 401k investment managers, sometimes called 3(38) managers. Unlike an adviser, an investment manager actually selects, monitors, removes, and replaces the 401k investments. The advantage to plan sponsors is that there is a "safe harbor" from fiduciary liability for the investments. However, the plan sponsor -- or, more likely, its plan committee -- must prudently select and monitor the investment manager. Here are some steps in that process. Source: Plansponsor.com, October 2011.

Ten Things You're (Probably Still) Doing Wrong As an ERISA Fiduciary - Summary: Those who seek to know what they might be doing wrong are not generally the ones that need the "help." However, because the standards imposed on plan fiduciaries by ERISA are demanding, the potential to misstep without meaning to is ever-present. Here is a list of 10 things to be aware of. Source: Plansponsor.com, October 2011.

COMMENTARY: Why Is the Obama Administration Enabling Retirement Rip-offs? - Summary: The Treasury Department will soon be releasing guidance on "providing and encouraging lifetime income options" to 401k participants by encouraging the use of annuities, according to Mark Iwry, deputy assistant treasury secretary for retirement and health policy. Author asks, "Why are annuities toxic?" Source: Huffingtonpost.com, October 2011.

ERISA's Duty of Loyalty Requires Certain Disclosures, But Discovery Requests Do Not Trigger Statutory Penalties - Summary: Distinguishing a "lawyer-to-lawyer device" from the exercise of a participant's ERISA rights, the Fifth Circuit held that a plan sponsor's failure to comply with a litigation discovery request did not trigger statutory penalties for violation of its ERISA obligation to provide plan documents on request. Source: Thomson Reuters/EBIA, October 2011.

IRS Revises Procedures for Obtaining Opinion and Advisory Letters on Pre-Approved Defined Contribution Plans - Summary: The IRS has released Revenue Procedure 2011-49, which revises and supersedes the 2005 procedure for obtaining opinion and advisory letters on pre-approved defined contribution plans. Source: Thomson Reuters/EBIA, October 2011.

Will 401k Fee Disclosures Bring Clarity to Perplexed Workers? - Summary: Is your 401k account loaded with high, hidden fees? New federal 401k plan disclosure rules will soon be implemented to highlight how much fees are eating into employer-sponsored retirement accounts. But more workers are already going after companies that they allege are taking advantage of those retirement accounts. Source: ABC News, October 2011.

Two Courts of Appeals Reject 401k Fee Claims - Summary: The courts affirmed dismissals of plaintiffs' claims that the fiduciaries of the 401k plans breached their duties under ERISA by offering retail-class, rather than institutional-class, shares of mutual funds as plan investment options. Both decisions build on the foundation laid in Hecker v. Deere. Source: Groom Law Group , October 2011.

How to Move From a Popular Plan to a Successful Plan - Summary: This paper offers a more comprehensive measure of retirement readiness plus specific ways financial professionals and plan sponsors can move the savings needle through affordable plan design changes. Source: Principal Financial , October 2011.

Lost and Found: The Abandoned Plan Rule - Summary: On May 26, 2011, the DOL announced it would expand the "abandoned plan" rule to include liquidating bankruptcy trustees. It reasoned that using the abandoned plan rule in bankruptcy liquidations had the potential to substantially reduce burdens on abandoned plans, their participants and bankruptcy trustees. Article is a short summary of how the abandoned plan process will work in a bankruptcy liquidation. Source: Winston & Strawn LLP , October 2011.

A Practical Guide to the 401k Participant Disclosure Requirements - Summary: This article is intended to serve as a practical guide for plan administrators as they prepare for compliance with the regulations. The first part will be a brief, high-level overview of the regulations. Then, for each of the two major categories of disclosure under the regulations, plan-related information and investment-related information, there is a chart setting forth (1) what information is required to be disclosed, (2) by when and how often the information must be provided, and (3) in what form or document may the information may be provided. Source: Winston & Strawn LLP , October 2011.

Interim Guidance on Electronic Disclosure of Retirement Plan Fees - Summary: Certain plan sponsors and administrators are permitted to use electronic media to furnish information about the plan's fees to participants. The Department of Labor has issued guidance on such communication. This article digs into the details. Source: Milliman , October 2011.

IRS Establishes New Rules for Pre-approved Plans - Summary: On October 5, 2011, the IRS issued Revenue Procedure 2011-49, which provides new requirements for requesting opinion and advisory letters from the IRS for master and prototype and volume submitter plans under the Internal Revenue Code of 1986. The procedure makes a number of changes to the procedures governing the submission of M&P and VS plans. Source: Practicallaw.com, October 2011.

