July 2007
401(k) Newsletter
General Issues
Study of Employee Benefits Trends — Summary: For the fifth consecutive year, MetLife has surveyed employers and employees across the U.S. and compiled the results in its annual Study of Employee Benefits Trends. The Study provides an insightful picture of the U.S. benefits landscape that can help you take action. Located at: MetLife. Click on headline for full article.
Minority Workers Confident About Retirement, but Preparations Lag — Summary: Although minority workers are at least as likely as American workers overall to feel confident about their retirement security, their preparations lag behind, according to the 2007 Minority Retirement Confidence Survey released June 5th. Located at: 401khelpcenter.com. Click on headline for full article.
Auto Enrollment, Roth 401ks Gaining Ground, Soon May Be the Norm — Summary: Automatic enrollment and Roth 401k accounts are gaining in popularity and may soon become the norm for 401k plans, according to a recent survey conducted by the Employee Benefit Research Institute and Mercer Human Resource Consulting. Located at: 401khelpcenter.com. Click on headline for full article.
Think Beyond PPAs Required Participant Communications — Summary: The PPA new statement requirements creates an opportunity to build employee appreciation and enhance retention by going beyond simply complying with these new requirements. Located at: BNAtax.com. Click on headline for full article.
Post-Retirement Money Management — Summary: 401k plan sponsors are going beyond just helping employees save enough for retirement. They’re also helping employees who are about to retire figure out how to manage their income when their working days are over. Located at: Workforce.com (free registration may be required). Click on headline for full article.
Retirement Issues Remain on Legislative Agenda — Summary: After the drawn-out and arduous pension reform debate preceding enactment of the Pension Protection Act last summer, Congress is unlikely to pursue new pension legislation this year. However, lawmakers are discussing a variety of retirement issues. Located at: Watson Wyatt Worldwide. Click on headline for full article.
Contacting Missing Plan Participants — Practical Considerations — Summary: There are many circumstances in which plan sponsors and administrators of employee benefit plans may want or be required to contact plan participants for whom they have no valid mailing address. This article will focus on the IRS and SSA letter forwarding services because they often are the method of last resort in contacting a missing participant or beneficiary and, more importantly, their use is often mentioned in guidance from the ERISA regulators as being one of the steps that plan administrators may or must take as part of their "reasonable efforts" to contact plan participants in a variety of circumstances. Located at: Trucker Huss. Click on headline for full article.
Fiduciary Issues
Deere/Fidelity 401k Fee Disclosure Case Dismissed — Summary: Many people had thought the complaints in these 401k fee cases contained sufficient fact allegations that courts would wait until after discovery to decide them. Unexpectedly, the court dismissed the case based on the complaint and the plan documents. Located at: Pension & Benefits Blog. Click on headline for full article.
A Conversation with a Fiduciary — Summary: Earlier this year, Matthew Hutcheson testified before a Congressional committee about high and hidden fees in retirement plans. In this guest column for MorningstarAdvisor.com, the independent pension fiduciary envisions a conversation between a CEO of a small company and a fiduciary. As we shall see, the CEO has a thing or two to learn about his fiduciary responsibility to his employees. Located at: Morningstar. Click on headline for full article.
Compliance Checklist 2007 — Summary: This checklist is a "quick glance" resource to help you meet plan reporting and disclosure requirements for plans subject to the reporting and disclosure requirements of Defined Benefit Plans, Defined Contribution Plans, and 403(b) Plans that are subject to ERISA. Located at: Prudential Financial (PDF File). Click on headline for full article.
Maintaining Confidentiality: Publicly-Traded Company Stock in 401k Plans — Summary: For plans that offer publicly-traded company stock as an investment option, the regulations under 404(c) impose an additional requirement. That requirement is a confidentiality procedure for the information related to the purchase, sale and holding of company stock and the exercise of voting rights. Located at: Reish Luftman Reicher & Cohen. Click on headline for full article.
DOL and IRS Issues
Status of Default Investment Regulations — Summary: The PPA directed the DOL to issue a regulation defining the types of default investments that qualify for the fiduciary safe harbor by February 17th-—a few months ago. The DOL issued a proposed regulation last year, but that proposal turned out to be highly controversial and the final regulation has been delayed . . . perhaps until July or August. Located at: Reish Luftman Reicher & Cohen. Click on headline for full article.
IRS Defines Normal Retirement Age — Summary: The IRS recently issued final regulations defining normal retirement age for defined benefit or money purchase pension plan purposes, including benefit accrual and minimum vesting rules under Section 411. These regulations, which are generally effective May 22, 2007, finalize one aspect of proposed regulations issued in 2004 that were designed to sanction certain phased-retirement programs. Located at: Buck Consultants (PDF File). Click on headline for full article.
Headline News
