General Issues

Study Finds American Fundamentally Rethinking Retirement  — Summary: Landmark study by Charles Schwab and Age Wave reveals that all generations are asking for help to help themselves achieve financial self-reliance as hopes, fears, expectations regarding work and relationships among the generations change. Located at: 401khelpcenter.com. Click on headline for full article.

Auto-Features Escalate Savings  — Summary: New analysis by the Employee Benefit Research Institute finds that the automatic 401k features have a very significant positive impact in generating additional retirement savings, especially for low-income workers. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.

Retirement Education Needs to Define Success and Tap Into Motivation  — Summary: Until success is clearly defined, "retirement education" will continue to be a variety of topics told to people who are not motivated to learn. This is the failed approach has been used for 30 years. Located at: Ackley Associates (PDF File). Click on headline for full article.

Research Shows Women Much Less Prepared to Retire Than Men  — Summary: Despite having a more powerful presence in shaping today's workforce, women continue to be less prepared for retirement than men, according to a new study by Hewitt Associates. Located at: Hewitt Associates. Click on headline for full article.

Thinking About a Roth 401k? Think Again  — Summary: This article addresses the question of whether a couple with a moderately high income ($195,000 in the example) should opt for a Roth 401k, or instead continue to contribute to a regular 401k. Located at: Journal of Financial Planning. Click on headline for full article.

Widening Gap Between Retirement Needs and Employee Saving Behaviors Found  — Summary: Rapidly growing medical costs, declining pensions and medical subsidies, longer life spans make 401k plans critical saving vehicles for U.S. employees, regardless of additional sources of income. Located at: 401khelpcenter.com. Click on headline for full article.

Court and Legislative Items

Heroes Earnings Assistance and Relief Tax (HEART) Act  — Summary: The HEART Act amends USERRA and addresses something that was not previously covered, namely, providing similar benefit protection to those who died or became disabled and could not return to work. This article will analyze the sections of the law relevant to retirement plans. Located at: McKay Hochman. Click on headline for full article.

Research

Deloitte 2008 401k Benchmarking Survey  — Summary: Employers are diligently seeking better ways to leverage their investment in 401k plans to attract, motivate, and retain workers. They are doing so with a relatively consistent set of beliefs about the key elements of plan effectiveness. Yet employers also are expressing some doubts and disappointments with their 401k plans as they experiment with designs and policies to achieve their business goals - sentiments that point to the need for additional fine-tuning, or perhaps in some cases, even a radical overhaul. Located at: International Foundation of Employee Benefit Plans (PDF File). Click on headline for full article.

DOL and IRS Issues

DOL Proposes Additional Fee and Investment-Related Disclosures  — Summary: To satisfy the duty to disclose, fiduciaries must provide participants with certain plan-related and investment-related information when they first become eligible, and on a quarterly or annual basis. In connection with the new disclosure requirements, the DOL has also proposed certain changes to the disclosure requirements for plans that currently comply with ERISA section 404(c). Located at: Sutherland (PDF File). Click on headline for full article.

DOLs Model Comparative Chart  — Summary: As part of the DOLs disclosure proposal, they developed this model chart for complying with this requirement, while giving plan fiduciaries the flexibility to design their own charts or comparative formats. Located at: Department of Labor (Word Document). Click on headline for full article.

DOL Issues Form 5500 Schedule C FAQ  — Summary: In the 40 separate FAQs, DOL addresses a variety of questions, but leaves important issues unanswered. Located at: Groom Law Group. Click on headline for full article.

Correcting Erroneous 401k Hardship Distributions  — Summary: The IRS addressed how the plan sponsor should verify that the required conditions for the hardship distribution have been met, and what plan sponsors should do when it is discovered that such a distribution has been made without the conditions having been met. Located at: CCH. Click on headline for full article.