Fiduciary-Level Disclosures for ERISA Retirement Plans - Summary: Provides insight into the DOL's new fiduciary-level disclosure regulation, also the historical context and practical application of the regulation. In the paper, ERISA plan fiduciaries can find information regarding: An overview of the interim final regulation; types of fees and expenses included in the disclosures; timing of the required disclosures; and, a fee oversight checklist. Source: MetLife , October 2011.

Supreme Court Rules on SPDs - Summary: The U.S. Supreme Court ruling in Cigna Corp v. Amara (No. 09-804, May 16, 2011) could have a major impact on employers who sponsor qualified retirement plans subject to ERISA. Source: Kravitz , October 2011.

Pre-Approved Plan Opinion and Advisory Letters - Revised Procedures - Summary: Revenue Procedure 2011-49 supersedes prior procedures (Revenue Procedure 2005-16) on opinion and advisory letters for pre-approved (master and prototype and volume submitter) defined contribution plans. The revised revenue procedure includes an extension for mass submitter plan sponsors and practitioners to apply for an opinion or advisory letter from October 31, 2011, to January 31, 2012. Here are the key changes. Source: IRS, October 2011.

EBRI: Employment-Based Retirement Plan Participation Steady in 2010 - Summary: The portion of full-time, full-year workers age 21-64 who participated in an employment-based retirement plan remained stable at 54.5 percent in 2010, showing no appreciable drop from 2009 despite the continuing weakness in the economy, according to a new report by the nonpartisan Employee Benefit Research Institute (EBRI). Source: 401khelpcenter.com, October 2011.

Asserting the Attorney-Client Privilege in ERISA Cases - Summary: ERISA plans and their sponsors often seek the advice of counsel on such matters as plan design, administrative and investment matters or claims by plan participants. A spate of recent case law raises the question of which circumstances will enable advice rendered in benefits matters to be protected by the attorney-client privilege and the related work product doctrine. Source: Wagner Law Group , October 2011.

IRS Issues New Cross-tested Plan Guidance - Summary: The IRS recently issued new sample language that sponsors of master and prototype plans may use to amend their plans for purposes of submission to the IRS. Although most prototype sponsors do not use the IRS language, the sample language provides guidance on what the IRS will approve. Source: Sungard/Relius, October 2011.

Study Reveals Five Factors That Help Lower 401k Fees - Summary: Enough has been said about the negative long-term impact of higher fees on 401k investments. Clearly, if we can identify ways to lower costs and still ensure reasonable service, 401k investors will benefit. As we enter into full per-participant fee disclosure beginning in 2012, 401k plan sponsors will find themselves under greater pressure to either reduce fees or justify higher expenses. The ICI identified five areas that help lower per-participant fees. Source: Fiduciarynews.com, October 2011.

COMMENTARY: Fee Disclosure: A Drastic Change That Won't Change Much - Summary: Although the intent of the fee disclosure rules is certainly noble, the details in the regulation will foster confusion among participants and worse, promotes the elusive hidden fee practices of some major "special interest" providers that the regulation was originally designed to expose. Source: Asset Strategy Consultants, October 2011.

Best Practices for Reducing Loans, Hardship Withdrawals, and Impulsive Investment Decisions - Summary: Negative behaviors such as using the 401k plan as an emergency fund instead of a long-term retirement savings account and taking excessive loans and hardship withdrawals is a symptom of a bigger problem among the employee population. The same is true for impulsive investment decisions that could ultimately delay employees' retirement. A combination of plan design and financial education works well to improve employees' financial wellness by casting a wider net in order to help employees help themselves without feeling pushed. Source: 401khelpcenter.com, October 2011.

Meeting Your Fiduciary Responsibilities - Summary: To meet their responsibilities as plan sponsors, employers need to understand some basic rules, specifically the Employee Retirement Income Security Act. ERISA sets standards of conduct for those who manage an employee benefit plan and its assets (called fiduciaries). Meeting Your Fiduciary Responsibilities provides an overview of the basic fiduciary responsibilities applicable to retirement plans under the law. Source: 401khelpcenter.com, October 2011.

COMMENTARY: A Fiduciary Standard Is Good, Old-Fashioned Common Sense - Summary: The author writes, "Despite this clear and persuasive evidence that a fiduciary standard can be applied across business and compensation models, a minority of groups, mostly representing insurance companies and some members of Congress, still don't see the value of requiring a strong, uniform "client first" fiduciary standard for all financial professionals who provide personalized retail investment advice." Source: Investmentnews.com (free registration may be required), October 2011.

