Articles Library
General Issues << Back
Ways and Means Hears Testimony on Appropriateness of Plan Fees - 10/30/2007
The House Committee on Ways and Means held a hearing October 30 to determine whether workers’ retirement savings are being eroded by excessive and unnecessary administrative and investment fees assessed by pension plan providers. Located at: Plan Sponsor.com. Click on headline for full article.
Midsize firms adopting 401(k) automatic features as the right thing to do - 10/25/2007
Summary: As the use of auto-enrollment continues to grow, a fresh rationale for adopting auto-enrollment has emerged among midsize employers. Located at: Employee Benefit News (free registration may be required). Click on headline for full article.
Americans Apprehensive About Retirement - 6/19/2007
Nearly one-third of American adults describe themselves as apprehensive, panicked, or clueless about their retirement, according to results of a survey conducted on behalf of the Securities Industry and Financial Markets Association (SIFMA). Investment Executive reports that a quarter of respondents on the verge of retirement (ages 55-64) acknowledged they have not done enough to prepare. However, while discomfort about the prospect of retirement is higher for the 45-54 age group than it is for those younger or older, that apprehension is not likely to decline as they get closer to retirement, as 30% of adults age 55-64 also described their emotional state regarding their financial preparation for retirement as uncomfortable. Located At: Plansponsor.com
Moving Targets - 6/9/2007
The author says, "In nearly 30 years working with employer-sponsored retirement plans, I am hard-pressed to call to mind a product innovation that has been adopted with as much vigor as the current generation of target-date funds." Located at: Plansponsor Institute Blog
Conversation on Coverage Issues Recommendations - 5/14/2007
The so-called Conversation on Coverage - convened by the Pension Rights Center, along with a coalition of providers, researchers, and industry groups, on Friday issued a series of recommendations. The recommendations were developed by more than 45 experts of varying perspectives ; the business community, unions, financial institutions, retiree organizations, and academia. Among their recommendations were two new types of guaranteed pension plans, a new plan that will encourage individuals to save for retirement, and a new simplified, low-cost multiple employer payroll deduction plan targeted at small employers - where the current coverage rates are lowest.
With 401(k) Fees, Employers Better Get Ahead ... or Fall Behind - 5/1/2007
Summary: As class-action lawsuits and regulatory scrutiny heat up around 401k fees, employers need to figure out what they are paying and why they are paying it. Located at: Workforce.com (free registration may be required).
Put a Sticker on 401(k) Funds to Disclose Costs - 4/23/2007
Summary: "Mutual funds within 401(k)-type programs need disclosure statements like price stickers on cars that detail most of the product's costs. With vehicles, line items tell you how much is paid for options packages, delivery, tax and title fees. Yet funds within most people's retirement plans have none of this kind of itemized disclosure." Located at Bloomberg.com.
Husbands and Wives Approaching Retirement Have Different Understanding of Their Financial Plans - 4/17/2007
Summary: Fidelity Investments announced the results of new research that tested whether married couples heading toward retirement have the same level of knowledge about their finances and agree on basic retirement planning issues. Located at: 401khelpcenter.com.
On-Site Advisors Would Boost 401(k) Employee Participation - 4/5/2007
Summary: Analysis finds that only 40 percent of 401k plans allow advisors in the workplace, presenting them a prime opportunity because of the confusing nature of annuities. Located at: Workforce.com.
Under the Pension Protection Act, companies play a key role in keeping employee retirement savings on track. - 4/1/2007
Excerpt: "Passage of the Pension Protection Act (PPA) last August gave plan sponsors strong incentives to build a range of automatic enrollment, escalation, and rebalancing features into their 401(k) plans, along with a default selection of investments. [T]he PPA in effect restores some of the paternalistic employer management characteristics of the defined-benefit era." (CFO.com)
Target date funds need to reflect reality - 3/27/2007
Summary: For target date funds to increase retirement savings, plan sponsors must be realistic about how Americans save and spend. Located at: Benefitnews.com. Click on headline for full article.
