November 9, 2009 (PLANSPONSOR.com) – Heavy equipment manufacturer Caterpillar Inc. has agreed to a $16.5-million settlement of an excessive fee lawsuit in federal court in Illinois.
A company newsletter said the September 2006 suit leveled the fiduciary breach charges against Caterpillar regarding its four 401(k) plans for workers and retirees.
Continue reading “Caterpillar Ready to Ink $16.5M Fee Suit Settlement” »
Nevin E. Adams, JD
October 26, 2009 — This week a Senate committee will once again take up the topic of target-date funds. —
U.S. Senator Herb Kohl (D-Wisconsin), chairman of the Senate Special Committee on Aging, today released a report by the U.S. Government Accountability Office (GAO) examining the effect automatic enrollment has on 401(k) participation and retirement savings (see GAO Says Automatic IRA no Silver Bullet), and also announced panelists for a hearing titled, “Default Nation: Are 401(k) Target Date Funds Missing the Mark?”
Continue reading “Senate Hearing Asks, Are Target-Date Funds Missing the Mark?” »
Fred Schneyer
October 27, 2009 — Despite the Wall Street turmoil and the economic downturn, the number of employees joining 401(k) plans serviced by Charles Schwab actually increased. —
A Schwab news release said participation rates in its 401(k) plans jumped from 73% at the end of 2007 to 77% a year later with the stepped-up rates seen in all plans—particularly at small- and mid-sized employers. Auto-enrolled plans went from 77% to 84% by year-end 2008.
Continue reading “401(k) Participants Hung in during Downturn” »
Posted by: on October 28
According to a 2007 U.S. Labor Dept. survey, 68% of small business owners feel unprepared for retirement and just 42% maintain a retirement plan. Here are four frequently overlooked tips about retirement plans for plan sponsors and their advisors.
Continue reading “What Sponsors and Advisors Should Know About Retirement Plans” »
By Doug Halonen
October 5, 2009, 3:44 PM ET
Participants in 403(b) plans are more likely to pay higher fees than those in other kinds of defined contribution plans, in part because 403(b) plans don’t have the resources to hire retirement plan specialists, according to a GAO report.
While not providing any data comparing fees paid by participants in different kinds of DC plans, the Government Accountability Office report, based on GAO interviews with DC plan experts, said sponsors of 403(b) plans generally take fewer actions to decrease participant fees than sponsors of other kinds of DC plans.
Continue reading “GAO: Higher fees more likely in 403(b) plans” »
Rebecca Moore
October 05, 2009 — A U.S. Government Accountability Office (GAO) report suggests that if federal regulators gather more information from certain types of retirement savings plans and issue more guidance about plan sponsor involvement, it could result in participants paying lower fees. —
Continue reading “More Oversight Could Lower Fees for Participants” »
Fred Schneyer
October 02, 2009 — Despite the ongoing economic turmoil, a poll taken for National Payroll Week found that the majority of those polled have not disturbed their 401(k) deferrals since September 2008. —
Continue reading “Employees Kept Hands off 401(k) in Downturn” »
It was most fitting that immediately below the jump of Brian O’Connor’s essay on the “horrors” of 401(k) plans (“Workers discover 401(k)s are failing them in retirement,” Sept. 28) was an Associated Press piece, “Job losses push Social Security toward deficits for 2010, ’11.” Readers should find that article much more chilling than O’Connor’s essay. After all, if you can’t count on the government being there for you after a self-indulgent life, on whom can you count?
Continue reading “Rebuttal: 401(k)s more sound than Social Security” »
Rebecca Moore
September 30, 2009 — Four-in-10 surveyed New Jersey plan sponsors use a financial adviser to help educate employees, while 33% do not provide any help in educating employees regarding their 401(k) plans. —
The survey by O’Meara Financial Group also found New Jersey’s economy has affected retirement plan participation rates and employer contributions. A release of the study results said 14% of the New Jersey employers surveyed have experienced an increase in retirement plan participation, while 35% have seen a decrease. More than a third (35%) of respondents said they have added automatic enrollment to their plans.
Continue reading “NJ Companies See Lower Retirement Participation Rates” »
Rebecca Moore
September 30, 2009 — An Aon Consulting survey indicates employers are taking a wait-and-see approach before changing their retirement programs. —
Aon Consulting surveyed 1,313 employers nationwide in its 2009 Benefits & Talent Survey and found that more than 90% are not changing their retirement programs, in terms of benefits or management.
Continue reading “Employers Put Retirement Plan Changes on Hold” »