Reducing Fiduciary Risk - Summary: The tumultuous stock market is increasing pressure on retirement-plan sponsors and fiduciaries to address investment risks and to take step to build a shield to protect them from unnecessary litigation. Source: HREonline.com, October 2011.

ERISA Fiduciaries Not Required to Exclude Retail Funds From Plan Investment Menu - Summary: Administrators of a 401k plan did not breach fiduciary duties under ERISA by including retail mutual funds among the plan's investment options or requiring participants to pay fund expenses, the U.S. Court of Appeals in Chicago has ruled. Source: CCH, October 2011.

HOME Act Eases 401k Access for Mortgage Payments - Summary: U.S. Senator Johnny Isakson (R-Georgia) and U.S. Representative Tom Graves (R-Georgia) last week introduced the HOME Act, a bill to allow Americans to make withdrawals from their retirement accounts to pay timely mortgage payments. Source: Plansponsor.com, October 2011.

Automatic Enrollment Boosts Participation for All Racial and Ethnic Groups - Summary: New Vanguard research on diversity and retirement plan saving and investing shows that automatic employee enrollment into company 401k plans raises participation—the critical first step in taking advantage of these plans—for all racial and ethnic groups. The increase is particularly notable for blacks and Hispanics, especially low earners. Source: 401khelpcenter.com, October 2011.

October ERISA Litigation Newsletter - Summary: Examines two recent circuit court opinions. First, the Seventh Circuit's decision in Loomis v. Exelon, Nos. 09-4081 and 10-1755, 2011 WL 3890453 (7th Cir. Sept. 6, 2011), and evaluate more closely that circuit's treatment of the issues raised in the 401k excessive fees cases. Second, the Tenth Circuit's opinion in Tomlinson v. El Paso Corp., No. 10-1385, 2011 U.S. App. LEXIS 16525 (10th Cir. Aug. 11, 2011), which addressed important disclosure issues under ERISA Sections 102 and 204(h) that arise when employers convert traditional defined benefit plans to cash balance plans. Source: Proskauer Rose LLP, October 2011.

Why Financial Advisors Should Offer Investment Education to 401k Plan Participants - Summary: Offering plan education is a facet of the fiduciary process that all financial advisors should assist in, because helping a plan sponsor in that process is the role of a retirement plan financial advisor. A plan sponsor who thinks their advisors isn't handling all the tasks that they are supposed to is often the same plan sponsor looking for a new financial advisor to work with. Source: The Rosenbaum Law Firm, October 2011.

Five Ways to Make the Best of Your 401k - Summary: When markets turn stormy, it's extra important for investors to take charge of their retirement accounts. If your 401k plan isn't yet up to par, here are some ways to make the best of what you've got. Source: Wall Street Journal, October 2011.

Latest 401k Lawsuit Highlights Ongoing Fee Concerns - Summary: While workers can't do much when a stock market sell-off hits their 401k balances, they can speak up about poor investment choices and unreasonable plan fees. Now, more are taking those complaints to the courts as they bring lawsuits against employers they believe have allowed poorly-performing and overly-expensive funds into their retirement plans. Source: Employee Benefit News, October 2011.

Most Canadians Envision Adequate Savings to Choose Their Retirement Date - Summary: Canadians anticipate saving enough to retire at age 63, and most see themselves entering retirement without debt, according to a new CIBC poll. Source: Plansponsor.com, October 2011.

Retiree Optimism Falls Dramatically According to Wells Fargo/Gallup Poll - Summary: Overall investor optimism plunged in September, nearing lows reported during the financial crisis of 2008, according to the Wells Fargo/Gallup Investor and Retirement Optimism Index. The overall Index fell to -45, down from +33 in May. In December 2008, the index fell to -49, and subsequently fell to its lowest point of -64 in February 2009. Source: 401khelpcenter.com, October 2011.

COMMENTARY: Client Interests Shouldn't Come First? - Summary: Author writes, "The bottom line here is that a financial advisor who acts as a Fiduciary is required to place the best interests of their clients first. Maybe I'm making this all too simple, but to me the opponents of a Fiduciary Standard for all advisors are saying that the interests of their clients shouldn't (or don't) come first." Source: Chicago Financial Planner, October 2011.