IBM to Help Workers “Get Smart” About Personal Finance - 3/8/2007
"SMART" START. IBM will today announce a multimillion dollar personal finance and education benefit program for all its U.S. employees - "IBM MoneySmart" - that combines in-person educational seminars, online tools, and confidential, one-on-one personal planning sessions with independent financial experts. It is designed to help IBMers "get smart" about personal finance by providing them with the guidance they need to plan for a secure retirement, according to a press release. IBM is teaming with Fidelity Investments and The Ayco Company, L.P., a Goldman Sachs Company, on this offering. The financial planners of Ayco and financial representatives from Fidelity who serve as MoneySmartCoaches are committed to customer satisfaction and receive no additional compensation for product or service recommendations from their own company versus products or services of any other company. MORE
Higher Earners also Among 401(k) Non-Participants - 3/7/2007
A new Watson Wyatt analysis has found that nearly one out of 10 workers earning more than $100,000 has not joined their employer's 401(k) plan. Still, some 52% of workers earning between $10,000 and $25,000 were among the non-participant ranks (at least in the 32 employers and 300,000 participants surveyed), nearly twice the overall non-participation percentage. According to the analysis, two out of three workers who earn $10,000 to $25,000 annually and who have been with the same employer for 20 years have accumulated less than one year's annual pay in their accounts. Even in the $75,000 and higher pay category, about one out of four workers comes up short of a year's pay. MORE
Changes to 402(f) Notices Under the PPA - 2/10/2007
Summary: The PPA implemented some changes to the treatment of distributions from plans to non-spouse beneficiaries. Accordingly, plan sponsors should immediately revise their current form of 402(f) notice to reflect the changes. Located at: Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, PC.
8th Annual Transamerica Retirement Survey - 2/6/2007
Summary: Find out why worker interest in employer retirement plans is on the upswing, why it's important for employers to offer retirement benefits in order to retain personnel. Are Americans doing enough to prepare for retirement? Explore the results in this retirement survey and learn what new trends have emerged. (NOTE: This file is very slow to load). Located at: Transamerica Retirement.
Flipping the switch: Tips for moving from DB to DC - 1/31/2007
Summary: The trend toward DC is clear and well-known. In recent years, employers increasingly have been dropping or freezing their pensions and switching to a 401k. Two employers and a consultant shared their experiences and what they learned in this process. Located at: Benefitnews.com. Click on headline for full article.
Survey: QDIA Final Rule Will Mean Some Default Option Changes - 1/29/2007
"DIFFERENT" STROKE. Nearly half of large defined contribution planned sponsors said in a recent survey that they would have to choose a different default investment option if proposed default safe harbor rules are finalized. A Watson Wyatt Worldwide news release said 48% of the 95 DC plans would be forced to go with a different qualified default investment alternative from the categories set out in the Department of Labor (DoL)'s proposed rules: lifecycle or targeted-retirement-date funds, balanced funds, or managed accounts. The survey found that the three top default options are lifecycle funds, stable value funds, and money market offerings.
"Back" Tract - 1/8/2007
"BACK" TRACT. By any measure, 2006 has been a year of remarkable and dramatic change for plan sponsors. It was a year in which the full impact of things like option expensing began to hit home-at the same time that a scandal involving options backdating came to light. It was a year in which health-care cost increases that were "only" twice the rate of inflation felt like a welcome reprieve; a year in which we got some much-needed answers on things like pension funding, cash balance plans, default investment options, investment advice, and automatic designs-but those answers emerged with questions, and from a legislative process that bypassed certain procedural norms. It was a year in which the Pension Protection Act (PPA) and the accounting directives of the Financial Accounting Standards Board (FASB) seem destined to send plan sponsors that were just beginning to see pension funding gaps heal moving to wind down those obligations; a year in which a new generation of participant lawsuits emerged.
SD’s Aguirre Estimates Private Legal Advice Costs at $1.6M - 1/2/2007
In the two years since Michael Aguirre took office as San Diego's attorney, he has racked up $1.6 million in private legal expenses stemming from battles over the city's beleaguered pension system. The spending on private legal services by the city adds to the legal and investigative costs related to San Diego's retirement system problems and is split among four firms, according to the San Diego Union-Tribune. The legal expenses for the city overall have built up to $6.4 million for independent attorneys advising council members and other city and pension officials entangled in investigations and lawsuits, and nearly $30 million for three separate private inquiries into what went wrong. Aguirre filed the report for the private adviser expenses after the Union-Tribune filed a California Public Records Act request.
First-ever analysis grades lifecycle funds - 1/1/2007
Summary: A study recently released by Turnstone Advisory Group is a first-of-its-kind report that compares and rates providers of lifecycle funds - data that can greatly aid employers weighing which fund to use in their retirement plans. Located at: Benefitnews.com. Click on headline for full article.
Deere Workers Hit Fidelity with Excessive 401(k) Fee Suit - 12/14/2006
Four Deere & Co. workers have sued Fidelity Investments over charges it levies unreasonable fees to manage the Deere 401(k) plan. The suit against the Boston-based investment company charges that it assessed plan participants expenses that "were, or are, unreasonable and/or not incurred solely for the benefit of plan participants," according to a Reuters news report. Fidelity is trustee and recordkeeper for the Deere plan. The suit also charges that Deere and Fidelity were involved in a revenue-sharing arrangement that was not disclosed to the Deere employees. Jerome Schlichter, whose law firm Schlichter, Bogard & Denton filed a series of similar 401(k) fee suits in recent weeks, filed the Fidelity suit. MORE
Prudential DC Feature Guarantees Lifetime Paycheck - 12/14/2006
Prudential Retirement has introduced a defined contribution plan feature that provides participants with the guarantee of lifetime income. According to a Prudential press release, with IncomeFlex, participants can elect to transfer all or a portion of the DC plan assets into one of five investment funds ranging from conservative to aggressive. The feature offers a guaranteed yearly paycheck for life, even if the participant's account balance becomes depleted. MORE
Bogus Sick Days Down from Last Year - 11/28/2006
CareerBuilder.com's annual Out of the Office survey on absenteeism finds that nearly a third of workers said they called in sick when they felt well at least once in the last year, and one in 10 admitted to doing so three times or more. The most popular motivator for missing work was the need to relax, according to nearly half (48%), while a quarter (24%) wanted to catch up on sleep, and one in five cited personal errands. Still, just 27% of hiring managers reported they have fired a worker for calling in sick without a legitimate reason - even though 41% say they received "unusual" or suspicious sick day alibis.
Participants not Confident in Investing Abilities - 11/28/2006
Seventy-three percent of plan participants surveyed said they are not overly confident in their investing abilities, according to The Scarborough Group, a provider of investment advice and allocation management for 401(k) plan participants. In a press release, The Scarborough Group said the survey also found that 72% of participants would prefer to use personal management for their 401(k) plan, meaning an adviser provides investment advice and also manages their account assets. On the other hand, only 20% of participants said they would prefer an Internet-based form of advice, and only 4% of participants said they would trust advice generated from an Internet-based application, down from 5% in 2001.