401k Plan Goals — How Do You Measure Success? - Summary: Although HR departments are stretched to the limit nowadays, establishing 401k plan goals is critical to building a successful retirement plan. And a successful retirement plan is a very compelling employee benefit. Source: Cambridge, October 2011.

Proxy Voting Lets Fiduciaries Use Power - Summary: Proxy voting is one of the most powerful but under utilized tools that fiduciaries have to serve the best interests of investors. Through their voting power, shareholders, especially institutional shareholders, have the ability to influence directly how the companies they own are managed. Unfortunately, many fiduciaries fail to take their responsibilities seriously. Source: Investmentnews.com (free registration may be required), October 2011.

Monitoring Retirement Readiness: The Need, Who Should Do It, and How to Avoid Pitfalls - Summary: The United States is in the midst of an economic crisis that greatly increases the likelihood that all large 401k plan sponsors will find themselves in messy 401k litigation. After all, when dreams are dashed—through unemployment, inability to retire, or the inability to maintain one's current standard of living—humans have a tendency to blame others—such as their employer—for causing their problems. Source: Investmenthorizons.com , October 2011.

Refining E-Delivery of Retirement Plan Disclosure - Summary: The DOL guidance attempts to strike a balance between the opposing concerns. The plan sponsor community generally asked for a "negative consent" approach, whereby a plan administrator could deliver disclosures electronically unless the participant opts out; the other side asked for stronger affirmative consent requirements before permitting electronic delivery. Source: Morgan Lewis & Bockius LLP , October 2011.

Declining Interest Rates Fuel Record Growth in Pension Funding Deficit - Summary: "September was a historically awful month for pensions, and we're getting uncomfortably close to the worst funded ratio in the history of our study," said John Ehrhardt, co-author of the Milliman Pension Funding Study. "The continued march of the liability-driven funding deficit continues, leaving corporate pensions with some important decisions as they look to plan for 2012." Source: Milliman, October 2011.

Quarterly Benefit Statement and the Participant Fee Disclosure Regulations - Summary: The DOL has general guidance on the electronic delivery of required disclosures but many practitioners consider the guidance outdated and too burdensome. The DOL has indicated that it may modify its e-delivery guidance to make it more useful, but the DOL will not complete those modifications before employers must modify their systems to provide the new participant fee disclosures required on May 31, 2012. Therefore, the DOL issued temporary guidance regarding the e-delivery of the participant fee disclosures. This FAQ discuss the use of the quarterly benefit statement as well as electronic delivery in making the participant fee disclosures. Source: Sungard/Relius, October 2011.

Despite Obstacles, 401k Excessive Fee Lawsuits Proliferate - Summary: Although federal courts generally look skeptically at lawsuits challenging 401k plan fees practices, such suits continue to be filed. One of the most recent is being pursued by the same St. Louis-based law firm that started the frenzy of fee challenges in 2006. On September 28 plan participants represented by lawyers at Schlicter, Bogard, and Denton filed an eight-count complaint against Ameriprise Financial, Inc. and alleged fiduciaries of the Ameriprise 401k plan, claiming that the investment funds offered under that plan were imprudently selected and charged excessive fees. Source: Spencer Fane Britt & Browne LLP, October 2011.

Number of Choices in 403(b) Market Impacts Participation - Summary: 403(b) plans provide an important method for school district employees to save for retirement. But a lack of choice in 403(b) retirement plans results in reduced participation among school district employees, according to a new report by the American Society of Pension Professionals & Actuaries. Source: Benefitspro.com, October 2011.

The Impact of Reduced Choice on Participation in 403(b) Plans - Summary: This paper examines the impact of participant choice in 403(b) plans. It looks at the extent to which school district employees want choices in their 403(b) plans and whether providing those choices is beneficial to them. Source: ASPPA , October 2011.

Multiple Employer Plans, Revisited - Summary: There seems to have been an uptick lately in the number of multiple employer plans (MEP) coming to market, including those sponsored by third party administration firms. Some commentators are convinced that the U.S. Department of Labor is about to put the hammer on MEPs. Source: Morningstaradvisor.com, October 2011.

National Poll Finds Retirement Security Concerns on the Rise - Summary: A new bipartisan, national survey just released reveals that anxiety about retirement continues to grow, with near universal concern about having enough to make ends meet throughout retirement. Source: 401khelpcenter.com, October 2011.

Service Provider Disclosures: The Impact on Plan Sponsors - Summary: April 1, 2012, is a significant date for plan sponsors and their plan committees. By that date, they should have received - and will need to begin evaluating -fee disclosure information from their plan's service providers. This article identifies the key issues for plan sponsors and provide an overview of the fiduciary responsibilities. Source: Drinker Biddle & Reath LLP , October 2011.