401(k)s Now Leading Retirement Savings Vehicle - 11/6/2006
A new study from the Investment Company Institute (ICI) shows that 401(k) plans, originally perceived as a supplement to worker pensions, now have more than twice as many participants as private-sector defined benefit plans. According to an ICI summary of the study findings, 401(k) plans now have 47 million active participants, compared with 21 million who participate in private-sector defined benefit pensions. And 401(k) plans held $2.4 trillion in assets in 2005, compared with $1.9 trillion in assets in all private-sector defined benefit pensions. The study also points out that the latest data show 90% of 401(k) plans are the only retirement plan offered by that employer, and that the growth in 401(k) plans generally has been fueled by changes in the economy and the workforce, not by companies dropping traditional pensions in favor of 401(k)s. MORE
Employees Scale Back Retirement Savings To Ease Health Care Costs - 11/3/2006
A new study by Ameriprise Financial claims that one in five participants either have, or plan to, contribute less to their employer-sponsored retirement plan as a result of higher benefit costs, most of which are health care related. More than two-thirds cited out-of-pocket cost increases for their health care coverage, while nearly half cited increases in dental coverage costs, and 17% noted increased expenses for retirement plan benefits. Of those who have contributed, or plan to contribute, less to their employer-sponsored retirement plan, two out of three would also lose a corresponding employer match contribution, according to the survey. MORE
How Employers Can Help Employees Build A Retirement Nest Egg - 10/28/2006
Summary: The United States Senate unanimously designated October 22 through October 28 National Save for Retirement Week to raise public awareness about the importance of adequate retirement savings and the availability of employer-sponsored retirement plans. What is your company doing to encourage employees to save? Here are some tips. Located at: Ice Miller. Click on headline for full article.
SEC eyes 27 firms in kickback probe - 10/26/2006
Summary: The Securities and Exchange Commission is investigating 27 mutual fund companies that may have accepted bribes worth hundreds of millions of dollars in recent years, according to the Wall Street Journal. Located at: Investmentnews.com (free registration may be required). Click on headline for full article.
One Size Does Not Fit All - 10/5/2006
PROMOTE ABILITY? Sources point to three main reasons why target-date funds have become such a big deal. First, they require less of participants up front than risk-based funds. "The participants only need to match up their retirement dates to the target date of the fund, and then they are finished," says Matt Smith, managing director, retirement services at Russell Investment Group. "They are easier for participants to understand," says Vincent Morris, vice president of retirement plan services at adviser Bukaty Companies, "and they are easier for sponsors to set up as a default, rather than guess someone's risk-tolerance level." The second reason: Participants in risk-based funds have to take the initiative to shift themselves into less-aggressive portfolios over time. "With a risk-based fund, as you get closer to retirement, you need to pull out of the growth model, then to moderate, then to conservative," says Gregg Andonian, president and CEO of Baystate 401(k) Advisors. "A target-date fund automatically migrates you into the model you need." Third, some sources claim that providers promote target-date funds heavily in part because they produce bigger profits.
One In Three Affluent Retirees Have No Retirement Income Plan - 9/16/2006
Summary: Nearly half of affluent Americans nearing retirement and most affluent retirees have developed formal retirement income plans; however, one in three retirees have no plan even though many have already begun tapping their nest eggs. Located at: 401khelpcenter.com. Click on headline for full article.
Custom Lifecycle Funds: Next Generation of Lifecycle Products - 9/15/2006
Summary: Lifecycle funds, consisting of a portfolio that gradually changes over time targeted to the participant's date of retirement, remain a hot product for plan sponsors. However, there is an even newer option that is generating buzz among both sponsors and advisers: custom lifecycle funds. Located at: Benefitnews.com. Click on headline for full article.
Pension Lump-Sum Distributions: Do Boomers Take Them or Save Them? - 9/2/2006
Summary: This report examines what boomers, preboomers, and older persons are doing with their pension account funds upon job separation, what socio-demographic and financial attributes affect their decisions to roll over or cash out LSDs, and what implications these decisions have for the retirement income security of these age groups. Located at: AARP Public Policy Institute
A Legislated Shortcut - 9/1/2006
Summary: The pension protection Act may have helped defined contribution plans more than defined benefit by giving a thumbs-up to automatic enrollment—an easy, but valuable, enhancement to a 401k plan. Located at: Treasury & Risk Management. Click on headline for full article.
Sun Shines on EGTRRA - 8/17/2006
Summary: The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) overhauled many retirement plan rules. Thanks to PPA, the EGTRRA rules became permanent and will not sunset on the last day of December 2010. Here are some of the rules that EGTRRA brought us that are here to stay. Located at: McKay Hochman. Click on headline for full article.
Automatic 401ks: A Win for Workers - 8/15/2006
Summary: Younger workers cannot depend on Social Security and Medicare to the same extent as their parents and grandparents did to support them in retirement and must rely on their own savings to get through their golden years. Automatic enrollment of new employees will help workers — particularly younger workers — build a nest egg for retirement. Congress has acted. Now it is up to employers to adopt the plan. Located at: National Center for Policy Analysis. Click on headline for full article.
Defined Contribution Investments: Education and Advice Become More Personalized and Active - 4/15/2006
Excerpt: "The sad truth about most education programs for 401(k) plans is that they appear not to have reached -- or at least not moved -- large numbers of participants. Despite the tens of millions of dollars that have been spent on colorful and glossy education materials, countless seminars, and sophisticated e-mail campaigns, most still ignore the messages. This perceived failure is a major reason investment advice has become increasingly popular." (PLANSPONSOR.com: one-time registration required)
Government Oversight Efforts Turn Up the Heat on Fiduciary Compliance - 4/10/2006
Excerpt: "Consider that the Employee Benefits Security Administration (EBSA) achieved $1.7 billion in results from actions to enforce the Employee Retirement Income Security Act (ERISA) during fiscal year 2005, the second highest annual result in the agency's history. The record was set by fiscal year 2004 results ...." (PLANSPONSOR.com: one-time registration required)
Overview: SEC Proposed Changes to Executive Compensation and Related Party Disclosure (PDF) - 3/8/2006
11 pages. Excerpt: "While the Proposed Rules are not expected to be effective with respect to companies that file their proxy statements during the spring 2006 'proxy season,' recent events that heightened the perceived need for more disclosure related to executive compensation have caused many public companies to review their executive compensation disclosure practices in connection with the 2006 proxy season (please refer to the 'Considerations for the 2006 Proxy Season' section)." (Pillsbury Winthrop Shaw Pittman LLP)
Defined Benefit Plan on Ice or Soon to Be Frozen? It Is Time for an Investment Strategy Overhaul - 3/5/2006
Second in a two-part series. Excerpt: "[I]nvestment strategy and performance may be more critical for a frozen DB than an ongoing plan. In this article, we will explain why, and identify investment strategies that sponsors should consider when evaluating the requirements of a frozen plan." (Employee Benefit News)
Issue in Brief: 401(k) Plans are Still Coming Up Short (PDF) - 3/3/2006
10 pages. Excerpt: "The release of the Federal Reserve's 2004 Survey of Consumer Finances (SCF) is a wonderful opportunity to re-assess the role that 401(k) plans are playing in the provision of retirement income. .... The 2001 survey showed that 401(k) accumulations were coming up short. The 2004 survey shows some progress but most of the problems persist." (Center for Retirement Research at Boston College)
Solving the Problem of Employer Stock in 401(k)s - 2/28/2006
Excerpt: "Any practical solution to the dangers posed by pension investments in employer stock must preserve the benefits and incentives that encourage employers to maximize the amount they may contribute to employee retirement funds. Equity securities consistently have outperformed other types of investments over any lengthy period of time. Laws that discourage employees from maximizing their investment returns make no sense." (PLANSPONSOR.com: one-time registration required)
Making Risk Tolerance Questionnaires Mandatory for 401(k) Plans - 2/25/2006
Excerpt: "Filling out a risk tolerance questionnaire for an investment client is the first step in the building of an investment portfolio. Without this knowledge you cannot, with good ethics, recommend any investment to a client. How does this work in the 401k world with our plan participants and their investments?" (401khelpcenter.com)
Executive Remuneration Perspective: SEC to Overhaul Executive Pay Disclosure - 1/20/2006
Excerpt: "Although the proposals are unlikely to be adopted until later this year, they are accompanied by several interpretations of the current disclosure rules (particularly the rules governing perquisites disclosure), which will likely affect the form and content of corporate disclosures in the upcoming proxy season." (Mercer Human Resource Consulting LLC and Mercer Investment Consulting, Inc.; one-time registration required)
Baby Boomers Demand New Definition of Retirement - 1/18/2006
Excerpt: "This month, the baby boomers ... will turn 60. That leaves a mere two years before they are eligible to start collecting Social Security, and just five years before they can flash their Medicare cards in the doctor's office. By 2030, when the gang will be over 65, the baby boomers could sink the body politic in a sea of red ink. But the graying of America may not be the fiscal disaster that the deficit hawks project." (Los Angeles Times via Salt Lake Tribune)