401k Advisors Get a Lobbying Voice in Washington - Summary: The American Society of Pension Professionals and Actuaries last week launched an organization aimed at lobbying elected officials about issues affecting 401k plans. But in these tough times, some say that advisors are better served by a focus on practical solutions. Source: RIAbiz.com, October 2011.

401k Plans With Auto Enrollment Garner 78% Participation: Study - Summary: Principal found that plans with automatic enrollment and automatic escalation had average participation rates of 78%, 19 percentage points above those that did not. Source: Financial-planning.com, October 2011.

Operational Risk in Managed Accounts Can Cause Problems - Summary: A Cerulli report contends that while managed accounts are stable from an investment-risk and a regulatory standpoint, operational risk remains a concern. Source: Plansponsor.com, October 2011.

DOL Issues Interim E-Disclosure Policy Under Participant Fee Disclosure Regs - Summary: The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) issued Technical Release 2011-03 which sets forth an interim policy regarding the use of electronic media to satisfy disclosure requirements under the department's final participant-level fee disclosure regulation. Source: Compensation.BLR.com, October 2011.

Tips 401k Plan Sponsors Can Use to Help Employees Avoid Risk Aversion - Summary: Academic research yet again shows there are implications of the way in which investment performance is presented on the decisions that plan participants make. How many 401k plan sponsors ignore contemporary research that points the way towards presentation formats proven to reduce common mistakes of naïve and time-constricted investors? Source: Fiduciarynews.com, October 2011.

Six Steps to the Perfect 401k - Summary: The perfect 401k may seem like an elusive retirement vehicle, but Catherine Collinson, president of Transamerica Center for Retirement Studies, believes six steps would lead to just that. Collinson defines the perfect 401k as one that "helps ensure that workers are participating, contributing and managing investments wisely in order to adequately fund their future retirement and that workers have a strategy for saving, investing and transitioning into retirement." Collinson lists the key ingredients of a perfect 401k. Source: Benefitspro.com, October 2011.

PSCA Releases Results of Annual Survey of 401k Plans - Summary: The Profit Sharing/401k Council of America has released its 54th Annual Survey of Profit Sharing and 401k Plans. This survey provides up-to-date information available on current practices and trends in profit sharing and 401k plans. Source: 401khelpcenter.com, October 2011.

The Principal Unveils Comprehensive Retirement Plan Report - Summary: The report includes benchmarks on trends among approximately 37,000 retirement plans with services provided by The Principal to 3.7 million eligible participants representing nearly $123 billion in assets under management. Source: 401khelpcenter.com, October 2011.

PowerPoint on 404(c) Compliance - Summary: This presentation reviews the following points: Overview of 404(c) fiduciary relief; Basic requirements to obtain relief; Mapping relief; Default Investment Options/"QDIA" safe harbors; Participant fee disclosure regulations; Scope of relief; and, Case law developments and implications. Source: Morgan, Lewis & Bockius LLP , October 2011.

Meet the "ERISA Account," the Newcomer to the Small 401k Plan Scene - Summary: The "ERISA Account" is a relative newcomer to the small 401k plan market. It's been part of the large and medium plan market for some time. Only recently has it migrated downstream because of the increased regulatory emphasis and fiduciary attention to fee disclosure. These accounts capture excess income collected by the recordkeeper that can be used to pay eligible plan expenses or even allocated to participants. Source: Retirement Plan Blog, October 2011.

Transamerica Releases Top Five Marketplace Issues Facing Retirement Plan TPAs - Summary: Transamerica Retirement Services announced the results of a national listening tour with third party administrators. As a result of TPAs' feedback, Transamerica identified these top five TPA marketplace issues. Source: 401khelpcenter.com, October 2011.

15 Symptoms That a Plan Sponsor's Retirement Plan Might Be Ill - Summary: There are symptoms as to when a retirement plan is ill, but plan sponsors are often unaware of what to look for. This article is intended to serve as a wakeup call on what symptoms to look for to determine whether your retirement plan might be "ill." Source: The Rosenbaum Law Firm, October 2011.

COMMENTARY: Five 401k Industry Trends - Summary: Nevin Adams, Editor-in-Chief of Plansponsor magazine, offers some notions about what the next five years will bring in terms of industry trends. Source: Plansponsor Institute, October 2011.