Boomers are about to find out whether their 401(k)'s are such a sweet deal - 1/16/2006
Excerpt: "[O]lder baby boomers, the first generation to have climbed the corporate ladder in the 401(k) era, are just now turning 60. This means that boomers have only begun the long and anxious transition from work life to retirement. And since many boomers are expected to live well into their 80s, it's too early to say whether 401(k)'s have encouraged a sufficient level of saving to fund a full--and fulfilling--retirement." (U.S.News & World Report)
Make 2006 the Year to Really Review Your Company 401(k) Plan - 1/15/2006
Excerpt: "Each year, thousands of companies go through weeks of arduous reviews of their health insurance, working diligently to stave off 15% to 20% increases in their rates. However, when it comes to reviewing their 401(k) plans, many companies simply don't do it or perform perfunctory review addressing only obvious problems." (Employee Benefit News)
Working Paper: The Inattentive Participant-- Portfolio Trading Behavior in 401(k) Plans - 1/15/2006
Excerpt: "Using a rich new dataset on 1.2 million workers in over 1,500 plans, we find that most 401(k) plan participants are characterized by profound inertia. Almost all participants (80%) initiate no trades, and an additional 11% makes only a single trade, in a two-year period." (University of Michigan Retirement Research Center)
Existence of a Match Is Number One Driver for Participation by Employees in Their Company's 401(k) - 1/12/2006
Excerpt: "While simplified investment choices can boost employee participation in a 401(k), nothing meets that goal as well as a robust cash or stock contribution that matches part of what the employee saves." (CFO.com)
More Employers Likely to Freeze Defined Benefit Plans, According to Hewitt Survey - 1/10/2006
Excerpt: "Nearly one-third of employers with traditional final-pay plans responding to a Hewitt Associates Inc. survey said it was either 'very likely' or 'somewhat likely' in 2006 that they would no longer allow new employees to participate in the plans." (Business Insurance)
How Well Are Employees Saving and Investing in 401(k) Plans -- 2005 Universe Benchmarks (PDF) - 1/5/2006
4 pages. Excerpt: "Highlights from a comprehensive study of how employees benefit and fail to benefit from 401(k) plans. The results of this study can be used by plan sponsors as a benchmark to shape plan stricture and target communication." (Hewitt Associates)
Another Question is Answered in the Who's the Employer Q&A Column - 12/7/2005
Corporation A sponsors a qualified plan that excludes the employees of Corporation B (a member of the controlled group with A corporation) from participation. Do the employees of B count against the plan in coverage testing, even if they have not completed the Year of Service required by the plan? (BenefitsLink.com)
Ways and Means Committee Chairman's Amendment Summary of the Pension Protection Act, H.R. 2830 - 11/8/2005
This article provides the Chairman's summary of the pending act. (House Ways and Means Committee via American Benefits Council)
Senate-Passed Pension Bill Encourages Automatic Enrollment for 401(k) Plans - 11/7/2005
2 pages. Excerpt: "In an effort to ensure that their employees are adequately investing funds for their retirement, more and more companies are interested in automatic enrollment in their 401(k) plans, in which employees are presumed to participate in the plan unless they opt out of participating." (HR Policy Association)
New Study Examines Behavior of Defined Contribution Plan Participants - 10/31/2005
Excerpt: "The new study, How America Saves 2005: A Report on Vanguard 2004 Defined Contribution Plan Data, provides detailed information on how plan participants save, invest, and manage their defined contribution (DC) accounts. (Vanguard Center for Retirement Research)
Employees need 401(k) advice now - 10/24/2005
"Although both houses of Congress are close to passing bills that would provide for advice, the bills will be difficult to reconcile. The House bill would allow the firms that service the 401(k) plans for employers, such as mutual fund companies and brokerage firms, to provide the advice as part of their services." (InvestmentNews.com)
Retirement of Aging Workforce May Reduce Company Talent and Strain Defined Contribution Plans - 9/15/2005
Excerpt: "When employees retire, most [move assets] into their own retirement accounts .... This hasn't been a worry for most employers, since there were always new hires to pour more money into the [plan]. However, retiring baby boomers will change the hydrodynamics of many plans, because there will be more money flowing out of the plan than into it - a problem known as leakage. Sponsors are taking note of leakage because the key metric to determine the plan costs is assets under management." (Employee Benefit News)
Roth 401(k) in 2006? Not That Likely -- Employers Not Rushing to Offer New Retirement Design - 9/6/2005
Excerpt: "[D]on't count on your employer providing the retirement benefit, at least not in 2006. Few companies are rushing in. Many are waiting to see how the few firms who do provide the perk fare, and whether employees embrace it." (MarketWatch)
Only 13% Of Those Age 50 And Older Made Catch-Up Contributions In 2004 - 9/6/2005
Excerpt: "According to a survey recently conducted by the Vanguard Center for Retirement Research, only 13% of those eligible to make catch-up contributions to qualified retirement plans and individual retirement accounts made those contributions in 2004. The survey covered more than 2.6 million participants in nearly 2,000 defined contribution plans administered by the investment firm." (Spencer Benefits Reports)
Using the Same Outsourcer for DB and DC Plans Can Benefit Both Employers and Employees - 9/1/2005
Excerpt: "The idea that companies should focus on their core businesses and let others handle the peripheral chores is not new. Nor is the notion of streamlining systems to boost efficiency. But put those two ideas together, apply them to retirement benefits, and you have TRO -- the practice of outsourcing both DB and defined contribution (DC) plans with the same outsourcing provider." (Treasury & Risk Management)
Time Is Ripe for 401(k) Sponsors to Revisit Provider and Recordkeeper Contracts - 6/7/2005
Excerpt: "As defined-contribution plans continue to become the retirement savings vehicle of choice for employers, competition among the record keepers servicing these plans is expected to increase. [And,] as consolidation among 401(k) plan record keepers gains momentum, it might be a good time for plan sponsors to renegotiate the fees they pay." (Workforce Management; one-time registration required)
How Do Retirement Plans Affect Employee Behavior? - 5/4/2005
Excerpt: "Recent trends in U.S. private pensions are undeniable. Over the last 25 years, defined benefit plans -- once the centerpiece of the retirement portfolio -- have lost considerable ground to defined contribution plans, which have become the primary vehicle for saving for retirement. Some analysts claim that traditional defined benefit plans are a dying breed (if not already dead)." (Watson Wyatt Worldwide)
Coming to a 401(k) Near You: Automatic Enrollment - 5/3/2005
Excerpt: "Getting employees to contribute to employer-sponsored retirement-savings programs has been a vexing problem for companies in recent years. Stung by losses in the bear market that followed the bursting of the dot-com bubble, workers aren't keen at putting money into a system that seemingly causes them to lose -- not save -- money." (The Journal News)
The Profit Sharing / 401k Council of America Shows Support for Bingaman's Automatic Enrollment Bill - 4/25/2005
Excerpt: "The Profit Sharing / 401k Council of America (PSCA) has come out in support of recently proposed legislation that encourages retirement plans with automatic enrollment and contribution increases. Introduced by US Senator Jeff Bingaman (D-New Mexico) the legislation supports and encourages defined contribution plans that include both automatic enrollment and an automatic increase in a participant's savings rate, unless the participant elects otherwise." (PLANSPONSOR.com; one-time registration required)
2004 Annual 401(k) Benchmarking Survey Results Show Increased Employee Participation (PDF) - 4/1/2005
34 pages. Excerpt: "For the fifth consecutive year, Deloitte Consulting LLP's Human Capital practice, in conjunction with Pensions & Investments magazine, has conducted its Annual 401(k) Benchmarking Survey. The survey results present the responses of human resources and benefits executives from 426 plan sponsors across the country regarding their 401(k) plans." (Deloitte Consulting and Pensions & Investments)
Employers Need to Light Matches Under 401(k)-Wary Workers Before It's too Late (PDF) - 3/16/2005
Excerpt: "When it comes to 401(k)s, employees don't seem to want to make many decisions, including whether to enroll or raise their contributions. Baby boomers have been some of the worst offenders, yet can least afford to ignore their retirement plans. In fact, a recent study by Guardian Life Insurance Co. found that, while 80 percent of boomers are concerned about having enough income during retirement, exactly half say they aren't sure how much money they will need." (WorkIndex.com via Human Resource Executive)
Survey: 2005 Emphasis is Driving Plan Participation - 2/3/2005
Concerned that too many of their workers won’t have enough to live on when they retire, employers are greeting the New Year with stepped-up education efforts and steps to ease joining their savings plans. Located at: Plansponsor.com. Click on headline for full article.