The End of Human Resources as We Know It - Summary: The challenges are great, and a new kind of HR executive is emerging to meet them. In the process, these strategic leaders are turning our traditional concept of human resources on its head. Here are five major forces that are driving the changes that will end HR as we know it by the year 2020. Source: HREonline.com, October 2011.

Redefining Defined Contributions - Summary: Proposed tax changes to retirement savings could put a cap on employer and employee contributions to qualified defined-contribution plans and, experts say, HR professionals would be wise to quickly revisit their retirement-plan designs. Source: HREonline.com, October 2011.

Six Steps to Setting Up a 401k Account (And Why It Matters) - Summary: 401ks offer a simple and affordable way to bring the dream of retirement and financial well being back to reality. These plans have been around for nearly 30 years and, while for a long time only found in large companies, have recently gained wider acceptance by small businesses thanks to the availability of low-cost offerings now in the market. Here are six steps to setting up a plan for your business. Source: Forbes, October 2011.

Small Businesses Lose With 401k Changes - Summary: Small-business owners are likely to kick employee retirement plans to the curb if Congress significantly alters the tax-deferral status or contribution limits of defined-contribution plans. Source: Thestreet.com, October 2011.

Do Low-Income Workers Benefit From 401k Plans? - Summary: This paper explores the hypothesis that employer contributions to defined contribution plans may affect total compensation differently for low and high-income workers. Using a longitudinal data set that allows us to measure worker quality based on their prior earnings, we estimate the effects on earnings in new jobs of employer contributions to DC plans. Source: Center for Retirement Research at Boston College , October 2011.

Gauging Attitudes About Target-Date Funds - Summary: Drawing on the opinions of those responsible for the design and oversight of defined contribution plans, this publication—Six key survey findings: Gauging attitudes about target-date funds from plan sponsors and consultants—uses a survey-based framework for examining the key issues surrounding target-date funds today. Source: Vanguard , October 2011.

ASPPA Recommends Self Correction for Late Deferral Deposits - Summary: In a letter filed with the DOL's Employee Benefit Security Administration on the Voluntary Fiduciary Correction Program, the American Society of Pension Professionals & Actuaries urged the DOL to modify its program as it applies to late deposits of elective deferrals under ERISA. Source: Plansponsor.com, October 2011.

Plan Investment Decisions Are Protected in Loomis v. Exelon Corporation - Summary: The U.S. Court of Appeals for the Seventh Circuit has issued another important decision in favor of plans and plan administrators in a case involving allegations of excessive fees and expenses. In Loomis, et al. v. Exelon Corporation, Judge Easterbrook, writing for the three-judge panel, affirmed the district court's dismissal of all claims. The case represents a defeat for plaintiffs alleging that retirement plans paid excessive fees to investment advisors and otherwise failed to uphold the fiduciary duties imposed under ERISA. Source: Williams Mullen, October 2011.

Fiduciary Rules Related to Automatic 401ks - Summary: The fiduciary rules which apply to private employers maintaining a 401k plan or a 403(b) plan, which is governed by ERISA, with automatic enrollment can seem intimidating. This article will assist the employer in sorting through these rules, and how they will apply. Source: Retirement Made Simpler, October 2011.

Top Five 401k Plan Issues Plan Sponsors Care About - Summary: What do 401k plan sponsors and participants really care about? By addressing those issues instead of "going negative" with your sales approach, you can win or keep business. This recorded webinar include actual case studies with advisors using the top five issues to "go positive" with plan sponsors and their employees. Presenter is Sarah Simoneaux, CPC, President of Simoneaux Consulting Services. Source: The Standard, October 2011.

More Retirement Plans Are Getting a Conscience - Summary: Americans may soon get the opportunity to invest more conscientiously in their workplace retirement accounts. A new survey shows that more and more employers are adding socially responsible investment choices to their plans. Source: Dailyfinance.com, October 2011.

Retirement Rules for Small Business Clients - Summary: According to the Bank of America Merrill Lynch Workplace Benefits Report released in June, 66% of small business owners now say retirement benefits are important to attracting new talent, and 58% say they are important to driving loyalty. Source: Onwallstreet.com, October 2011.

Ameriprise Sued by Employees Over 401k Losses - Summary: Members of Ameriprise Financial Inc.'s 401k plan filed a proposed class action in Minnesota on Wednesday claiming they lost $20 million in investments. The lawsuit accuses the financial services company of favoring its own under performing subsidiary funds over investment plans with better performance records. Source: Advisorone.com, October 2011.

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