401(k) Plans: Boosting Participation and Participant Contributions - 2/2/2005
For many workers today, 401(k) plans are their primary retirement savings vehicle. Are American workers making the most of their 401(k) plans? Unfortunately, most of them are not. One-quarter of eligible workers choose not to participate in their employer’s 401(k) plan, and, of those who do participate, less than 10 percent contribute the maximum. There clearly is plenty of room for improvement, in terms of both participation and contributions. Located at: Watson Wyatt Worldwide. Click on headline for full article.
Hewitt Survey Finds Employer Concern Over Inadequacy Of Employees' Retirement Saving - 2/2/2005
As many employees continue to underutilize their 401(k) plans, companies are becoming increasingly concerned that their employees are not up to the challenge of assuming responsibility for their own retirement savings, according to a survey recently conducted by Hewitt Associates. To address these concerns, employers are stepping up their efforts in 2005 to educate and make it easier for employees to effectively participate in their 401(k) plans. Located at: Aspen Publishers. Click on headline for full article.
How to Retain Those Key Employees - 12/17/2004
Summary: By educating your employees, you help them become healthy, wealthy and wise... not to mention loyal! Located at: 401khelpcenter.com. Click on headline for full article.
IRS To Stop Abusive Nondiscrimination Schemes - 11/18/2004
Summary: The IRS Employee Plan News, November issue, reports that Carol Gold, Director of Employee Plans recently issued an internal memorandum regarding abusive plan designs that make use of allocations to short service employees to satisfy nondiscrimination requirements applicable to cross-tested plans. This memorandum was addressed to IRS agents monitoring determination letter applications and plan audits. Located at: McKay Hochman. Click on headline for full article.
Year-end Review for Plan Sponsors and Administrators - 11/18/2004
Summary: Mellon has prepared a year-end review for plan sponsors and administrators. They have compiled a list of changes made by recent laws and regulatory pronouncements, as well as unfinished business in Congress, that affect employee benefit plans. Some of these items may require employer action, including plan amendments. Located at: Mellon (PDF file). Click on headline for full article.
RESEARCH: Why Don't Americans Save???? - 11/1/2004
Summary: Data shows a major portion of the fall in saving can be traced to lower rates of growth of pension plans. Saving outside of the formal retirement accounts has also declined significantly. Located at: Center for Retirement Research at Boston College (PDF file). Click on headline for full article.

Please note that Westminster Financial is not responsible for the information contained on any listed web site(s). The site(s) is/are provided to you for informational purposes only. Information you send us over Internet e-mail could be viewed by persons other than the intended recipients. All market prices, data and other information in this communication are not warranted as to completeness or accuracy and may be subject to change.

To learn more about
Westminster Consulting.
 

Click here to
to our newsletter.
To learn more about Westminster
and the services that we offer.
Copyright © 2010   Westminster Financial, LLC. All Rights Reserved. Legal Statement. Privacy Policy. Send Feedback.